Human Development Index-india

Presented By:

Agenda: • Human Development Concept • HDI History, Meaning and • HDI and its related indices • Calculation of HDI • Link between Economic Growth & Human Development • Planning in terms of Human Development • HDI - India • HDI - Critics

Human Development is necessary because: • Human Development is an end while economic growth is only a means to it • It is a means to higher productivity • Helps in lowering family size • It is good for the physical environment • It reduces poverty and contributes to a healthy civil society, increased democracy and

Essential components of Human Development: • Equity - People must enjoy equitable access to opportunities • Sustainability – The next generation must enjoy the same well being that we enjoy • Productivity – Requires investment in people and enabling micro-environment for them • Empowerment – It means people are in a

• An alternate to GNP - measure of nation’s human development • UNDP introduced HDI under the able stewardship of Dr. Mahbub ul Haq in 1990 • HDI includes related indices like GDI, GEM and HPI • It is a composite index rather than a plethora of

A process of enlarging people’s choices and enhancing human capabilities and freedom, enabling them to: live a long and healthy life, have access to knowledge and a decent standard of living, and participate in the life of their community and decisions affecting their lives. • As per HDI of 2006: Iceland’s HDI is 0.968 (highest), Norway is 0.968, Canada is 0.967

• HDI - Human Development Index • GDI - Gender-related Development Index • GEM - Gender Empowerment • HPI - Human Poverty Index

• The index measurement is same as that of HDI, but takes note of inequality in achievement between women and men • The methodology used imposes a penalty for inequality • GDI falls when the achievement levels of both women and men in a country go down

(gender equality in economic and political participation & decision making)

•The Gender Empowerment Measure (GEM) is a measure of agency • It evaluates progress in advancing women's standing in political and economic forums •Examines the extent to which women and men are able to actively participate in economic and

• HPI uses indicators of the most basic dimensions of deprivation: a short life, lack of basic education and lack of access to public and private resources.

• The HPI concentrates on the deprivation in the three essential elements of human life already reflected in the HDI: longevity, knowledge and a decent standard of living.

• Define a minimum and maximum value for each of the three dimensions of the HDI - Life Expectancy - Real GDP per capita - Educational attainment (combine two variables) 1. Adult Literacy 2. Enrollment Ratio i.e. 2 * (Adult Litracy) + (Enrollment Ratio)

• Define an index of achievement for each of the three dimensions

•HDI is the simple average of three indices of achievement • HDI =(Life Expectancy Index + Real GDP Index +

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Growth requires fostering of strong links between economic growth and Human Development. This can be accomplished in the following ways: Provision of remunerative employment to people More equitable distribution of income and economic opportunities Access to productive assets Investment in education and health Gender equality

Mahbub ul haq has made a strong plea for planning models and strategies in terms of human of human development. 1) The plans would start with a human balance sheet 2) Plans target would first be expressed in terms of basic human needs and only later translated into physical targets for production and consumption 3) Equal emphasis on production and distribution objectives. 

Table 1: India's human development index 2006 and underlying indicators in comparison with No. 1 country.

HDI value Life 2006 expectanc y at birth (years) 2006

Adult literacy rate (% ages 15 and above) 2006

Combined GDP per primary, capita secondary (PPP US$) & tertiary 2006 gross enrolment ratio (%) 2006

1. Iceland (0.968)

1. Japan (82.4)

1. Georgia (100.0)

1. Australia 1. (114.2) Luxembourg (77,089)

132. India (0.609)

127. India (64.1)

118. India (65.2)

134. India (61.0)

126. India (2,489)

Table 2: Selected indicators of human poverty for India w.r.t. other countries

Human Poverty Index (HPI-1) 2006

Probabilit y of not surviving past age 40 (%) 2005

Adult People illiteracy without rate access to (%ages 15 an and older) improved water 2006 source (%) 2006

1. Czech Republic (1.7)

1. Singapore 1. Cuba (0.2) 1. Bosnia 1. Croatia (1) (1.8) and Herzegovina (1)

87. India

84. India

97. India

49. India

Children underweig ht for age (% ages 05) 2006

134. India

Table 3: The GDI compared to the HDI – a measure of gender disparity

GDI as % of Life HDI expectancy at birth (years) 2006

Adult Combined literacy rate primary, secondary (% ages 15 and tertiary and older) gross 2006 enrolment ratio 2006

Female as % male Female as % male Female as % male

1. Sweden (99.9%)

1. Russian Federation (123.1%)

1. Lesotho (122.5%)

1. United Arab Emirates (120.2%)

138. India (97.1%)

122. India (104.9%)

115. India (70.0%)

126. India (89.3%)

• Dasgupta and Weale (1992) point out the fact that it is an index restricted to the socioeconomic sphere of life • The second block of critics including Srinivasan(1994) & UNDP(1993) is concerning data quality and the exact construction of the index

• The last group of critics refers to the technical properties of the index (McGillivray)1991 • Empirical data to discuss the HDI capacity to reflect human development through the enlargement of people’s choices, opportunities and capabilities