Concept

and Measurement of Human Development

Alison Kennedy
Chief of Statistics
Human Development Report Office, New York

HDRO/RBA
HDRO/RBA
Regional
Regional
Technical
Technical Workshop
Workshop ononMeasuring
MeasuringHuman
Human
Development
Development
Nairobi
Nairobi –– September
September --2007
2007
 Aim of Presentation

• To answer two key questions

– What is the Human Development Concept?
– How does HD differ from other development
approaches?
• To provide a brief introduction to HD
Measurement Issues

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
History of the Human Development Concept

• Dates back at least to Aristotle (384 -322 BC)

– “wealth is evidently not the good we are
seeking, for it is merely useful and for the
sake of something else”
– Aristotle distinguished a good political
arrangement from a bad one by the extent to
which it enabled people to lead “a flourishing
life”

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
History of the Human Development Concept

• Re-discovered and presented in the first

Global Human Development Report in
1990 by distinguished economist Mahbub
ul Haq
• And expanded and widely used since then
in particular with many inputs over the
years from Nobel Prize-winning economist
Amartya Sen

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 What is Human Development?
• A theory and approach that integrates
economic, social and political
development.
• Stresses two aspects:
– the formation of human capabilities; and
– the utilisation of acquired capabilities (or their
functionings)

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 What is Human Development?
• Both a goal and a process of enlarging
people’s capabilities, freedom and choices
resulting in:
– Long and healthy lives
– Access to knowledge and the power to use it
– Decent standards of living
– Active community participation and autonomy
in personal decision-making

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 What is Human Development?
• Contrasts with a common view that
poverty is purely deprivation of income
• Rests on four essential pillars:
– Equality
– Productivity
– Empowerment
– Sustainability

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
How is HD different from other approaches?

• Main premise
– Basic purpose of development is to enlarge
people’s choices
– Open-ended & holistic/integrated
• Relevant to rich and poor countries
• It is action-oriented
– Looks for practical changes.

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 HD and Economic Growth
• Economic growth is important
– increases a nation’s total wealth
– enhances potential to reduce poverty and
address other social problems
• However, whether economic growth will
enhance human development or not
depends on how that growth is generated

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 HD and Economic Growth
• Economic growth may be achieved
alongside:
– greater inequality - ruthless growth
– higher unemployment - jobless growth
– weakened democracy - voiceless growth
– loss of cultural identity - rootless growth
– over-exploitation of resources needed for
future generations - futureless growth

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 HD and Human Rights
• Much in common, complementary:
– Promoting freedom, well-being and dignity
• Human rights - intrinsic part of HD
• Human rights - support HD through social
justice and government accountability
• But HD approach is a tool to realise all
human rights

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 HD and Basic Needs
• Both focus on poverty and public action
• But, Basic Needs focuses
– mainly on nutrition, education, health,
housing, etc. not full set of HD choices.
– human freedom is underplayed
– More welfare-oriented with emphasis on
supplying goods and services rather than on
what they allow people to do
– people seen as beneficiaries of development
but not also as agents of change
HDRO/RBA Regional Technical Workshop on Measuring Human Development
Nairobi – September - 2007
 HD and MDGs
• MDGs are human development goals and
core HD indicators
• However, MDGs do not reflect all the key
dimensions of HD
• The MDGs highlight the distance to be
travelled, HD focuses on how to attain the
goals.
• HD is concerned with equity of choice and
opportunity
HDRO/RBA Regional Technical Workshop on Measuring Human Development
Nairobi – September - 2007
 HD and PRSPs
• Both HD and PRSPs
– conceptualise poverty as multidimensional
and
– emphasise national ownership but
• PRSPs have had limited impact in generating
meaningful discussions outside narrow official
circles
• One key message from the Bank’s own review
is: “a need for more open discussions on
alternative policy choices” (IMF and World Bank, 2005)
• HD stresses independence of analysis

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
The Human Development Concept
• Is an holistic approach covering all aspects of
development
– combines economic growth, basic needs and
capabilities approaches
– the vantage point is widening people’s choices and
the enrichment of their lives
– therefore it
• measures differently
• analyses problems differently
• But issues and measurement have to be
situated within national development contexts

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
Measuring Human Development
• What is distinctive?
– Holistic view – examining a topic from all
angles
– Addresses new issues – globalisation,
political and cultural freedom, human security
– Emphasis on equity and the marginalised –
requiring disaggregation to geographical,
demographic, ethnic or other sub-groups of
society

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
Measuring Human Development
• Why seek an alternative to measuring GDP or
GNI growth?
– A single variable – or simple set of variables – does
not capture the multidimensionality of human
development
– Some choices do not depend on income or wealth (eg
poor countries can be democratic, rich countries can
be in conflict)
– National income covers good and ill (eg income from
guns as well as from technological developments)

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 Sub-Saharan Africa
0.900

0.800
Greater economic than
human development BOT

0.700
SWA CV

0.600
LTO
Economic development

GMB
0.500

STP
0.400
ETP

0.300
SL

0.200
Greater human
0.100
than economic
development
0.000
0.000 0.100 0.200 0.300 0.400 0.500 0.600 0.700 0.800 0.900
Human development

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 Sub-Saharan Africa
0.900

0.800
Greater 'human wealth' CV

0.700

TAN NAM
SA
0.600
Human wealth

BOT
0.500
SL
SWA

0.400

0.300

0.200
Greater human
0.100
development

0.000
0.000 0.100 0.200 0.300 0.400 0.500 0.600 0.700 0.800 0.900
Human development

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 Composite indicators and indices
A composite indicator is:
‘A simplistic presentation and comparison
of performance in a given area to be used
as a starting point for future analysis.’

OECD, discussion of composite indicators

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 The family of HD indices
• The HDI (Human Development Index)
- a summary measure of (achievement of) human development

• The HPI (Human Poverty Index)

- a deprivation measure of the level of human poverty
• The GDI (Gender-related Development Index)
- the HDI adjusted for gender inequality

• The GEM (Gender Empowerment Measure)

- Measures gender equality in economic and political
participation and decision making

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 HDI (and GDI) concept
• Measures achievement in human development
• Three equivalent themes
– Long and healthy life
– Access to knowledge
– A decent – not excessive – standard of living
• GDI ‘discounts’ HDI for gender inequalities

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 HPI concept
• Measures deprivation rather than
achievement
• Again three equivalent themes:
– Vulnerability to death
– Exclusion from the world of knowledge
– Lack of access to basic provisions

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 GEM concept
• Measures opportunities rather than
capabilities
• Three concepts
– Parliamentary empowerment
– Occupational/legislative empowerment
– Economic empowerment

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 Which indicators?
• Need to reflect the concept
• Must be available – and comparable - for a
large number of countries/regions/districts
• Preferably reflect recent changes
• Preferably updated on a regular basis

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 HDI and GDI
• Long and healthy life
- life expectancy at birth

• Access to knowledge
- adult literacy rate
- combined gross enrolment ratio
• A decent standard of living
- GDP per capita (in PPP $) for HDI
- estimated earned income (PPP $) for GDI

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 HPI
• Vulnerability to early death
– Probability of not surviving to age 40
• Exclusion from the world of knowledge
– Adult illiteracy rate
• Lack of access to basic provisions
– Population without access to improved water
– Percentage of children underweight for age

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 GEM
• Parliamentary empowerment
– Percentage shares of parliamentary seats
• Occupational/legislative empowerment
– Percentage shares of legislators & managers
– Percentage shares of professional and
technical workers
• Economic empowerment
– Estimated earned income (PPP $)

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 HDI GDI HPI GEM
44/45 37/45 43/45 3/45
Seychelles
Mauritius Mauritius Mauritius

S Africa S Africa S Africa

Namibia Namibia Namibia Namibia
Botswana Botswana Ghana Tanzania
Ghana Ghana Uganda Botswana
Madagascar Madagascar Madagascar
Uganda Uganda Botswana
Swaziland Kenya Swaziland

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007
 HDI GDI HPI GEM
Lesotho Lesotho Kenya
Zimbabawe Zimbabwe Tanzania
Kenya Swaziland Eritrea
Gambia Nigeria
Eritrea Malawi
Nigeria Nigeria Gambia
Tanzania Tanzania Zambia
Zambia Zambia Zimbabwe
Malawi Malawi Lesotho
Ethiopia Sierra Leone
Sierra Leone Sierra Leone Ethiopia

HDRO/RBA Regional Technical Workshop on Measuring Human Development

Nairobi – September - 2007