Download Human Dev Index

WARM-UP
What is an index?
An index is a composite of indicators that
produces a single calculation which can then be
ranked.
THE BODY MASS INDEX
THE WIND CHILL INDEX
THE BIG MAC INDEX
OTHER COMMON INDEXES
ECONOMIC, DEMOGRAPHIC
& SOCIAL INDEXES
Economic, demographic, and social indexes are like
those we just talked about except they include data
(such as income, educational attainment, health, life
expectancy, crude birth rate, etc.) rather than wind
speeds, body weight, and the like.
A Look at the Human Development Index (HDI)
The Human Development Index (HDI)
…is the best known composite index
of social and economic wellbeing…
THE CONCEPT OF
HUMAN DEVELOPMENT
"The basic purpose of development is to enlarge people's
choices. In principle, these choices can be infinite and can
change over time. People often value achievements that do
not show up at all, or not immediately, in income or growth
figures: greater access to knowledge, better nutrition and
health services, more secure livelihoods, security against
crime and physical violence, satisfying leisure hours, political
and cultural freedoms and sense of participation in community
activities. The objective of development is to create an
enabling environment for people to enjoy long, healthy and
creative lives."
Mahbub ul Haq -- Founder of the Human Development Report
HOW THE UNDP MEASURES
HUMAN DEVELOPMENT
•
The HDI consists of three equally
weighted components:
(1) “A long and healthy life” (Health)
(2) “Knowledge” (Education)
(3) “A decent standard of living” (Wealth)
DECONSTRUCTING
EACH MEASURE
Each component of the HDI is measured in the
following way:
Health
Measured by life expectancy at birth.
Education
Measured as a combination of adult literacy
(with two-thirds weight) and gross
enrollment (with one-third weight).
Wealth
Measured by GDP per capita.
CALCULATING HDI:
THE UNITED STATES
In the United States, in 2005:
The average life expectancy was 77.9.
The adult literacy rate was 99%.
The gross enrollment rate was 93.3%.
The GDP per capita was $41,890.
The HDI was .951.
The HDI ranking was 12th.
The IMF’s GDP Per Capita
Rankings (2006)
Purchasing Power Parity (PPP)
1
Luxembourg ($80,471) 11 United Kingdom ($35,051)
2
Ireland ($44,087)
12 Finland ($34,819)
3
Norway ($43,574)
13 Belgium ($34,478)
4
5
United States ($43,444) 14 Sweden ($34,409)
15 Qatar ($33,049)
Iceland ($40,277)
6
Switzerland ($37,369)
7
Denmark ($36,549)
8
Austria ($36,031)
9
Canada ($35,494)
is:
17 Singapore
how ($32,867)
well is the United States
18 Japan ($32,647)
using its income to bring
about
human development?
19 Germany
($31,095)
10
Netherlands ($35,078)
20 Italy ($30,732)
16 Australia ($32,938)
The question
The UNDP’s HDI Rankings (2005)
1 Iceland (.968)
11 Finland (.951)
2 Norway (.968)
3 Australia (961)
12 United States (.951)
(.914 today 5th)
13 Spain (.949)
4 Canada (.960)
14 Denmark (.949)
5 Ireland (.959)
15 Austria (.948)
6 Sweden (.956)
16 United Kingdom (.946)
7 Switzerland (.955)
17 Belgium (.946)
8 Japan (.953)
18 Luxembourg (.944)
9 Netherlands (.953) 19 New Zealand (.943)
10 France (.952)
20 Italy (.941)
Is the HDI Enough to Measure a Country’s
Level of Development?
According to the UNDP, the answer is:
“Not at all.”
“The concept of human development is much
broader than what can be captured in the HDI,
or any other composite indices…”
“The HDI and the other composite indices can
only offer a broad proxy on some of the key
the issues of human development…”
“A fuller picture of a country's level of human
development requires analysis of other human
development indicators and information.”
A SAMPLING OF OTHER
DEVELOPMENT INDEXES
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•
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•
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The Economist’s “Quality of Life” Index
UNICEF’s “Child-Welfare” Index
The “Happy Planet” Index
The UNDP’s “Human Poverty Index”
The UNDP’s “Gender Empowerment Measure”
International Living’s “Quality of Life” Index
The “Global Peace Index”
Freedom House’s “Freedom Rankings”
ECONOMIC
INDICATORS
Gross Domestic Product
-Total value of the output of goods and services
produced in a country annually
-per capita + GDP divided by population (does not
measure actual distribution of a nations wealth)
ECONOMIC CONT.
Types of Jobs
-Primary (raw material
production)
-Secondary
(manufacturing)
-Tertiary (services)
CONSUMER GOODS
AND SERVICES
-Play a central role in MDC life NOT in LDC’s
-motor vehicles
-Telecommunications (cell, phone, internet, etc.)
PRODUCTIVITY
Efficiency… in Primary and Secondary sector
Value Added- gross value of a product minus the
costs of raw materials and energy.
SOCIAL INDICATORS
Health and Welfare-MDC’s
-more calories
-more proteins
-lower food cost per person due to efficiency
-better healthcare (hospitals, doctors per capita)
-social welfare/ public assistance (elderly,
disabled, orphaned, unemployed)
-government/public service (Europe 70%/30%
gov’t vs. public)
SOCIAL CONT.
Education and Literacy- Quantity and Quality
-Student vs. teacher ratio
-LDCs- 30+/1
-MDCs- 20-/1
-Literacy Rate
-MDCs – 98% +
-LDCs – 60% - Many LDCs allot a higher % of GDP to education than MDCs but
the value of that $ is smaller due to a much smaller overall GDP.
DEMOGRAPHIC
INDICATORS
-Infant Mortality Rate (IMR)
-Babies that do not survive infancy (poor nutrition,
lack of medicine, lack of knowledge)
-Crude Birth Rate (CBR)
-Smaller families (MDC- by choice)
-Economic influences
-Social influences
-Birth control/ female education
-Natural Increase Rate (NIR)
-population growth vs. GDP
-Life Expectancy (on PPT)
-The average number of years a newborn infant can
expect to live.
HANS ROSLING
“Change your mindset of the western world.”
WRITING EXERCISE
How would you define human development?
Specifically, what indicators would you
focus on if you were trying to measure
human development?
Would you measure human development
differently than the Human Development
Index (HDI)? Why or why not? Explain.