Meaning of Economic and Social Development. Human Development Index (HDI)and Human Poverty Index (HPI).

<2/”>a >Human Development is a process of enlarging people’s choices. The most critical ones are to lead a long and healthy life, to be educated and to enjoy a decent standard of living. Additional choices include political freedom, guaranteed Human Rights and self-respect.Human development has to be development of the people, by the people, for the people. Human development is about creating an Environment in which people can develop their full potential and lead productive, creative lives in accord with their needs and interests.

The first Human Development Report was published in 1990,States human development as a process of enlarging people’s choices and enhancing their capabilities. The process concerns the creation of an enabling environment in which people can develop their full potential and live productive and creative lives according with their needs, interests and own values. In this sense, human development paradigm promotes well-being in a Society.

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 Human Development index (HDI) is a summary measure of Average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and have a decent standard of living. The HDI is the geometric mean of normalized indices for each of the following three dimensions:-

a. A long and healthy life, as reflected in life expectancy at birth.

b. The acquisition of Education and knowledge, as reflected in the mean years of schooling (adjusted for out of school children) and Literacy rate (age 7 years and above).

c. Th e standard of living and command over Resources, as reflected in the monthly per capita expenditure adjusted for Inflation and inequality.

India’s human development index (HDI) ranking for 2015 puts India ranked as 131 out of 188 countries. Asia’s third largest economy is among a group of countries classed as “medium” in the list, as opposed to “low” in the 1990s, which is largely due to an increase in life expectancy and mean years of schooling in the past 25 years.

The following are the reasons to keep India at the bottom of human development

(a) rapid increase in Population

(b) large number of adult illiterates and low gross enrollment ratio

(c) high drop- out rates

(d) inadequate government expenditure on education and Health,

(e) large proportion of under weight children as well as under nourished people

(f) very poor sanitation facilities and low access to essential life saving medicines.

Human POVERTY Index (HPI)

The Human Poverty Index (HPI) was first introduced into the Human Development Report by the United Nations Development Programme (UNDP) in 1997 in an attempt to bring together in a composite index the different features of deprivation in the Quality Of Life to arrive at an aggregate judgement on the extent of poverty in a community.

There are two indices; the HPI – 1, which measures poverty in developing countries, and the HPI-2, which measures poverty in OCED developed economies.

Calculation of HPI-1 for Developing countries:-The following three dimensions are taken into account:

  • deprivation of longevity, measured as a Percentage of the individuals with a life expectancy lower than 40 years (P1).
  • deprivation of knowledge, expressed as a percentage of illiterate adults (P2).
  • deprivation of decent living standards (P3). This last indicator is made up by the simple average of three basic variables:
    • the percentage of the population without access to drinking water (P31),
    • the percentage of population without access to health Services (P32) and lastly,
    • the percentage of underweight children aged less than five (P33).

The indicator P3, referred to the living standard, is then obtained as an average of the three indicators, in this way:

[(P31 + P32 + P33) / 3

The global index HPI-1 is obtained by combining these three dimensions into one single measure giving a greater weight to the most disadvantaged situation.

The formula is:

HPI-1 = [(P13 + P23 + P33 ) / 3]1/3

While HPI-2 is calculated as follows:-

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Multi Dimensional Indian poverty index

Poverty is a multi-dimensional issue and various experts/committees and institutions estimate poverty based on different perceptions/definitions. However, Planning Commission is the nodal agency in the Government of India to estimate poverty in the country. TheMultidimensional Poverty Index (MPI) was developed in 2010 by the Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Programme. and uses different factors to determine poverty beyond income-based lists. It replaced the previous Human Poverty Index.

Various dimentions of MPI are:-

DimensionIndicators
Health
Education
  • Years of schooling
  • School attendance
Living Standards
  • Cooking fuel
  • Toilet
  • Water
  • Electricity
  • Floor
  • Assets

Life expectancy at birth: Number of years a newborn infant could expect to live if prevailing patterns of age-specific mortality rates at the time of birth stay the same throughout the infant’s life.
Expected years of schooling: Number of years of schooling that a child of school entrance age can expect to receive if prevailing patterns of age-specific enrolment rates persist throughout the child’s life.
Mean years of schooling: Average number of years of education received by people ages 25 and older, converted from education attainment levels using official durations of each level.
Gross NATIONAL INCOME (GNI) per capita: Aggregate income of an economy generated by its production and its ownership of factors of production, less the incomes paid for the use of factors of production owned by the rest of the world, converted to international dollars using PPP rates, divided by midyear population.,

Economic and social development are two closely related concepts that are essential to the well-being of individuals and societies. Economic Development refers to the process of increasing the economic well-being and material prosperity of a nation’s population. Social development, on the other hand, refers to the process of improving the quality of life and well-being of individuals and groups in society.

Both economic and social development are important for a number of reasons. Economic development can lead to higher standards of living, improved health care, and better education opportunities. Social development can lead to greater Equality, reduced poverty, and improved social cohesion.

There are a number of factors that can contribute to economic and social development. Some of these factors include:

  • A strong economy: A strong economy is essential for providing jobs, generating income, and stimulating economic growth.
  • A well-educated population: A well-educated population is essential for innovation, productivity, and economic growth.
  • A healthy population: A healthy population is essential for productivity, economic growth, and social cohesion.
  • A stable political system: A stable political system is essential for providing security, promoting Investment, and encouraging economic growth.
  • A Sound Infrastructure-2/”>INFRASTRUCTURE: A sound infrastructure is essential for transportation, Communication, and economic development.

There are a number of challenges that can hinder economic and social development. Some of these challenges include:

  • Poverty: Poverty is a major obstacle to economic and social development. Poverty can lead to poor health, low education levels, and social exclusion.
  • Inequality: Inequality is another major obstacle to economic and social development. Inequality can lead to social unrest, political instability, and economic stagnation.
  • Conflict: Conflict can also hinder economic and social development. Conflict can lead to displacement, destruction, and economic disruption.
  • Environmental Degradation: Environmental degradation can also hinder economic and social development. Environmental degradation can lead to pollution, Climate change, and natural disasters.

Despite the challenges, there are a number of things that can be done to promote economic and social development. Some of these things include:

  • Investing in education: Investing in education is one of the most effective ways to promote economic and social development. Education can lead to higher incomes, better health, and a more stable society.
  • Investing in health: Investing in health is another effective way to promote economic and social development. Health can lead to higher productivity, a more educated population, and a more prosperous society.
  • Promoting Gender Equality: Promoting gender equality is essential for economic and social development. Gender equality can lead to higher incomes, better health, and a more just society.
  • Reducing poverty: Reducing poverty is a key goal of economic and social development. Poverty reduction can lead to higher standards of living, improved health care, and better education opportunities.
  • Promoting Sustainable Development: Promoting sustainable development is essential for ensuring the long-term well-being of individuals and societies. Sustainable development can lead to a more prosperous, equitable, and environmentally sustainable world.

Economic and social development are essential for the well-being of individuals and societies. There are a number of factors that can contribute to economic and social development, as well as a number of challenges that can hinder it. Despite the challenges, there are a number of things that can be done to promote economic and social development.

Economic and Social Development

Economic and social development are two closely related concepts that are often used interchangeably. However, there is a subtle difference between the two. Economic development refers to the growth of an economy, while social development refers to the improvement of the quality of life for people in a society.

Economic development is typically measured by indicators such as gross domestic product (GDP), per capita income, and investment rates. Social development is typically measured by indicators such as life expectancy, literacy rates, and access to education and healthcare.

Economic and social development are both important for the well-being of a society. Economic development can help to create jobs and raise incomes, while social development can help to improve health, education, and other aspects of people’s lives.

Human Development Index (HDI)

The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. A country scores higher on the HDI if it has a high life expectancy, high educational attainment, and a high per capita income.

The HDI was developed by the United Nations Development Programme (UNDP) in 1990. The index is intended to measure the progress of countries towards achieving human development goals. The HDI is not a perfect measure of human development, but it is a useful tool for comparing the well-being of countries around the world.

Human Poverty Index (HPI)

The Human Poverty Index (HPI) is a measure of poverty that was developed by the United Nations Development Programme (UNDP). The HPI is based on three indicators: the percentage of people living on less than $1.25 a day, the percentage of people who are illiterate, and the percentage of children who die before the age of five.

The HPI is a useful tool for measuring the extent of poverty in a country. The HPI can be used to track progress over time and to compare the level of poverty in different countries.

Frequently Asked Questions

  1. What is economic development?

Economic development is the process of increasing the economic well-being of a country or region. It can be achieved through a variety of means, such as increasing investment, improving infrastructure, and promoting trade.

  1. What is social development?

Social development is the process of improving the quality of life for people in a society. It can be achieved through a variety of means, such as improving education, healthcare, and social welfare programs.

  1. What is the Human Development Index (HDI)?

The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. A country scores higher on the HDI if it has a high life expectancy, high educational attainment, and a high per capita income.

  1. What is the Human Poverty Index (HPI)?

The Human Poverty Index (HPI) is a measure of poverty that was developed by the United Nations Development Programme (UNDP). The HPI is based on three indicators: the percentage of people living on less than $1.25 a day, the percentage of people who are illiterate, and the percentage of children who die before the age of five.

  1. What are the benefits of economic development?

Economic development can lead to a number of benefits, such as increased income, improved health, and greater access to education and healthcare. It can also lead to a more stable and prosperous society.

  1. What are the benefits of social development?

Social development can lead to a number of benefits, such as improved health, education, and social welfare. It can also lead to a more just and equitable society.

  1. What are the limitations of the HDI?

The HDI is a useful tool for measuring the progress of countries towards achieving human development goals. However, it has a number of limitations. For example, it does not take into account inequality within countries.

  1. What are the limitations of the HPI?

The HPI is a useful tool for measuring the extent of poverty in a country. However, it has a number of limitations. For example, it does not take into account the quality of life of people living in poverty.

Question 1

Which of the following is NOT a goal of economic and social development?

(A) To improve the quality of life for all people
(B) To reduce poverty and inequality
(C) To promote sustainable development
(D) To increase the size of the economy

Answer
(D)

Economic and social development is about improving the quality of life for all people, not just increasing the size of the economy.

Question 2

The Human Development Index (HDI) is a measure of:

(A) The level of economic development in a country
(B) The level of social development in a country
(C) The level of human well-being in a country
(D) All of the above

Answer
(C)

The HDI is a composite index of three indicators: life expectancy, education, and per capita income. It is used to measure the level of human well-being in a country.

Question 3

The Human Poverty Index (HPI) is a measure of:

(A) The level of economic poverty in a country
(B) The level of social poverty in a country
(C) The level of human deprivation in a country
(D) All of the above

Answer
(C)

The HPI is a composite index of three indicators: the percentage of people living below the Poverty Line, the percentage of people who are illiterate, and the percentage of children who die before the age of five. It is used to measure the level of human deprivation in a country.

Question 4

Which of the following countries has the highest HDI?

(A) Norway
(B) Switzerland
(C) Iceland
(D) Denmark

Answer
(A)

Norway has the highest HDI, with a score of 0.957. Switzerland is in second place, with a score of 0.955. Iceland is in third place, with a score of 0.954. Denmark is in fourth place, with a score of 0.953.

Question 5

Which of the following countries has the highest HPI?

(A) Niger
(B) Mozambique
(C) Malawi
(D) Sierra Leone

Answer
(A)

Niger has the highest HPI, with a score of 54.6. Mozambique is in second place, with a score of 53.3. Malawi is in third place, with a score of 52.9. Sierra Leone is in fourth place, with a score of 52.7.

Question 6

Which of the following statements is TRUE?

(A) The HDI and the HPI are both measures of economic development.
(B) The HDI and the HPI are both measures of social development.
(C) The HDI is a measure of human well-being, while the HPI is a measure of human deprivation.
(D) The HDI is a measure of economic poverty, while the HPI is a measure of social poverty.

Answer
(C)

The HDI is a measure of human well-being, while the HPI is a measure of human deprivation. The HDI is a composite index of three indicators: life expectancy, education, and per capita income. The HPI is a composite index of three indicators: the percentage of people living below the poverty line, the percentage of people who are illiterate, and the percentage of children who die before the age of five.

Index