Indicator of development, Human development & Economic development

<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.

Gender Development Index (GDI) and Gender Empowerment Measure (GEM)

The GDI measures gender gaps in human development achievements by accounting for disparities between Women and men in three basic dimensions of human development—health, knowledge and living standards using the same component indicators as in the HDI. The GDI is the ratio of the HDIs calculated separately for females and males using the same methodology as in the HDI. It is a direct measure of gender gap showing the female HDI as a Percentage of the male HDI.

Equality/”>Gender Equality has following dimentions:-

  • Equal access to basic social Services, including education and health.
  • Equal opportunities for participation in political and economic decision-making.
  • Equal reward for equal work.
  • Equal protection under the law.
  • Elimination of discrimination by gender and violence against women.
  • Equal rights of citizens in all areas of life, both public – such as the workplace – and private such as the home.

Gender Empowerment Measure (GEM) seeks to measure relative female representation in economic and political power. It considers gender gaps in political representation, in professional and management positions in the economy, as well as gender gaps in incomes .GEM is a measure of inequalities between men’s and women’s opportunities in a country. It gives indicators to explain ways in which the inequalities are associated with three components of development: education, EMPLOYMENT and political participation. The concept of empowerment can be explored through three interrelated dimensions: agency, resources and achievements .

Detailed analysis of the dimensions of GEM are:-

GEM Dimension 1: ‘Political Participation and Decision-making Power’ Indicators: i) % Share of Parliamentary Seats (elected); ii) % Share of Seats in Legislature (elected); iii) % Share of Seats in Zilla Parishads (elected); iv) % Share of Seats in Gram Panchayats (elected); v) % Candidates in Electoral Process in National Parties in the Parliamentary election and vi) % Electors Exercising the Right to Vote in the Parliamentary election.

GEM Dimension 2: ‘Economic Participation and Decision-making Power’ Indicators: i) % Share of officials in service in Indian Administrative Service, Indian Police Service and Indian Forest Service; and ii) % Share of enrolment in medical and engineering colleges.

GEM Dimension 3: ‘Power over Economic Resources’ Indicators: i) % Female/Male with Operational Land Holdings; ii) % Females/Males with Bank Accounts in Scheduled Commercial Banks (with credit limit above Rs. 2 lakh); iii) Share of Female/Male Estimated Earned Income Share per capita per annum.

 

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.,

Indicators of Development

There are many different indicators that can be used to measure development. Some of the most common include:

  • Gross domestic product (GDP): GDP is the total market value of all Final Goods and services produced within a country’s borders in a given year. It is often used as a measure of a country’s economic output.
  • Gross national product (GNP): GNP is the total market value of all final goods and services produced by a country’s citizens, regardless of where they are located. It is often used as a measure of a country’s economic wealth.
  • Per capita income: Per capita income is the average income of a country’s citizens. It is calculated by dividing GDP by the population.
  • Human Development Index (HDI): The HDI is a composite index that measures a country’s level of human development. It is based on three indicators: life expectancy, education, and income.
  • Gender Development Index (GDI): The GDI is a composite index that measures a country’s level of gender equality. It is based on the same three indicators as the HDI, but it adjusts for gender inequality.
  • Inequality-adjusted Human Development Index (IHDI): The IHDI is a modified version of the HDI that adjusts for income inequality.
  • Human Poverty Index (HPI): The HPI is a composite index that measures the extent to which people in a country are deprived of basic human capabilities. It is based on three indicators: life expectancy, education, and income.
  • Multidimensional Poverty Index (MPI): The MPI is a composite index that measures the extent to which people in a country are deprived of basic human needs. It is based on 10 indicators, including health, education, and living standards.
  • Sustainable Development Goals (SDGs): The SDGs are a set of 17 goals that were adopted by the United Nations in 2015. They aim to achieve a better and more sustainable future for all.

Human Development

Human development is the process of improving the quality of life and well-being of people. It is a broad concept that encompasses many different aspects of life, including education, health, income, and employment.

There are many different factors that contribute to human development. Some of the most important include:

  • Education: Education is essential for developing the skills and knowledge that people need to participate in society and earn a living.
  • Health: Good health is essential for a productive and fulfilling life.
  • Income: Adequate income is necessary to meet basic needs and have a decent standard of living.
  • Employment: Employment provides people with a sense of purpose and contributes to their economic security.

Economic Development

Economic development is the process of increasing the wealth and prosperity of a country or region. It is often measured by indicators such as GDP, GNP, and per capita income.

There are many different factors that contribute to economic development. Some of the most important include:

  • Natural Resources: Natural resources such as land, water, and Minerals can be used to produce goods and services.
  • Human Capital: Human capital refers to the skills and knowledge of the workforce. A well-educated and skilled workforce is essential for economic growth.
  • Infrastructure-2/”>INFRASTRUCTURE: Infrastructure such as roads, bridges, and Airports is necessary to support economic activity.
  • Technology: Technology can be used to improve productivity and efficiency.
  • Investment: Investment in businesses and industries can help to create jobs and stimulate economic growth.

Challenges to Economic Development

There are many challenges to economic development. Some of the most common include:

  • Poverty: Poverty is a major obstacle to economic development. People who are poor often lack the resources they need to improve their lives.
  • Inequality: Inequality can hinder economic growth by preventing people from participating in the economy.
  • Corruption: Corruption can lead to economic instability and discourage investment.
  • Conflict: Conflict can disrupt economic activity and damage infrastructure.
  • Natural disasters: Natural disasters can cause widespread damage and displacement.

Opportunities for Economic Development

Despite the challenges, there are many opportunities for economic development. Some of the most promising include:

  • Globalization/”>Globalization-3/”>Globalization: Globalization has created new opportunities for trade and investment.
  • Technology: New technologies can be used to improve productivity and efficiency.
  • Innovation: Innovation can lead to new products and services that create jobs and stimulate economic growth.
  • Education: Education can help people develop the skills they need to participate in the economy.
  • Investment: Investment in businesses and industries can help to create jobs and stimulate economic growth.

Indicators of development

  • What are the different types of development indicators?

There are many different types of development indicators, but they can be broadly divided into three categories: economic, social, and environmental. Economic indicators measure things like GDP, per capita income, and poverty rates. Social indicators measure things like education levels, health outcomes, and life expectancy. Environmental indicators measure things like air quality, water quality, and Biodiversity-2/”>Biodiversity.

  • What are some of the most commonly used development indicators?

Some of the most commonly used development indicators include the Human Development Index (HDI), the Gini coefficient, and the Environmental Performance Index (EPI). The HDI is a composite index that measures three dimensions of human development: health, education, and income. The Gini coefficient is a measure of income inequality. The EPI is a measure of a country’s environmental performance.

  • What are the strengths and weaknesses of development indicators?

Development indicators can be a useful tool for tracking progress and identifying areas where development is needed. However, they also have some limitations. For example, they can be difficult to measure accurately, and they may not capture all aspects of development.

Human development

  • What is human development?

Human development is a process that aims to improve the quality of life for all people. It is based on the idea that people are the central focus of development, and that development should be about expanding people’s choices and opportunities.

  • What are the key Elements of human development?

The key elements of human development are:

  • Equity: Development should be fair and just, and should benefit all people, regardless of their gender, race, ethnicity, or social class.
  • Sustainability: Development should be environmentally sustainable, and should not damage the planet for future generations.
  • Participation: People should be involved in the decisions that affect their lives, and should have a say in how development is carried out.

  • What are some of the challenges to human development?

Some of the challenges to human development include:

  • Poverty: Poverty is a major obstacle to human development. It limits people’s choices and opportunities, and can prevent them from reaching their full potential.
  • Inequality: Inequality is another major obstacle to human development. It can lead to social unrest and conflict, and can make it difficult for people to escape poverty.
  • Conflict: Conflict can also hinder human development. It can lead to displacement, loss of life, and damage to infrastructure.

Economic development

  • What is economic development?

Economic development is the process of increasing a country’s wealth and standard of living. It is often measured by indicators such as GDP, per capita income, and poverty rates.

  • What are the different types of economic development?

There are two main types of economic development: market-based development and state-led development. Market-based development is based on the idea that the free market will lead to economic growth. State-led development is based on the idea that the government should play a more active role in promoting economic growth.

  • What are the key elements of economic development?

The key elements of economic development are:

  • Investment: Investment in physical capital, such as factories and infrastructure, and human capital, such as education and healthcare, is essential for economic growth.
  • Trade: Trade can help countries to specialize in the production of goods and services in which they have a comparative advantage, and can lead to increased economic growth.
  • Technology: Technological innovation can lead to new products and services, and can boost economic growth.
  • Institutions: Strong institutions, such as a well-functioning legal system and a stable government, are essential for economic development.

  • What are some of the challenges to economic development?

Some of the challenges to economic development include:

  • Poverty: Poverty is a major obstacle to economic development. It limits people’s ability to invest in their own education and health, and can make it difficult for them to start businesses.
  • Inequality: Inequality can also hinder economic development. It can lead to social unrest and conflict, and can make it difficult for people to escape poverty.
  • Corruption: Corruption can lead to a loss of public trust in institutions, and can make it difficult for businesses to operate.
  • Natural disasters: Natural disasters can damage infrastructure and disrupt economic activity.

Question 1

Which of the following is not an indicator of human development?

(A) Life expectancy at birth
(B) Gross national income per capita
(C) Mean years of schooling
(D) GNI per capita adjusted for purchasing power parity

Answer
(B) Gross national income per capita is an indicator of economic development, not human development.

Question 2

Which of the following is not a goal of the Millennium Development Goals?

(A) Eradicate extreme poverty and hunger
(B) Achieve universal primary education
(C) Promote gender equality and empower women
(D) Reduce child mortality
(E) Ensure environmental sustainability

Answer
(E) Ensure environmental sustainability is a goal of the Sustainable Development Goals, not the Millennium Development Goals.

Question 3

Which of the following is not a factor that contributes to economic development?

(A) Human capital
(B) Natural resources
(C) Physical capital
(D) Technological Progress
(E) Entrepreneurship

Answer
(B) Natural resources are a factor that contributes to economic growth, not economic development.

Question 4

Which of the following is not a characteristic of a developed country?

(A) High per capita income
(B) High level of industrialization
(C) High level of education
(D) Low level of poverty
(E) High level of social welfare

Answer
(D) Low level of poverty is a characteristic of a developing country, not a developed country.

Question 5

Which of the following is not a challenge faced by developing countries?

(A) Poverty
(B) Hunger
(C) Disease
(D) Illiteracy
(E) High levels of economic growth

Answer
(E) High levels of economic growth is a challenge faced by developed countries, not developing countries.

Index