...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 work; Political voice and governance; Social connections and relationships; Environment (present and future conditions); and Insecurity, of an economic as well as a physical nature. That is the overview of well-being. What about the effectiveness of GDP in measuring societal well-being? To answer this question we should have a quick look at: How GDP covers overall the development of a...
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...COMPARE AND CONTRAST THE MEASURES OF DEVELOPMENT WHICH ARE GDP, GNP, AND HDI? Firstly define the three key measures of development which are GDP, GNP, and HDI? Then I will compare and contrast the two economic approaches (GDP/GNP) and then compare and contrast these two to the human development approach (HDI) DEFINATIONS: GDP- The monitory value of goods and services produced by residents of a country (both citizens & non-citizens) in a given period of time usually a year. GDP can either be Real or Nominal GDP. GNP- This is the monitory value of goods and services produced by citizens of a country in a given period of time usually a year. GNP can either be Real or nominal. HDI-Since 1990 the UNDP has been publishing an annual report called the Human development report & the centre core of this report is the human development report (HDI). The HDI ranks countries according to their level of human development. It is for this reason therefore that the HDI focuses on three main variables & these include. Per capital income, life expectancy & educational attainment. SIMILARITIES 1. Both represent an attempt to measure the total economic output of a nation during a given period (usually one year) in sense they both measure development from an economic perspective 2. It measures both the size and direction of economic activity (growth, stagnation or contraction) – expansions and recessions are based on changes in GDP 3. Shows the relative strength of the...
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...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...
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...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...
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...An Assignment On Relationship between GDP & HDI Submitted ToCourse Instructor Of B-University of DhakaDepartment of Banking | Submitted ByMd. Yasir ArafatId No. 62B.B.A 13th BatchDepartment of BankingUniversity of Dhaka | Date of Submission08.o7.09 | Introduction to GDP A region's gross domestic product, or GDP, is one of the ways of measuring the size of its economy. The GDP of a country is defined as the total market value of all final goods and services produced within a country in a given period of time (usually a calendar year). It is also considered the sum of value added at every stage of production (the intermediate stages) of all final goods and services produced within a country in a given period of time. Components of GDP Each of the variables C (Consumption), I (Investment), G (Government spending) and X − M (Net Exports) (where GDP = C + I + G + (X − M) as above) C (Consumption) is private consumption in the economy. This includes most personal expenditures of households such as food, rent, medical expenses and so on but does not include new housing. I (Investment) is defined as investments by business or households in capital. Examples of investment by a business include construction of a new mine, purchase of software, or purchase of machinery and equipment for a factory. Spending by households (not government) on new houses is also included in Investment. In contrast to its colloquial meaning, 'Investment' in GDP does not mean purchases...
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...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...
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...GDP vs. HDI- the adequate measure of societal well-being Introduction “We need a new economic paradigm that recognizes the parity between the three pillars of 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...
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...HUMAN DEVELOPMENT INDEX (HDI) What is the human development index (HDI)? The HDI—human development index—is 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 enrolment ratio; and standard of living by GDP per capita (PPP US$). For details on how to calculate the HDI, see pages 340–1 Technical Note 1. What is the gender-related development index (GDI)? The GDI—gender-related development index—is a composite indicator that measures the average achievement of a population in the same dimensions as the HDI while adjusting for gender inequalities in the level of achievement in the three basic aspects of human development. It uses the same variables as the HDI, disaggregated by gender. For details on how to calculate the GDI see pages 340, 343-344 and 346 Technical Note 1. What is the gender empowerment measure (GEM)? The GEM— gender empowerment measure—is a composite indicator that captures gender inequality in three key areas: • political participation and decision-making, as measured by women’s and men’s percentage shares of parliamentary seats; • economic participation and decision-making power, as measured by two indicators—women’s and men’s percentage shares of positions as legislators...
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...trade. It has becomes a symbol of the development of the world as well as a process of taking people’s lives to a new era. In various fields, globalization has brought positive changes to the world, such as in finance, medical knowledge, cultural exchange, and technology. These improvements have enlarged the human scope of knowledge, and in turn increased people’s living standard. People’s ability to satisfy themselves in their lifetime is defined as the standard of living. The measurement of it depends on human beings’ income growth, educational standard, life expectancy and some other aspects. As time goes by, globalization has embedded itself deeply into various communities and played an important role in affecting the quality of their lives. Concepts such as the growth of GDP, income per person, mortality rate, and higher education are all connected to globalization and life satisfaction. Therefore, with the onset of globalization, it is proven that the standard of living has consistently been improved in the majority of countries in this world through economic, biological, and educational means. The question then becomes: “how does one measure standard of living?” According to McGillivray and Noorbakhsh, “empirical research has proposed a number of composite indexes intended to measure multi-dimensional well-being”, and that “the best known, and that which has received the most attention, is the UNDP’s Human Development Index, (HDI)” (McGillivray, 113). In order to provide...
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...Group Activity- Caselet 2 Group 7 1. The Philippines is No. 83 on HDI ranking last 2003, No.112 last 2011 and No. 114 as reported by UNDP for 2013. Account on the reasons for such changes. Compare the following factors; a. life expectancy b. literacy c. average GDP Despite gains it has made on the economic front, the Philippines remained at 114th globally for the 5th straight year in the Human Development Index (HDI) released by the United Nations Development Program (UNDP) on Friday, March 15. The HDI is a key indicator of citizens' state of health, education, and income, among others. In the 2013 Human Development Report titled "The Rise of the South: Human Progress in a Diverse World," the UNDP said the Philippines' HDI score has been improving in the past 30 years. But its score -- 0.654 -- is still slightly below the East Asia and the Pacific regional average of 0.683. (A total of 186 countries were covered by the UNDP study.) Some data on the Philippines from the 2013 HDR include the following: * The life expectancy of Filipinos is 69 years old. * The mean years of schooling in the Philippines is 8.9 years while the expected years of schooling is 11.7 years. * The country's Gross National Income per capita level is $3,752 (computed using 2005 purchasing power parity) * The country ranked 77th overall in the Gender Inequality Index, the third lowest rank in the ASEAN. * Around 18.4% of the population lived below $1.25 in the 2011-2012...
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...MANAGERIAL DATA ANALYSIS – CASE STUDY SUBJECT ANALYSED: THE RELATIONSHIP BETWEEN GROSS DOMESTIC PRODUCT AND HUMAN DEVELOPMENT INDEX in 41 COUNTRIES MIHAILA MIOARA 25% PETRE ALEXANDRA 25% SIMION LAURENTIU 25% TARIUC MONICA 25% MANAGEMENT of INTERNATIONAL PROJECTS ASE 2009 Case Study Record 40 – 60 data for two statistical variables (X and Y) at your choice. I. For each of the two variables: a) Calculate and interpret the average, standard deviation and the coefficient of variation for row data. Interpret the results. Is the data series homogenous? b) Summarize the data in an appropriate number of classes. Construct the frequency distribution. c) Calculate and interpret for the frequency distribution the average, standard deviation and coefficient of variance. Compare with the results from point a). Explain the differences. d) Construct a histogram and describe the shape of the distribution based on the histogram. e) In which interval is expected that about 95% of the data will fall? Is this assumption true for this data? II. Using the “Pivot Table Wizard” in EXCEL, build a pivot table on your spreadsheet (using also the second variable). You may have to change the order of the rows (You should define the intervals first using VLookup function. ...
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...Q. How is GDP measured and what are its limitations as a measure of the quality of life? A. Gross Domestic Product (GDP) can be defined as the annual value of output produced by factors of production within a nation’s border. In other words, it is the sum of all incomes earned by the country’s residents when producing goods and services with resources located inside that country. GDP is not to be confused with Gross National Product (GNP), which measures the flow of output produced with resources, which are owned by the nation wherever they might be located. The difference between GDP and GNP is net property income from abroad. The word “gross” in both of these measures of national income, indicates that no account has been taken of depreciation. There are 3 methods of calculating GDP: the product/output method, the income method and the expenditure method. In theory, because they all claim to measure the same aggregate, they should all give the same total. This is shown below in the circular flow of income: However, in practice, this is unlikely to be the case. This is because extremely large sums arising out of millions of transactions paid over different time periods are being dealt with and it would therefore be very unlikely if all 3 measures coincided. The first way of measuring GDP is to add up annually all the value of the goods and services produced in the country, industry by industry. This is known as the output or product...
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...Indicators of economic development The intention of this document is to make the reader understand the concepts of economic indicators. The writer shall therefore briefly discuss indicators such as Gross National Product (GDP), Gross Domestic Product (GDP), Human Development Index (HDI) Gross National Income (GNI), and Infant Mortality Rate. The term National Development is somewhat comprehensive, Aggarwal(2004). It has basically been defined as all aspects of an individual and the nation, cultural, democratic, emotional (social order), economic, intellectual (education material) ,moral, physical, spiritual and social. Regan (2006) looked at development as human progress and quality of life. It’s important to point out that there may not be a single definition of development. Modern scholars have suggested the need for just a working definition and so propounded that development be viewed as a positive change in countries and communities. It (development) is therefore connected with social, economic and political advancement of people, Cornwell et al (2012). There is also need to understand the concept of indicators. Cornwell et al (2010) explained that economic development indicators help to explain or illustrate development levels at any given country. These indicators have helped in the categorisation of countries as being poor, medium or rich-hence the idea of first world, second world and third world. Regan 2004 also pointed out that indicators are seen as measurement...
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...INTERPRETATION Human Development Index (HDI) HDI measures the relative distance between a country’s achievement and what is possible based on socio-economic indicators of life expectancy, combine primary, secondary and tertiary school enrolments, adult literacy, and PPP GDP per capita. The value of the HDI index can vary between 0 and 1. Thus: HDI > 0.800: High Human Development economy 0.500 < HD < 0.799: Medium Human Development economy HDI < 0.500: Low Human Development economy For a country with HDI of 0.47, the interpretation would be that this country has, on average, attained 47 percent of what is possible and can be classified as low human development economy. This country therefore has a shortfall of 53 percent from the maximum value on the HDI components of life expectancy, school enrolments, adult literacy, and PPP GDP per capita. Gini index Gini index measures the extent to which the distribution of income among individuals or households within an economy deviates from a perfectly equal distribution. The Gini index can vary between 0 and 1 or can be expressed as a percentage. Gini index of 0 means that the extent to which the distribution of income among individuals or households within an economy deviates from a perfectly equal distribution is 0 percent implying that there is perfect equality (or everybody has the same income) and Gini index of 1 means the extent to which the distribution of income among individuals...
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...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...
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