Relationship between HDI and Socio-economic factors

8/7/2019 Relationship between HDI and Socio-economic factors

http://slidepdf.com/reader/full/relationship-between-hdi-and-socio-economic-factors 1/13



What is HDI?Human Development Index (HDI) is acomposite statistic used to rank countriesby level of "human development" andseparate developed (high development),

developing (middle development), andunderdeveloped(low development)countries. The statistic is composed fromdata on life expectancy, education and per-capita GNI (as an indicator of standard of living) collected at the national level usingthe formula given in the Methodologysection below. There are also HDI for states, cities, villages, etc. by localorganizations or companies.



Or igin Of HDIThe origins of the HDI are to be found in the United NationsDevelopment Programme (UNDP) Human Development Reports (HDRs).These were devised and launched by Pakistani Economist Mahbub ulHaq in 1990 and had the explicit purpose: ¶¶to shift the focus of development economics from national income accounting to peoplecentered policies··. To produce the HDRs, Mahbub ul Haq broughttogether a group of well known development economists including: Paul

Streeten, Frances Stewart, Gustav Ranis, Keith Griffin, Sudhir Anandand Meghnad Desai. But it was Amartya Sen·swork on capabilities andfunctionings that provided the underlying conceptual framework. Haqwas sure that a simple composite measure of human development wasneeded in order to convince the public, academics, and policy-makersthat they can and should evaluate development not only by economicadvances but also improvements in human well-being. Sen initiallyopposed this idea, but he went on to help Haq develop the HumanDevelopment Index (HDI). Sen was worried that it was difficult tocapture the full complexity of human capabilities in a single index butHaq persuaded him that only a single number would shift the attentionof policy-makers from concentration on economic to human well-being.The HDI has been used since 1990 by the United Nations DevelopmentProgramme for its annual Human Development Reports.



OR IGINSOF HDIFrom left AMRATYA SEN n to the right isMahbub UL HAQ



Dimension Of measu re Of HDIStarting with the 2010 report the HDI combines threedimensions:A long and healthy life: Life expectancy at birthAccess to knowledge: Mean years of schooling andExpected years of schoolingA decent standard of living: GNI per capita (PPP US$)The HDI combined three dimensions up until its 2009report:Life expectancy at birth, as an index of populationhealth and longevityKnowledge and education, as measured by the adultliteracy rate (with two-thirds weighting) and thecombined primary, secondary, and tertiary grossenrollment ratio (with one-third weighting).Standard of living, as indicated by the naturallogarithm of gross domestic product per capita atpurchasing power parit y.



The human development indices:at the fo re fr ont o f HD measu rement development

The HDI (Human Development Index)- a summary measure of human development

The GDI (Gender-related Development Index)

- the HDI adjusted for gender inequalityThe 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

Others



C atego r ies to distinguish Humandevelopment

Countries fall into four broad human development categories, each of whichcomprises 42 countries (except for the second category, comprising 43countries).The divisions are:Divisioncomprising:Very high:42 countriesHigh:43 countriesMedium:42 countriesLow:42 countriesDue to the new methodology adopted in 2010 HD Report, its HDI figuresappear lower than the HDI figures in previous reports.Starting in the report for 2007, the first category is referred to as developedcountries , and the last three are all grouped in developing countries . Theoriginal "high human development" category has been split into two as abovein the report for 2007.Some older groupings (high/medium/low income countries) have beenremoved that were based on the gross domestic product (GDP) in purchasingpower parity (PPP) per capita, and have been replaced by another indexbased on the gross national income (GNI) in purchasing power parity per

capita.



Human Development

Indicato rsLife expectancy at birth (Years)

Literacy rate (%)

Real GDP per capita in PPP

Life expectancy at birth index

Education index

Income index

Human development index

Human development index (India)



World s HDI

W orld map indicating the Human Development Index (basedon 2010 data, published on November 4, 2010) [1]

0.900 and over 0.850²0.8990.800²0.849

0.750²0.7990.700²0.7490.650²0.6990.600²0.6490.550²0.5990.500²0.549

0.450²0.4990.400²0.4490.350²0.3990.300²0.349under 0.300



China s HDI

M ap s how ing t he HDI of t he Gr ea t e r Chinar egi o n 0 .9 00 0 .949

0 .85 0 0 .8990 .8 00 0 .8490 .75 0 0 .7990 .7 00 0 .7490 .65 0 0 .6990 .6 00 0 .649D a t a u navai lab le



ISSUESFOR HDISome of the issues and themes currently considered most central to humandevelopment include:Social progress - greater access to knowledge, better nutrition and healthservices.Economics ² the importance of economic growth as a means to reduceinequality and improve levels of human development.Efficiency - in terms of resource use and availability. human development ispro-growth and productivity as long as such growth directly benefits thepoor, women and other marginalized groups.Equity - in terms of economic growth and other human developmentparameters.Participation and freedom - particularly empowerment, democratic

governance, gender equality, civil and political rights, and cultural liberty,particularly for marginalized groups defined by urban-rural, sex, age, religion,ethnicity, physical/mental parameters, etc.Sustainability - for future generations in ecological, economic and socialterms.Human security - security in daily life against such chronic threats as hunger and abrupt disruptions including joblessness, famine, conflict, etc.



List Of count r ies By HDI

http://en.wikipedia.org/wiki/List_of _countries_by_Human_Development_Index



THANK YOU

Documents

Relationship between HDI and Socio-economic factors