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PPT 2 Human Development Index

The Human Development Index (HDI) is a UN measure that evaluates a country's development based on three key factors: resources, knowledge, and life span, providing a score between 0 and 1. Created in 1990 by economist Mahbub ul Haq, the HDI shifted the focus from economic growth to people-centered policies, although it has limitations such as assuming trade-offs between its components and not accounting for inequalities. Despite its flaws, the HDI serves as a valuable tool for assessing and comparing human development across countries.

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7 views

PPT 2 Human Development Index

The Human Development Index (HDI) is a UN measure that evaluates a country's development based on three key factors: resources, knowledge, and life span, providing a score between 0 and 1. Created in 1990 by economist Mahbub ul Haq, the HDI shifted the focus from economic growth to people-centered policies, although it has limitations such as assuming trade-offs between its components and not accounting for inequalities. Despite its flaws, the HDI serves as a valuable tool for assessing and comparing human development across countries.

Uploaded by

Arin
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Human Development

Index
share of raw
materials being Political freedom
rate of population growth
recycled
Infrastructure
percentage of
energy from
renewable resources
What factors Life expectancy
income distribution indicate an
economy’s infant mortality
incidence of
stress related success rates?
disease. diversity of species
literacy
education clean water sanitation
health
clean air Medical care
What is HDI?
• HDI – Human Development Index

• It is a UN measure of a country’s development

• It gives countries a value between 0 and 1 on THREE


key factors

• Resources
• Knowledge
• Life Span
Human Development Index
HDI – the Origin
• The origins of the HDI are found in the annual Human
Development Reports produced by the Human
Development Report Office of the United Nations
Development Programme (UNDP).

• These were devised and launched by Pakistani


economist Mahbub ul Haq in 1990, and had the explicit
purpose "to shift the focus of development economics
from national income accounting to people-centered
policies".

• 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
GNI per capita can end up with different human
development outcomes. These contrasts can stimulate
debate about government policy priorities.
• The health dimension is assessed by life expectancy at birth,
the education dimension is measured by mean of years of
schooling for adults aged 25 years and more and expected
years of schooling for children of school entering age.
• The standard of living dimension is measured by gross
national income per capita.
• The scores for the three HDI dimension indices are then
aggregated into a composite index using geometric mean.
• The HDI simplifies and captures only part of what human
development entails. It does not reflect on inequalities,
poverty, human security, empowerment, etc.
Human Development Index
• The HDI is like a country’s report card. In a single
number, it tells policymakers and citizens how
well a country is doing.
• The index first appeared in 1990. Before then, a
country’s level of development was measured
solely by its economic growth. By taking non-
economic dimensions of human well-being into
account, the HDI revolutionized the idea of what
was meant by countries becoming “more
developed.”
Problems with HDI

The HDI has been wildly successful in


changing the way people think about the
development process. However, it still suffers
from real flaws.
Problems with the HDI

• First, it implicitly assumes trade-offs between its


components.
• For example, the HDI measures health using life
expectancy at birth and measures economic
conditions using GDP per capita. So the same HDI
score can be achieved with different combinations
of the two.
Problems with the HDI
• The HDI also struggles with the accuracy and
meaningfulness of the underlying data.
• Average income could be high in a country,
but what if most of it goes to a small elite?
• The HDI does not distinguish between
countries with the same GDP per capita, but
different levels of income inequality or
between countries based on the quality of
education.
• By focusing on averages, the HDI can
obscure important differences in human
development. Incorporating inaccurate or
incomplete data in an index reduces its
usefulness.

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