Human Development Report by UNDP
Giving primacy to Human Development
Note4Students
From UPSC perspective, the following things are important :
Prelims level: HDI Index;
Mains level: Key issues related to Human Development;
Why in the News?
Two recent reports reveal some important facets of India’s Development.
- The Human Development Report 2023-24, published by the UNDP, takes a comparative perspective and maps the achievements in the area of human development.
- A paper published by the World Inequality Lab in March 2024 provides long-term trends in income and wealth inequality in India between 1922 and 2023.
About HDI:
The Human Development Index (HDI) is a measurement system used by the United Nations to evaluate the level of individual human development in each country. It was introduced by the U.N. in 1990.
How is the HDI measured?
The HDI is the geometric mean of the three dimensions above, with indices calculated separately for each country using data on life expectancy, schooling and per capita income. The final result always gives a value between 0 and 1 which defines, according to the UNDP, the four degrees of human development detailed below:
- Very high: countries with a HDI above 0.80.
- High: countries with a HDI between 0.70 and 0.80.
- Medium: countries with a HDI between 0.55 and 0.70. (India is here)
- Low: countries with a HDI below 0.55.
India’s poor ranking in HDI:
- Regional Trends: India’s HDI ranking has improved marginally over the years, but it still lags behind several countries, including Bhutan, Bangladesh, Sri Lanka, and China. In 2022, India ranked 134 out of 193 countries.
- Low HDI Value: Despite the incremental improvement in ranking, India’s HDI value remains relatively low. The HDI value increased from 0.633 in 2021 to 0.644 in 2022.
- Gender Inequality Index (GII): While India showed improvement in its GII ranking in 2022, moving from 122 out of 191 countries in 2021 to 108 out of 193 countries in 2022, significant gender disparities persist. Notably, India faces one of the largest gender gaps in labor force participation rates, with a substantial difference between men (76.1%) and women (28.3%).
- Medium Human Development Categories: India’s HDI ranking places it within the medium human development category alongside countries like Myanmar, Ghana, Kenya, Congo, and Angola.
Key concerns related to Human Development:
- Increasing Disparity Between Countries: The report underscores a concerning trend of growing inequality between countries, particularly between those at the upper and lower ends of the Human Development Index (HDI).
- Economic Concentration: The concentration of economic power in a few countries is exacerbating global inequality. Nearly 40% of the global trade in goods is controlled by just three or fewer countries
- Tech Company Dominance: The dominance of large technology companies further exacerbates inequality, with the market capitalization of the top three companies surpassing the GDP of the majority of countries.
Widening inequality:
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Way Forward:
- Promote Inclusive Growth Policies: Implement policies that prioritize inclusive growth, focusing on reducing income disparities, and enhancing access to education, healthcare, and economic opportunities for all segments of society.
- Enhance Social Safety Nets: Strengthen social safety nets to provide support to vulnerable populations, including targeted welfare programs, universal healthcare coverage, and unemployment benefits.
Mains PYQ:
Q Despite the consistent experience of high growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive.(UPSC IAS/2019)
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Human Development Report by UNDP
Towards a less poor and more equal country
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Income and wealth inequality as per the World Inequality Lab
Why in the news?
In March, World Inequality Lab, a Global Research Center focused on inequality and public policies, published in a paper titled, ‘Income and Wealth Inequality in India, 1922-2023: The Rise of the Billionaire Raj’.
Income and wealth inequality as per the World Inequality Lab:
- Income Inequality: In 2022-23, the top 1% of Indians received 22.6% of the national income, the highest in a century. The top 0.1% earned nearly 10% of the national income. Wealth inequality was also stark, with the top 1% holding 40.1% of the wealth in 2022-23, the highest since 1961.
- Wealth Inequality Trends: Wealth concentration increased significantly between 1961 and 2023. The top 10% held 65% of the wealth in 2022-23, up from 45% in 1961. The bottom 50% and middle 40% saw declines in their share of wealth.
- Comparison with Other Countries: India’s wealth inequality, while not as extreme as in Brazil and South Africa, increased threefold between 1961 and 2023. India’s income inequality is among the highest globally, surpassing South Africa, Brazil, and the U.S.
- Impact of 1991 Economic Reforms: Inequality increased notably after the 1991 economic reforms in India. Growth in China has been broad-based compared to India, resulting in lesser income inequality despite higher growth rates in China.
Present Dilemma in Human Development:
- The Human Development Report (HDR) 2023-2024 ranked India 134 out of 193 countries.
- India is now the fifth-largest economy but it still ranks lower than Sri Lanka, Bhutan, and Bangladesh in human development. Its economic growth has not translated into growth in human development.
Measures to Improve Human Development:
- Investment in Education: Ensure access to quality education for all, from primary to higher levels. Focus on improving educational infrastructure, teacher training, and curriculum development.
- Healthcare Access and Quality: Expand access to affordable and quality healthcare services, including preventive, primary, and specialized care. Invest in healthcare infrastructure, medical personnel, and technology.
- Poverty Reduction: Implement social welfare programs to provide basic needs such as food, shelter, and clothing to the disadvantaged. Promote inclusive economic growth to create employment opportunities and increase household incomes.
Conclusion: The Indian government has taken several steps including the creation and organization of women’s self-help groups, sending civil servants to areas with poor levels of human development, and implementing land reforms. However, a major necessity of raising awareness is through an organic approach.
Mains PYQ
Q Despite the consistent experience of high growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive (UPSC IAS/2019)
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Human Development Report by UNDP
Structured negotiation as a boost for disability rights
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Alternative dispute resolution
Mains level: disability rights
Central Idea:
Structured negotiation is an effective and collaborative approach for resolving disputes, particularly in disability rights cases. It emphasizes a win-win situation where defaulting service providers avoid the drawbacks of litigation, and complainants achieve barrier-free access to services.
Key Highlights:
- Success in addressing issues like inaccessible ATMs, point of sale devices, and websites.
- Convincing major companies like Walmart, CVS, and Caremark to create accessible prescription bottles.
- Driving institutional reform for more accessible voting machines and websites.
- Win-win situation: Service providers avoid litigation costs, complainants gain accessible services.
- Relies on a strong body of disabled-friendly legal precedents for success.
Key Challenges:
- Red tape and bureaucracy in Indian civil courts dissuading traditional dispute resolution methods.
- PayTM incident highlights the challenge of real-time accessibility and constant vigilance.
- Success depends on the willingness of service providers to prioritize the needs of persons with disabilities.
Key Terms:
- Structured negotiation
- Disability rights, Litigation
- Accessibility
- Compliance
- Win-win situation
- PayTM
- Alternative dispute resolution
Key Phrases:
- “Win-win situation”
- “Barrier-free participation in the marketplace”
- “Constant vigilance and user inputs”
- “Level of priority from service providers”
- “Enormous buying capacity of persons with disabilities”
Key Quotes:
- “Optimism is the faith that leads to achievement.” – Helen Keller
Key Statements:
- Structured negotiation offers a pathway for businesses to ensure accessibility without litigation.
- Red tape in Indian civil courts poses a challenge to traditional dispute resolution.
Key Examples and References:
- Walmart, CVS, and Caremark creating accessible prescription bottles.
- CCPD directing PayTM to make its mobile applications accessible.
Key Facts:
- Success in addressing issues related to ATMs, point of sale devices, and websites.
- PayTM incident revealing challenges in real-time accessibility.
Critical Analysis:
Structured negotiation’s success relies on creating a strong foundation of disabled-friendly legal precedents. The challenges of bureaucracy and the need for constant vigilance in real-time accessibility highlight the potential limitations. The willingness of service providers to prioritize persons with disabilities is crucial for the model’s effectiveness.
Way Forward:
Businesses in India should prioritize the needs of disabled users and consider structured negotiation as a powerful step. The enormous buying capacity of persons with disabilities should be recognized, urging businesses to embrace accessibility for both legal compliance and economic benefits.
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Human Development Report by UNDP
This Diwali season, let’s focus on tradition, family — not smartphones
Central idea
Diwali celebrates relationships with traditions, but modern challenges like too much focus on oneself and lack of understanding hurt connections. To improve, we need to balance our personal space, be genuine, spend quality time, and fix how we communicate. Diwali reminds us to make our relationships brighter by fixing these things.
Key Highlights:
- Diwali as Celebration of Relationships: Diwali is a celebration of relationships, encompassing various bonds such as family, friends, and societal connections.
- Rituals Reflecting Values: Traditional Diwali rituals symbolize prosperity, good health, and artistic talents, emphasizing the importance of these aspects in our lives.
- Relationship Cultivation Discourse: The academic discourse on relationship cultivation has primarily been within corporate contexts, like public relations and industrial relations.
Challenges:
- Individualism vs. Collective Spirit: The modern emphasis on personal space and individual choice sometimes overlooks the importance of the collective spirit, leading to potential fragmentation of relationships and societies.
- Understanding Relationship Prerequisites: A lack of understanding about the key elements essential for strong relationships, such as mutual needs and genuine intentions.
- Time Investment: In the era of the “attention economy,” there’s a growing trend of seeking maximum returns with minimal time investment, impacting the depth and quality of relationships.
- Communication Challenges: Poor language skills, influenced by smartphone habits, contribute to challenges in dialogues and conversations. The rise of “phubbing” (snubbing in favor of phones) can negatively impact relationships.
Analysis:
- Impact of Individualism: Extreme individualist thinking can contribute to the breakdown of collective values, leading to the fragmentation of families and societies.
- Relationship Sustainability: Genuine intentions and mutual needs are identified as foundational elements for sustainable relationships.
- Time as a Critical Investment: Adequate investment of time, especially quality time, is crucial for the evolution and maintenance of relationships.
Key Data:
- 2017 Study on Phubbing: Meredith E David and James Roberts conducted a study indicating that phubbing can lead to a decline in crucial adult relationships, particularly with life partners.
Key Terms for mains value addition:
- Phubbing: The practice of snubbing others in favor of mobile phones, identified as a detrimental factor in relationships.
Way Forward:
- Balancing Individualism and Collectivism: Finding a balance between personal space and the collective spirit to strengthen relationships.
- Promoting Genuine Intentions: Emphasizing the importance of authentic emotions and intentions in building and sustaining relationships.
- Conscious Time Investment: Encouraging stakeholders to invest adequate and quality time in various relationships, acknowledging its importance in relationship dynamics.
- Addressing Communication Challenges: Recognizing the impact of smartphones on interpersonal communication and striving for more authentic and meaningful conversations.
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Human Development Report by UNDP
Global Peace Index, 2023
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Peace Index
Mains level: Not Much
Central Idea: The 17th edition of the Global Peace Index (GPI), ranking 163 independent states and territories based on their level of peacefulness was released.
What is Global Peace Index?
- Released by: Institute for Economics and Peace (IEP) since May 2009.
- Extensive Coverage: The GPI covers 163 countries, representing 99.7% of the world’s population, utilizing 23 qualitative and quantitative indicators from reputable sources.
- 3 Domains of Peace: The index measures peace across three domains: societal safety and security, ongoing domestic and international conflict, and militarization. These domains provide a holistic understanding of a country’s peacefulness.
Rankings and Highlights
- Most Peaceful Countries: Iceland continues to hold the title of the most peaceful country since 2008, followed by Denmark, Ireland, New Zealand, and Austria.
- Least Peaceful Countries: Afghanistan remains the least peaceful country for the eighth consecutive year, followed by Yemen, Syria, South Sudan, and the Democratic Republic of the Congo.
- India’s Position: India has climbed two spots to the 126th position in the rankings. It experienced an improvement of 3.5% in peacefulness, attributed to reductions in violent crime, improved relations with neighboring countries, and decreased political instability.
- Prominent Countries: Nepal, China, Sri Lanka, USA, and Pakistan have been ranked 79, 80, 107, 131, and 146, respectively.
Global Peace Trends
- Overall Deterioration: The 2023 report highlights a 0.42% deterioration in the average level of global peacefulness. This marks the thirteenth deterioration in the last fifteen years.
- Improvements and Deteriorations: In 2022, 84 countries demonstrated improvements in peacefulness, while 79 countries experienced deteriorations.
- Long-term Perspective: Over the past fifteen years, the global average score of peacefulness has deteriorated by five percent, indicating a decline in peace worldwide.
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Human Development Report by UNDP
HDI: Addressing India’s Subnational Human Development
Note4Students
From UPSC perspective, the following things are important :
Prelims level: HDI and India's rank
Mains level: HDI and India's performance analysis
Central Idea
- India is now one of the fastest-growing economies globally. However, this growth has not resulted in a corresponding increase in its Human Development Index (HDI). According to the Human Development Report of 2021-22, India ranks 132 out of 191 countries, behind Bangladesh (129) and Sri Lanka (73).
Facts for Prelims: Human Development Index (HDI)
- Composite statistical measure by UNDP: The HDI is a composite statistical measure created by the United Nations Development Programme to evaluate and compare the level of human development in different regions around the world.
- As an alternative with broader aspects: It was introduced in 1990 as an alternative to conventional economic measures such as Gross Domestic Product (GDP), which do not consider the broader aspects of human development.
- Aspects: The HDI assesses a country’s average accomplishment in three aspects 1. A long and healthy life, 2, knowledge, and 3. A decent standard of living.
- India ranks 132 out of 191 countries in the HDI 2021.
The subnational HDI: A new index
- Given India’s large size and population, it’s critical to address subnational or state-wise disparities in human development.
- A new index has developed by using the methodology suggested by the UNDP and the National Statistical Office (NSO), which measures human development on a subnational level for 2019-20.
HDI Calculation
- The HDI is calculated using four indicators: life expectancy at birth, mean years of schooling, expected years of schooling, and Gross National Income (GNI) per capita.
- The subnational HDI uses GSDP per capita as a proxy indicator for GNI since GNI per capita estimates are unavailable at the subnational level.
- The methodology involves calculating the geometric mean of the normalised indices for the three dimensions of human development while applying the maximum and minimum values recommended by the UNDP and NSO.
Subnational HDI Findings
- The subnational HDI shows that while some states have made considerable progress, others continue to struggle. Delhi occupies the top spot and Bihar occupies the bottom spot.
- The five states with the highest HDI scores are Delhi, Goa, Kerala, Sikkim, and Chandigarh. Nineteen states, including Kerala, Maharashtra, Tamil Nadu, Haryana, Punjab, Telangana, Gujarat, and Andhra Pradesh, have scores ranging between 0.7 and 0.799 and are classified as high human development states.
- The bottom five states are Bihar, Uttar Pradesh, Madhya Pradesh, Jharkhand, and Assam, with medium levels of human development.
Reasons for Discrepancies
- The economic growth has been unevenly distributed, with the top 10% of the Indian population holding over 77% of the wealth. This has resulted in significant disparities in access to basic amenities, healthcare, and education.
- While India has made significant progress in reducing poverty and increasing access to healthcare and education, the quality of such services remains a concern.
Conclusion
- The government needs to prioritize human development alongside economic growth to ensure that the benefits of growth are more evenly distributed, and it requires a multi-faceted approach to address various issues such as income inequality, gender inequality, access to quality social services, environmental challenges, and social infrastructure investment. India must prioritize investments in human development and job creation, particularly for its youth, to realize its demographic dividend.
Mains Question
Q. Analyze the performance of different states in terms of their Human Development Index (HDI) and suggest measures that could be taken to address the disparities in human development in the country
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Human Development Report by UNDP
Here is how HDI has performed in last 3 decades
Note4Students
From UPSC perspective, the following things are important :
Prelims level: particulars of report
Mains level: human development
Context
- India, belonging to the medium HDI category, shows dimensional inequalities similar to or slightly below the average figures in the category, except in the case of education where it is high and closer to the low HDI countries. The inequalities in health and education are more than twice that of the very high and high HDI categories.
Why in news?
- The bad news for India is that its global HDI rank has slipped from 129 in 2019 to 131 in 2020 and to 132 in 2021-22.
What is the meaning of human development?
- 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.
What is meant by Human Development Index?
- The HDI is a summary measure of human development. The HDI is a summary composite measure of a country’s average achievements in three basic aspects of human development: health, knowledge and standard of living.
Who publishes HDI?
- The Human Development Report (HDR) is an annual Human Development Index report published by the Human Development Report Office of the United Nations Development Programme (UNDP).
Dimensions of the Human Development Index
- Long and healthy life: The long and healthy life dimension is measured by life expectancy at birth. The life expectancy at birth is a statistical measure that an average individual is expected to live based on certain demographic factors such as the year of birth and current age.
- Education: This is a second dimension in the HDI. The indicators of education are the expected years of schooling and the mean years of schooling. According to the UN, the average maximum years of schooling is 18 years, while the mean maximum years of schooling is 15 years.
- Standard of living: The standard of living is usually measured by the gross national income (GNI) per capita. The GNI indicates the total domestic and foreign output created by the residents of a certain country.
What are the 4 indicators of HDI?
- Mean years of schooling
- Expected years of schooling
- Life expectancy at birth
- Gross national income (GNI) per capita
Which Countries Have the Highest HDI?
In the latest HDI ranking, from 2022, Switzerland finished first with an HDI value of 0.962.
Issues in HDI
(1) An incomplete indicator
- Human development is incomplete without human freedom and that while the need for qualities judgement is clear; there is no simple quantitative measure available yet to capture the many aspects of human freedom.
- HDI also does not specifically reflect quality of life factors, such as empowerment movements or overall feelings of security or happiness.
(2) Limited idea of development
- The HDI is not reflecting the human development idea accurately.
- It is an index restricted to the socio-economic sphere of life; the political and civil spheres are in the most part kept separate.
- Hence there is a sub-estimation of inequality among countries, which means that this dimension is not being taken into consideration appropriately.
(3) A vague concept
- Concerning data quality and the exact construction of the index HDI is conceptually weak and empirically unsound.
- This strong critic comes from the idea that both components of HDI are problematic. The GNP in developing countries suffers from incomplete coverage, measurement errors and biases.
- The definition and measurement of literacy are different among countries and also, this data has not been available since 1970 in a significant number of countries.
(4) Data quality issues
- The HDI, as a combination of only four relatively simple indicators, doesn’t only raise a questions what other indicators should be included, but also how to ensure quality and comparable input data.
- It is logical that the UNDP try to collect their data from international organizations concentrating in collecting data in specific fields.
- Quality and trustworthiness of those data is disputable, especially when we get the information from UN non-democratic members, as for example Cuba or China.
(5) A tool for mere comparison
- The concept of HDI was set up mainly for relative comparison of countries in one particular time.
- HDI is much better when distinguishing between countries with low and middle human development, instead of countries at the top of the ranking.
- Therefore, the original notion was not to set up an absolute ranking, but let’s quite free hands in comparison of the results.
(6) Development has to be greener
- The human development approach has not adequately incorporated environmental conditions which may threaten long-term achievements on human development. The most pervasive failure was on environmental sustainability.
- However, for the first time in 2020, the UNDP introduced a new metric to reflect the impact caused by each country’s per-capita carbon emissions and its material footprint.
- This is Planetary Pressures-adjusted HDI or PHDI. It measured the amount of fossil fuels, metals and other resources used to make the goods and services it consumes.
(7) Wealth can never equate welfare
- Higher national wealth does not indicate welfare. GNI may not necessarily increase economic welfare; it depends on how it is spent.
- For example, if a country spends more on military spending – this is reflected in higher GNI, but welfare could actually be lower.
Importance of HDI
- Multidimensionality: It is one of the few multidimensional indices as it includes indicators such as literacy rate, enrolment ratio, life expectancy rate, infant mortality rate, etc.
- True yardstick: It acts as a true yardstick to measure development in real sense.
- Helps in measuring a nation’s well-being: Unlike per capital income, which only indicates that a rise in per capital income implies economic development; HDI considers many other vital social indicators and helps in measuring a nation’s well-being.
Value addition line
People are the real wealth of a nation. The basic objective of development should be to create an enabling environment for people to live long, healthy and creative lives. This may appear to be a simple truth.
Conclusion
- To sum up, the introduction of the HDI three decades ago was an early attempt to address the shortcomings in conventional measures of wellbeing.
- The HDI has continued to attract widespread attention and motivates the work of activists, scholars and political leaders around the world.
- The HDI compels us to ask what matters more, the quantitative expansion of an economy, or the qualitative improvement in the capabilities of society.
- Indeed the revival of interest in this subject at the highest levels of government is the need of the hour.
Mains question
Q. What do you understand by human development? Critically analyse the human development index given by UNDP.
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Human Development Report by UNDP
India ranks 132 in HDI as score drops
Note4Students
From UPSC perspective, the following things are important :
Prelims level: HDI
Mains level: Read the attached story
India ranks 132 out of 191 countries in the Human Development Index (HDI) 2021, after registering a decline in its score over two consecutive years for the first time in three decades.
What is Human Development Index (HDI)?
- The HDI combines indicators of life expectancy, education or access to knowledge and income or standard of living, and captures the level and changes to the quality of life.
- The index initially launched as an alternative measure to the gross domestic product, is the making of two acclaimed economists from Pakistan and India, namely Mahbub ul Haq and Amartya Sen.
- It stresses the centrality of human development in the growth process and was first rolled out by the United Nations Development Programme in 1990.
Dimensions of the Human Development Index – HDI
- The idea that progress should be conceived as a process of enlarging people’s choices and enhancing their capabilities is the central premise of the HDI.
- Since its launch, the HDI has been an important marker of attempts to broaden measures of progress.
- The HDI considers three main dimensions to evaluate the development of a country:
- Long and healthy life
- Education
- Standard of living
Limitations of HDI
HDR has been always disputable and has caught the public-eye, whenever it was published. It has many reasons.
One of them is that the concept of human development is much deeper and richer than what can be caught in any index or set of indicators. Another argument is that its concept has not changed since 1990 when it was also defined in the first.
(1) An incomplete indicator
- Human development is incomplete without human freedom and that while the need for qualities judgement is clear; there is no simple quantitative measure available yet to capture the many aspects of human freedom.
- HDI also does not specifically reflect quality of life factors, such as empowerment movements or overall feelings of security or happiness.
(2) Limited idea of development
- The HDI is not reflecting the human development idea accurately.
- It is an index restricted to the socio-economic sphere of life; the political and civil spheres are in the most part kept separate.
- Hence there is a sub-estimation of inequality among countries, which means that this dimension is not being taken into consideration appropriately.
(3) A vague concept
- Concerning data quality and the exact construction of the index HDI is conceptually weak and empirically unsound.
- This strong critic comes from the idea that both components of HDI are problematic. The GNP in developing countries suffers from incomplete coverage, measurement errors and biases.
- The definition and measurement of literacy are different among countries and also, this data has not been available since 1970 in a significant number of countries.
(4) Data quality issues
- The HDI, as a combination of only four relatively simple indicators, doesn’t only raise a questions what other indicators should be included, but also how to ensure quality and comparable input data.
- It is logical that the UNDP try to collect their data from international organizations concentrating in collecting data in specific fields.
- Quality and trustworthiness of those data is disputable, especially when we get the information from UN non-democratic members, as for example Cuba or China.
(5) A tool for mere comparison
- The concept of HDI was set up mainly for relative comparison of countries in one particular time.
- HDI is much better when distinguishing between countries with low and middle human development, instead of countries at the top of the ranking.
- Therefore, the original notion was not to set up an absolute ranking, but let’s quite free hands in comparison of the results.
(6) Development has to be greener
- The human development approach has not adequately incorporated environmental conditions which may threaten long-term achievements on human development. The most pervasive failure was on environmental sustainability.
- However, for the first time in 2020, the UNDP introduced a new metric to reflect the impact caused by each country’s per-capita carbon emissions and its material footprint.
- This is Planetary Pressures-adjusted HDI or PHDI. It measured the amount of fossil fuels, metals and other resources used to make the goods and services it consumes.
(7) Wealth can never equate welfare
- Higher national wealth does not indicate welfare. GNI may not necessarily increase economic welfare; it depends on how it is spent.
- For example, if a country spends more on military spending – this is reflected in higher GNI, but welfare could actually be lower.
Significance of HDI
- It is one of the few multidimensional indices as it includes indicators such as literacy rate, enrollment ratio, life expectancy rate, infant mortality rate, etc.
- It acts as a true yardstick to measure development in real sense.
- Unlike per capital income, which only indicates that a rise in per capital income implies economic development; HDI considers many other vital social indicators and helps in measuring a nation’s well-being.
- It helps as a differentiating factor to distinguish and classify different nations on the basis of their HDI ranks.
Way forward
- Both sustainable development and poverty eradication are both long-term and urgent endeavours, requiring not only the gradual and substantial redirection of country policies but a rapid response to pressing problems.
- Ideally, sustainable development could provide an overarching framework within which all sub-goals (eg poverty eradication, social equality, ecosystem maintenance, climate compatibility) are framed.
- It is not a subset of development; it is development (in a modern world of resource limits).
- Environmental issues are not one factor among many but the meta-context within which poverty and other goals are sought.
- Investing more in public research could lead to technological solutions to poverty and sustainability problems becoming more rapidly and openly available.
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Human Development Report by UNDP
Human Development Index (HDI) 2019
Note4Students
From UPSC perspective, the following things are important :
Prelims level: HDI
Mains level: Human Development
India dropped two ranks in the United Nations’ Human Development Index this year, standing at 131 out of 189 countries.
Try this PYQ:
Which one of the following is not a sub-index of the World Bank’s ‘Ease of Doing Business Index’?
(a) Maintenance of law and order
(b) Paying taxes
(c) Registering property
(d) Dealing with construction permits
Human Development Index (HDI)
- HDI is a statistical tool used to measure a country’s overall achievement in its social and economic dimensions.
- It is one of the best tools to keep track of the level of development of a country, as it combines all major social and economic indicators that are responsible for economic development.
- Pakistani economist Mahbub-ul-Haq created HDI in 1990 which was further used to measure the country’s development by the United Nations Development Program (UNDP).
- Every year UNDP ranks countries based on the HDI report released in their annual report.
Various indicators under HDI
- Calculation of the index combines four major indicators: life expectancy for health, expected years of schooling, mean of years of schooling for education and GNI per capita for the standard of living.
For the first time: PHDI
- For the first time, the UNDP introduced a new metric to reflect the impact caused by each country’s per-capita carbon emissions and its material footprint.
- This is Planetary Pressures-adjusted HDI or PHDI.
- It measured the amount of fossil fuels, metals and other resources used to make the goods and services it consumes.
- The report found that no country has yet been able to achieve a very high level of development without putting a huge strain on natural resources.
Highlights of the 2019 Report
- Norway, which tops the HDI, falls 15 places if this metric is used, leaving Ireland at the top of the table.
- In fact, 50 countries would drop entirely out of the “very high human development group” category, using this new metric PHDI.
- Australia falls 72 places in the ranking, while the US and Canada would fall 45 and 40 places respectively, reflecting their disproportionate impact on natural resources.
- The oil and the gas-rich Gulf States also fell steeply. China would drop 16 places from its current ranking of 85.
Indian scenario
- If the Index were adjusted to assess the planetary pressures caused by each nation’s development, India would move up eight places in the rankings.
- China’s net emissions (8 gigatonnes) are 34% below its territorial emissions (12.5 gigatonnes) compared with 19% in India and 15% in Sub-Saharan Africa.
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Human Development Report by UNDP
World Bank’s Human Capital Index 2020
Note4Students
From UPSC perspective, the following things are important :
Prelims level: HCI, HDI
Mains level: Impact of coronovirus outbreak on Human Capital
India has been ranked at the 116th position in the latest edition of the World Bank’s annual Human Capital Index that benchmarks key components of human capital across countries.
Try this PYQ:
Q.As per UN-Habitat’s Global Report on Human Settlements 2009, which one among the following regions has shown the fastest growth rate of urbanization in the last three decades?
(a) Asia
(b) Europe
(c) Latin America and Caribbean
(d) North America
Highlights of the 2020 rankings
- The 2020 Human Capital Index update includes health and education data for 174 countries — covering 98 per cent of the world’s population — up to March 2020.
- It provides a pre-pandemic baseline on the health and education of children, with the biggest strides made in low-income countries.
Impact of the pandemic
- The analysis shows that pre-pandemic, most countries had made steady progress in building the human capital of children, with the biggest strides made in low-income countries.
- The pandemic puts at risk the decade’s progress in building human capital, including the improvements in health, survival rates, school enrollment, and reduced stunting.
- The economic impact of the pandemic has been particularly deep for women and for the most disadvantaged families, leaving many vulnerable to food insecurity and poverty.
- Due to the pandemic’s impact, most children — more than 1 billion — have been out of school and could lose out, on average, half a year of schooling, adjusted for learning, translating into considerable monetary losses.
- Data also shows significant disruptions to essential health services for women and children, with many children missing out on crucial vaccinations.
India’s performance
- India’s score increased to 0.49 from 0.44 in 2018, as per the Human Capital Index report released by the World Bank.
- Last year, India had raised “serious reservations” over the Human Capital Index, wherein India was ranked 115 out of 157 countries.
- This year India finds itself at 116th from among 174 countries.
Back2Basics: Human Capital Project
- As part of this World Development Report (WDR), the World Bank has launched a Human Capital Project (HCP).
- The HCP programme is claimed to be a program of advocacy, measurement, and analytical work to raise awareness and increase demand for interventions to build human capital.
- There are three components of HCP:
- a cross-country human capital measurement metric called the Human Capital Index (HCI),
- a programme of measurement and research to inform policy action
- a programme of support for country strategies to accelerate investment in human capital.
Human Capital Index (HCI)
- The HCI has been constructed for 157 countries.
- It claims to seek to measure the amount of human capital that a child born today can expect to attain by age 18.
- The HCI has three components:
- Survival: as measured by under-5 mortality rates
- Expected years of Quality-Adjusted School: which combines information on the quantity and quality of education
- Health environment: Using two proxies of (a) adult survival rates and (b) the rate of stunting for children under age 5.
HDI vs. HCI
- UNDP constructs Human Development Index (HDI) for several years.
- The HCI uses survival rates and stunting rate instead of life expectancy as a measure of health, and quality-adjusted learning instead of merely years of schooling as a measure of education.
- HCI also excludes per capita income whereas the HDI uses it.
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