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THE HUMAN DEVELOPMENT INDICES

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1 THE HUMAN DEVELOPMENT INDICES
11/19/2018 THE HUMAN DEVELOPMENT INDICES M.H. Suryanarayana IGIDR Mumbai

2 Human Development Index
11/19/2018 Human Development Index Lecture Outline Why was the HDI created? What is the Human Development Index (HDI)? What does the HDI tell us: evidence from the Human Development Report 2005. Is the HDI measure a foolproof measure of human development? 19 November 2018

3 Human Development Index
11/19/2018 Human Development Index Why was the HDI created? Limitations of GNP: GNP may grow due to sale of knives and rifles ..does not allow health of children, quality of education, or the joys of their play… For cross-country comparisons.. Assess progress in human development across countries. Assess individual development with reference to ‘well-being’ Though open to criticism, serves as a basic indicator and allows ranking of countries in terms of human development 19 November 2018

4 Human Development Index
11/19/2018 Human Development Index Why was the HDI created?, Cont… Certainly not easy to gather the relevant information for each United Nations country!! Just think of the statistics and logistics that are required to generate HDI for 177 countries!!! The HDI can signal where problems lie which are important for both country policy makers and international policy makers and agencies – this really indicates the importance of information in the modern day world and indeed the importance of information and how this is processed for resource allocation. 19 November 2018

5 Human Development Index
11/19/2018 Human Development Index What is the Human Development Index (HDI)? “The human development index (HDI) is a composite index that measures the average achievements in a country in three basic dimensions of human development: a long and healthy life, as measured by life expectancy at birth; knowledge, as measured by the adult literacy rate and the combined gross enrolment ratio for primary, secondary and tertiary schools; and a decent standard of living, as measured by GDP per capita in purchasing power parity (PPP) US dollars” (United Nations(2005): Human Development Report 2005, p. 214) 19 November 2018

6 Human Development Index
11/19/2018 Human Development Index What is the Human Development Index (HDI)? Cont… Dual dimension of HD: Formation of human capabilities: improved health, knowledge and skills Using the capabilities for productive work or leisure. HDI: concerned with the first only and measures average formation of human capabilities 19 November 2018

7 Human Development Index
11/19/2018 Human Development Index What is the Human Development Index (HDI)? Cont… Composite index measuring key dimensions of human capabilities HDI introduced in HDR of 1990, with an HDI for 1987, and has since become universally known UNDP’s annual HD report eagerly awaited globally Technically the HDI involves calculating a series of indices using primary data gathered from a number of different international agencies (e.g. UN, World Bank, ILO, IMF etc…). 19 November 2018

8 Human Development Index
11/19/2018 Human Development Index What is the Human Development Index (HDI)? Cont… Since the HDI was first published, it has gained wide recognition as a powerful tool for advocating for and monitoring human development. The HDI is constantly being monitored and trends in HDI performance are re-calculated with better information in order to provide the best picture of human development over time. 19 November 2018

9 The Human Development Indices
11/19/2018 The Human Development Indices The HDI (Human Development Index) - a summary measure of human development The GDI (Gender-related Development Index) - the HDI adjusted for gender inequality The GEM (Gender Empowerment Measure) - Measures gender equality in economic and political participation and decision making The HPI (Human Poverty Index) - Captures the level of human poverty 19 November 2018

10 Human Development Index
11/19/2018 Human Development Index What is ‘Human Development’? - process of enlarging people’s choices But choices are infinite in number and change overtime; if so, how to measure HD? - Identify the most critical choices, measure achievements in enlarging these choices, and aggregate these achievements into an index, which can be used for inter-country comparisons. 19 November 2018

11 Human Development Index
11/19/2018 Human Development Index What are the most critical human choices? - Long and healthy life - Knowledge - Decent standard of living HDR 1990: Health, Education & Income – Most critical dimensions of Human Development 19 November 2018

12 Human Development Index
11/19/2018 Human Development Index How to measure the critical dimensions? Issues related to data like measurement, collection and quality should be minimum Each indicator should be universally valued; conceptual problems should be minimum in terms of relevance and sensitivity Values of each indicator should be comparable across countries What could be such measures? Longevity: Life Expectancy at birth Knowledge: Adult Literacy rate & Gross Enrolment Ratio in primary, secondary and tertiary levels Std. of Living: per capita GDP (PPP US$) 19 November 2018

13 Human Development Index
11/19/2018 Human Development Index Statistical indicators used in HDI are life expectancy at birth adult literacy and gross enrolment in primary, secondary and tertiary levels per capita GDP (PPP US$) 19 November 2018

14 Human Development Index
11/19/2018 Human Development Index Life expectancy at birth: # of years a new born infant would live subject to the prevailing patterns of age specific mortality rates Adult literacy rate: % of people ages 15 & above capable of reading and writing (with understanding) a simple statement. Gross enrolment ratio: # of students enrolled in a level of education (irrespective of age) as a % of the population of official school age for that level. GDP (PPP US $): GDP converted US dollars at a rate of exchange that takes into account price differences across countries. 19 November 2018

15 Human Development Index
11/19/2018 Human Development Index How to aggregate when the measures differ in units & hence are not comparable? - Normalization w.r.t bounds: Normalized Score = Actual Value – Minimum Value Range Where Range = (Maximum value – Minimum value) 19 November 2018

16 Goalposts for calculating the HDI
11/19/2018 Goalposts for calculating the HDI Indicator Minimum value Maximum value Life expectancy 25 years 85 years Adult literacy 0% 100% Gross enrolment GDP per capita 100 (PPP US$) 40,000 (PPP US$) 19 November 2018

17 The HDI Calculating the HDI Dimensions: Indicators: Dimension index
11/19/2018 Dimensions: Indicators: Dimension index A long and healthy life Life Expectancy Index Being Knowledgeable Literacy & Enrolment Education Index A decent standard of living GDP per capita Index The HDI 19 November 2018

18 Calculating the HDI HDI 1/3 1/3 1/3
11/19/2018 Calculating the HDI HDI 1/3 1/3 1/3 PPP per capita income with declining weight for higher incomes Life expectancy Education 1/3 2/3 Primary, secondary and tertiary enrolment Adult literacy 19 November 2018

19 11/19/2018 The weights in the HDI The three dimensions in the HDI – health, education, standard of living – weighted equally Equal weighting is not an accident; reflects a belief that all three are equally important Assumption of substitutability – central, but sometimes forgotten 19 November 2018

20 Calculating the HDI: an example (Zambia)
11/19/2018 Life expectancy index Education index Income index HDI Literacy (2/3) Enrolment (1/3) 100% 100% 1 85 years 1 40,000 1 1 78.1 0.68 49 0.433 780 0.34 41.4 0.27 0% 0% 100 25 years (log scale) = 0.433 3 19 November 2018

21 Calculating the HDI: Afghanistan 2002
11/19/2018 Life expectancy index Education index Income index HDI Rank=173 Literacy (2/3) Enrolment (1/3) 100% 100% 1 85 years 1 40,000 1 1 44.9 0.346 0.34 822 0.36 44.5 0.33 28.7 0% 0% 100 25 years (log scale) = 0.346 3 19 November 2018

22 Calculating the HDI: Afghanistan 2005
11/19/2018 Life expectancy index Education index Income index HDI Rank = 174 Literacy (2/3) Enrolment (1/3) 100% 100% 1 85 years 1 40,000 1 1 59.3 964 0.345 0.35 0.34 43.1 0.30 23.5 0% 0% 100 25 years (log scale) = 0.345 3 19 November 2018

23 HDI Computation: Nepal 1996
11/19/2018 HDI Computation: Nepal 1996 Life Expect. ALR # yrs school GDPPC (US $ PPP) 55.0 36.72 2.25 1186 Normalized Scores Life expectancy= (55-25) / (85-25) = 0.50 Adult literacy rate: (36.72 – 0) / (100 – 0) = 0.367 # yrs. of schooling: = ( ) / (15 - 0) = 0.15 Education Index = (2/3) x (1/3) x 0.15 = 0.295 GDP : {log (1186) – log(100)} / {log(10000) – log(100)} = 0.413 HDI = (1/3) ( ) = 19 November 2018

24 11/19/2018 Calculating the HDI As for any index, the key thing is how to rank different countries – the HDI uses minimum and maximum values of average age expectancy, of average education level and of average GDP per capita (using purchasing power parity information so takes into account the cost of living in each country relative to a base currency (the $US). 19 November 2018

25 Interpretation 11/19/2018 The simple rule of interpretation of the various HDI measures is the higher the HDI the better the country. 19 November 2018

26 Advantages: Tool for advocacy Ranking of areas
11/19/2018 Advantages: Tool for advocacy Ranking of areas Tool for research (if composite measure of development is needed) More reliable tool than per capita income measures for capturing improvement in human well-being Registers potential impact of over-development Politically appropriate – focuses on social sectors, policies and achievements 19 November 2018

27 Break away from the GDP dominance
11/19/2018 19 November 2018 HDR 2004

28 Critiques: Composite indicators may hide more than reveal
11/19/2018 Critiques: Composite indicators may hide more than reveal Fundamental problem of weighting and aggregation Sometimes mixing of output and input indicators: not useful as evaluation tool No immediate uses for policy design: tailor made tools required 19 November 2018

29 Critiques: What about inequality? Can it capture policy changes?
11/19/2018 Critiques: What about inequality? Can it capture policy changes? Ranking countries – unknown uncertainties Why cap values? Why have an index at all? 19 November 2018

30 11/19/2018 Critiques: What about future generations – an environmental degradation component? Political freedoms and rights? Culture Nutritional status Uncertainty Personal security 19 November 2018

31 Critiques that have been incorporated
11/19/2018 Critiques that have been incorporated Absolute maximum and minimum values for each indicator Supplementing literacy with a second education indicator Changing the adjustment of GDP per capita 19 November 2018

32 Political freedom Political freedom index (PFI) presented in HDR 1991
11/19/2018 Political freedom Political freedom index (PFI) presented in HDR 1991 Meant to be incorporated in the HDI Caused technical and political controversy Ultimately dropped because of the difficulties of measurement 19 November 2018

33 Key data problems Literacy Conceptually and practically limited
11/19/2018 Key data problems Literacy Conceptually and practically limited Definition and collection of literacy varies widely from country to country Culturally specific: script systems and other factors vary across the world 19 November 2018

34 Key data problems GDP per capita (PPP US$)
11/19/2018 Key data problems GDP per capita (PPP US$) Based on the ICP programme, limited to some 60 countries Based on regressions for other countries Imperfect measure but certainly better than exchange rate terms Life expectancy Should measure “long and healthy life” but does not take into account health, just length 19 November 2018

35 Why has the HDI been successful?
11/19/2018 Why has the HDI been successful? HDI has become one of the best known and most used indicators of development. Despite some remaining controversies, broadly accepted and used by media, policymakers and academics What factors likely contributed? 19 November 2018

36 Policy relevance, and acceptability
11/19/2018 Policy relevance, and acceptability Underpinned by four aspects: Conceptual clarity that facilitates its power as a tool of communication Reasonable level of aggregation Use of universal criteria and variables Use of standardized international data explicitly designed for comparison 19 November 2018

37 11/19/2018 Conceptual clarity Specification of the HDI derived from a clearly defined concept: Dimensions and variables correspond to the concepts of human development Meaning of variables intuitively understandable 19 November 2018

38 Reasonable level of aggregation
11/19/2018 Reasonable level of aggregation HDI focuses on a set of universally -applicable core issues Aggregating too many issues tends to compromise analytical usefulness and policy relevance Separate indices for e.g. gender empowerment, human poverty 19 November 2018

39 Universal Acceptance Universally-relevant concepts and variables
11/19/2018 Universal Acceptance Universally-relevant concepts and variables High degree of consensus that more is better in each of the variables In contrast with e.g. election frequency, voter turnout, share of largest party 19 November 2018

40 11/19/2018 Universal Acceptance Uses data that are legitimized through the international statistical system Of course, still data problems but data have been standardized to ensure inter-country comparability 19 November 2018

41 Appropriate uses of the HDI
11/19/2018 Appropriate uses of the HDI Ordinal vs. cardinal – HDI value has a meaning but it is not intuitive and should be used carefully Ranking Example: reversals in HDI? Arguably meaningful exercise, if weights are accepted 19 November 2018

42 Year of Publication of Global HDR (Number of countries in parentheses)
11/19/2018 HDI Trend for India Year of Publication of Global HDR HDI Value HDI Rank (Number of countries in parentheses) 2005 2004 0.619 (2005) 0.595(2002) 128 (out of 177 countires) 127 (out of 177 countries) 2003 0.590 (2001) 127 (out of 175 countries) 2002 0.577 (2000) 124 (out of 173 countries) 2001 0.571(1999) 115 (out of 162 countries) 2000 0.563 (1998) 128 (out of 174 countries) 19 November 2018

43 HDI & GEI for India: Departures from UNDP Indices
11/19/2018 HDI & GEI for India: Departures from UNDP Indices UNDP-Indicators Attainments NHDR-Indicators Life Expectancy at Birth (LEB) Longevity Life expectancy at age 1 & IMR Adult Literacy Rate combined with enrolment ratio Educational attainment Literacy rate 7+ & Intensity of formal Education Real GDP per capita in PPP $ Economic attainment Per capita real consumption exp. adjusted for inequality; worker-popln. ratio in case of gender equality index 19 November 2018

44 Human Development Index for India — Combined
11/19/2018 Human Development Index for India — Combined States/UTs 1981 Value 1981 Rank 1991 Value 1991 Rank 2001 Value 2001 Rank Andhra Pradesh 0.298 9 0.377 0.416 10 Assam 0.272 0.348 0.386 14 Bihar 0.237 15 0.308 0.367 Gujarat 0.360 4 0.431 6 0.479 Haryana 5 0.443 0.509 Karnataka 0.346 0.412 7 0.478 Kerala 0.500 1 0.591 0.638 Madhya Pradesh 0.245 0.328 13 0.394 12 Maharashtra 0.363 3 0.452 0.523 Orissa 0.267 11 0.345 0.404 Punjab 0.411 2 0.475 0.537 Rajasthan 0.256 0.347 0.424 Tamil Nadu 0.343 0.466 0.531 Uttar Pradesh 0.255 0.314 0.388 West Bengal 0.305 8 0.472 All India 0.302 0.381 19 November 2018

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47 HDI – INDIA & MAJOR STATES 2001
11/19/2018 19 November 2018

48 Constant Marginal Utility of Income
11/19/2018 Constant Marginal Utility of Income Assumption: Rs 1 = 1 util at all levels Scenario I II III Citizen Income Utility A 100 200 150 B 50 Total Per capit 19 November 2018

49 Declining Marginal Utility of Income
11/19/2018 Declining Marginal Utility of Income Assumption: Rs 1 = 1 util up to Rs 100 Rs 1 = (1/2) util above Rs 100 Scenario I II III Citizen Income Utility A 100 200 150 125 B 50 Total 175 Per capit 75 87.5 19 November 2018

50 Equivalent Incomes Total 200 Equivalent Income 150 175 Scenario I II
11/19/2018 Equivalent Incomes Scenario I II III Total 200 Equivalent Income 150 175 19 November 2018

51 Engendering the HDI: GDI and GEM
11/19/2018 Engendering the HDI: GDI and GEM Attempt to explore gender dimension of human development 1995: Beijing Conference and Global HDR Gender Development Index (GDI): simple measure of inequality between men and women on components of the HDI Gender Empowerment Measure (GEM): a positive measure of progress by women in the economic, professional and political spheres 19 November 2018

52 India: Adult Literacy Rate - 1991 Census
11/19/2018 India: Adult Literacy Rate Census State Male Female Persons Andhra Pradesh 50.35 26.43 38.51 Bihar 50.30 18.47 35.13 Gujarat 69.25 41.62 55.88 Haryana 64.17 31.23 48.92 Karnataka 63.78 37.46 50.94 Kerala 92.65 83.64 88.00 Madhya Pradesh 55.91 22.86 40.02 Maharashtra 74.36 45.33 60.37 Orissa 61.96 29.69 46.10 Punjab 61.29 43.39 52.90 Rajasthan 52.54 16.89 35.53 Tamil Nadu 69.92 43.87 57.02 Uttar Pradesh 53.95 20.99 38.62 West Bengal 67.98 42.98 56.19 INDIA 61.89 34.09 48.54 19 November 2018

53 The Gender-related development Index (GDI)
11/19/2018 The Gender-related development Index (GDI) Same components as the HDI After calculating dimension index for each sex – they are combined in a way to penalize gender equality (equally distributed index) The GDI is calculated by taking the un-weighted average of the three equally distributed indices 19 November 2018

54 The Gender-related development Index (GDI)
11/19/2018 The Gender-related development Index (GDI) Formula for the equally distributed index: determines the size of gender equality in a society. In the global HDR it is set at 2. 19 November 2018

55 Goalposts for calculating the GDI
11/19/2018 Minimum Value Maximum value Indicator Life expectancy Female years years Male years years Adult literacy % % Gross enrolment % % GDP per capita $100(US) $40,000(US) 19 November 2018

56 GDI-related information: Afghanistan 2005 (Step 1: Normalized scores)
11/19/2018 GDI-related information: Afghanistan 2005 Indicators (Step 1: Normalized scores) Female Male Share of population 0.483 0.517 Life expectancy at birth 43.0 (43.0 – 27.5)/60 =0.258 43.1 (43.1 – 22.5) / 60 = 0.343 Adult literacy rate 12.6 (12.6 – 0.0) / 100 = 0.126 32.4 (32.4 – 0.0 ) /100 = 0.324 Gross enrolment 41.8 (41.8 – 0.0 ) / 100 = 0.418 73.7 (73.7 – 0.0 ) / 100 = 0.737 Estimated earned income (per capita GDP in PPP$) 478 (log(478) – log(100)) /(log(40000 – log(100))= 0.261 1428 (log(1428) – log(100)) /(log(40000 – log(100))= 0.444 19 November 2018

57 GDI-computation: Nepal 2000
11/19/2018 GDI-computation: Nepal 2000 Step 2: Education attainment index Female (2/3) x (1/3) x = 0.223 Male (2/3) x (1/3) x = 0.462 Step 3: Equally distributed indices Life expectancy index [0.483 x x ]-1 = 0.296 Education index [0.483 x x ]-1 = 0.305 Income index [0.483 x x ]-1 = 0.332 Step 4: GDI = (1/3) x ( ) = 0.310 19 November 2018

58 GDI-related information: Nepal 2000 (Step 1: Normalized scores)
11/19/2018 GDI-related information: Nepal 2000 Indicators (Step 1: Normalized scores) Female Male Share of population 0.502 0.498 Life expectancy at birth 59.8 (59.8 – 27.5)/60 =0.538 59.3 (59.3 – 22.5) / 60 = 0.613 Adult literacy rate 35.4 (35.4 – 0.0) / 100 = 0.354 65.8 (65.8 – 0.0 ) /100 = 0.658 Mean years of schooling 2.2527 ( – 0.0 ) / 15 = 0.150 4.4522 ( – 0.0 ) / 15 = 0.297 Estimated earned income (per capita GDP in PPP$) 911 (log(911) – log(100)) /(log(40000 – log(100))= 0.369 1565 (log(1565) – log(100)) /(log(40000 – log(100))= 0.459 19 November 2018

59 GDI-computation: Nepal 2000
11/19/2018 GDI-computation: Nepal 2000 Step 2: Education attainment index Female (2/3) x (1/3) x = 0.286 Male (2/3) x (1/3) x = 0.538 Step 3: Equally distributed indices Life expectancy index [0.502 x x ]-1 = 0.573 Education index [0.502 x x ]-1 = 0.373 Income index [0.502 x x ]-1 = 0.409 Step 4: GDI = (1/3) x ( ) = 0.452 19 November 2018

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62 Gender Empowerment Measure (GEM)
11/19/2018 Gender Empowerment Measure (GEM) Focusing on women’s opportunities rather than capabilities, in terms of : Political participation (% share of parliamentary seats) Economic participation (% share as in managerial and technical positions) Power over economic resources (estimated earned income, PPP US$) 19 November 2018

63 The Gender Empowerment Measure
11/19/2018 The Gender Empowerment Measure While GDI shows women’s capabilities – GEM shows womens opportunities in economic and political life 19 November 2018

64 The Gender Empowerment Measure
11/19/2018 The Gender Empowerment Measure Equally distributed equivalent percentage (EDEP) calculated for each dimension: ={[female popn. share(female index1-)] + [male popn. share(male index1-)]}1/1-, where = 2. The EDEP for political and economic participation indexed by dividing it by 50 assuming equal empowerment of the sexes GEM = simple average of the 3 indexed EDEPs 19 November 2018

65 The Gender Empowerment Measure
11/19/2018 The Gender Empowerment Measure Calculate dimension index and equally distributed equivalent percentage (EDEP) for each dimension (like GDI) For political and economic decision making divide EDEP by 50 (the ideal share women should have) N.B. For political and economic decision making EDEP can be calculated directly (as indicators are already %) NB. Only have to do the dimension index for income as the others are already scaled. 19 November 2018

66 The Gender Empowerment Measure
11/19/2018 The Gender Empowerment Measure Income is not logged in the calculation of the income index. Again = 2, for moderate penalisation of inequality Why is income not scaled: In GDI it represents contribution to basic human development – here it represents economic power – which does not follow a logarithmic course. 19 November 2018

67 GEM: Nepal 2000 Indicators Female Male Share of population 0.502 0.498
11/19/2018 GEM: Nepal 2000 Indicators Female Male Share of population 0.502 0.498 Share of participation in local elections (%) 19.3 80.7 Share of participation in professional job (%) 19.51 80.49 Share of participation in admin. Job (%) 10.62 89.5 Estimated earned income (per capita GDP PPP$) 91 1565 19 November 2018

68 GEM Computation: Nepal 2000
11/19/2018 GEM Computation: Nepal 2000 Step 1: Compute equally distributed equivalent % (EDEP) Political participation Combined share (CS) = [ x (19.3) x (80.7)-1]-1 = EDEI = / 50 = 0.621 Economic participation CS Eco. Participation= [ x (19.51) x (80.49)-1]-1 = EDEI = / 50 = 0.627 Combined shares of admin jobs [ x (10.65) x (89.5)-1]-1 = EDEI = / 50 = 0.379 EDEI for economic participation ( ) / 2 = 0.503 19 November 2018

69 GEM Computation: Nepal 2000 (contd.)
11/19/2018 GEM Computation: Nepal 2000 (contd.) Step 1: Compute equally distributed equivalent % (EDEP) Income Normalized score for women’s income = ( ) / ( ) = 0.020 Normalized score for men’s income = ( ) / ( ) = 0.037 EDEI = [ x (0.020) x (0.037)-1]-1 = 0.026 Step 2: EDEI aggregation GEM ( ) / 3 = 0.384 19 November 2018

70 11/19/2018 Afghanistan GEM could not be calculated for want of data: Nether NHDR 2004 nor NHDR 2007 19 November 2018

71 Human Poverty Index (HPI)
11/19/2018 Human Poverty Index (HPI) Measures the extent of deprivation in HDI’s three dimensions HPI –1 is calculated for developing countries HPI-2 is calculated for industrialized countries 19 November 2018

72 The deprivational perspective
11/19/2018 The deprivational perspective HDI and GDI focus on national averages (conglomerate aspect) Conglomerate Perspective: Focus on advances made by all groups in the society HPI focuses on the worst off (deprivation aspect) Deprivation perspective: Focus on the poor and the deprived. 19 November 2018

73 11/19/2018 Why separate indices Distinguishing between developing and OECD countries recognized the relative nature of poverty Allows the use of richer, more appropriate data Different deprivations are more relevant in different contexts 19 November 2018

74 The Human Poverty Index for developing countries
11/19/2018 The Human Poverty Index for developing countries (HPI-1) Dimensions Indicators A long and healthy life Knowledge A decent standard of living Probability at birth of not surviving until age 40 Adult illiteracy rate Access to safe water Children underweight for age 19 November 2018

75 The Human Poverty Index (HPI-1)
11/19/2018 The Human Poverty Index (HPI-1) Where: P1=Probability at birth of not surviving to age 40 (times 100) P2=Adult illiteracy rate P3= Average of people without access to safe water and children underweight As  rises greater weight is given to the dimension in which there is most deprivation. =1 implies simple average (perfect substitutability), =∞ tests HPI = highest value (no substitutability). In he global HDR =3, giving additional but not overwhelming weight to areas of most acute deprivation 19 November 2018

76 11/19/2018  in the HPI formula As  rises greater weight is given to the dimension in which there is most deprivation. =1 implies simple average (perfect substitutability), =∞ HPI = highest value (no substitutability). In the global HDR =3, giving additional but not overwhelming weight to areas of most acute deprivation 19 November 2018

77 HPI Computation: Afghanistan 2005
11/19/2018 HPI Computation: Afghanistan 2005 Basic information: Probability at birth of not surviving to age 40 (%) = 41.9 Adult illiteracy rate (%) = 76.5 Chronic malnutrition among children U5 (%) = 50 Population without access to safe water (%) = 68 Step 1: Deprivation index for std. of living = ( ) / 2 =59 Step 2: Computation of HPI HPI { (1/3) ( ) }(1/3) = 62.3 19 November 2018

78 HPI Computation: Nepal 2004
11/19/2018 HPI Computation: Nepal 2004 Basic information: Probability at birth of not surviving to age 40 (%) = 17.74 Adult illiteracy rate (%) = 51.4 Chronic malnutrition among children U5 (%) = 50.5 Population without access to safe water (%) = 20.48 Step 1: Deprivation index for std. of living = ( ) / 2 =35.49 Step 2: Computation of HPI HPI { (1/3) ( ) }(1/3) = 39.6 19 November 2018

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81 The Human Poverty Index for OECD countries (HPI-2)
11/19/2018 Dimensions Indicators A long and healthy life Knowledge A decent standard of living Probability at birth of not surviving until age60 Functional illiteracy rate Relative income poverty Long term unemployment 19 November 2018

82 The Human Poverty Index (HPI-2)
11/19/2018 The Human Poverty Index (HPI-2) Where: P1=Probability of not surviving to age 60 (times 100) P2=Functional illiteracy rate P3=Relative income poverty (population below 50% median income) P4 = Long-term unemployment As  rises greater weight is given to the dimension in which there is most deprivation. In the global HDR =3, giving additional but not overwhelming weight to areas of most acute deprivation 19 November 2018

83 Discrimination through the lens of the HDI
11/19/2018 Discrimination through the lens of the HDI Life expectancy Literacy Income 19 November 2018

84 11/19/2018 Thank You 19 November 2018


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