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INDEX

• Growth & Development

• 4 pillars of human Development

• HDI

• Factors affecting HDI

• Trends

• Importance

• Limitations

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 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 sign.

 Development :-
 Qualitative change which is always value positive.

 Development occurs when positive growth takes place.

 For example, if the population of a city grows from one lakh to two lakhs 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.

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 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 developmentwas

introduced by Dr. Mahbub-ul-haq.

 Dr. Haq has described human

development as development
that enlarges people’s choices
and improves their lives.

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 Access to resources, health and educationare the key
areas in human development.

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 FOUR PILLARS OF HUMAN DEVELOPEMNT
 Just as any building is supported by pillars, the idea of human
development is supported by the concepts of equity, sustainability,
productivity and empowerment.

 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.

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 WHAT IS HDI ?
 It is a tool used to measure a country's overall
achievement in its social and economic dimensions.

 Definition:-
The human development index (HDI) is a
composite statistic of life expectancy, 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 economic welfare.
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 ORIGIN OF HDI
 Devised and launched by Pakistani economist Mahbub-ul- haq
in 1990.
 Amartya Sen and Mahbub –ul- haq worked upon the capabilities
and functioning which provided conceptual framework.
 Published by United Nations Development Programme (UNDP).

7/11/2018 MAHBUB –UL- HAQ

BBA 209 AMARTYA SEN 8
 FACTORS CONSIDERED FOR HDI

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 The human development index examines three important criteria of economic
development
1) Life expectancy
2) Education
3) Income levels
 Create an overall score between 0 and 1.
 1 - indicates a high level of economic development.
 0- a very low level.

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 MEASURING HUMAN DEVELOPMENT

 The human development index (HDI) ranks the

countries based on their performance in the key areas
of health, education and access to resources.

 Health :-
 The indicator chosen to assess health is the life
expectancy at birth.
 A higher life expectancy means that people have a
greater chance of living longer and healthier lives.
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 Education :-
 The adult literacy rate and the gross enrolment ratio
represent access to knowledge.

 The number of adults who are able to read and write and the
number of children enrolled in schools show how easy or
difficult it is to access knowledge in a particular country.

 Access to resources is measured in terms of

purchasing power (in U.S. Dollars).

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 CALCULATION OF HDI

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 Example : Calculating HDI of India.
 Life expectancy index = 0.679
 Education index = 0.495
 Income index = 0.599

 HDI = (LI * EI * II)^1/3

 HDI = (0.679 * 0.495 * 0.599)^1/3
= 0.586

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 INTERNATIONAL COMPARISONS
 Often smaller countries have done better than larger
ones in human development.

 Similarly, relatively poorer nations have been ranked

higher than richer neighbours in terms of human
development.

 For example, Sri Lanka, Trinidad and Tobago havea

higher rank than India in the human development
index despite having smallereconomies.

 Similarly, within India, Kerala performs much better

than Punjab and Gujarat in human development
despite having lower perBBA
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209 income. 15
 Ranking base:- Globally countries are divided in
the following four classes according to their score in
human development index –

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 GLOBAL HDI RANKINGS-
TOP TEN COUNTRIES
RANK COUNTRIES HDI

1 NORWAY 0.944

2 AUSTRALIA 0.933

3 SWITZERLAND 0.917

4 NETHERLANDS 0.915

5 UNITED STATES 0.914

6 GERMANY 0.911

7 NEW ZELAND 0.910

8 CANADA 0.902

9 SINGAPORE 0.901

10
7/11/2018 DENMARK
BBA 209 0.900 17
 LOWEST TEN COUNTRIES IN HDI
RANK COUNTRIES HDI

178 MOZAMBIQUE 0.393

179 GUINEA 0.392

180 BURUNDI 0.389

181 BURKINA FASO 0.388

182 ERITERIA 0.381

183 SIERRA LEONE 0.374

184 CHAD 0.372

185 CENTRAL AFRICAN REPUBLIC 0.341

186 CONGO 0.338
187 NIGER 0.337
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 HDI ASPECTS OF INDIA
 India ranks (2014) – 135
 HDI – 0.586
 Gain of 0.003 HDI from previous year .
 Comes under medium human developmentcountries.
 Indicators: -
 Life expectancy at birth(by UN).
Overall – 64.19 years(Rank 147).
male – 62.80 years.
Female – 65.73 years.
 Education index : 0.473 .
 Mean years of schooling : 5.1(rank 65).
 GNI(Gross National Income)per capita at PPP : $5350
(rank 127) .
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 HDI PROGRAMME IN INDIA
 Unique in it’s kind.

 Preparation of not only national report, but also sub-national human

development reports (HDR).

 Decentralized and integrated the human development concept into its

development agenda at national, state, as well as district level .

 More HDRs have been produced in India than the total number of
global HDRs.

 Plan is made by the Planning Commission –United Nations

Development Programme(UNDP) partnership through the
preparation of State Human Development Reports (SHDR) and
District
7/11/2018Human Development Reports
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 Human development programme started in 8th five year
plan(1992-1997).

 First state - Madhya Pradesh.

 The world’s first state HDR was published in Madhya Pradesh

in 1995 .

 Computation of the state’s HDI as well as HDI for all the

districts in the state made by state govt.

 So far 21 states have prepared HDRs.

 State governments have initiated the work on district HDRs for

80 districts of which 23 HDRs have been released till date,

7/11/2018 BBA 209 was launched.

2009 -The first city HDR (Mumbai) 21
 TREND’S IN INDIA’S HDI

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 HDI-STATE WISE
HDI of different states in India

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 LIFE EXPECTANCY STATEWISE

State Life expectancy(YEARS)

Kerala 74.0

Punjab 69.4

Maharashtra 67.2

Jharkhand , Chhattisgarh , Madhya 58.0

Pradesh

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 KERALA – THE HIGHEST HDI STATE
 HDI - 0.764

 LITERACY RATE – 93.91 %

 LIFE EXPECTANCY – 74 years.

 HIGHEST SEX RATIO – 1084/1000 .

 LEAST CORRUPTED STATE.

 CLEANEST AND HEALTHIEST STATE .

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 IMPORTANCE OF HDI
 The HDI gives an overall index of economic development.

 It does give a rough ability to make comparisons on issues of

economic welfare – much more than just using GDP statistics show.

 It gives idea regarding areas of development which requires

improvement.

 Statistics gives better decision making for areas having wide disparity.

 More focus on social & human development rather than only capital
accumulation and growth.

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 LIMITATIONS OF HDI
Wide divergence within countries. For example, countries
like China and Kenya have widely different HDI scores
depending on the region in question. (e.g. :- North china
poorer than south east).

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.
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 When knowledge is measured it only takes into account what
children learn at school not in the family. And so maybe
knowledge statistics may be distorted if the family play more of a
role in education in the home.

 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 all have access to good healthcare services
and so there will be variations of life expectancy values.

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 WHY INDIA IS LAGGING IN HDI ??
 Large number of population in India lives in slums
that is around 158 .4 million.

 42 % children below 5 years age are underweight and

59 % stunted.

 Low spending on education by the government.

 Lack of schemes for urban poor like NRHM etc.

 India treats its environment poorly . Ranks 125 out

of 132 countries in a study done by Yale university.
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 CONCLUSION
 The HDI gives an overall index of economic
development.

 There are certain differences among different states

development conditions so there must be equal
opportunities for development for all.

 Some important issues are missing in HDI such as

infrastructure and some economic factors.

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 THANK YOU…

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