HUMAN DEVELOPMENT

INDEX(HDI)
 GROWTH AND DEVELOPMENT
Both growth and development refer to changes over a period of time.

• Growth :

Quantitative and value neutral change .

Positive or a negative result.

• Development :-

 Qualitative change which is valued as positive.

Development occurs when positive growth takes place.

 WHAT IS HDI ?

• Definition:-
The human development index (HDI) is a
composite statistic of
Health care, education, and per capita income
indicators
, which is used to rank countries into four tiers of human
development.

The human development index is a measure of economic

development and human welfare.
 EXAMPLE

For example, if the population of a city

grows 25% over a period of time, we say
the city has grown.

However, if facilities like housing,

provision of basic services and other
characteristics remain the same, then this
growth has not been accompanied by
development.
• The quality of life people enjoy in a country, the
opportunities they have and freedoms they enjoy,
are important aspects of development.

• The concept of human development was

introduced by Dr. Mahbub-ul-haq.

• Dr. Haq has described human

development as development
that enlarges people’s choices
and improves their lives.
 FOUR PILLARS OF HUMAN
DEVELOPMENT

• Equity refers to making equal access to opportunities

available to everybody.

• Sustainability means continuity in the availability of

opportunities.

• Productivity here means human labour productivity or

productivity in terms of human work.

• Empowerment means to have the power to make

choices.
FACTORS CONSIDERED FOR HDI
 Deconstructing Each Measure

The HDI consists of three equally weighted components:

Each component of the HDI is measured in the following way:

• Health
Measured by life expectancy at birth.

• Education
Measured as a combination of adult literacy (with two-
thirds weight) and gross enrollment (with one-third
weight).

• Wealth
Measured by GDP per capita.
EMERGING ECONOMIES –GDP PER CAPITA
EDUCATION LEVEL MEASUREMENT

• 1. PRIMARY EDUCATION ENROLMENT

• 2. SECONDARY EDUCATION ENROLMENT

• 3. TERTIARY ENROLMENT

• 4. LEVEL OF LITERACY

• 5. EDUCATION SPENDING as % of GDP

EDUCATION - PRIMARY ENROLMENT

• PRIMARY HIGHEST IN% EXAMPLES

• NEPAL 136
• SWEDEN 123
• BANGLADESH 120

• PRIMARY LOWEST IN% EXAMPLES

• ERITREA 50
• MALI 76
• SYRIA 80
EDUCATION TERTIARY ENROLMENT

• EXAMPLES IN %

• SOUTH KOREA 96
• SPAIN 90
• FINLAND 87
• USA 86
• DENMARK 82
• RUSIA 79
 LITERACY

•EXAMPLES IN % ADULT POPULATION

•AFGANISTAN 38,2
•PAKISTAN 56,4
•BANGLADESH 61,5
•NEPAL 64,7
•INDIA 72,2
 HEALTH CARE LEVEL MEASUREMENT

• LIFE EXPECTANCY

• DEATH RATE AND INFANT MORTALITY

• HEALTH SPENDING as % of GDP

• POPULATION PER DOCTOR

• DISEASES
• OBESITY
LIFE EXPECTANCY 2015 - 2020

• MONACO 89,5
• JAPAN 84,1
• AUSTRALIA 83,0
• GERMANY 81,5
• USA 79,6

• AFGANISTAN 61,5
3 Issue to be consider while evaluating HDI

1) Validity: It tells how well does the index actually

measure what it is supposed to be measuring?

2) Reliability: It indicates if you or someone else were

to try to replicate the index would you end up with
more or less the same results?

3) Parsimony: It shows does the index rely upon as few

indicators as reasonably possible without
undermining its validity?
 NEW-OTHER MEASUREMENTS

•INFRASTRUCTURE- ROADS DENSITY

•TELEPHONES AND INTERNET ACCESS

•ENVIRONMENT ; POLLUTION
HDI World Index
 CHALLENGES 1

• Persistent Inequality
• Persistent Inequality is reflected in the
low human development attainments of
the country’s most marginalized groups
including scheduled castes, tribal and
rural populations, women, transgender,
people living with HIV and migrants.

•
Global wealth- DISTRIBUTION
Oct 18th 2014 | THE ECONOMIST
Global wealth distribution
 INDIVIDUAL WEALTH- HNWI
•The global number of high-net-worth
individuals (HNWIs) grew by 7.5% to
16.5m last year, according to the 2017
World Wealth
•. HNWI have at least $1m in investable
assets, excluding their main home, its
contents and collectable items.
• Total HNWI wealth came to $63.5trn
last year, with the highest proportion
concentrated in the Asia-Pacific region
 CHALENGES-2 Gender Inequality

• Despite Economic Growth

Gender inequality persists despite high rates of
economic growth, and is particularly apparent
among marginalized groups. Women participate in
employment and decision making much less, than
men.
This disparity is not likely to be eliminated soon.
India’s poor performance on women’s
empowerment and gender equality is reflected in
many indicators, particularly, the low sex ratio.
 Chalenges 3

• Rising Vulnerability to Climate Change and

Disaster

adverse geo-climatic conditions

topographic features,
environmental degradation,
population growth,
urbanization and industrialization play a huge role
 Importance of HDI

• HDI helps set national priorities

• Identifies the areas that need priority policy
attention
• Identifies potential for growth of a country
• Disaggregated HDI becomes a powerful tool for
compassionate governance
• Acts as an early warning system
 Limitation Of HDI 1
• Wide divergence within countries. Countries may
have widely different HDI scores depending on the
region in question.

• Economic welfare depends on several other factors,

such as – threat of war, levels of pollution, access to
clean drinking water etc.

• GNI does not show how the income is spent by the

government. Some countries spend more on military
than on healthcare
 LIMITATION of HDI - 2

• GNI does not show how the income is spent by the

government. Some countries spend more on military
than on healthcare

• Longevity can also be distorted as the life expectancy of

a person does not consider how healthy the life was led

• Life expectancy value for a country is the given is an

average of the total population. There are many
communities in the country that will not have access to
good healthcare services
 Limitation Of HDI 3

• HDI reflects long-term

• Its focus is on the three basic dimensions.
• Masks a series of disparities and inequalities within
country.
• Does not focus on ecological considerations while
ranking the countries
• Not formed with a global perspective in mind and
instead examines each country independently
 SPECIFIC ISSUES
• REGIONAL ( WATER SUPPLY ) AFRICA
• TRADITIONAL ( GENDER RIGHTS, INEQUAL
TREATMENT ) – INDIA
• TRIBAL CAST,
• ENVIRONMENT, CLIMAT CHANGE- PACIFIC REGION
• CORRUPTION
• GLOBAL , REGIONAL, STATE INEQUALITIES
• GOVERNMENT SPENDING
HDI : INDIA
HDI Trend In India
 GENDER ISSUE IN INDIA

India’s poor performance on women’s

empowerment and gender equality is reflected
in many indicators, particularly, the low sex
ratio in education.

• The government has launched several

commendable schemes to save and educate the
girl child and the national average has risen from
943 females per 1000 males. However, in many
parts of India it continues to remains low. Gender
inequality is also reflected in India’s low rank on
UNDP’s Gender Inequality Index. In 2014, the
country ranked 127 out of 146 countries with a
value of 0.563.
 CHALENGES 4-INDIA CASE

• Implementation Challenges of Rights-based

Schemes
The effectiveness of rights-based legislations
such as the Mahatma Gandhi National Rural
Employment Guarantee Act, the Forest Rights
Act and Panchayat Extension to Scheduled Areas
has been hampered by weak implementation.
Reducing corruption is a key priority for
India’s government.
• Access to knowledge: Expected years of schooling have remained stagnant at 11.7 since 2011.
The mean years of schooling at 5.4 has not changed since 2010.

• Gender Development Index (GDI): GDI value of India is 0.795 in 2014. The female HDI value
for India is 0.525 in contrast with 0.660 for males.

• Gender Inequality Index (GII): India rank at 130th position with value of 0.563 out of 155
countries in the 2014.

• India’s HDI value increased from 0.362 to 0.609 between 1980 and 2014. It indicates an
increase of 68.1 per cent or an average annual increase of about 1.54 per cent.

• India’s life expectancy at birth increased by 14.1 years between 1980 and 2014. The mean
years of schooling has increased by 3.5 years and expected years of schooling increased by 5.3
years in the same period.

• Top Three Countries: Norway (1st rank), Australia (2nd) and Switzerland (3rd). India’s
Neighbours: Sri Lanka (73 rank), China (90), Bhutan (132), Bangladesh (142), Nepal (145),
Pakistan (147) and Afghanistan (171).

• BRICS Nations: Russia (50 rank), Brazil (75), China (90), South Africa (116) and India (130).
 Key Facts

India has been placed at 130th position in the 2015 Human Development Index
(HDI) among the 188 countries. It was unveiled in the recently released
Human Development Report 2015 by the United Nations Development
Programme (UNDP).

• India has been placed at 130th position with 0.609 score in the medium
human development category. In 2014 report country’s rank was 135 with
0.586 score.

• Improvement in India’s 2015 HDI from previous year has been attributed to
rise in life expectancy and per capita income.

• India’s Life expectancy at birth: It has increased to 68 years in 2014 from

67.6 in the previous year and 53.9 in 1980. Gross National Income (GNI) per
capita: It has increased to $5,497 in 2014 from $5,180 in 2013 and $1,255 in
1980. India’s GNI per capita increased by about 338 per cent between 1980
and 2014.