Human Development Index; Components of Human Development Index, Significance and limitations

Human Development Index: meaning, calculation, scope, importance, limitations have been defined, described and elaborated...

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2. 6/25/2017 Palistha Sainju 2 HUMAN DEVELOPMENT INDEX (HDI) PRESENTED BY: PALISTHA SAINJU

3. D evelopment The process  in which someone or something  grows or changes and becomes more   advanced : healthy growth and development   . The   process   of   developing  something new. 6/25/2017 Palistha Sainju 3

4. Human development Human development is defined as the process of enlarging people's freedom allowing them to lead a healthy life, having decent standard of improved living and guaranteed human rights. It values capabilities related to health, education, long life nutrition as ends in its self and it sees income as the means to achieve these . 6/25/2017 Palistha Sainju 4

5. What is Human Development index? It is a summary composite, statistic index that measures a country's average achievements in three basic aspects of human development: health, knowledge, and a decent standard of living which are used to rank countries into four tiers of human development . 6/25/2017 Palistha Sainju 5

6. THE HUMAN DEVELOPMENT CONCEPT Human Development is a development paradigm that is about much more than the rise or fall of national incomes. People are the real wealth of nations. HDI It is an index used to rank countries by level of human development which implies that whether the country is a developed, a developing or an underdeveloped, and also to measure the impact of economic policies on quality of life. 6/25/2017 Palistha Sainju 6

7. The origin of HDI Mahbub ul Haq Founder of the Human Development Report. UNDPs Human Development Reports (HDRs). These were launched in 1990 and had the explicit purpose: ‘‘to shift the focus of development economics from national income accounting to people centered policies.’’ It was  Amartya Sen’s work on capabilities and functioning that provided the underlying conceptual framework. 6/25/2017 Palistha Sainju 7

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9. Components of HDI 6/25/2017 Palistha Sainju 9

10. Health Health is measured is measured by life expectancy at birth. Life expectancy at birth is number of years a new born infant could expect to live if prevailing patterns of age specific mortality rates at the time of birth stay the same through out the infant’s life. The life expectancy at birth component of Hdi is calculated using minimum value of 20 years and maximum value at 85 years. 6/25/2017 Palistha Sainju 10

11. Education The education component of HDI is measured by the mean of years of schooling for adults aged 25 years and expected years of schooling for children of school entering age. Knowledge and education, as measured by the adult literacy rate (with two-thirds weighting) and the combined primary, secondary, and tertiary gross enrollment ratio (with one-third weighting ). 6/25/2017 Palistha Sainju 11

12. Standard of living Standard of living is measured by the natural logarithm of gross domestic product (GDP) per capita at purchasing power parity (PPP) in United States dollars. Gross national income(GNI) per capita: Aggregate i ncome of an economy generated by its production and its ownership of the factors of production, less the income paid for the use of factors of production owned by the rest of the world, converted to international dollars using PPP rates divided by the midyear population. 6/25/2017 Palistha Sainju 12

13. Changes occurred in new Human Development Index (HDI ) 1. There is a change of goalposts in three indices of HDI. 2 . Geometric mean is taken for assessment of HDI.  Changes occurred in Life Expectancy Index (LEI) in new HDI calculation As per old HDI, the minimum life expectancy was 25 years. In new HDI, the minimum life expectancy is reduced to 20 years. As per old HDI, the maximum life expectancy was 85 years. And now maximum life expectancy is reduced to 83.5 years. The formula to calculate the LEI is same given in old HDI. 6/25/2017 Palistha Sainju 13

14. Changes occurred in Education Index (EI) in new HDI calculation As per old HDI, there were two indices named Adult Literacy Index (ALI) and Gross Enrolment Index (GEI). As per new HDI, these are replaced by Minimum Years of School Index (MYSI) and Expected Years of Schooling Index (EYSI). MYSI is given minimum value as zero and maximum value as 13.2 and EYSI is given minimum value of zero and maximum value as 20.6. For total education index minimum value is set as zero and maximum value is set as 0.951. The formula is changed for calculation of new Education Index . 6/25/2017 Palistha Sainju 14 Changes occurred in new Human Development Index (HDI )

15. Changes occurred in Income Index (II) in new HDI calculation As per old HDI, the minimum income was $100 and maximum was $40, 000. As per new HDI, the minimum income is $163 and maximum income is $108, 211. In old HDI, Gross Domestic Product was taken and in new HDI, Gross national Income was taken. The formula to calculation of new Income Index remained the same . Changes occurred in new HDI calculation There used to be taking of average mean of three indices to determine old HDI, but as per new HDI, the geometric value of three indices is taken as HDI. 6/25/2017 Palistha Sainju 15 Changes occurred in new Human Development Index (HDI )

16. Calculation of HDI of Nepal As of 2013 LE= 67.8 years MYS=3.2 EYS=12.4 GNIpc =$2660 Now, LEI= = =0.7354   6/25/2017 Palistha Sainju 16

17. EI = MYSI= = =0.2133 EYSI= = =0.6889 Therfore , EI= =0.4511 AND, II= = 0.4956   6/25/2017 Palistha Sainju 17 Calculation of HDI of Nepal

18. HERE, MYSI=mean year of schooling index EYSI= Expected year of schooling index MYS=mean year of schooling EYS=expected year of schooling   6/25/2017 Palistha Sainju 18 Calculation of HDI of Nepal

19. Where, HDI= Human Development Index HDI= =0.548 ( approx ).   6/25/2017 Palistha Sainju 19 Calculation of HDI of Nepal

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21. Top 10 HDI Rankings 6/25/2017 Palistha Sainju 21

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23. Source: UNDP 2016 Human Development R eport released in 21 march 2017 6/25/2017 Palistha Sainju 23

24. HDI of N epal Nepal has graduated to medium human development grouping in the United Nations’ Human Development Index (HDI), indicating Nepalese are growing healthier, becoming more educated and earning more. Nepal secured a score of 0.558 in HDI in 2015, as against 0.548 in 2014, says the Human Development Report 2016 published by the UN . 6/25/2017 Palistha Sainju 24

25. In the same course of development and with this score, Nepal secured 144th position in the HDI among 188 countries surveyed by the UN. This ranking is same as that of the previous year. The slight improvement in the score also helped Nepal to escalate to the medium human development group from the low human development group. 6/25/2017 Palistha Sainju 25 HDI of N epal

26. The 2014 Nepal National Human Development Report had found wide variations in HDI values across population groups in Nepal. The Newar people have the highest HDI value, 0.565. Close on the heels are Brahmins and Chhetris , with HDI value of 0.538. This was followed by Janajatis , with HDI value of 0.482, Dalits HDI value is 0.434 and Muslims HDI value is 0.422. The variations in HDI values are even significant within these groups, depending on where they live. The highest inequalities are in education, and this may have pronounced long-term effects on capabilities later in life.  6/25/2017 Palistha Sainju 26 HDI of N epal

27. The Welcome to School Initiative, for instance, led to an increase in net enrolment of 470,000 children, 57 percent of them are girls, within a year of its implementation in 2005. The programme primarily focused on girls and disadvantaged groups. “Nepal’s policy on adolescent girls was initially centered on health and education but now encompasses needs in employment, various skills development and civic participation . 6/25/2017 Palistha Sainju 27 HDI of N epal

28. Nepal in HDI Years HDI scores 2000 0.446 2010 0.529 2011 0.538 2012 0.545 2013 0.551 2014 0.555 2015 0.558 6/25/2017 Palistha Sainju 28

29. Nepal status in HDI 6/25/2017 Palistha Sainju 29

30. HDI and its Components 6/25/2017 Palistha Sainju 30

31. Components Datas Health Life expectancy at birth (years) 70.0 Education Expected years of schooling (years) 12.2 Income/composition of resources Gross national income (GNI) per capita (2011 PPP$) 2,337 Inequality Inequality-adjusted HDI (IHDI) 0.407 Gender Gender Development Index (GDI) 0.925 Poverty Multidimensional Poverty Index (MPI) 0.116 Work employment and vulnerability Multidimensional Poverty Index (MPI) 0.116 6/25/2017 Palistha Sainju 31

32. Human Security Homicide rate (per 100,000 people) 2.9 Trade and financial flow Exports and imports (% of GDP) 53.2 Mobility and communication Internet users (% of population) 17.6 Environment sustainability Carbon dioxide emissions per capita ( tonnes ) 0.2 Demography Population, total (millions) 28.5 6/25/2017 Palistha Sainju 32

33. Efforts of HDI for human development Universalism—from principles to practice 6/25/2017 Palistha Sainju 33

34. Reaching everyone—analytical and assessment issues 6/25/2017 Palistha Sainju 34 Efforts of HDI for human development

35. Caring for those left out—national policy options 6/25/2017 Palistha Sainju 35 Efforts of HDI for human development

36. Transforming global institutions 6/25/2017 Palistha Sainju 36 Efforts of HDI for human development

37. UNDP in Nepal 6/25/2017 Palistha Sainju 37

38. The Sustainable Development Goals (SDGs), or known as the Global Goals, are a universal call to action in order to end poverty, protect the planet and ensure that all people enjoy peace and prosperity . These 17 Goals build on the successes of the Millennium Development Goals, while including new areas such as climate change, economic inequality, innovation, sustainable consumption, peace and justice, among other priorities. The goals are interconnected often the key to success on one will involve tackling issues more commonly associated with another. 6/25/2017 Palistha Sainju 38 What are the sustainable development goals?

39. HDI as the indicator of overall Development Schooling Life expectancy Measuring of standard of living Per capita income 6/25/2017 Palistha Sainju 39

40. Limitations Limited evaluation of human development. HDI does not measures qualitative factors such as cultural identity, gender opportunities. Purchasing power parity value used to adjust GNI data change quickly and can be inaccurate or misleading. No replicate on quality of life factors, such as empowerment movements or overall feelings of security. Focuses on long term development without considering nature and ecosystem. 6/25/2017 Palistha Sainju 40

41. Poverty Poverty is a condition of having an insufficient resources or income.in its most extreme form, poverty is a lack of basic human needs such as adequate and nutritious food, clothing housing, clean water and health services Extreme poverty can cause terrible suffering and death and even modest level of poverty can prevent people from realizing many of their desires. 6/25/2017 Palistha Sainju 41

42. Causes And Effects Of Poverty Causes of poverty Overpopulation Global distribution of resources Inadequate education and employment Economic and demographic trends Welfare dependency 6/25/2017 Palistha Sainju 42

43. Effects of poverty Malnutrition and starvation Infectious disease Mental illness and drugs dependency Crime and violence Illiteracy 6/25/2017 Palistha Sainju 43 Causes And Effects Of Poverty

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