Pestalozzi 7/2012 International Development Cooperation Development Indicators

Pestalozzi 7/2012International Development Cooperation

Development Indicators


Pestalozzi 7/2012International Development Cooperation Nilometer

Situation to be verified

Criteria

Determine the optimal tax level

The level of water of the Nile determines the yield of crops. The tax level depends largely on the yields

Cubits (measure of length, 45.75 cm; Elle) on the Nilometer indicating the water level

Between 13 and 16

Water level of Nile

Indicator

Target

Causality(Hypothesis)

Average measures over years (benchmarks)Comparison

Observation on Nilometer by qayas (officials) Method

Ruler (Pharao, Wesir)Responsability

12 hunger13 enough; 14 joy; 15 security; 16 abundance17 floods, disaster

12 hunger13 enough; 14 joy; 15 security; 16 abundance17 floods, disaster

To determine the tax level according to crop yieldUse for steering (decision-making)


Introduction to Indicators

• An indicator is a variable that allows the verification of changes in the development intervention or shows results relative to what was planned (DAC/OECD)

• Indicators should provide

- key information to guide implementation

- Signals of change that show the extent of progress


Why are indicators important?

• To improve performance

feedback mechanism with indicators allows to make appropriate management decisions to improve performance

• To enhance external accountability

– indicators should provide the basis for transparent communication with external stakeholders – to whom the development intervention is more or less accountable

• To improve wider learning

– with managed exchange within and between organisations reduce costs and increase effectiveness of development actions


How to measure development?How to measure development?

• Initially, the level of “development” of one country was measured through its average income, so called “gross domestic product” (GDP).

• Financial means alone cannot cover all aspects of “development”

• Around 1990, a new index was created

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Human Development Index (HDI)Human Development Index (HDI)

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5 groups

Countries* with

Very high level of development

High level of development

Medium level of development

Low level of development

Countries not included, due to lack of data

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What does the HDI tell us?

The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone.

The HDI can also be used to question national policy choices, asking how two countries with the same level of income per capita can end up with such different human development outcomes.

An example

The Bahamas and New Zealand have similar levels of income per person, but life expectancy and expected years of schooling differ greatly between the two countries, resulting in New Zealand having a much higher HDI value than the Bahamas.

• These differences can start debate about government policy priorities.

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The HDI should allow a measurement of the level of development, which is closer to people's needs and takes into account many aspects of development.

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Development should increase the possibilities of people.

Development objectives should include values such as (for example)

better nutrition health, education recreation opportunities for participation of

the people


All data are included in the yearly publication of the

Human Development Report

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Lack of legal protection/rule of

law and citizen rights

Poor health, poor education*

Inability to have a regular job, lack of regular income and

social security

Lack of collateral collateral/access to

credits for business or housing

Limited or no safety (social, economic) net

Tenure insecurity, evictions, loss of small

savings invested in housing

Inability to afford adequate housing

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Cumulative Impacts of Poverty

Sense of insecurity, isolation, and

disempowerment

(based on IIED, WB)

Lack of infrastructure;un-hygienic living

conditions, low quality public services


ProtectiveCapabilities enabling people to withstand:•economic shocks•natural disasters•conflicts

ProtectiveCapabilities enabling people to withstand:•economic shocks•natural disasters•conflicts

PoliticalCapabilities including:•human rights•voice•political freedom•participation

PoliticalCapabilities including:•human rights•voice•political freedom•participation

Socio-culturalCapabilities concerning:•dignity•valued membership of society•social status

Socio-culturalCapabilities concerning:•dignity•valued membership of society•social status

HumanCapabilities, based on:•health•education•membership•shelter

HumanCapabilities, based on:•health•education•membership•shelter

EconomicCapabilities to:•earn income•consume•have assets

EconomicCapabilities to:•earn income•consume•have assets

(based on OECD 2001)

Core Dimensionsof Poverty and Wellbeing

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Another culture – another procedureBhutan

Gross national happinessan attempt to define an indicator that

measures quality of life or social progress in more holistic and psychological terms than only the economic indicator of gross domestic product (GDP).

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Assessment of socioeconomic development by tracking seven development areas

(1) Economic Wellness: Indicated via direct survey and statistical measurement of economic metrics such as consumer debt, average income to consumer price index ratio and income distribution

(2) Environmental Wellness: Indicated via direct survey and statistical measurement of environmental metrics such as pollution, noise and traffic

(3) Physical Wellness: Indicated via statistical measurement of physical health metrics such as severe illnesses

(4) Mental Wellness: Indicated via direct survey and statistical measurement of mental health metrics such as usage of antidepressants and rise or decline of psychotherapy patients

(5) Workplace Wellness: Indicated via direct survey and statistical measurement of labor metrics such as jobless claims, job change, workplace complaints and lawsuits

(6) Social Wellness: Indicated via direct survey and statistical measurement of social metrics such as discrimination, safety, divorce rates, complaints of domestic conflicts and family lawsuits, public lawsuits, crime rates

(7) Political Wellness: Indicated via direct survey and statistical measurement of political metrics such as the quality of local democracy, individual freedom, and foreign conflicts.

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Multidimensional Poverty Index (MPI)database: household surveys in 104 countries

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deprived if:• no household member

has completed five year of schooling

• any school-aged child is not attending school in years 1 to 8

• any adult or child for whom there is nutritional information is malnourished

• sanitation facility not improved or improved but shared

• ……


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Documents

Pestalozzi 7/2012 International Development Cooperation Development Indicators