Presentation on theme: "The Human Development Index"— Presentation transcript:
1 The Human Development Index Development indicators Gianni Vaggi and Clara Capelli University of Pavia November 2013The Human Development Index
2 1990 Human Development Report (Mahbub Ul Haq, Amartya Sen et al) Development goes beyond economic growth, encompassing human well-being: Human development is a process of enlarging people’s choices.;The term human development denotes both the process of widening people’s choices and the level of their achieved well-being:Deprivation in income;Deprivation in life expectancy; Deprivation in literacy.Focus on the formation of the capabilities and their use.Economia dello Sviluppo
3 Health and Longevity: Life expectancy Index Three dimensionsHealth and Longevity: Life expectancy IndexKnowledge and Education: Education IndexStandard of living: Income Index.Economia dello Sviluppo
4 How to calculate it/Before 2010 Life expectancy at birth;Adult literacy rate (2/3) and the combination of primary, secondary, and tertiary gross enrollment ratios (1/3);Natural Logarithm of GDP per capita at PPP.Economia dello Sviluppo
5 How to calculate it/Before 2010 Economia dello Sviluppo
12 Why these changes?Indicators for education were regarded as not that informative;GNI is more accurate, as it includes international flows and excludes income generated domestically but repatriated abroad;The geometric mean accounts for difference in achievement across dimensions, reducing the level of substitutability between dimensions and ensuring that a x-percent change in one index has the same impact on the HDI, regardless to the index.
13 Aren’t you convinced? LEI = 0.3 ; EI = 0.3 ; II = 0.8 Arithmetic Average = 0.467; Geometric Mean = 0.416;Change of 10% in the income index (it gets 0.88):Arithmetic Average = (+5.57%); Geometric Mean = (+3.125%).Change of 10% in the life education index (it gets 0.33):Arithmetic Average = (+2.14%);Geometric Mean = (+3.125%).Economia dello Sviluppo
18 19801990200020052010201255Russia0.7300.7130.7530.7820.78857Saudi Arabia0.5750.6530.7170.7480.7770.78259Cuba0.6260.6810.6900.7350.7750.78071Venezuela0.6290.6350.6620.6940.7440.74876Iran0.4430.5400.6540.6850.7400.74285Brazil0.5220.5900.6690.6990.7260.730101China0.4070.4950.5900.6370.6890.699112Egypt0.4070.5020.5930.6250.6610.662114Philippines0.5610.5810.6100.6300.6490.654121Indonesia0.4220.4790.5400.5750.6200.629135Ghana0.3910.4270.4610.4910.5400.558136India0.3450.4100.4630.5070.5470.554145Kenya0.4240.4630.4470.4720.5110.519186RDC0.2860.2970.2340.2580.2950.304Source: HD Report, 2012Economia dello Sviluppo
26 The Human Development Index Source: HD Report, 2013
27 Some Criticisms The environmental issue is completed overlooked; National focus which neglects the "global" perspective;Only material aspects of life: what about human rights, freedom, gender equality;Debatable comparability along time.
28 Other Indices from the HDR The Human Poverty Index for developing countries (HPI-1); The Gender-Related Development Index (GDI); The Gender Empowerment Measure (GEM); Inequality-adjusted HDI (IHDI);Gender Inequality Index (GII);Multidimensional Poverty Index (MPI).
29 Other IndicesHappy Planet Index (HPI); Gross National Index (GNH); Living Planet Index (LPI);Physical Quality of Life Index (PQLI); Genuine Progress Indicator (GPI).
30 Other reportsStiglitz, J., Sen, A., Fitoussi, JP. (2008), Report by the Commission on the Measurement of Economic Performance and Social Progress.Alkire, S., Roche, J.M. and Seth, S. (2013) Multidimensional Poverty Index 2013,Helliwell, J., Layard, R. and Sachs, J. (2013), World Happiness Report 2013, New York, Earth Institute.UNU-IHDP and UNEP, Inclusive Wealth Report Measuring progress towards sustainability, Cambridge University Press, Cambridge.