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Nov 4, 2014

[CA] UNDP - HDI 2014 and GDI 2014

Current Affairs
UNDP – Human Development Index 2014

Human Development Report

Who publishes this report?
UNDP
HQ – New York
Chief: Helen Clark
Who designed this system?
Indian Economist Amartya Sen
Pakistani Economist Mahbub ul Haq
Since when?
1990

Themes of Report
2013
Rise of the South: Human Progress in a Diverse World
2014
Sustaining Human Progress: Reducing Vulnerability and Building resilience

Five Indexes under HDI – 2014

Human Development
1.Human Development Index – HDI
2. Inequality Index
Gender Related
3. Gender Development Index
4. Gender inequality
Poverty Related
5. Multidimensional Poverty Index

 HDI



It ranks human development in terms of three basic parameters:

Parameter
Quantitative Measures
A. To live a long and healthy life
A. Life Expectancy at birth (years)
B. To be educated and knowledgeable
B1. Gross enrollment (1/3 height)
B2 Adult literacy (2/3 weight)
Then take weightage average of B1 and B2. Let’s call it “B”
C. To enjoy a decent economic standard of living
C. Per capita gross national income ($$)
Then we need to normalize A, B and C by this formula (not important for exam)
(Actual value – Minimum Value) / (Maximum Value – Minimum Value)
Finally HDI is the Geometric Mean of three normalized Values
 = cube root of (A * B * C)

·        HDI doesn’t use arithmetic mean (A+B+C)/3, because even large value in one part, hide deficiency in other areas.
·        Example Arithmetic mean (90, 0, 0) = 30. So overall “good” development, but country has ZERO development on education and income part! Geometric Mean (90, 0, 0) =0 will disclose this bogusness.


Ranking of HDI – 2014
Only focusing on best & most bogus; India, its partners & neighbors

Very HIGH  (0.994 onwards)
High (0.790 onwards)
1.              Norway
2.              Australia
3.              Switzerland
4.              Netherlands
5.              USA
57. Russia
73. Sri Lanka
79. Brazil
91. China
Medium (0.698 onwards)
Lowest (0.540 onwards)
103. Maldives
(highest among all Medium)
135. India (HDI=0.586)
136. Bhutan
142. Bangladesh
In reverse order
1.              Niger (187)
2.              Congo (186)
3.              Central African Republic
4.              Chad
5.              Sierra Leone





India’s rank from 2012 – 2014

Report
India’s rank
2012
134 out of 187
2013
136 out of 186
2014
135 out of 187

No ranking in HDR 2014
(1) North Korea (2) Monaco  (3) San Marino (4) Somalia
(5) South Sudan (6) Marshall Islands (7) Nauru (8) Tuvalu

Inequality adjusted HDI
Ø     HDI ranking compares different countries on three parameters: health + education + income.
Ø     But what about internal inequality within same country.
Ø     For this, another rank created- inequality adjusted HDI.
Ø     India Rank same for both HDI and inequality adjusted HDI =135.
Ø     Then what’s point of calculating? Ans. the “Absolute figure” tells us how much human development lost due to inequality within a country.

India’s performance
Absolute figure
HDI
0.586
inequality adjusted
0.418
% difference over HDI
29%

In other words, 29% of Human development is lost due to inequality.

loss due to inequality
%
Russia and highly advanced economies
12%
India
29%
world
23%

GDI – Gender Development Index
·        Calculation Stopped since 2010. But resumed with 2014’s report.
·        Only calculated for 148 countries and not for all those 187 ranked in HDI.
·        Formula = Female HDI/ Male HDI
·        So, the best country, where female and male HDI is same, what will be the answer- 0, 0.5 or 1?
·        Ans.  1. Because numerator and denominator will cancel each other.
·        So, which country got first rank? Norway?  Ans. No.

Country
G D Index
Rank in GDI
Slovakia (Capital Bratislava)
1.000
1
Norway
0.997
5 (HDI = 1)
India
0.828
132 (HDI = 135)

[[[Moral of the story: Norway and Kerala won’t get #1 everywhere. so, don’t tick MCQs on guess work and gut feeling.]]]

GII – Gender Inequality Index
Based on 3 parameters:

Parameter
Components
India
1. Reproductive Health
MMR
200/lakh
Adolescent Birth Rate
32/100
2. Empowerment
Women in Parliament
10.9%
Higher Education
26.6%
3. Economic Activity
Labour Force Participation
28.8%







·        In Gender inequality index: 0= no inequality and 1 = maximum inequality.
·        Only calculated for 157 countries. (NOT all 187)

 GII Ranking in 2014

Rank
Gender Inequality
1
Slovenia Capital Ljubljana (not Slovakia)
2
Switzerland
3
Germany
37-94
China>Russia>Brazil>South Africa
127
India (Value 0.563)

Multi-dimensional Poverty Index

First we’ve to find two things:

Poverty Incidence
Poverty Intensity
has three indicators
1.              health
2.              education
3.              std. of living
How many indicators does the given household lacks?


Finally, MPI = (incidence x intensity)

All over world total 1.5 billion people suffering from multi-dimensional poverty.

Country
% of people suffering multidimensional poverty?
Maldives
2
China
6
South Africa
10
Nepal
41
Pakistan
46
Bangladesh
50
India
55




HDI: India Vs BRICS
Overall world
India lowest among all BRICS  except life expectancy (South Africa lowest)
South Africa lowest life expectancy among BRICS due to AIDS
Life expectancy: China >…>South Africa
GNI Per capita: Russia > Brazil > China > South Africa > India
Overall gender gap in the world is 8%
Per capita income of men is double than women
Human development slowed down worldwide

 India specific prescription in HDI

·        India needs to spend just four per cent of its GDP to ensure a social security net. This social security net should include NREGA, universal primary health coverage, old age and disabled pensions and child benefits
·        1999 Odisha cyclone >10,000 dead but 2013 cyclone with same intensity yet less than <50 dead thanks to Disaster preparedness. Meaning improvement possible, all it takes is political and bureaucratic will.

 World Humanitarian Summit
Basics important, because mentioned in HDR 2014 report

Where
Istanbul, Turkey
When
2016. But the consultation process has started two years in advance (i.e. since 2014)
By whom?
Initiative by UN Secretary-General Ban Ki-moon
UN Office for the Coordination of Humanitarian Affairs (OCHA)
Purpose
Address the humanitarian crisis caused by natural disasters and conflicts.


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