Download Dimensions and Measures of Development

Dimensions and Measures of
Development
PAD 6838/ 7865
Development Dimensions
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Economic Dimension
Political Dimension
Social Dimension
Health Dimension
Physical Dimension
Environmental Dimension
Economic dimension
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Gross Domestic Product (GDP): Gross value added
by all resident producers in the economy plus any
taxes and minus subsidies (depreciation not included;
intermediate inputs are subtracted in the gross value).
Gross National Income (GNI): Total value added
from domestic and foreign sources claimed by
residents [GNI= GDP + income from foreign sources]
Purchasing Power Parity (PPP): The exchange
rate that equates the price of a basket of identically
traded goods and services (weighted for relative
importance in GDP) with another country’s currency
(usually the US$)
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Carried out through International Comparison Program (ICP)
Understan
ding PPP:
Big Mac
Index
[http://www.economist.c
om/media/audio/burgern
omics.ram ]
Source: The Economist
GNI per capita, 2008
Source: World Bank
GNI per capita, adjusted for PPP:
High income: $11,906 or more
Middle—Upper: $3,856 to $11,905
Middle—Lower: $976 to $3,855
Low: $975 or less
Political Dimension
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Capitalist (First World); Socialist (Second
World)
Non-Alignment
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Third Way/ Alternative Development Path
Bandung Conference, 1955
Initial 29 Countries (e.g. Burma, India, Indonesia,
Egypt, Pakistan, Yugoslavia)
Now, 115 member countries
Post Colonialism
Government forms
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Democracy and Political Freedom
Good governance (transparency; lack of corruption)
Social Dimension - 1
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Equity/ Equality
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Distribution of Income/ Wealth
Gini coefficient is measured by the Lorenz
curve [Area A / (Area A + Area B)]
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0= complete equality; 1=complete inequality
Lorenz curve maps the cumulative income share
on the vertical axis against the distribution of
the population on the horizontal axis.
Individual Freedom
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Human Freedom Index
Social equity—Gini coefficient
Social Dimension - 2
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Status of various groups
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Law and Legal apparatus (Institutions)
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Women; Minority; Children; Religion;
Laws (Rights to property)
Efficiency of Court Systems
Efficiency of law enforcement (police)
Culture, Norms, Traditions, Religion
Education
Gross National Happiness?
[http://www.youtube.com/watch?v=CXJwNSkdTH0 ]
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See Bhutan’s effort:
http://www.grossnationalhappiness.com/
Health Dimension
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Mortality
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Morbidity
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Life Expectancy at birth
Public health diseases
Chronic diseases
Life Threatening diseases
Nutrition
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Calorie Intake
Physical Dimension
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Physical Infrastructure
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Water; Sewerage;
Electricity, Telecom
Housing; Transportation
Hospitals; Schools
Urban/ Rural
Industrial Development
Environmental Dimension
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Emissions, pollution
Biodiversity
Intergenerational Equity
Sustainable Development
Integrating dimensions: HDI
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Human Development Index
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Healthy life: Life expectancy at birth [Ilife]
Knowledge: Education (Mean years of schooling,
expected years of schooling) [IEducation]
Decent standard of living: GNI PPP per capita
[Iincome]
Women’s status
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Gender Empowerment Measure
Gender Development Index
Calculating HDI
Dimension index = (actual value – minimum value)/(maximum value –
minimum value)
HDI=
(ILife. IEducation. IIncome) ^(1/3)
Human Development Index, 2010
Black: Very low HDI (<0.4)
Very light blue: Low HDI (0.4 to 0.55)
Light blue: Medium HDI (>=0.55; <0.7)
Blue: High HDI (0.7 to 0.85)
Dark blue: Very High HDI (>0.85)
Index Differences
Integrating dimensions: Stiglitz et al
WELL-BEING: Based on critique of GDP
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The Stiglitz et al Commission’s report “advocates a shift of
emphasis from a ‘production-oriented’ measurement system
to one focused on the well-being of current and future
generations, i.e. toward broader measures of social
progress.” (p. 10)
Dimensions
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1.
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6.
7.
8.
Material living standards (income, consumption and wealth)
Health
Education
Personal activities including work
Political voice and governance
Social connections and relationships
Environment (present and future conditions)
Insecurity, of an economic as well as a physical nature
Stiglitz et al recommendations
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6.
7.
When evaluating material well-being, look at income and
consumption rather than production
Emphasise the household perspective
Consider income and consumption jointly with wealth
Give more prominence to the distribution of income,
consumption and wealth
Broaden income measures to non-market activities [leisure and
other unpaid activities, e.g. housemaker]
Quality of life depends on people’s objective conditions and
capabilities. Steps should be taken to improve measures of
people’s health, education, personal activities and environmental
conditions. In particular, substantial effort should be devoted to
developing and implementing robust, reliable measures of social
connections, political voice, and insecurity that can be shown to
predict life satisfaction.
Quality-of-life indicators in all the dimensions covered should
assess inequalities in a comprehensive way
Stiglitz et al recommendations
8.
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12.
Surveys should be designed to assess the links between various
qualityof-life domains for each person, and this information should be
used when designing policies in various fields
Statistical offices should provide the information needed to aggregate
across quality-of-life dimensions, allowing the construction of different
indexes.
Measures of both objective and subjective well-being provide key
information about people’s quality of life. Statistical offices should
incorporate questions to capture people’s life evaluations, hedonic
experiences and priorities in their own survey
Sustainability assessment requires a well-identified dashboard of
indicators. The distinctive feature of the components of this dashboard
should be that they are interpretable as variations of some underlying
“stocks”. A monetary index of sustainability has its place in such a
dashboard but, under the current state of the art, it should remain
essentially focused on economic aspects of sustainability.
The environmental aspects of sustainability deserve a separate followup
based on a well-chosen set of physical indicators. In particular there is a
need for a clear indicator of our proximity to dangerous levels of
environmental damage (such as associated with climate change or the
depletion of fishing stocks.)
Millennium Development Goals
GOALS AND THEIR ACHIEVEMENT BY 2010
Eradicate extreme poverty and hunger
1.
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The global economic crisis has slowed progress, but the world is still on
track to meet the poverty reduction target
Achieve universal primary education
2.
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Hope dims for universal education by 2015, even as many poor countries
make tremendous strides
Promote gender equality and empower women
3.
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For girls in some regions, education remains elusive
Reduce child mortality
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Child deaths are falling, but not quickly enough to reach the target
Improve maternal health
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Reduce by three quarters, between 1990 and 2015, the maternal
mortality ratio
Combat HIV/AIDS, malaria & other diseases
6.
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The spread of HIV appears to have stabilized in most regions, and more
people are surviving longer
Ensure environmental sustainability
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The rate of deforestation shows signs of decreasing, but is still alarmingly
high
Develop a global partnership for development
8.
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Aid continues to rise despite the financial crisis, but Africa is shortchanged
Sources
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GNI per capita map
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Human Development Map
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http://datafinder.worldbank.org/gni-percapita-ppp
http://hdr.undp.org/en/statistics/data/hd_m
ap/
Millennium Development Goals data
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http://devdata.worldbank.org/atlas-mdg/
Quiz
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What is HDI?
GNI includes foreign investment. True or
false?
A country’s Gini coefficient is 0.
Therefore, it has perfect equality. True
or False?
What is well-being?
What are the critiques of alternative
measures of GDP?
Debate next class
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Should population growth be controlled?
Jury of 3 (1 PhD + 2 master’s students)
Divide into two groups of 11 each
(approx)—pros vs cons
There will be some additional readings
online for you to decide