development indicators gianni vaggi and clara capelli university of pavia november 2013
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Development indicators Gianni Vaggi and Clara Capelli University of Pavia November 2013. The Human Development Index. 1990 Human Development Report ( Mahbub Ul Haq , Amartya Sen et al). - PowerPoint PPT PresentationTRANSCRIPT
Development indicators
Gianni Vaggi and Clara CapelliUniversity of Pavia November 2013
The Human Development Index
1990 Human Development Report (Mahbub Ul Haq, Amartya Sen et al)
Development goes beyond economic growth, encompassing humanwell-being: Human development is a process of enlarging people’schoices.;
The term human development denotes both the process of wideningpeople’s choices and the level of their achieved well-being:
Deprivation in income;
Deprivation in life expectancy;
Deprivation in literacy.
Focus on the formation of the capabilities and their use.
Economia dello Sviluppo
Three dimensionsThree dimensions
Health and Longevity: Life
expectancy Index
Knowledge and Education: Education
Index
Standard of living: Income Index.
Economia dello Sviluppo
How to calculate it/Before 2010How to calculate it/Before 2010
• Life expectancy at birth;
• Adult literacy rate (2/3) and the combination of primary, secondary, and tertiary gross enrollment ratios (1/3);
• Natural Logarithm of GDP per capita at PPP.
Economia dello Sviluppo
How to calculate it/Before 2010How to calculate it/Before 2010
Economia dello Sviluppo
Source: HD Report, 2007/8
How to calculate it/After 2010How to calculate it/After 2010
• Life expectancy at birth;
• Mean years of schooling and expected
years of schooling;
• Natural Logarithm of GNI per capita at
PPP.
Source: HD Report, 2010
Economia dello Sviluppo
How to calculate it/After 2010How to calculate it/After 2010
Economia dello Sviluppo
Source: HD Report, 2011
Economia dello Sviluppo
Human Development Index
Why these changes?Why these changes?
Indicators for education were regarded as not that informative;
GNI is more accurate, as it includes international flows and excludesincome generated domestically but repatriated abroad;
The geometric mean accounts for difference in achievement acrossdimensions, reducing the level of substitutability between dimensionsand ensuring that a x-percent change in one index has the sameimpact on the HDI, regardless to the index.
ArenAren’’t you convinced?t you convinced?
LEI = 0.3 ; EI = 0.3 ; II = 0.8
Arithmetic Average = 0.467;
Geometric Mean = 0.416;
Change of 10% in the income index (it gets 0.88):
Arithmetic Average = 0.493 (+5.57%);
Geometric Mean = 0.429 (+3.125%).
Change of 10% in the life education index (it gets 0.33):
Arithmetic Average = 0.477 (+2.14%);
Geometric Mean = 0.429 (+3.125%).
Economia dello Sviluppo
Source: HD Report, 2011
Source: HD Report, 2013
Very high HDIVery high HDI
1 Norway 0.9552 Australia 0.9383 USA 0.9374 Netherlands 0.9215 Germany 0.926 New Zealand 0.9197 Ireland 0.9168 Sweden 0.9169 Switzerland 0.91310 Japan 0.912
Source: HD Report, 2013
Low HDILow HDI
1 Gambia 0.4392 Djibouti 0.4453 Zambia 0.4484 Uganda 0.4565 Haiti 0.4566 Yemen 0.4587 Togo 0.4598 Lesotho 0.4619 Nepal 0.46310 Papua New Guinea 0.466
Source: HD Report, 2013
1980 1990 2000 2005 2010 201255 Russia 0.730 0.713 0.753 0.782 0.78857 Saudi Arabia 0.575 0.653 0.717 0.748 0.777 0.78259 Cuba 0.626 0.681 0.690 0.735 0.775 0.78071 Venezuela 0.629 0.635 0.662 0.694 0.744 0.74876 Iran 0.443 0.540 0.654 0.685 0.740 0.74285 Brazil 0.522 0.590 0.669 0.699 0.726 0.730101 China 0.407 0.495 0.590 0.637 0.689 0.699112 Egypt 0.407 0.502 0.593 0.625 0.661 0.662114 Philippines 0.561 0.581 0.610 0.630 0.649 0.654121 Indonesia 0.422 0.479 0.540 0.575 0.620 0.629135 Ghana 0.391 0.427 0.461 0.491 0.540 0.558136 India 0.345 0.410 0.463 0.507 0.547 0.554145 Kenya 0.424 0.463 0.447 0.472 0.511 0.519186 RDC 0.286 0.297 0.234 0.258 0.295 0.304
Source: HD Report, 2012
Economia dello Sviluppo
Source: HD Report, 2013
Source: HD Report, 2013
Source: HD Report, 2013
HDI vs GDP
HDI vs GDP
HDI e indice di GDP
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GDPindex
HDI
HDI and GDP per capita
Source: HD Report, 2013
The Human Development Index
Source: HD Report, 2013
Some CriticismsSome Criticisms
The environmental issue is completed overlooked;
National focus which neglects the "global" perspective;
Only material aspects of life: what about human rights, freedom,gender equality;
Debatable comparability along time.
Other Indices from the HDROther Indices from the HDR
The Human Poverty Index for developing countries (HPI-1);
The Gender-Related Development Index (GDI);
The Gender Empowerment Measure (GEM);
Inequality-adjusted HDI (IHDI);
Gender Inequality Index (GII);
Multidimensional Poverty Index (MPI).
Other IndicesOther Indices
Happy Planet Index (HPI);
Gross National Index (GNH);
Living Planet Index (LPI);
Physical Quality of Life Index (PQLI);
Genuine Progress Indicator (GPI).
Other reports
Stiglitz, J., Sen, A., Fitoussi, JP. (2008), Report by the Commission on the Measurement of Economic Performance and Social Progress.
Alkire, S., Roche, J.M. and Seth, S. (2013) Multidimensional Poverty Index 2013, www.ophi.org.
Helliwell, J., Layard, R. and Sachs, J. (2013), World Happiness Report 2013, New York, Earth Institute.
UNU-IHDP and UNEP, Inclusive Wealth Report 2012. Measuring progress towards sustainability, Cambridge University Press, Cambridge.
Source: HD Report, 2013
Economia dello Sviluppo
Source: HD Report, 2013
Economia dello Sviluppo