Economic growth contributes most to poverty

reduction when it expands the employment,

productivity and wages of poor people and when
public resources are channelled to promoting
human development… a virtuous cycle of economic
growth and human development arises when
growth is labour using and employment –generating
and when human skills and health improve rapidly.
UNDO HDI REPORT (1997
 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.
 The quality of life people enjoy in a country, the opportunities they have
and freedoms they enjoy, are important aspects of development.
 The process of widening people’s choices and the level of well-being they
achieve are at the core of the notion of human development

 The concept of human development was introduced

by Dr. Mahbub-ul-haq.
Dr. Haq has described human
development as development that
enlarges people’s choices and
improves their lives. Three measures
have been developed. HDI, GDI, HPI
Access to resources, health and education are the key
areas in human development.
 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.

Sustainabilit means continuity in the availability of

y
opportunities.
Productivit here means human labour productivity or
productivity in terms of human work.
y
Empowerment means to have the power to make
choices.
 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) measures the
average achievement in three basic dimensions of human
development. So it 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.
 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).

MAHBUB –UL- HAQ AMARTYA SEN

A long and healthy life as measured by life expectancy
at birth
Knowledge as measured by the adult literacy rate( with
two third weight) and the combined primary, secondary
and tertiary gross enrolment ratio(with one third
weight) 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.
A decent standard of living as measured by GDP per
capita
FACTORS CONSIDERED FOR HDI
The HDI utilizes four key metrics:3
•life expectancy at birth – to assess a long and healthy
life
•expected years of schooling – to assess access to
knowledge of the young generation
•average years of schooling – to assess access to
knowledge of the older generation
•gross national income (GNI) per capita – to assess the
standard of living
Before calculating HDI, an index for each of htree
dimensions is created . For the purpose, maximum and
minimum values are chosen of each indicators.
 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. the Planetary Pressures-adjusted HDI, or PHDI. 
 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.
 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).
CALCULATION OF HDI
 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
 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 have a

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

 Similarly, within India, Kerala performs much

better than Punjab and Gujarat in human
development despite having lower per capita
Ranking base:- Globally countries are divided in
the following four classes according to their score
in human development index –
 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 DENMARK 0.900
 LOWEST TEN COUNTRIES IN
RANK HDI 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

 HDI ASPECTS OF INDIA
India ranks (2014) – 135
HDI – 0.586
Gain of 0.003 HDI from previous year .
Comes under medium human development countries.
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
 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 and
(SHDR) District Human Development Reports (DHDR).
 Human development programme started five year
8th
in 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,

 2009 -The first city HDR (Mumbai) was launched.

TREND’S IN INDIA’S HDI
 HDI-STATE WISE
HDI of different states in India
 LIFE EXPECTANCY STATEWISE

State Life expectancy(YEARS)

Kerala 74.0

Punjab 69.4

Maharashtra 67.2

Jharkhand , Chhattisgarh , Madhya 58.0

Pradesh
 KERALA – THE HIGHEST HDI
HDI -STATE
0.764

LITERACY RATE – 93.91 %

LIFE EXPECTANCY – 74 years.

HIGHEST SEX RATIO – 1084/1000 .

LEAST CORRUPTED STATE.

CLEANEST AND HEALTHIEST STATE .

 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.
 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.
 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.
 THE CASE OF BHUTAN
Bhutan is the only country in the world to officially
proclaim the gross national happiness (GNH) as the
measure of the country’s progress.

Material progress and technological developments are

approached more cautiously taking into consideration
the possible harm they might bring to
environment or the the of
spiritual life of the Bhutanese.
other aspects cultural and
 This simply means material progress cannot come at the cost of
happiness. GNH encourages us to think of the spiritual, non-
material and qualitative aspects of development.
 WHY INDIA IS LAGGING IN HDI ??
Larg number of population in India lives in slums
that
e 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
 CONCLUSION
 The HDI an overall index of
gives 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.