Important Development Indexes

By Dr Vipan Goyal
 Human Development Index (HDI)
• The Human Development Index (HDI) is a composite statistics of
life expectancy, education, and income indices to rank countries
into four tiers of human development.
• It was created by economist Mahbub-ul-Haq, followed by
economist Amartya Sen in 1990, and published by the United
Nations Development Programme (UNDP).
• In its 2010 Human Development Report, the UNDP began using a
new method of calculating the HDI.
 Human Development Index (HDI)
• The following three indices are used:
1. Life Expectancy Index
2. Education Index: It includes
a. Mean Years of Schooling Index
b. Expected Years of Schooling Index
3. Income Index
 Computing the HDI
• To construct the Index, fixed minimum and maximum values have
been established for each of the indicators:
i. Life expectancy at birth: 25 years and 85 years.
ii. General literacy rate: 0 per cent and 100 per cent.
iii. Real GDP per capita (PPP$); PPP$ 100 and PPP$ 40,000.
 Inequality-adjusted HDI
• The 2010 Human Development Report was the first to calculate an Inequality-
adjusted Human Development Index (IHDI).
• The HDI represents a national average of human development achievements in the
three basic dimensions making up the HDI: Health, education and income.
• Like all averages, it conceals disparities in human development across the
population within the same country.
• Two countries with different distributions of achievements can have the same
average HDI value.
• The HDI takes into account not only the average achievements of a country on
health, education and income, but also how those achievements are distributed
among its citizens by “discounting” each dimension’s average value according to its
level of inequality.
• 14 September 2018 – India climbed one spot to 130 out of 189 countries in the latest
human development rankings released today by the United Nations Development
Programme (UNDP).
• India’s HDI value for 2017 is 0.640, which put the country in the medium human
development category. Between 1990 and 2017, India’s HDI value incased from 0.427
to 0.640, an increase of nearly 50 percent – and an indicator of the country’s
remarkable achievement in lifting millions of people out of poverty.
• Norway, Switzerland, Australia, Ireland and Germany lead the ranking, while Niger, the
Central African Republic, South Sudan, Chad and Burundi have the lowest scores in the
HDI’s measurement of national achievements in health, education and income.
• Within South Asia, India’s HDI value is above the average of 0.638 for the region, with
Bangladesh and Pakistan, countries with similar population size, being ranked 136 and
150 respectively.
 Gender Inequality Index
• The Gender Inequality Index (GII) is a new index that was
introduced in the 2010 Human Development Report’s 20th
anniversary edition by the United Nations Development
Programme (UNDP) for the measurement of gender disparity.
• According to the UNDP, this index is a composite measure which
captures the loss of achievement within a country due to gender
inequality and uses three dimensions to do so: (i) Reproductive
health, (ii) Empowerment, and (iii) Labour market participation.
 Gender Inequality Index
• The new index was introduced as an experimental measure to rectify the
shortcomings of the previous, and no longer used indicators, the Gender
Development Index (GDI) and the Gender Empowerment Measure (GEM),
both of which were introduced in the 1995 Human Development Report.
• The GII's dimension of reproductive health has two indicators: (i) The
Maternal Mortality Ratio (MMR) and (ii) The Adolescent Fertility Rate
(AFR)
• The empowerment dimension is measured by two indicators: (i) The share
of parliamentary seats held by each sex and (ii) Higher education
attainment levels
 Gender Inequality Index
• The labour market dimension is measured by women's participation
in the workforce. This dimension accounts for paid work, unpaid
work, and actively looking for work. According to the Human
Development Report 2011, India ranks 129 out of 146 countries on
the Gender Inequality Index, below Bangladesh and Pakistan,
which are ranked at 112 and 115, respectively
• Among BRICS (Brazil, Russia, India, China, South Africa) nations,
India has the highest inequalities in human development
 Multidimensional Poverty Index
• The Multidimensional Poverty Index (MPI) was developed in 2010
by Oxford Poverty & Human Development Initiative and the United
Nations Development Programme and uses different factors to
determine poverty beyond income-based lists. It replaced the
previous Human Poverty Index.
• The MPI is an index of acute multidimensional poverty. It shows the
number of people who are multidimensionality poor (suffering
deprivations in 33.33% of weighted indicators) and the number of
deprivations with which poor households typically contend.
 Multidimensional Poverty Index
• It reflects deprivations in very Dimensions Indicators
rudimentary services and core Health  Child Mortality
human functioning for people.  Nutrition
• The index uses the same three Education  Years of school
dimensions as the Human  Children enrolled
Development Index: (i) Health, Living Standards  Cooking fuel
(ii) Education, and (iii) Standard  Toilet
of living. These are measured  Water
using 10 indicators.  Electricity
 Floor
 Assets
 Technological Achievement Index (TAI)
• The Technology Achievement Index (TAI) is used by the UNDP
(United Nations Development Programme) to measure how well a
country is creating and diffusing technology and building a human
skill base, reflecting capacity to participate in the technological
innovations of the network age.
• The TAI focuses on four dimensions of technological capacity: (i)
Creation of technology, (ii) Diffusion of recent innovations, (iii)
Diffusion of old innovations, and (iv) Human skills.
 Technological Achievement Index (TAI)
• Technology creation: Measured by the number of patents granted to
residents per capita and by receipts of royalties and license fees from
abroad per capita
• Diffusion of recent innovations: Measured by the number of Internet
hosts per capita and the share of high-technology and medium-technology
exports in total goods exported
• Diffusion of old innovations: Measured by telephones (mainline and
cellular) per capita and electricity consumption per capita
• Human skills: Measured by the mean years of schooling in the population
aged 15 and older and the gross tertiary science enrolment ratio
 Sustainable Development
• The term Sustainable Development was used by the Brundtland
Commission which has become the most often-quoted definition of
Sustainable Development: "Development that meets the needs of the
present without compromising the ability of future generations to meet
their own needs".
• Sustainable Development ties together concern for the carrying capacity
of natural systems with the social challenges faced by humanity. As early
as the 1970s, "sustainability" was employed to describe an economy "in
equilibrium with basic ecological support systems". Ecologists have
pointed to The Limits to Growth.
 Sustainable Development
• The concept of Sustainable Development has in the past most often been
broken into three constituent parts: Environmental sustainability,
Economic Sustainability and sociopolitical Sustainability.
• Green Development is generally differentiated from Sustainable
Development in that Green development prioritizes what its proponents
consider to be environmental sustainability over economic and cultural
considerations.
• Proponents of Sustainable Development argue that it provides a context
to improve overall sustainability where cutting edge Green Development is
unattainable.
 Sustainable Development
• Inclusive green growth is the pathway to Sustainable Development.
• It is the only way to reconcile the rapid growth required to bring
developing countries to the level of prosperity which they aspire, meet the
needs of the more than nearly 1 billion people still living in poverty, and
fulfill the imperative requirement of a better Global Environment.
• Three Pillars of Sustainability
 The three pillars of sustainability are a powerful tool for defining the
Sustainable Development problem. This consists of three parameters:
Economic, Social, and Environmental pillars. If any one pillar is weak
then the system as a whole is unsustainable.
 Importance of Sustainable Development
• Social Sustainability
 Social Sustainability is the ability of a social system, such as a
country, family, or organization, to function at a defined level of
social well-being and harmony indefinitely.
 Problems like war, endemic poverty, widespread injustice, and
low education rate are symptoms of a system that is socially
unsustainable.
 Importance of Sustainable Development
• Environmental Sustainability
 Environmental Sustainability is the ability of the environment to
support a defined level of environmental quality and natural
resource extraction rates indefinitely.
 This is the world's biggest actual problem, though, since the
consequences of not solving the problem now are delayed, the
problem receives too low a priority to be solved.
 Importance of Sustainable Development
• Economic Sustainability
 Economic Sustainability is the ability of an economy to support a
defined level of economic production indefinitely.
 Since the Great Recession of 2008 this is the world's biggest
apparent problem which endangers progress due to
environmental sustainability problem.
Thank You