Free Essay

Human Development Index

In:

Submitted By priyadhawan91
Words 2113
Pages 9
The UNDP Human Development Report (HDR) for 2011 focuses on the intertwined issues of sustainability and equity. While most countries have achieved substantial development gains since 1970, the 2011 HDR draws attention to evidence that raises questions about the sustainability and distribution of these benefits.
Human Development Index: Encouraging Progress
Most countries have made great strides in living standards over the past 30 to 40 years. The UNDP’s Human Development Index (HDI) increased, on average, by 41 percent overall and 60 percent in low HDI countries since 1970.
The HDI country ranking is divided into four quartiles. The first quartile, or top 47 countries with the highest HDIs, is labeled “very high human development.” The remaining three quartiles of country groupings are “high human development” countries, “medium human development” countries and “low human development” countries.
From 1980 to 2011, average HDI scores increased by 16.1 percent, 20.7 percent, 50.0 percent and 44.3 percent for very high, high, medium and low human development countries, respectively. The table below presents HDI data from the 2011 HDR for a select group of countries from each development category.
Green Revolution
The Green Revolution in agricultural productivity is one of a number of important factors behind the dramatic rise in living standards. With only a 10 percent increase in cultivated land, agricultural output doubled over the past 50 years.
In Asia, the Green Revolution “doubled rice and wheat yields between the 1960s and 1990s through the introduction of high-yield plant varieties, better irrigation and the use of fertilizers and pesticides.” Though, the HDR points out that some of these methods do not make for sustainable agriculture.
Equity and Sustainability: The Other Side of the Story
Yet, not far beneath the surface, a host of factors raise concerns about the distribution of HDI gains and the prospects for the next 50 years of global development. * 1.5 billion people worldwide, or more than 20 percent of the global population, still live in energy poverty without access to electricity. Hundreds of millions more struggle with limited, unreliable access. * Half the world’s people face serious health and safety risks from continuing to rely on traditional biomass (e.g., coal, wood, peat) for heating and cooking. * In low HDI countries, 65 percent of people lack access to improved sanitation and 38 percent lack access to improved water. * The average number of natural disasters more than doubled from 132 a year over 1980-1985 to 357 over 2005-2009. * Global carbon dioxide emissions by country increased by 112 percent on average since 1970. * World food prices are expected to rise 30-50 percent in real terms and become more volatile in the coming decades due to adverse environmental factors.
Water Issues
Water access and supply are two telling indicators of current and future states of development. Today, more than 6 people in 10 still lack ready access to safe, improved water. By 2025, water scarcity is expected to impact the lives of more than 1.8 billion people.
Beyond its intrinsic value, water is an essential input for food production. Most of the world’s poor rely on farming tiny-to-small plots of land to survive. Demand for water for food production is projected to double by 2050. This sharp increase is made all-the-more significant by the fact that agriculture accounts for 70-85 percent of global water usage.
Fish Stocks and Fishing Livelihoods
The global annual fish catch of 145 million tons exceeds the maximum sustainable annual yield of piscine food sources, estimated at 80-100 million tons, by anywhere from 40 percent to more than 80 percent. With 85 percent of people who work in the global fishing industry, Asia will bear the brunt of a downturn in fish yields due to over-fishing, excessive global fish consumption, climate change or other risk factors.
Equity Issues * Today, a resident of a very high HDI country accounts for about 30 times the carbon dioxide emissions of the average person living in a low HDI country. However, very high HDI countries can have very different environmental impacts. Norway’s per capita carbon dioxide emissions of 10 tons is less than one-third that of the 35 tons per capita generated by the United Arab Emirates (UAE). * Between 1850 and 2005, very high HDI countries, while accounting for only about one-sixth of the world’s population, contributed nearly two-thirds (64 percent) of global carbon dioxide emissions. * Indoor air pollution, largely from cooking and heating with coal or other biofuels due to a lack of electricity, currently kills 11 times more people living in low HDI countries than people elsewhere. “In low HDI countries, 94 percent of the multidimensionally poor rely on [bio]fuels, producing smoke associated with acute respiratory infections, lung cancer, reduced lung function, carbon monoxide poisoning and immune system impairment.” In Peru, more than 80 percent of rural households depend on fuel wood for cooking due to low rural electrification rates.
Deforestation: Impact of Global Demand and Supply Linkages
Deforestation poses a serious threat to the livelihoods of local communities and the prospects for sustainable development. Residents of low HDI countries, especially the poor and rural dwellers, face the greatest risk from reductions in forest cover. Deforestation destroys natural ecosystem services and causes biodiversity losses that tear away at agricultural productivity while heightening the risk and impact of chronic health problems and the growing number of natural disasters.
Rates of deforestation have to be evaluated within the context of the global chain of supply and demand. According to the 2011 HDR, “simulations suggest that the European Union transfers 75 of very 100 cubic meters of reduced timber harvest to developing countries, mainly the tropics,” while Australia and New Zealand transfer 70 cubic meters and the U.S. 46 cubic meters. While Indonesia deforested at a rate of nearly 20 percent annually between 1990 and 2008, the Philippines, with similar per capita income, reforested 15 percent over the same period.
What is Sustainable Development?
Sustainable development has three pillars: economic, social and environmental. This triumvirate has also become known as the “triple bottom line” in the modern parlance of socially responsible business.
Intragenerational equity is a key element of the social pillar of sustainable development. According to the 2011 HDR, development economists Amartya Sen and Sudhir Anand made the case for linking sustainability and equity more than a decade ago by arguing, “It would be a gross violation of the universalist principle if we were to be obsessed about intergenerational equity without at the same seizing the problem of intragenerational equity.” In other words, we should care not only about how we stack up to one another today but also about how what we have today measures up to what future generations will have tomorrow.
Pursuing Sustainable Development
Persuading a critical mass to buy into prioritizing sustainability presents an imposing challenge of psychological and behavioral wills. Like-minded proponents of sustainability need to take the lead by building influential coalitions of the enlightened and demonstrating the business case for sustainable development. Fortunately, a growing cadre of influential organizations and innovative projects are investing in charting the course for a more sustainable future. They would do well to direct a healthy share of their efforts to poor and under-served populations who would need it the most.

Human Development Report 2011
Sustainability and Equity: A Better Future for All
The 2011 Human Development Report argues that the urgent global challenges of sustainability and equity must be addressed together – and identifies policies on the national and global level that could spur mutually reinforcing progress towards these interlinked goals. Bold action is needed on both fronts, the Report contends, if the recent human development progress for most of the world’s poor majority is to be sustained, for the benefit of future generations as well as for those living today. Past Reports have shown that living standards in most countries have been rising - and converging - for several decades now. Yet the 2011 Report projects a disturbing reversal of those trends if environmental deterioration and social inequalities continue to intensify, with the least developed countries diverging downwards from global patterns of progress by 2050.
The Report shows further how the world’s most disadvantaged people suffer the most from environmental degradation, including in their immediate personal environment, and disproportionately lack political power, making it all the harder for the world community to reach agreement on needed global policy changes. The Report also outlines great potential for positive synergies in the quest for greater equality and sustainability, especially at the national level. The Report further emphasizes the human right to a healthy environment, the importance of integrating social equity into environmental policies, and the critical importance of public participation and official accountability. The 2011 Report concludes with a call for bold new approaches to global development financing and environmental controls, arguing that these measures are both essential and feasible.

The Human Development Index (HDI) is a composite statistic of life expectancy, education, and income indices to rank countries into four tiers of human development. It was created by economist Mahbub ul Haq, followed by economist Amartya Sen in 1990,[1] and published by the United Nations Development Programme. [2]

: A summary composite index that measures a country's average achievements in three basic aspects of human development: longevity, knowledge, and a decent standard of living. Longevity is measured by life expectancy at birth; knowledge is measured by a combination of the adult literacy rate and the combined primary, secondary, and tertiary gross enrollment ratio; and standard of living is measured by GDP per capita .The Human Development Index (HDI), reported in the Human Development Report of the United Nations, is an indication of where a country is development wise. The index can take value between 0 and 1. Countries with an index over 0.800 are part of the High Human Development group. Between 0.500 and 0.800, countries are part of the Medium Human Development group and below 0.500 they are part of the Low Human Development group.

Knowledge, as measured by the adult literacy rate (with two-thirds weight) and the combined primary, secondary, and tertiary gross enrolment ratio (with one-third weight).
* A decent standard of living, as measured by gross domestic product (GDP) per capita at purchasing power parity (PPP) in USD.
IMP
The Human Development Index (HDI) is a summary measure of human development that is published by the United Nations Development Programme (UNDP). The HDI provides an alternative to the common practice of evaluating a country’s progress in development based on per capita Gross Domestic Product (GDP). The HDI is the signature trademark of the Human Development Report (HDR), an independent report commissioned by the UNDP that is written by a team of scholars, development practitioners and members of the Human Development Report Office of UNDP. The HDI has had a significant impact on drawing the attention of governments, corporations and international organizations to aspects of development that focus on the expansion of choices and freedoms, not just income.
The HDI measures the average achievements in a country in three basic dimensions of human development: * A long and healthy life, as measured by life expectancy at birth. * Knowledge, as measured by the adult literacy rate (with two-thirds weight) and the combined primary, secondary and tertiary gross enrollment ratio (with one-third weight). * A decent standard of living, as measured by GDP per capita in purchasing power parity (PPP) terms in US dollars.
Before the HDI itself is calculated, an index is created for each of these dimensions. To calculate these indices—the life expectancy, education and GDP indices—minimum and maximum values (goalposts) are chosen for each underlying indicator. For example, in 2004 the maximum and minimum values for life expectancy were 85 and 25 years, respectively. Performance in each dimension is expressed as a value between 0 and 1. The HDI is then calculated as a simple average of the dimension indices:
HDI = 1/3 (life expectancy index) + 1/3 (education index)+ 1/3 (GDP index)

Background
The first Human Development Report (HDR) was published in 1990, under the leadership of Pakistani economist and finance minister Mahbub ul Haq and Indian Nobel Laureate for Economics Amartya Sen.
The principal motivation behind the HDR was, according to Sen, an overarching preoccupation with the growth of real income per capita as a measure of the well-being of a nation. Physical expansion of an economy, as measured by per capita GDP, does not necessarily mean that people are better off in the larger sense of the term: health, freedom, education, meaningful work and leisure time,

Similar Documents

Premium Essay

Human Development Index

...past three decades, India has made good progress on the human development index (HDI), says the Human Development Report 2013, released by the United Nations Development Programme (UNDP). However, India’s rank out of 187 countries is no better than last year’s. With a HDI value of 0.554 and a rank of 136 among 187 countries, which it shares with Equatorial Guinea, India is placed in the “medium development” category. There has been steady improvement in its HDI value, which was 0.345 in 1980. In 1950, Brazil, China and India together represented 10 per cent of the world economy, while the six traditional economic leaders of the North accounted for more than half. According to projections in the report, by 2050, Brazil, China and India will together account for 40 per cent of global output, far surpassing the projected combined production of today’s Group of Seven bloc. | |   | HDI is a composite statistic of life expectancy, education, and income indices used to rank countries in four tiers of human development. Since 2011, the UNDP report has included an inequality adjusted HDI, also known as IHDI, which attempts to include the effects of inequality on human development. The IHDI for India this year is 0.392. High gender inequality The country fails miserably on the front of gender equality. On the gender equality index, with a value of 0.610, India has one of the worst indicators in the medium human development category. For example, the country has only 10.9 per cent...

Words: 2783 - Pages: 12

Free Essay

The Human Development Index and the Inequality Human Development Index

...The Human Development Index and the Inequality Human Development Index Human development is defined as the process of enlarging people’s freedoms and opportunities and improving their well-being. Human development is about the real freedom ordinary people have to decide who to be, what to do, and how to live. The human development concept was developed by economist Mahbub ul Haq. At the World Bank in the 1970s, and later as minister of finance in his own country, Pakistan, Dr. Haq argued that existing measures of human progress failed to account for the true purpose of development—to improve people’s lives. In particular, he believed that the commonly used measure of Gross Domestic Product failed to adequately measure well-being. Working with Nobel Laureate Amartya Sen and other gifted economists, in 1990 Dr. Haq published the first Human Development Report, which was commissioned by the United Nations Development Programme. The Human Development Index was developed as an alternative to simple money metrics. It is easy-to-understand numerical measures made up of what most people believe are the very basic ingredients of human well-being: health, education, and income. The first Human Development Index was presented in 1990. It has been an annual feature of every Human Development Report since, ranking virtually every country in the world from number one currently Norway, to number 186 Niger. Like all averages, it conceals disparities in human development across the population...

Words: 653 - Pages: 3

Premium Essay

Geog Human Development Index

...1. The Human Development Index is a tool developed by the United Nations to measure and rank countries' levels of social and economic development measured on four things: Life expectancy at birth, mean years of schooling, expected years of schooling and gross national income per capita. The HDI makes it possible to track changes in development levels over time and to compare development levels in different countries. By measuring life expectancy, education, literacy and gross domestic product per capita yearly, you can how individual countries have developed overtime. 2A) What freedoms you enjoy most in your day to day life: The freedomsI enjoy most in my life are the simple things that usually go by unnoticed; the freedom of speech is a significant one in my life as a lot of my time is spent on the internet writing opinions of what I think and being able to read opinions of others. I do not have to worry about what I say (in comparison to some Third World countries where there is a restriction on freedom of speech) as I have the freedom to speak the truth whenever I want. B) Areas in my life that I experience 'unfreedom' is mostly a result of my age and the fact that I am a poor student. This is restricting, as my age (19) is still classified as a teen and I am still not as 'mature' as I will be when I am in my early 20's. This makes it harder to get a job as I haven't got a degree and the fact that I am too young and inexperienced. Also, being a student restricts me...

Words: 408 - Pages: 2

Free Essay

Social Issues

...such as the Gross Domestic Product (GDP) and the Gross National Product (GNP) are used to gauge the growth of an economy. Economic development is all about increasing the wealth in a nation as a whole. Economic development is the promotion of more intensive and more advanced economic activities through such means as education, improved tools and techniques, more available financing, better transportation, and creation of new businesses, (Microsoft Student, 2009a). Gross Domestic Product (GDP) is the total value of goods and services produced in a country over a year. It is an estimate of market throughput, adding together the value of all final goods and services that are produced and traded for money within a given period of time. Gross Domestic Product (GDP) is calculated by adding up the value of all goods and services that are produced, by adding up the expenditure on goods and services at the time of sale and lastly by adding up the producer incomes from the sale of goods or services. Gross Domestic Product (GDP) measures a country’s economic activities regardless of who owns the productive assets in that country, (Costanza etal, 2009:5). One key difference between the two concepts therefore is the value of production by multinational companies which is sent home from abroad. Another difference between the two measures of economic development is that GDP is a better measure of the state of production in the short term whilst GNP is a better measure when analyzing sources...

Words: 1724 - Pages: 7

Premium Essay

Hdi to Measure Development

...Growth and Development 2 3. Human Development Index 3 3.1 Historical Background of Human Development Measurement 4 3.2 Definition of Human Development and HDI 5 3.3 HDI Calculation 6 3.4 HDI Interpretation and Application 7 3.5 Limitations 8 3.6 Criticism 9 4. Conclusion 10 Appendix-I (Acronyms and abbreviations) 10 References 11 1. Introduction Over the last two decades economic growth has got a lot more attention among policymakers, corporate, economists, and academics in India and across the world. Since 1991, when India implemented liberalization, privatization, and globalization policies, GDP growth rate has become a buzz word. It has got disproportionate amount of attention from policymakers and economists. It has been used excessively to measure the success or failure of any policy. But after two decades it has become clearly visible that GDP growth rate alone cannot measure the development of a nation. The difference between growth and development too has become clearer. In spite of fast paced economic growth for last 10-20 years, a large part of our population remains illiterate. A large part of our population does not have the access to safe drinking water and proper medical care. Highest number of malnourished children belongs to our nation. These are some of the bitter realities which GDP growth based measurement never reflects. All these facts suggest the need of a more holistic approach to measure the development and growth...

Words: 3322 - Pages: 14

Free Essay

Accounts

...Human Development Index 1 Human Development Index The Human Development Index (HDI) is a composite statistic of life expectancy, education, and income indices used to rank countries into four tiers of human development. It was created by the Pakistani economist Mahbub ul Haq and the Indian economist Amartya Sen in 1990[1] and was published by the United Nations Development Programme.[2] World map by quartiles of Human Development Index in 2013. Origins The origins of the HDI are found in the annual Development Reports of the United Nations Development Programme (UNDP). These were devised and launched by Pakistani economist Mahbub ul Haq in 1990 and had the explicit purpose "to shift the focus of development economics from national income accounting to people-centered policies". To produce the Human Development Reports, Mahbub ul Haq brought together a group of well-known development economists including: Paul Streeten, Frances Stewart, Gustav Ranis, Keith Griffin, Sudhir Anand and Meghnad Desai. Working along with Nobel laureate Amartya Sen, they worked on capabilities and functionings that provided the underlying conceptual framework. Haq was sure that a simple composite measure of human development was needed in order to convince the public, academics, and policy-makers that they can and should evaluate development not only by economic advances but also improvements in human well-being. Sen initially opposed this idea, but he went on to help Haq develop the Index...

Words: 8369 - Pages: 34

Free Essay

Concept of Capability and Undp Human Development Reports

...and UNDP Human Development Reports Introduction The source of the human development approach is from the theory of Sen which says that development comes about only when capabilities expand. The idea generated from the theory is that the core reason for development is to ensure that human lives are improved. This can only be achieved if there is expansion in what they can be or do. It could include things such as the being well nourished and healthy, participating in the activities of the community and being knowledgeable. Hence, development can only occur once the obstacles that were present preventing an individual from doing something are removed. The obstacles might be in the form of ill health, illiteracy, lack of resources or lack of freedom- both political and civil. When these obstacles are removed one is said to be capable; hence the origin of the concept of capability Sen, 160). Purpose Statement The purpose of this paper is to analyze the concept of capabilities approach that was developed by Amartya Sen, a Nobel Prize winner, and M. Nussban. Amartya has enabled the measurement of human development by the United Development Program (UNDP). He helped invent the capabilities approach, which is the foundation of indices used by UNDP in their measurements. Through these indices the achievement in education and health can be measured in addition to income (Nussbaum, 67). Objectives The main aim of this paper is to establish whether the Human Development Reports (HDRs)...

Words: 1267 - Pages: 6

Premium Essay

Nghiuiasd

...Human Development Report 2013 The Rise of the South: Human Progress in a Diverse World Explanatory note on 2013 HDR composite indices Viet Nam HDI values and rank changes in the 2013 Human Development Report Introduction The 2013 Human Development Report presents Human Development Index (HDI) values and ranks for 187 countries and UN-recognized territories, along with the Inequality-adjusted HDI for 132 countries, the Gender Inequality Index for 148 countries, and the Multidimensional Poverty Index for 104 countries. Country rankings and values in the annual Human Development Index (HDI) are kept under strict embargo until the global launch and worldwide electronic release of the Human Development Report. It is misleading to compare values and rankings with those of previously published reports, because the underlying data and methods have changed. Readers are advised in the Report to assess progress in HDI values by referring to table 2 (‘Human Development Index Trends’) in the Statistical Annex of the report. Table 2 is based on consistent indicators, methodology and time-series data and thus shows real changes in values and ranks over time reflecting the actual progress countries have made. Caution is requested when interpreting small changes in values because they may not be statistically significant due to the sampling variation. Generally speaking, changes in third decimal of all composite indices are considered insignificant. For further details on how each...

Words: 2450 - Pages: 10

Premium Essay

Globalisation

...industrial advancement. Peru is one of the nations which distinctly depicts the effects from globalisation. Peru was initially a third world nation suffering from scarcity and dictatorship, it is now progressing into a developed country. Globalisation has positively affected Peru by raising the Human Development Index, empowering females, and creating a more powerful nation. (Leon 2002) One of the advantages of globalisation which has a civil development is the increase in Human Development Index. It is an assessment and comparison of civil, governmental and industrial growth between all the nations in the world. With a scale of zero to one, the Human Development Index rates each nation, with the most developed, globalised nation scoring one. The capital gross domestic production, life expectancy during birth, literacy of adults, and the amount of people admitted into educational institutions are the aspects involved in concluding the Human Development Index of each nation. Peru had a startling Human Development Index of 0.643 in 1975. However, the Human Development Index of the nation surged up to 0.762 which was more than a tenth rise. This considerable hike in the Human Development Index of Peru was an evident sign of the benefits from globalisation. In the...

Words: 1511 - Pages: 7

Premium Essay

Economic Globalization

...developing countries, spreads technological knowledge, and increases political liberation. (Harris 5-23) The main cause of globalization is influence from other, more developed, countries. Globalization is a historical process that results from human innovation and technological progress. The social effects of globalization are clearly illustrated in Peru. Once a third-world country filled with poverty and oppression, Peru is now transitioning into a developed nation. In Peru, globalization has raised the human development index, empowered women, and created a stronger country. (Leon 90-91) One of the benefits of globalization on a social level is an increased Human Development Index. The Human Development Index is a measurement of a country's social, political, and economical growth in comparison to other countries in the world. The Human Development Index rates each country with a score between 0 and 1, with 1 being the most advanced, globalized country. Factors that are involved in determining a country's HDI are gross domestic production per capita, life expectancy at birth, adult literary, and the number of persons enrolled in educational institutions. In 1975, Peru's Human Development Index was a 0.643. By 2003, the Human Development Index had risen more than one tenth to 0.762. The substantial increase of Peru's HDI is a clear indication that globalization has made a positive impact. From 1975 until 2003, globalization has caused a 2% increase in the adult literacy rate. During...

Words: 547 - Pages: 3

Free Essay

Hdi and Gdp

...ESSAY Difference people do difference things but have the same goal. That is to improve standard of living or human well-being for instead. So we need an index to indicate what we have achieved, what is the limitation that needs to be adjusted to orient the growth trend that makes the life better in the future. To meet up with this expectation, Gross Domestic Product (GDP for short) has been used as a method of evaluating the human well-being for a long time all over the world. But with the introduction of Human Development Report in 1990, the Human Development Index (HDI) has attracted great attention of policy and academic circles, as well as broader community around the world. This appearance also helps raising the question: Is GDP still an adequate measure of societal well-being and should it be replaced by HDI? This question has attracted a lot of people and cause a controversy among them. So let’s have a look at that matter of argument. As you know the standard well-being varies from time to time, from place to place so we should at first understand: What is well-being? In general, well-being is the pursuit and fulfillment of personal aspirations and the development and exercise of human capabilities, within a context of mutual recognition, equality and interdependence. To make it more detailed here are some key criteria that we should include to valuate well-being: Material living standards (income, consumption and wealth); Health; Education; Personal activities including...

Words: 1727 - Pages: 7

Premium Essay

Malaysia Macroeconomics

...mainly by the services and manufacturing sectors (Malaysia Factbook 2014). 2.0 Malaysia Economic Growth Rate Table of Malaysia GDP Growth (Annual %) from year 2003-2012 Year | GDP Growth (Annual %) | 2003 | 6 | 2004 | 7 | 2005 | 5 | 2006 | 6 | 2007 | 6 | 2008 | 5 | 2009 | -2 | 2010 | 7 | 2011 | 5 | 2012 | 6 | Sources: The World Bank Group 2014a Line chart of Malaysia GDP Growth (Annual %) from year 2003-2012 Sources: The World Bank Group 2014a The x-axis of the line chart above represents years from 2003 to 2012 while y-axis represents Malaysia’s GDP Annual Growth Rate. GDP Growth (Annual %) can be defined as annual percentage growth rate of GDP at market prices based on constant local currency (Index Mundi 2014a). According to the line chart, GDP Annual Growth Rate in Malaysia is at average of 5.1 percent from year 2003 to year 2012 and it was growing above 5 percent with the exception of year 2009. The Annual Growth Rate hit record lows of -2 percent in year 2009 and reached an all time high of 7 percent in year 2004 and 2010 (The World Bank Group 2014a). One of the reasons that contribute to the growth of GDP in year 2004 is the growth of private investment, implying...

Words: 2117 - Pages: 9

Premium Essay

Hdi in Nigeria

...HUMAN DEVELOPMENT INDEX Human Development Index (HDI): Explained According to the United Nation Human Development Report of 2006, “Human Development I Index is a summary measure of human development in any country”. It measures the average achievements in a country in three basic dimensions of human development namely: i. Healthy Living Condition ii. Education and iii. Standard of Living * A long and healthy life is measured in nation by the life expectancy at birth. * Knowledge, as measured by the adult literacy rate (with two-thirds weight) and the combined primary, secondary and tertiary gross enrolment ratio (with one-third weight). * A decent standard of living measured by GDP per capita. Wikipedia.org also described HDI thus “the Human Development Index (HDI) is a composite statistic used to rank countries by level of "human development" and separate "very high development", "high human development", "medium human development", and "low human development" countries. The statistic is composed from data on life expectancy, education and per-capita GNI (as an indicator of standard of living or income) collected at the national level”. In summary, Human Development Index is the United Nation measure of well-being in countries of the world. Calculating the Human Development...

Words: 527 - Pages: 3

Premium Essay

Gdp vs. Hdi- the Adequate Measure of Societal Well - Being.

...sustainable development. Social, economic and environmental well-being are indivisible. Together they define gross global happiness,” said the Secretary-General Ban Ki-moon in the high-level meeting – “Happiness and Well-being: Defining a New Economic Paradigm” at UN Headquarters in New York on the 2sd, April, 2012. These words remind us of the fact that not just economic well-being but social well-being (as much as enviromental well-being) is also an essential factor in rating a nation’s happiness, as well as that of a man. Therefore, the important thing to do now is to find a way to measure social well–being, and should that be Gross Domestic Product (as some country has done)? However, in actual fact, there are people who believe that GDP is inadequate and it should be replaced by the Human Development Index (HDI). We find this opinion very convincing. The United States Institue of Peace (USIP) defined “social well-being” as “an end state in which basic human needs are met and people are able to coexist peacefully in communities with opportunities for advancement.” But what is an “end state”? And we can base on which factors to evaluate it? To answer these questions, the USIP also pointed out the 4 neccesery conditions to achive this “end state”, which were: Access To and Delivery of Basic Needs Services, Access To and Delivery of Education, Return and Resettlement of Refugees and Internally Displaced Persons, and finally Social Reconstruction. Therefore, whichever index we use...

Words: 1767 - Pages: 8

Premium Essay

Development

...in wealthy, industrially-developed nations primarily located in the Western Hemisphere have become concerned with the notion of "development," or lack thereof, in the relatively poor, industrially-undeveloped nations primarily located in Africa, Central and South America and various regions throughout Asia. Unfortunately for those concerned with effecting some change, no one is quite sure what it is exactly that separates a "developed" country from an "undeveloped" country. Partly due to the inability to properly define "development," those concerned with the affairs and quality of life of people in far, distant lands have also encountered difficulties in proposing a solution that engenders some kind of successful outcome to the problem at hand. Is a country with a high Gross Domestic Product (GDP) a "developed" country? Or is development about relatively high levels of Gross National Product (GNP)? Maybe a more proper comparison to make amongst countries of varied economic development is Purchasing Power Parity (PPP). Perhaps development is not primarily a question of the static level of income a person within the country receives in a given year, but is more related to the annual rate of growth of a person's income, or of the economy as a whole. But there are still other considerations to take into account when examining the economic development of a country, such as the quality and quantity of health care (and health), education and political and religious freedoms. Several...

Words: 2549 - Pages: 11