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Development indicators Gianni Vaggi and Clara Capelli University of Pavia November 2013 The Human Development Index.

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Presentation on theme: "Development indicators Gianni Vaggi and Clara Capelli University of Pavia November 2013 The Human Development Index."— Presentation transcript:

1 Development indicators Gianni Vaggi and Clara Capelli University of Pavia November 2013 The 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 peopl e’ 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 Three dimensions Health and Longevity: Life expectancy Index Knowledge and Education: Education Index Standard 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

6 Source: HD Report, 2007/8

7 How to calculate it/After 2010 Life expectancy at birth; Mean years of schooling and expected years of schooling; Natural Logarithm of GNI per capita at PPP.

8 Source: HD Report, 2010 Economia dello Sviluppo

9 How to calculate it/After 2010 Economia dello Sviluppo

10 Source: HD Report, 2011 Economia dello Sviluppo

11 Human Development Index

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 = 0.493 (+5.57%); Geometric Mean = 0.429 (+3.125%). Change of 10% in the life education index (it gets 0.33): Arithmetic Average = 0.477 (+2.14%); Geometric Mean = 0.429 (+3.125%). Economia dello Sviluppo

14 Source: HD Report, 2011

15 Source: HD Report, 2013

16 Very high HDI 1Norway0.955 2Australia0.938 3USA0.937 4Netherlands0.921 5Germany0.92 6New Zealand0.919 7Ireland0.916 8Sweden0.916 9Switzerland0.913 10Japan0.912 Source: HD Report, 2013

17 Low HDI 1Gambia0.439 2Djibouti0.445 3Zambia0.448 4Uganda0.456 5Haiti0.456 6Yemen0.458 7Togo0.459 8Lesotho0.461 9Nepal0.463 10Papua New Guinea0.466 Source: HD Report, 2013

18 198019902000200520102012 55Russia0.7300.7130.7530.7820.788 57Saudi Arabia0.5750.6530.7170.7480.7770.782 59Cuba0.6260.6810.6900.7350.7750.780 71Venezuela0.6290.6350.6620.6940.7440.748 76Iran0.4430.5400.6540.6850.7400.742 85Brazil0.5220.5900.6690.6990.7260.730 101China0.4070.4950.5900.6370.6890.699 112Egypt0.4070.5020.5930.6250.6610.662 114Philippines0.5610.5810.6100.6300.6490.654 121Indonesia0.4220.4790.5400.5750.6200.629 135Ghana0.3910.4270.4610.4910.5400.558 136India0.3450.4100.4630.5070.5470.554 145Kenya0.4240.4630.4470.4720.5110.519 186RDC0.2860.2970.2340.2580.2950.304 Source: HD Report, 2012 Economia dello Sviluppo

19 Source: HD Report, 2013

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22 HDI vs GDP

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24 HDI and GDP per capita

25 Source: HD Report, 2013

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 Indices Happy Planet Index (HPI); Gross National Index (GNH); Living Planet Index (LPI); Physical Quality of Life Index (PQLI); Genuine Progress Indicator (GPI).

30 Other reports Stiglitz, 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, www.ophi.org. www.ophi.org Helliwell, J., Layard, R. and Sachs, J. (2013), World Happiness Report 2013, New York, Earth Institute. UNU-IHDP and UNEP, Inclusive Wealth Report 2012. Measuring progress towards sustainability, Cambridge University Press, Cambridge.

31 Source: HD Report, 2013 Economia dello Sviluppo

32 Source: HD Report, 2013 Economia dello Sviluppo


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