INDIA HUMAN DEVELOPMENT REPORT 2011 TOWARDS SOCIAL INCLUSION To the Members of Parliament 26 th April 2012 Institute of Applied Manpower Research Planning Commission 1

Structure of the Presentation  Conceptual Framework  Human Development Index  Employment, Asset Ownership, and Poverty  The Right to Food and Nutrition  Health and Demography  Education: Achievements and Challenges  Supporting Human Development: Housing, Electricity, Telephone, and Roads  Vulnerable Groups 2

Structure of the Presentation  Conceptual Framework  Human Development Index  Employment, Asset Ownership, and Poverty  The Right to Food and Nutrition  Health and Demography  Education: Achievements and Challenges  Supporting Human Development: Housing, Electricity, Telephone, and Roads  Vulnerable Groups 3

 Feedback loop model - states that human development outcomes feed back as inputs into the development process.  These feedback loops operate both at the micro (individual) as well as macro (societal) levels.  Interventions to promote human capital formation (through investments in health and education) are key requirements for economic growth to be more successful in reducing income poverty. 4

Social services inputs/ processe s Human development outcomes/outputs Knowled ge Family size Health status Nutritio nal status Healthy living conditio ns Educ ↲↲↲↲ Family Plg ↲ Health ↲↲↲↲ Nutritio n ↲↲↲ Water & Sanitati on  While shaded cells show relationship b/w an input & output variable, arrows depict feedback effects from development outcomes to inputs. 5

 Education makes an individual more aware of healthy & hygienic practices.  Education therefore can serve as an input towards better health and nutritional status which feeds back into better learning ability.  Similarly, educated parents understand importance of family planning & reduced family size which in turn feeds back into better health (both for the mother and the child) & education for all children in the family. 6

 Economic growth, human capital formation, & income poverty reduction are synergistically related such that, the impact of intervention in any one is enhanced by investments in any other (Synergy 2)  improved human capital formation, for both men and women, ensures an educated workforce that can engage in eco activities & earn better livelihoods 7

Structure of the Presentation  Conceptual Framework  Human Development Index  Employment, Asset Ownership, and Poverty  The Right to Food and Nutrition  Health and Demography  Education: Achievements and Challenges  Supporting Human Development: Housing, Electricity, Telephone, and Roads 8

India’s rank in the world in Human Development Index falls in 2011? HDI value 2011 HDI rank 2011 Gross national income per capita rank High Human Development Russia Brazil Medium Human Development Sri Lanka China South Africa India Low Human Development Pakistan Bangladesh No. of countries 187 UNDP HDR 2011: India’s rank fell from 119 in 2010 to 134 in Fall only because 18 new (tiny) countries like Antigua, Saint Tome etc. have been added this time. 9

India HDR 2011: 21% increase in HDI between 2000 and 2008: Education Index pulled up HDI, but Health Index constrains Income index based on consumption; but consumption on average is lower than income. Increase in HDI is over 30%, when Income Index is computed from per capita Net Domestic Product 10

2. Gap narrowing in HDI across states –– poorer states growing faster, their health/educ indicators improving faster – inter-state disparity falling 11

3. HD indicators for SCs, STs, OBCs & Muslims : gap narrowing with national average (though with some imp exceptions)– move towards social inclusion 12 Indicators Convergence Divergence Per capita consumption expend.SCsSTs, Muslims Unemployment rateSCs, MuslimsSTs Child labour rateSCs, STs, Muslims Female malnutrition (Body Mass Index <18.5) SCs,STs,OBCs, Muslims Infant Mortality Rate SCs, STs, OBCs, Muslims Under five mortality rateSCs, STs, Muslims Total fertility rateSC, MuslimsOBCs Child immunizationSTs, MuslimsSCs Toilet facility OBCsSCs, STs LiteracySCs, STs, Muslims Electricity for domestic useSCs, STs, OBCs

13 Sachar Committee on Muslims IHDR 2011 on Muslims Published in 2006, uses data points till Published in 2011, uses data points till 2011 IMR, U5MR both decreasing ; DIVERGENCE between national and Muslim average ( ) IMR, U5MR both decreasing ; CONVERGENCE between national and Muslim average ( ) Muslim Underweight children worse than national average ( ) Muslim Underweight children better than national average (2005-6) Muslim Fertility rate higher than national average by 0.7 in The Difference increased to 1 in Muslim Fertility rate on average higher than national average by 0.4 in , and CONVERGING Muslim Literacy rates in rural (6 % points) & urban areas (10 % points) below the national avg in 2001 Muslim Literacy rate CONVERGES with national avg in , i.e., gap narrows : rural (3.5 % points) & urban (8.5% points) 1.Gaps narrowing b/w Muslim & national average i.e. improving conditions of Muslims. 2. Muslims are consistently better than SCs & STs for all HD indicators 3. Muslims absolute level still lower compared to national avg (except IMR, U5MR)

For most HD input & outcome indicators Muslims have better indicators than SCs & STs – but absolute levels for all 3 worse than rest of society 14 IndicatorsSCSTMuslimsAll Groups Literacy Malnutrition among Women (BMI<18.5) Underweight Children Pucca Housing No toilet facility Electricity for domestic use IMR U5MR TFR Child Immunization

Geographical Concentration of SC, ST, and Muslim Population  Bihar, Chhattisgarh, Jharkhand, M.P, Orissa, Rajasthan, West Bengal, U.P – account for  56% of SCs  56% of STs  58% of Muslims  These States account for 66% of poor in the country in

In most indicators SCs and STs in LWE states are not only performing worse than national average but also worse than their national counter parts 7 LWE StatesAll India SCSTAllSCSTAll BMI<18.5 (Female) U5MR No latrine Literacy( R ) Pucca House Electricity Naxal states : Bihar, Orissa, AP, MP, Jharkhand, Chhattisgarh, WB

4. States doing well do it across the board – for all social groups  SCs in Delhi and Kerala have higher literacy rates than the upper castes in Bihar and Rajasthan  SCs in Tamil Nadu in most health indicators are better than upper castes in UP  But in central and eastern belt – with concentration of SC and ST population, for most indicators, latter doing worse than  State average  SC/ST average in India  This highlights importance of good governance and social mobilization by state governments  Basic service delivery as an area of potential policy consensus 17

Structure of the Presentation  Conceptual Framework  Human Development Index  Employment, Asset Ownership, and Poverty  The Right to Food and Nutrition  Health and Demography  Education: Achievements and Challenges  Supporting Human Development: Housing, Electricity, Telephone, and Roads 18

Poverty (Tendulkar line): number of Poor and incidence of Poverty are declining Poverty (Tendulkar line): number of Poor and incidence of Poverty are declining Source: NSS ,

SC Poverty rate is declining faster than the national average (URP) 20

Rising wages in both rural and urban India  Casual wages in both rural and urban areas increased significantly between and (Rs.) 21

Consistent rise after in monthly per capita consumption expenditure (Rs) 22 Note: Figures in brackets indicate Compound Annual Growth Rate

Despite achievements, problem areas remain:  Employment not growing in industry or services  Nutritional outcomes not improving or no data  Health outcomes improving too slowly  Sanitation is the worst in the world  Education levels extremely low for a emerging market economy  SC, ST, Muslims have absolute levels of indicators that are still the worst  These problems concentrated in northern & eastern states where these communities are concentrated 23

Employment: Declining Unemployment but…  Unemployment (current daily status) declined from 8.2% in to 6.6% in  But only 2.8 mn new jobs – not growing in manfg and services, falling in agriculture:  Absolute decline in agri emp by 14 mn during  But for the decade, still increase of 7 mn  Structural transformation towards productive employment?? 24

 Manufacturing employment increased only by 6.7 million in the last decade (from 44 million in to 50 million in )  Absolute decline in mfg employment by 5 mn in the 2nd half of the decade  Approach Paper 12 th Plan & National Manufacturing Policy targeting 100 million by 2022?  27 mn new jobs in non-mfg industry (due to 26 mn in construction) during the last decade (from 21 million in to 48 million in ) 25

 Rise in service employment from 94mn in to 112 million in , but only to 116 million in (3.5 million increase)  Most of the increase been due to services like transport, banking & insurance, computer & related activities, business management & consultancy services 26

Despite Increase in share of organised sector employment (14-18%): Rising informalization Share of informal employment in organized sector has risen from around 1/3 in to just under 2/3 in Employers in organized sector increasingly hire on contract Source: NSS emp-unemp rounds 27

Structure of the Presentation  Conceptual Framework  Human Development Index  Employment, Asset Ownership, and Poverty  The Right to Food and Nutrition  Health and Demography  Education: Achievements and Challenges  Supporting Human Development: Housing, Electricity, Telephone, and Roads 28

 India is the worst performer in terms of low birth weight  Small mother gives birth to small children.  Gender Discrimination through life cycle Small Mother

India has the highest underweight children among the BRIC and SAARC Countries Inadequate access to food+ Lack of education of mother + Poor Sanitation + Unsafe Drinking Water Underweight children Percentage of Underweight Children

Among the industrial states, Gujarat has a very high incidence of malnutrition among SC and ST women Gujarat fares the worst in terms of overall hunger and malnutrition Percentage of Women with BMI<18.5

1/3 rd Indian women underweight SCs and STs diverge from the national average Worsening of adult female malnutrition for Muslim MALNUTRITION: Percentage of adult women with Body Mass Index<18.5 for SC, ST, & Muslims worse than & not improving compared to national average (“important exception”) Source: NFHS- 2and 3 32

Policies to Address Nutritional Problems 1. Near universalization of ICDS Programme But focus should shift to children below three years, pregnant women, and adolescent girls - ICDS 35 years old – but without this focus still Withdrawal of hot-cooked meals in UP, Karn, Guj – in violation of Supreme Court 33 Reform PDS – but progress remains slow on National Food Security Bill No “Ministry of Nutrition” – so PM’s Nutrition Council in need of revival

Structure of the Presentation  Conceptual Framework  Human Development Index  Employment, Asset Ownership, and Poverty  The Right to Food and Nutrition  Health and Demography  Education: Achievements and Challenges  Supporting Human Development: Housing, Electricity, Telephone, and Roads 34

HEALTH: Infant mortality rate - Gap of SCs, STs & Muslims with national average narrowing  From 80 /1000 IMR in 1990, IMR down to 50 in But still far behind MDG target 26.7 by 2015 – health index improved slowly  Lower IMR Lower TFR 35 Source: NFHS 2 & 3

Replacement level of Total Fertility Rate reached  9 major states achieved the replacement level of TFR (2.1) - states with functional PHCs  Unless public health system improves, the population growth rate can not be reduced Source:RGI StatesTFR TFR 2008 Kerala Tamil Nadu Andhra Pradesh Punjab West Bengal Himachal Pradesh Delhi2 Karnataka2.62 Maharashtra2.82 Jammu & Kashmir2.2 Orissa Gujarat Haryana Assam All India* Chhattisgarh3.1 Jharkhand3.2 Madhya Pradesh Rajasthan Uttar Pradesh Bihar4.53.9

Total fertility rate  India could achieve replacement rate TFR 2.1 by 2015 – but “unmet need” for contraception over 30% in 4 States – NRHM must focus attention  Migration out of UP, Bihar, MP, Raj will rise 37

Total Fertility Rate: Narrowing gaps in case of SCs & Muslims  Maximum fall in fertility rate experienced by Muslims along with a sharp increase in Contraceptive Prevalence Rate 38 Source: NFHS 2 & 3

Rise in institutional deliveries leads to lower Maternal Mortality Rate  Rise in institutional deliveries (from 39% to 78%, ) post NRHM & JSY resulted in decline of MMR – fall of 89 points in 6 years  But to achieve 11 th Plan target of MMR of 100 by 2012, a further reduction of 28 per 100,000 per year is needed  Highest MMR in poorer states with lowest levels of institutional delivery – need more rural doctors/para medics needed in 8 EAG NRHM states 39 Source: RGI 2011

Highest MMR in poorer states with lowest levels of institutional delivery – need for ASHA, ANM, AWW to focus on these states within NRHM Source: NFHS 3 (2006) & RGI 2011 (MMR-2008) 40

Replicate best practice in high focus States of other States to attract health providers to rural areas Rural recruitment  TN: introduced reservation policy in higher educ. Consequently, cadre of doctors from small towns willing to work in PHCs in villages at commuting distance  Because 15% of seats for medicine courses reserved for rural schools. Increases retention of medical officers (with rural background) in rural areas since there will be no resistance.  Also doctors recruited on zonal basis  Chhattisgarh: 3 yr degree in Rural Health Care in – called Rural Medical Assistant to eliminate vacancies for medical officers; Miny of Health support for each State to replicate 41

& enable drug procurement  Essential drugs at affordable prices in public health system  To strengthen logistics management sys of healthcare, TN Medical Services Corporation established in Jan’95.  Apex body for purchase and distribution of generic essential drugs for govt medical centres 42

Open defaecation in India – worst in world  Nutritional/health outcomes cannot improve if OD continues  58% of all persons in the world defecating in open, live in India  Improvement in households with access to sanitation facilities from 40 % in 2002 to 51 % in Source: NSS 2002,

Poor sanitation concern for rural areas, but consequences equally serious in urban  Toilet availability in urban India, but density of population in India 10 times greater than Africa, hence in urban areas open defaecation spreads infection faster 44 Source: NSS 2002,

But toilets built under Total Sanitation Campaign put to other uses – TSC redesign needed  In villages winning Nirmal Gram Puraskar (“Open Defaecation Free”), toilets often used for storing, bathing & washing purposes  Design problem with TSC: Rather than subsidy for construction of toilets, need for creating effective demand for sanitation through community participation – e.g. HP & Haryana  A complete redesign of MORD’s Total Sanitation Campaign is needeed 45

Lessons from Himachal Pradesh  HP  Adopted a participatory innovative approach called Community Led Total Sanitation (CLTS) for creating effective & sustainable demand for sanitation under TSC  It engages people in analysis of their existing sanitation situation through triggering exercises leading to collective local action to clean up & sanitize surroundings to put end to OD & adopting safe solid & liquid waste mgt practices  CLTS training involved triggering initially (2006) some 200 villages with arnd 50 natural leaders from grass root levels 46

Lessons from Haryana  Haryana  Again CLTS approach followed by empowering local communities to end OD & build toilets without any external subsidies.  District Rural Development Agency (DRDA) works on capacity building & identifies village motivators assigned 300 hhs to encourage proper sanitation & hygienic practices.  Targeted women to inform about TSC & families about low cost options for building toilets. 47

Structure of the Presentation  Conceptual Framework  Human Development Index  Employment, Asset Ownership, and Poverty  The Right to Food and Nutrition  Health and Demography  Education: Achievements and Challenges  Supporting Human Development: Housing, Electricity, Telephone, and Roads 48

EDUCATION drove up HDI – BUT Low Mean Years of Schooling - a major challenge for inclusive growth  Adult (15 Yrs and above) mean years of schooling in 2010 were 5.12 (India), 8.17 (China), 6.24 (Indonesia). Source: NSS , & Note: for 7 years and above

Fulfillment of provisions of RTE Act, 2009 remains major challenge – Implementation of RTE in Bihar & UP require 50% of total finances (additional from 1.5 lac cr) needed for the country Indicator Norm as per RTE Act, 2009 Reality (2007-8) Pupil – Teacher ratio (at primary level) 3047 (U.P – 76, Bihar – 68) Number of classroom One classroom for one class in all schools 9% of schools were one classroom schools Girls’ Toilet School building should have separate toilet facilities for boys and girls Half of the schools did not have separate toilets for girls Drinking Water School building should have safe drinking water facility 87 per cent schools have drinking water facility 50

Policy: “Low-hanging fruit” type actions  Pre-primary school education training for AWWs neglected ; but funds allocated in 11 th Plan Rs cr for MHRD, but not utilized  Without PSE, children unprepared for school, as they are children of functionally illiterate parents  Children also unprepared because of malnutrition  PSE can improve learning outcomes for children in earliest yrs  High teacher absenteeism (25%) – one of worst in developing world – SSA fund release shd be conditional upon teacher absenteeism improving  School Management Committee should be responsible for  Leave granting  Salary releasing 51

Addressing poor learning outcomes of children needs better Subject Content Knowledge of Teachers Well trained teachers do not go to rural areas – DIETs, BRCs, CRCs in poor shape Poor learning ability: 47% in grade V students could not read grade II text (ASER 2010) Expand Online teacher training system Block HQ already have 256 kbps optical fibre – start using this network today Village level whole country coverage coming: 3G coming with optical fibre network, OR within 2 yrs National Optical Fibre Network operational Use of Technology lectures broadcast in multiple languages in classrooms local teachers interact with expert teachers and play local coordinator role Adult Literacy – Total Literacy Campaign 52

Towards Adult Literacy – Technology-based solution for 26% Illiterates of India  Poor & illiterate people need to learn 500 words for daily functional needs  Writing often discourages adult learners, and so focus on functional literacy:  reading through graphic recognition of 500 words  sound pattern  inferential feeling & sensation  Programme launched in year 2000 and has 250 active centres  1,20,000 people became literate through this programme – universalization needed 53

Structure of the Presentation  Conceptual Framework  Human Development Index  Employment, Asset Ownership, and Poverty  The Right to Food and Nutrition  Health and Demography  Education: Achievements and Challenges  Supporting Human Development: Housing, Electricity, Telephone, and Roads  Vulnerable Groups 54

Housing: 2/3 Indians now reside in pucca houses  2/3 Indians now reside in pucca houses compared to less than 50% in 2002  Large inter state variations in housing conditions  Around 95 % hhs reside in pucca houses in Delhi & Haryana compared to around 40% in Chhattisgarh & Orissa 55

Steep rise in hhs with access to electricity  Rise from 64 % to 75 % in percentage of hhs with electricity for domestic use b/w 2002 –  But Large inter state variations  HP 98 % is the best State, while Bihar 31 % has lowest proportion in India 56

Rural-Urban convergence in hhs with access to elec  Still about 1/3 rural households do not have access to electricity for domestic use in  China had ensured 94 per cent of rural households had electricity by 1991 through off grid distribution 57

SCs & STs converging with national avg for hhs with electricity for domestic use 58

Structure of the Presentation  Conceptual Framework  Human Development Index  Employment, Asset Ownership, and Poverty  The Right to Food and Nutrition  Health and Demography  Education: Achievements and Challenges  Supporting Human Development: Housing, Electricity, Telephone, and Roads  Vulnerable Groups 59

Disabled  Magnitude  Official estimates of disability in India is around 2 percent  Estimates using more inclusive definitions suggest a higher incidence of disability (of at least 5-8 percent)  Number of disabled persons increased from nearly 12 million in 1981 to million in 2002 (Latest Data) 10/2/2015Ch. 8 of NHDR - Vulnerable Groups 60

Scanty Opportunities for Disabled Education  Only 45 % Literacy rate  High share of out of school disabled children  About 9 per cent of disabled completed ‘Secondary and above’ level of education Employment  Only 26 % of the disabled persons were employed  15 % Self-employed  8 % Casual Worker  3 % Regular Job  Only 10 % of the disabled females are having jobs  55 % lost their work due to onset of disability 10/2/2015Ch. 8 of NHDR - Vulnerable Groups 61

Requirements for Disabled  Lack of trained manpower  Major constraint in expanding the rehabilitation services  Very few Training Institutes  Huge Demand - Supply gap of trained personnel 10/2/2015Ch. 8 of NHDR - Vulnerable Groups 62 Source: IAMR 2009 Mismatch between Estimated Demand and Supply of Personnel in the Area of Disability

Window of Opportunity 10/2/  Youngest population (with the median age of less than 24 in 2000) – Demographic Dividend:  Compared to 38 for Europe, 41 for Japan and 30 for China  Declining ‘Dependency Ratio’  But, Second Largest aged Population of the World  Rapidly increasing share of Elderly

Ringing alarm  Increasing ‘Old Age Dependency Ratio’  In 1991 – 12.19%  In 2001 – 13.08%  Higher for female  Decreasing Work participation of Elderly  Demographic Dividend will be open till 2035  Dependency Ratio will start increasing again  Proportion of the middle age group will also decline  Only one in ten worker is covered for pension 10/2/

Looking ahead for Vulnerable Groups  For Disabled  Low opportunities of Education and Employment for disabled  Serious limitations like low coverage, lack of funds, lack of awareness programmes, non-cooperation of local authorities, loopholes in the system of selection and certification of beneficiaries, need to be removed  Services confined only to urban areas, and should penetrate rural areas as well  Policy Issues  Equal opportunities for better education and employment need to be provided  Services need to be strengthened  Need to expand services to rural areas 10/2/2015Ch. 8 of NHDR - Vulnerable Groups 65

Looking ahead for Vulnerable Groups  For Elderly  Decreasing work participation of Elderly  Demographic Dividend will be open till 2035  Only on in ten worker is covered under pension scheme  Policy Issues  Coverage of insurance need to be widened  Subsidies and transfer of public money should be increased 10/2/2015Ch. 8 of NHDR - Vulnerable Groups 66

India’s Human Development Report 2011 : Main Messages  India’s Human Development Index registers impressive gains in last decade  Developed states continue to perform while backward states performed better – inter-state inequality in HDI declining over time  SC, ST & Muslim communities show promising improvements on social parameters & convergence with national avg – a move towards social inclusion  Consumption & wages rise b/w &

India’s Human Development Report 2011 : Main Messages  2/3 hhs reside in pucca houses & 3/4 hhs have access to electricity for domestic use today  Despite Right to Education Act, school education faces challenges of quality & employability  Despite improvements, health/ nutrition / sanitation challenges are most serious 68