Eco Poject 5.docx

Introduction The 2016 Human Development Report (HDR) focuses on how human development can be ensured for every one—now and in future. It starts with an account of the hopes and challenges of today’s world, envisioning where humanity wants to go. Our vision draws from and builds on the 2030 Agenda for Sustainable Development that the 193 member states of the United Nations endorsed in 2015—and the 17 Sustainable Development Goals (SDGs) the world has committed to achieve. The Report explores who has been left behind in human development progress—and why. Human development progress over the past 25 years has been impressive on many fronts. But the gains have not been universal. There are imbalances across countries; socioeconomic, ethnic and racial groups; urban and rural areas; and women and men. Millions of people are unable to reach their full potential in life because they suffer deprivations in multiple dimensions of human development. Besides mapping the nature and location of deprivations, the Report raises some specific analytical and assessment issues. To find out if everyone benefits from the human development progress, an average perspective is not going to work—a disaggregated approach is needed. Nor will a purely quantitative assessment succeed—qualitative aspects are needed, too. Data on agency freedom also need to be reviewed, particularly on voice and accountability. Finally, good generation and dissemination of data are important, requiring further in-depth research, experiments, consultations and alliance building among stakeholders. The Report also identifies the national policies and key strategies to ensure that will enable every human being achieve at least basic human development and to sustain and protect the gains. And it addresses the structural challenges of global institutions and presents options for reform.

Human Development Index (HDI) The HDI is a summary measure for assessing progress in three basic dimensions of human development: a long and healthy life, access to knowledge and a decent standard of living. A long and healthy life is measured by life expectancy at birth. Knowledge level is measured by mean years of education among the adult population, which is the average number of years of education received in a life-time by people aged 25 years and older; and access to learning and knowledge by expected years of schooling for children of school-entry age, which is the total number of years of schooling a child of school-entry age can expect to receive if prevailing patterns of age-specific enrolment rates stay the same throughout the child's life. The standard of living is measured by Gross National Income (GNI) per capita expressed in constant 2011 international dollars converted using purchasing power parity (PPP) conversion rates.1

India India’s HDI value for 2015 is 0.624— which put the country in the medium human development category— positioning it at 131 out of 188 countries and territories. 2

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Human Development Report 2016, UNDP Human Development Report 2016, UNDP

Between 1990 and 2015, India’s HDI value increased from 0.428 to 0.624, an increase of 45.7 percent. Table A reviews India’s progress in each of the HDI indicators. Between 1990 and 2015, India’s life expectancy at birth increased by 10.4 years, mean years of schooling increased by 3.3 years and expected years of schooling increased by 4.1 years. India’s GNI per capita increased by about 223.4 percent between 1990 and 2015.

Table A: India’s HDI trends based on consistent time series data Life Expected Mean years GNI per expectancy at years of of schooling capita (2011 HDI value birth schooling PPP$) 1990 57.9 7.6 3.0 1,751 0.428 1995 60.4 8.2 3.5 2,035 0.460 2000 62.6 8.3 4.4 2,495 0.494 2005 64.5 9.7 4.8 3,191 0.536 2010 66.5 10.8 5.4 4,358 0.580 2011 66.9 11.3 5.3 4,594 0.590 2012 67.3 11.5 5.6 4,776 0.599 2013 67.6 11.6 5.8 5,027 0.607 2014 68.0 11.6 6.1 5,329 0.615 2015 68.3 11.7 6.3 5,663 0.624 Figure 1 below shows the contribution of each component index to India’s HDI since 1990.

Figure 1: Trends in India’s HDI component indices 1990-2015

Inequality-adjusted HDI (IHDI) The HDI is an average measure of basic human development achievements in a country. Like all averages, the HDI masks inequality in the distribution of human development across the population at the country level. The 2010 HDR introduced the IHDI, which takes into account inequality in all three dimensions of the HDI by ‘discounting’ each dimension’s average value according to its level of inequality. The IHDI is basically the HDI discounted for inequalities. The ‘loss’ in human development due to inequality is given by the difference between the HDI and the IHDI, and can be expressed as a percentage. As the inequality in a country increases, the loss in human development also increases. The coefficient of human inequality as a direct measure of inequality which is an unweighted average of inequalities in three dimensions. India’s HDI for 2015 is 0.624. However, when the value is discounted for inequality, the HDI falls to 0.454, a loss of 27.2 percent due to inequality in the distribution of the HDI dimension indices. The Human inequality coefficient for India is equal to 26.5 percent3.

Gender Development Index (GDI) In the 2014 HDR, HDRO introduced a new measure, the GDI, based on the sexdisaggregated Human Development Index, defined as a ratio of the female to the male HDI. The GDI reflects gender inequalities in achievement in the same three dimensions of the HDI: health (measured by female and male life expectancy at birth), education (measured by female and male expected years of schooling for children and mean years for adults aged 25 years and older); and command over economic resources (measured by female and male estimated GNI per capita). The GDI is calculated for 160 countries in the 2015 HDR. The female HDI value for India is 0.549 in contrast with 0.671 for males, resulting in a GDI value of 0.819

Gender Inequality Index (GII) The 2010 HDR introduced the GII, which reflects gender-based inequalities in three dimensions – reproductive health, empowerment, and economic activity. Reproductive health is measured by maternal mortality and adolescent birth rates; empowerment is measured by the share of parliamentary seats held by women and attainment in secondary and higher education by each gender; and economic activity is measured by the labour market participation rate for women and men. The GII can be interpreted as the loss in human development due to inequality between female and male achievements in the three GII dimensions.

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Human Development Report 2016, UNDP

India has a GII value of 0.530, ranking it 125 out of 159 countries in the 2015 index. In India, 12.2 percent of parliamentary seats are held by women, and 35.3 percent of adult women have reached at least a secondary level of education compared to 61.4 percent of their male counterparts. For every 100,000 live births, 174 women die from pregnancy related causes; and the adolescent birth rate is 24.5 births per 1,000 women of ages 1519. Female participation in the labour market is 26.8 percent compared to 79.1 for men.

Multidimensional Poverty Index (MPI) The 2010 HDR introduced the MPI, which identifies multiple overlapping deprivations suffered by households in 3 dimensions: education, health and living standards. The education and health dimensions are each based on two indicators, while standard of living is based on six indicators. All of the indicators needed to construct the MPI for a country are taken from the same household survey. The indicators are weighted to create a deprivation score, and the deprivation scores are computed for each household in the survey. A deprivation score of 33.3 percent (one-third of the weighted indicators) is used to distinguish between the poor and non-poor. If the household deprivation score is 33.3 percent or greater, the household (and everyone in it) is classified as multi dimensionally poor. Households with a deprivation score greater than or equal to 20 percent but less than 33.3 percent live near multidimensional poverty. Finally, households with a deprivation score greater than or equal to 50 percent live in severe multidimensional poverty. The MPI is calculated for 102 developing countries in the 2015 HDR. The most recent survey data that were publically available for India’s MPI estimation refer to 2005/2006. In India, 55.3 percent of the population (642,391 thousand people) are multidimensionally poor while an additional 18.2 percent live near multidimensional poverty (212,018 thousand people). The breadth of deprivation (intensity) in India, which is the average deprivation score experienced by people in multidimensional poverty, is 51.1 percent.

Switzerland Switzerland is a peaceful, prosperous, and modern market economy with low unemployment, a highly skilled labor force, and a per capita GDP among the highest in the world. Switzerland's economy benefits from a highly developed service sector, led by financial services, and a manufacturing industry that specializes in high-technology, knowledge-based production. The Swiss have brought their economic practices largely into conformity with the EU's, in order to enhance their international competitiveness, but some trade protectionism remains, particularly for its small agricultural sector. The global financial crisis and resulting economic downturn put Switzerland in a recession in 2009 as global export demand stalled. The Swiss National Bank during this period effectively implemented a zero-interest rate policy in a bid to boost the economy and prevent appreciation of the franc. Switzerland's economy grew by 2.7% in 2010, when Berne implemented a third fiscal stimulus program, but its prized banking sector has recently faced significant challenges. The country's largest banks suffered sizable losses in 2008-09, leading its largest bank to accept a government rescue deal in late 2008. Switzerland has also come under increasing pressure from individual neighboring countries, the EU, the US, and international institutions to reform its banking secrecy laws. Consequently, the government agreed to conform to OECD regulations on administrative assistance in tax matters, including tax evasion. The government has renegotiated its double taxation agreements with numerous countries, including the US, to incorporate the OECD standard, and it is working with Germany

and the UK to resolve outstanding issues, particularly the possibility of imposing taxes on bank deposits held by foreigners. Parliament passed the first five double-taxation agreements, including that with the US, in March 2010. The agreement with the US awaits US Senate approval. In 2009, Swiss financial regulators ordered the country's largest bank to reveal at Washington's behest the names of US account-holders suspected of using the bank to commit tax fraud. These steps will have a lasting impact on Switzerland's long history of bank secrecy.4

Switzerland’s HDI value and rank Switzerland’s HDI value for 2015 is 0.939— which put the country in the very high human development category—positioning it at 2 out of 188 countries and territories.5 The rank is shared with Australia. Between 1990 and 2015, Switzerland’s HDI value increased from 0.831 to 0.939, an increase of 13.0 percent. Table A reviews Switzerland’s progress in each of the HDI indicators. Between 1990 and 2015, Switzerland’s life expectancy at birth increased by 5.5 years, mean years of schooling increased by 3.7 years and expected years of schooling increased by 2.6 years. Switzerland’s GNI per capita increased by about 18.3 percent between 1990 and 2015.6 Table A: Switzerland’s HDI trends based on consistent time series data

1990 1995 2000 2005 2010 2011 2012 2013 2014 2015

Life expectancy at birth 77.6 78.5 79.9 81.2 82.2 82.4 82.6 82.8 83.0 83.1

Expected years of schooling 13.4 14.4 15.2 15.2 15.6 15.7 15.8 15.9 16.0 16.0

Mean years of schooling 9.7 9.8 11.4 12.0 13.4 13.4 13.4 13.4 13.4 13.4

GNI per capita (2011 PPP$) 47,638 45,899 52,331 55,434 57,464 55,079 55,786 55,931 55,745 56,364

HDI value 0.831 0.846 0.888 0.904 0.932 0.932 0.934 0.936 0.938 0.939

Figure 1 below shows the contribution of each component index to Switzerland’s HDI since 1990. Figure 1: Trends in Switzerland’s HDI component indices 1990-2015

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CIA, The World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html September1, 2016 UNDP Report 6 Human Development Report 2016, UNDP 5

In its economic forecasts that are updated every quarter, SECO said it expected Swiss economic growth of 1.5 percent, unchanged from its forecast in its September assessment. Economic growth for 2017 is expected at 1.8 percent, also unchanged from September. In its first forecast for 2018, the Swiss government expects growth of 1.9 percent. Inflation was forecast at -0.4 percent for this year and 0.0 percent in 2017, compared to -0.4 percent and 0.3 respectively in September. It sees price growth of 0.2 percent in 2018.7

Inequality-adjusted HDI (IHDI) Switzerland’s HDI for 2015 is 0.939. The Human inequality coefficient for Switzerland is equal to 8.4 percent.

Gender Development Index (GDI) The female HDI value for Switzerland is 0.926 in contrast with 0.951 for males, resulting in a GDI value of 0.974,

Gender Inequality Index (GII) Switzerland has a GII value of 0.040, ranking it 1 out of 159 countries in the 2015 index. In Switzerland, 28.9 percent of parliamentary seats are held by women, and 96.1 percent of adult women have reached at least a secondary level of education compared to 97.4 percent of their male counterparts. For every 100,000 live births, 5 women die from pregnancy related causes; and the adolescent birth rate is 2.9 births per 1,000 women of ages 15-19. Female participation in the labour market is 62.7 percent compared to 74.8 for men.

Multidimensional Poverty Index (MPI) Due to a lack of relevant data, the MPI has not been calculated for this country.

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http://www.reuters.com/article/us-opec-oil/opec-again-raises-demand-forecast-for-its-oilpoints-to-2018-deficit-idUSKBN1CG1DX

Comparison This geographically small country- Switzerland has consistently ranked as one of the most innovative economies in the world. Their top education system and research industry have born, raised or sheltered 47 Nobel Prize winners. Over the years, more and more people have taken notice of the Swiss’s economic dynamism. Today, Switzerland is the sixth largest investor in the U.S. economy with $258 billion in cumulative direct investment. Swiss companies are active investors in the manufacturing, wholesale, retail, and services sectors. And Swiss affiliates are especially powerful contributors in pharmaceuticals, medicines and food manufacturing.

Switzerland has outstanding universities which not only teach the next generation, but inspire them to conduct research and development on their own terms, supporting Swiss entrepreneurship. The Global Innovation Index ranked Switzerland No. 1 in innovation again last year. The country’s lack of natural resources forces them to rely on brain power. Education and skill development is the key feature to their economic success along with an openness to public-private partnerships, entrepreneurship, socio political atmosphere and academic institutions. On the other hand, India has slipped from the 130 th rank to 131 st among the 188 countries on the human development index according to the latest UNDP’s Human Development Report (2016). India’s latest GDP growth rate is an astounding 7.1 per cent in the last quarter despite the demonetisation woes and its consequent economic disruptions. India is among the fastest growing countries in the world and has climbed up in the Ease of Doing Business Index by four notches in 2016. Clearly something is wrong somewhere. While India is surging ahead in terms of GDP growth, it is faring poorly on the human development front which means that millions of Indians have less healthcare and education than in more advanced countries or even in Emerging Economies like the BRICS where India’s rank is the lowest. In a hugely patriarchal country like India, one cannot expect India to score high on gender equality. India Gender Development Index is not surprisingly lower than the average at 0.810. Switzerland is number 1 with Gender Inequality Index at 0.040. India’s maternal mortality

ratio remains high 174 per 10,000 live births (2015). Switzerland’s IMR is only 5. India’s aim was to reach 140, which also was the Millennium Development Goal by 2016. But it couldn’t. India has shown an improvement in overall life expectancy by 10.4 years between 1990 and 2015 and there has been a modest gain in infant and under 5 mortality rate. But when the public health expenditure is as low at 1.4 per cent of the GDP, it is difficult to achieve the goal towards universal healthcare. The Modi government’s new health policy may be able to fill some gaps if the target of increasing expenditure to 2.5 per cent of GDP is achieved. Otherwise, there will be a huge disparity between urban and rural healthcare. Rural India is painfully short of doctors, nurses, medicines and hospitals today and the regional inequality in HDI cannot be mitigated unless attention is paid to cover this shortage fast. However, the number of poor in India has decreased no doubt, but there are 200 million people or 21.2 per cent living below poverty line defined as people with income below $1.90 per day. The report praises NREG for creating work that can reduce poverty and also build physical assets and infrastructure to protect the poor against shocks. The report praises India for its South-South Cooperation training programme in which 10,000 participants from least developed countries came to share India’s expertise in IT, telecom, renewable energy, SMEs, rural development and management in 2014-15.