Agenda: Human Development Concept HDI History, Meaning and HDI and its related indices Calculation of HDI

n 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 greater social stability

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 position to exercise choices of their own free will Intro!!! An alternate to GNP - measure of nations 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 indexes Ratings lie between 0-1 (0 is least and 1 signifies good rating)

Four Main Human Development Indices HDI - Human Development Index GDI - Gender-related Development Index GEM - Gender Empowerment HPI - Human Poverty Index GDI Gender related Human Development 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 The greater the gender disparity in basic capabilities, the lower a country's GDI compared with its HDI. GEM Gender Empowerment Measure 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 political life. HPI Human Poverty Index 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)

Calculation of HDI Calculation of HDI 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 + Educational attainment Index ) / 3 Link Between Economic Growth And Human Devolopment 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 Planning in terms of Human Development 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.

HDI - Criticism

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 third range of arguments showing the weakness of the HDI reflects the aggregation problems (Desai, 1991) HDI - Criticism

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 peoples choices, opportunities and capabilities