H dconcepts

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H dconcepts

  1. 1. Concept and Measurement of Human Development Alison Kennedy Chief of Statistics Human Development Report Office, New York HDRO/RBA Regional Technical Workshopon Measuring Human Development HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September--2007 Nairobi – September 2007
  2. 2. Aim of Presentation • To answer two key questions – What is the Human Development Concept? – How does HD differ from other development approaches? • To provide a brief introduction to HD Measurement Issues HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  3. 3. History of the Human Development Concept • Dates back at least to Aristotle (384 -322 BC) – “wealth is evidently not the good we are seeking, for it is merely useful and for the sake of something else” – Aristotle distinguished a good political arrangement from a bad one by the extent to which it enabled people to lead “a flourishing life” HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  4. 4. History of the Human Development Concept • Re-discovered and presented in the first Global Human Development Report in 1990 by distinguished economist Mahbub ul Haq • And expanded and widely used since then in particular with many inputs over the years from Nobel Prize-winning economist Amartya Sen HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  5. 5. What is Human Development? • A theory and approach that integrates economic, social and political development. • Stresses two aspects: – the formation of human capabilities; and – the utilisation of acquired capabilities (or their functionings) HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  6. 6. What is Human Development? • Both a goal and a process of enlarging people’s capabilities, freedom and choices resulting in: – Long and healthy lives – Access to knowledge and the power to use it – Decent standards of living – Active community participation and autonomy in personal decision-making HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  7. 7. What is Human Development? • Contrasts with a common view that poverty is purely deprivation of income • Rests on four essential pillars: – Equality – Productivity – Empowerment – Sustainability HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  8. 8. How is HD different from other approaches? • Main premise – Basic purpose of development is to enlarge people’s choices – Open-ended & holistic/integrated • Relevant to rich and poor countries • It is action-oriented – Looks for practical changes. HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  9. 9. HD and Economic Growth • Economic growth is important – increases a nation’s total wealth – enhances potential to reduce poverty and address other social problems • However, whether economic growth will enhance human development or not depends on how that growth is generated HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  10. 10. HD and Economic Growth • Economic growth may be achieved alongside: – greater inequality - ruthless growth – higher unemployment - jobless growth – weakened democracy - voiceless growth – loss of cultural identity - rootless growth – over-exploitation of resources needed for future generations - futureless growth HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  11. 11. HD and Human Rights • Much in common, complementary: – Promoting freedom, well-being and dignity • Human rights - intrinsic part of HD • Human rights - support HD through social justice and government accountability • But HD approach is a tool to realise all human rights HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  12. 12. HD and Basic Needs • Both focus on poverty and public action • But, Basic Needs focuses – mainly on nutrition, education, health, housing, etc. not full set of HD choices. – human freedom is underplayed – More welfare-oriented with emphasis on supplying goods and services rather than on what they allow people to do – people seen as beneficiaries of development but not also as agents of change HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  13. 13. HD and MDGs • MDGs are human development goals and core HD indicators • However, MDGs do not reflect all the key dimensions of HD • The MDGs highlight the distance to be travelled, HD focuses on how to attain the goals. • HD is concerned with equity of choice and opportunity HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  14. 14. HD and PRSPs • Both HD and PRSPs – conceptualise poverty as multidimensional and – emphasise national ownership but • PRSPs have had limited impact in generating meaningful discussions outside narrow official circles • One key message from the Bank’s own review is: “a need for more open discussions on alternative policy choices” (IMF and World Bank, 2005) • HD stresses independence of analysis HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  15. 15. The Human Development Concept • Is an holistic approach covering all aspects of development – combines economic growth, basic needs and capabilities approaches – the vantage point is widening people’s choices and the enrichment of their lives – therefore it • measures differently • analyses problems differently • But issues and measurement have to be situated within national development contexts HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  16. 16. Measuring Human Development • What is distinctive? – Holistic view – examining a topic from all angles – Addresses new issues – globalisation, political and cultural freedom, human security – Emphasis on equity and the marginalised – requiring disaggregation to geographical, demographic, ethnic or other sub-groups of society HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  17. 17. Measuring Human Development • Why seek an alternative to measuring GDP or GNI growth? – A single variable – or simple set of variables – does not capture the multidimensionality of human development – Some choices do not depend on income or wealth (eg poor countries can be democratic, rich countries can be in conflict) – National income covers good and ill (eg income from guns as well as from technological developments) HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  18. 18. Sub-Saharan Africa 0.900 0.800 Greater economic than human development BOT 0.700 SWA CV Economic development 0.600 LTO GMB 0.500 STP 0.400 ETP 0.300 SL 0.200 Greater human than economic development 0.100 0.000 0.000 0.100 0.200 0.300 0.400 0.500 Human development 0.600 0.700 0.800 0.900 HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  19. 19. Sub-Saharan Africa 0.900 Greater 'human wealth' 0.800 CV 0.700 NAM TAN Human wealth 0.600 SA BOT 0.500 SL SWA 0.400 0.300 Greater human development 0.200 0.100 0.000 0.000 0.100 0.200 0.300 0.400 0.500 0.600 0.700 0.800 0.900 Human development HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  20. 20. Composite indicators and indices A composite indicator is: ‘A simplistic presentation and comparison of performance in a given area to be used as a starting point for future analysis.’ OECD, discussion of composite indicators HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  21. 21. The family of HD indices • The HDI (Human Development Index) - a summary measure of (achievement of) human development • The HPI (Human Poverty Index) - a deprivation measure of the level of human poverty • The GDI (Gender-related Development Index) - the HDI adjusted for gender inequality • The GEM (Gender Empowerment Measure) - Measures gender equality in economic and political participation and decision making HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  22. 22. HDI (and GDI) concept • Measures achievement in human development • Three equivalent themes – Long and healthy life – Access to knowledge – A decent – not excessive – standard of living • GDI ‘discounts’ HDI for gender inequalities HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  23. 23. HPI concept • Measures deprivation rather than achievement • Again three equivalent themes: – Vulnerability to death – Exclusion from the world of knowledge – Lack of access to basic provisions HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  24. 24. GEM concept • Measures opportunities rather than capabilities • Three concepts – Parliamentary empowerment – Occupational/legislative empowerment – Economic empowerment HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  25. 25. Which indicators? • Need to reflect the concept • Must be available – and comparable - for a large number of countries/regions/districts • Preferably reflect recent changes • Preferably updated on a regular basis HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  26. 26. HDI and GDI • Long and healthy life - life expectancy at birth • Access to knowledge - adult literacy rate - combined gross enrolment ratio • A decent standard of living - GDP per capita (in PPP $) for HDI - estimated earned income (PPP $) for GDI HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  27. 27. HPI • Vulnerability to early death – Probability of not surviving to age 40 • Exclusion from the world of knowledge – Adult illiteracy rate • Lack of access to basic provisions – Population without access to improved water – Percentage of children underweight for age HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  28. 28. GEM • Parliamentary empowerment – Percentage shares of parliamentary seats • Occupational/legislative empowerment – Percentage shares of legislators & managers – Percentage shares of professional and technical workers • Economic empowerment – Estimated earned income (PPP $) HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  29. 29. HDI GDI HPI GEM 44/45 37/45 43/45 3/45 Mauritius Mauritius Mauritius S Africa S Africa S Africa Namibia Namibia Namibia Namibia Botswana Botswana Ghana Tanzania Ghana Ghana Uganda Botswana Madagascar Madagascar Madagascar Uganda Uganda Botswana Swaziland Kenya Swaziland Seychelles HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007
  30. 30. HDI GDI HPI Lesotho Lesotho Kenya Zimbabawe Zimbabwe Tanzania Kenya Swaziland Eritrea Gambia Nigeria Eritrea GEM Malawi Nigeria Nigeria Gambia Tanzania Tanzania Zambia Zambia Zambia Zimbabwe Malawi Malawi Lesotho Ethiopia Sierra Leone Sierra Leone Sierra Leone Ethiopia HDRO/RBA Regional Technical Workshop on Measuring Human Development Nairobi – September - 2007

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