HUMAN DEVELOPMENT INDEX HL1 ECONOMICS HDI Report 2014

What does the cartoon say about GDP growth? Source: http://addisfortune.net/columns/human-development-must-top-economic-policy-agendas/

Evaluating an Economy / Country What’s wrong with GDP?? Which of the following activities increases GDP & Economic growth in a country? An increase in weapons/arms production. An increase in the number of casinos built in the country. An increase in tobacco production.

Human Development Index A composite indicator of development The word “composite” means several different components are used to derive a single numerical number to rank countries. It was created by Pakistan Economist Mahub ul Haq & Indian Economist Amartya Sen in 1990. It has been published ever since by the United Nations Development Program

Each of these categories has a 1/3 weight. http://buddhajeans.com/wp-content/uploads/2014/02/human-development-index-diagram-1024.png

Education Component / also called the Knowledge Component:

The Categories of the HDI & HDI Value Ranges Very High Human Development Countries must score .800 & above High Human Development Countries must score from .700 to .799. Medium Human Developent Countries must score from .550 to .699 Low Human Development Any country with a score less than .550.

Open the HDI 2014 Report, and find your country rank from the tables at the back of the Report http://hetq.am/static/news/b/2013/03/24598.jpg

HDI Table – Quick Questions Where are the dragon and the elephant on the list? Which member of the BRICS has the lowest ranking? What three countries in Latin America are considered to have “Very High Human Development”? What country really is a surprise on this list?? How many countries in Asia are in the Very High Development Category? In the low Human Development category, every country is in Africa or Asia. True or False.

What do you think vulnerabilities is referring to? Specific events?? Discussion in Pairs: The 2014 Theme is Reducing Vulnerabilities & Building Resilience. What do you think vulnerabilities is referring to? Specific events?? What is resilience? How would you build this?? http://www.ss.undp.org/content/dam/turkmenistan/img/other/tkm_HDR2014_wide.png/_jcr_content/renditions/cq5dam.web.699.470.png

HDI figures can differ significantly even in a developed country!! Which US States appear to have the highest HDI ranking? Which US States appear to the the lowest ranking? http://clatl.com/imager/width/b/slideshow/1449566/3156/human-development-index-by-state-map.jpg 3. Why do you think there are differences in the HDI between US states?

Korean Students We need your help!!. Why do you think South Korea was the country that saw the greatest improvement in HDI from 1990 to 2012? http://blogimg.goo.ne.jp/user_image/72/2d/079772f23889a20f69c19e343a1a5dce.png

What is the main message from this table? Source: HDI Report, 2014, p37

Source: http://www.statista.com/chart/2504/human-development-index/

Source: HDI Report, 2014: p160

Source: HDI Report, 2014: p164

Criticism of the HDI Index?? One of the biggest criticisms of the HDI, was the fact that it did not consider the issue of inequality with a country and between countries? What is inequality???

The Inequality Adjusted HDI (IHDI) The Inequality adjusted HDI looks beyond the average achievement of health, education and income, to show how these are distributed amount its residents. For example, if the top 10% of the population controlled 90% of the countries wealth/income, there would be a high level of inequality. The IHDI can be interpreted as the level of human development when inequality is taken into account. Some countries that rank highly on the HDI (eg: US at position 5) drop to 28, when IHDI is applied.

Source: HDI Report, 2014: p168

Source HDI Report, 2014, p40

INEQUALITY IN THE UNITED STATES Why does the US drop from 5 to 28 on the Inequality adjusted HDI? Source: http://www.humantific.com/tag/measure-of-america/

Source: HDI Report, 2014: p38

Criticism of the HDI Index: Time Lag in Collecting Data The 2014 HDI Report is still using data from 2011!! Why???? (Read below)

Criticism of the HDI Index: The Development Categories are Misleading The HDI Index classifies many developing countries as having a “High Level of Development” and this includes China, where about 700 million people live on about $2 per day. Just because people are well educated and attend school, does not mean there is a high level of development or Does it??? Do you think countries would protest if the HDI categories were renamed?

Criticism of the HDI Index Is it the best measure of development? NO, but it is better than GDP or GDI in isolation. The HDI should be viewed in conjunction with a range of other composite and economic indicators, to achieve a holistic view of a country’s relative development and economic performance.

GROUP ACTIVITY: DEVISE A NEW HDI INDEX: You (and two friends) have just been employed on trial program by the UNDP (United Nations Development Program) to devise a new/alternative index to the HDI Well it will probably need a new name!!. Try to think of 3 to 5 new indicators you would include to evaluate / assess the development of a country. Justify your inclusion of each indicator. Would every indicator have the same weight? What would you call the index? Present your findings to the panel of UNDP. Note: You are competing against the other teams for a permanent job at UNDP.

GROUP ACTIVITY: DEVISE A NEW HDI INDEX Defending Your Choices – Tough Questions from Your Opponents!! At the end of your presentation, your opponents should try to destroy / undermine your choice of indicators. They should question/challenge your selection of indicators and give some reason for this opposition. Your team will score points for arguing & challenging the opposing team.

Issues to consider??? When selecting indicators, think about the following: Would it be easier to collect data about this information in all countries? You should try to focus on indicators that relate to directly to the development/progress of people and their life opportunities. The indicators you select must be able to compared between countries.

Source: HDI Report, 2014, p35

Source: HDI Report 2014, p36

Source: HDI Report 2014, p34.

Source: HDI Report, 2014: p72

Source: Human Development Report, 2014, p26

Source: HDI Report, 2014, p82

Source: Human Development Report, 2014, p19

Source: HDI Report 2014, p61

Source: Human Development Report, 2014: p57

Source: Human Development Report, 2014, p26

Source: HDI Report, 2014: p124