Presented By:

Agenda:
• Human Development Concept
• HDI History, Meaning and
• HDI and its related indices
• Calculation of HDI
• Link between Economic Growth & Human
Development
• Planning in terms of Human Development
• HDI - India
• HDI - Critics
Human Development is necessary
because:
• Human Development is an end while
economic growth is only a means to it
• It is a means to higher productivity
• Helps in lowering family size
• It is good for the physical environment
• It reduces poverty and contributes to a
healthy civil society, increased democracy and
Essential components of Human
Development:
• Equity - People must enjoy equitable access
to opportunities
• Sustainability – The next generation must
enjoy the same well being that we enjoy
• Productivity – Requires investment in people
and enabling micro-environment for them
• Empowerment – It means people are in a
• An alternate to GNP - measure of nation’s

human development

• UNDP introduced HDI under the able

stewardship of Dr. Mahbub ul Haq in 1990

• HDI includes related indices like GDI, GEM and

HPI

• It is a composite index rather than a plethora of

 A process of enlarging people’s choices and
enhancing human capabilities and freedom,
enabling them to: live a long and healthy life,
have access to knowledge and a decent
standard of living, and participate in the life of
their community and decisions affecting their
lives.

• As per HDI of 2006: Iceland’s HDI is 0.968

(highest), Norway is 0.968, Canada is 0.967
• HDI - Human Development Index

• GDI - Gender-related Development Index

• GEM - Gender Empowerment

• HPI - Human Poverty Index

• The index measurement is same as that of HDI,
but takes note of inequality in achievement
between women and men

• The methodology used imposes a penalty for

inequality

• GDI falls when the achievement levels of both

women and men in a country go down
(gender equality in economic and political participation &
decision making)

•The Gender Empowerment Measure (GEM) is a

measure of agency

• It evaluates progress in advancing women's

standing in political and economic forums

•Examines the extent to which women and men

are able to actively participate in economic and

• HPI uses indicators of the most basic dimensions of
deprivation: a short life, lack of basic education and lack
of access to public and private resources.

• The HPI concentrates on the deprivation in the three

essential elements of human life already reflected in
the HDI: longevity, knowledge and a decent
standard of living.
• Define a minimum and maximum value for each
of the three dimensions of the HDI
- Life Expectancy
- Real GDP per capita
- Educational attainment (combine two
variables)
1. Adult Literacy
2. Enrollment Ratio
i.e. 2 * (Adult Litracy) + (Enrollment Ratio)
• Define an index of achievement for each of the

three dimensions

•HDI is the simple average of three indices of

achievement

• HDI =(Life Expectancy Index + Real GDP Index +

 Growth requires fostering of strong links between
economic growth and Human Development. This
can be accomplished in the following ways:
 Provision of remunerative employment to people
 More equitable distribution of income and
economic opportunities
 Access to productive assets
 Investment in education and health
 Gender equality
 Mahbub ul haq has made a strong plea for
planning models and strategies in terms of
human of human development.
1) The plans would start with a human balance
sheet
2) Plans target would first be expressed in terms of
basic human needs and only later translated into
physical targets for production and consumption
3) Equal emphasis on production and distribution
objectives.
Table 1: India's human development index 2006 and underlying indicators in
comparison with No. 1 country.
HDI value Life Adult Combined GDP per
2006 expectanc literacy primary, capita
y at birth rate secondary (PPP US$)
(years) (% ages & tertiary 2006
2006 15 and gross
above) enrolment
2006 ratio (%)
2006
1. Iceland 1. Japan 1. Georgia 1. Australia 1.
(0.968) (82.4) (100.0) (114.2) Luxembourg
(77,089)
132. India 127. India 118. India 134. India 126. India
(0.609) (64.1) (65.2) (61.0) (2,489)
Table 2: Selected indicators of human poverty for India w.r.t. other countries
Human Probabilit Adult People Children
Poverty y of not illiteracy without underweig
Index surviving rate access to ht for age
(HPI-1) past age (%ages 15 an (% ages 0-
2006 40 and older) improved 5)
(%) water 2006
2005 2006 source
(%)
2006
1. Czech 1. Singapore 1. Cuba (0.2) 1. Bosnia 1. Croatia (1)
Republic (1.8) and
(1.7) Herzegovina
(1)
87. India 84. India 97. India 49. India 134. India
Table 3: The GDI compared to the HDI – a measure of gender disparity
GDI as % of Life Adult Combined
HDI expectancy literacy rate primary,
at birth secondary
(years) (% ages 15 and tertiary
2006 and older) gross
2006 enrolment
ratio
2006
Female as % male Female as % male Female as % male

1. Sweden 1. Russian 1. Lesotho 1. United Arab

(99.9%) Federation (122.5%) Emirates
(123.1%) (120.2%)
138. India 122. India 115. India 126. India
(97.1%) (104.9%) (70.0%) (89.3%)
• Dasgupta and Weale (1992) point out the

fact that it is an index restricted to the socio-

economic sphere of life

• The second block of critics including

Srinivasan(1994) & UNDP(1993) is concerning

data quality and the exact construction of the

index
• The last group of critics refers to the

technical properties of the index

(McGillivray)1991

• Empirical data to discuss the HDI capacity to

reflect human development through the

enlargement of people’s choices,

opportunities and capabilities