Presented

By
P.Sudhakara Reddy
• Gross national product (GNP) is the total income
earned by the resources owned by the legal residents of a
country in a given time period.
• GNP = GDP + income earned from foreign residents –
income paid to foreign residents
• GNP = GDP + net income from foreign residents (NIF)
• GNP includes the aggregate value of
goods, such as cars, houses, food and
drinks, as well as the value of services
such as legal and medical fees that are
produced and purchased by a nation
during a given time period.
“.. Our gross national product ... if we should judge
America by that - counts air pollution and cigarette
advertising, and ambulances to clear our highways of
carnage. It counts special locks for our doors and the
jails for those who break them. It counts the
destruction of our redwoods and the loss of our
natural wonder in chaotic sprawl. It counts napalm
and the cost of a nuclear warhead, and armoured cars
for police who fight riots in our streets…
… Yet the gross national product does not allow
for the health of our children, the quality of their
education, or the joy of their play. It does not
include the beauty of our poetry or the strength of
our marriages; the intelligence of our public
debate or the integrity of our public officials. It
measures neither our wit nor our courage; neither
our wisdom nor our learning; neither our
compassion nor our devotion to our country; it
measures everything, in short, except that which
makes life worthwhile. “
 Sustainable Development- It defines development as
sustainable if it ensures “that it meets the needs of the
present without compromising the ability of future
generations to meet Sustainable Development for
their own needs.. and extending to all the opportunity
to fulfil their aspirations for a better life.”
 In general the GNP measures everything that has a
market value.
 It doesn’t include housework, neighborhood help,

leisure time, natural resource degradation, natural sink

capacity depletion or income distribution
 Another inadequacy of the GNP is its narrow, at
times ethnocentric, view of wealth and progress.
By definition, the GNP ignores diverse visions
of the goals of development -- not to mention
cultural differences that lie far beyond the scope
of most economists' concerns.
 Singleindicator, comparison over space/time
 Three basic dimensions
◦ Long and healthy life
◦ Knowledge
◦ Decent standard of living
 Weighted combination of GDP per capita, life
expectancy at birth, adult literacy, population
in education
 Variants including gender-related index
 Emphasis on development, potential
• 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
Table 1: India’s human development index 2007
HDI value Life expectancy at birth  Adult literacy rate  Combined gross enrolment GDP per capita
(years) (% ages 15 and above) ratio  (PPP US$)
(%)

1. Norway (0.971) 1. Japan (82.7) 1. Georgia (100.0) 1. Australia (114.2) 1. Liechtenstein (85,382)

132. Bhutan (0.619) 126. Turkmenistan (64.6) 118. Congo (Democratic 132. Madagascar (61.3) 126. Cape Verde (3,041)
Republic of the) (67.2)

133. Lao People's 127. Lao People's 119. Egypt (66.4) 133. Trinidad and Tobago 127. Guyana (2,782)
Democratic Republic (0.619) Democratic Republic (64.6) (61.1)

134. India (0.612) 128. India (63.4) 120. India (66.0) 134. India (61.0) 128. India (2,753)

135. Solomon Islands 129. Yemen (62.5) 121. Ghana (65.0) 135. Morocco (61.0) 129. Viet Nam (2,600)
(0.610)

136. Congo (0.601) 130. Togo (62.2) 122. Rwanda (64.9) 136. Nepal (60.8) 130. Nicaragua (2,570)

182. Niger (0.340) 176. Afghanistan (43.6) 151. Mali (26.2) 177. Djibouti (25.5) 181. Congo (Democratic
Republic of the) (298)
Table 2: Selected indicators of human poverty for India
Human Poverty Index  Probability of not surviving Adult illiteracy rate  People not using an Children underweight for
(HPI-1) to age 40  (%ages 15 and above) improved water source  age 
(%) (%) (% aged under 5)

1. Czech Republic (1.5) 1. Hong Kong, China (SAR) 1. Georgia (0.0) 1. Barbados (0) 1. Croatia (1)
(1.4)

86. Djibouti (25.6) 103. Bolivia (13.9) 118. Congo (Democratic 74. Kyrgyzstan (11) 135. Yemen (46)
Republic of the) (32.8)

87. Cambodia (27.7) 104. Bhutan (14.2) 119. Egypt (33.6) 75. Syrian Arab Republic 136. Timor-Leste (46)
(11)

88. India (28.0) 105. India (15.5) 120. India (34.0) 76. India (11) 137. India (46)

89. Ghana (28.1) 106. Yemen (15.6) 121. Ghana (35.0) 77. China (12) 138. Bangladesh (48)

90. Malawi (28.2) 107. Papua New Guinea 122. Rwanda (35.1) 78. Samoa (12)
(15.9)

135. Afghanistan (59.8) 153. Lesotho (47.4) 151. Mali (73.8) 150. Afghanistan (78)
 Income (mainly relative in rich countries), wealth
 Employment
 Job security
 Family status (not separated, divorced, widowed
 Good health – physical and mental
 Strong & secure families and communities
 Personal freedom, political voice, governance
 Quality of environment
 Religion
 Trust in others
 Income redistribution – greater equality (aggregate
effect)
• Education: literacy levels, school dropout and repetition rates
• Health: infant mortality, low birth weight, weight/height/age
ratio
• Nutrition: e.g., calories per day, protein/carbohydrates ratio, etc.
• Basic services: telephones, water, sanitation, electrification, etc.
• Shelter: housing availability/quality, etc.
• Child development
• Political participation and democratic process
• Status of minorities, ethnic populations and women: e.g., human
rights data
• Environmental pollution levels
• Environmental resource depletion
Thank you