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MrunalEconomicSurveyCh13:HumanDevelopmentreport2014

Mrunalhttp://mrunal.org

[EconomicSurvey]Ch13:P1UNDPsHumanDevelopmentreport
2014,HDI,GenderDevelopment,genderinequality,
Multidimensionalpoverty,WorldBanksGiniCoefficient
PostedByOn06/08/2014@1:12pmInEconomy|88Comments

1. Prologue
2. HumanDevelopmentReport
1. FiveindexesunderHDR2014
2. Index#1:Humandevelopmentindex(HDI)
1. Ranking
2. TieinRanking
3. NorankinginHDR2014
4. Index#2:InequalityadjustedHDI
5. Index#3:GenderDevelopmentIndia(GDI)
6. Index#4:Genderinequalityindex
7. Index#5:Multidimensionalpovertyindex
3. HumanDevelopment:4culprits&6prescriptions
4. HyogoFrameworkforAction
5. WorldHumanitarianSummit
6. GiniCoefficient:incomeinequality

Prologue
PS:slightcorrectioninpart2:PovertylineTendularhadincludedfood,health,education
andclothinginhisformula.
SummaryofEconomicSurveyChapter13:Humandevelopment.Ihadtodivideitintotalsix
partsforeaseinrevision&loadingimagesonmobileinternet.
1.
2.
3.
4.
5.
6.

UNDPsHumanDevelopmentreport2014&WorldBanksGiniCoefficient
PovertyLine:TendulkarvsRangarajan,EngelsLaw,MNREGA,Aajeevikaa,UrbanLivelihood
Healthcare,womenandchildren,statisticsandbudgetschemes
DemographicDividend:Education,youth,SkillDevelopment
Minorities,SC,ST,PH,Elderly,Sports&Defense
Ruralandurbaninfrastructure:schemes&budgetannouncements

HumanDevelopmentReport
Whopublishesthisreport?
Whodesignedthissystem?

UNDPHQ:NewYorkchief:HelenClark
IndianEconomistAmartyaSen
PakiEconomistMahbubulHaq

SinceWhen?

1990
Reportthemes
2013 RiseoftheSouth:HumanProgressinaDiverseWorld
2014
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SustainingHumanProgress:ReducingVulnerabilityandBuildingResilience

FiveindexesunderHDR2014
Humandevelopmentrelated(2)

1. HumandevelopmentindexHDI
2. inequalityadjusted(HDI)

Genderrelated(2)

3. GenderDevelopmentindex
4. Genderinequality

Povertyrelated(1)

5. Multidimensionalpovertyindex

total

5indexes

Letscheckemonebyone

Index#1:Humandevelopmentindex(HDI)

PrakashJhasGangaajalshouldbeincludedinGS4(Ethics)syllabus
Itrankshumandevelopmentintermsofthreebasicparameters:
Parameter
A.tolivealongandhealthylife

B.tobeeducatedandknowledgeable

Quantitativemeasure(INDEX)
A.lifeexpectancy@birth(years)
B1:Meanyearsofschooling
B2:Expectedyearsof
Schooling
FromtheseyougetEducation
index,letscallitB

C.toenjoyadecenteconomicstandardofliving.
thenyounormalizeA,BandCbythisformula(which
notimportantforexam)

C.Percapitagrossnational
income($$)
(actualvaluemin.value)/(max
valueminvalue)

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finallyHDIistheGeometricMeanofthree
normalizedvalues

=cuberootof(AxBXC)

HDIdoesntusearithmeticmean(A+B+C)/3,becauseevenlargevalueinonepart,
hidedeficiencyinotherareas.
ExampleArithmeticmean(90,0,0)=30.sooverallgooddevelopment,butcountryhas
ZEROdevelopmentoneducationandincomepart!GeometricMean(90,0,0)=0will
disclosethisbogusness.

Ranking
Onlyfocusingonbest&mostbogusIndia,itspartners&neighbors
VeryHIGH(0.994onwards)
1.
2.
3.
4.
5.

High(0.790onwards)

Norway
Australia
Switzerland
Netherlands
USA

57.Russia
73.SriLanka
79.Brazil
91.China

Medium(0.698onwards)

Lowest(0.540onwards)
Inreverseorder

103.Maldives(highestamongallMedium)
135.India(HDI=0.586)
136.Bhutan
142.Bangladesh

1.
2.
3.
4.
5.

Niger(187)
Congo(186)
CentralAfricanRepublic
Chad
SierraLeone

India:Onerankimprovement
report
2012
2013
2014

Indiasrank
134outof187
136outof186
135outof187

source*
Surveypage.230
Surveypage.230
alloverInternet

*clarificationbecauseoneofthearticleinTimesofIndiasaysrankunchanged.Butrankhas
improved.

TieinRanking
SinceHDR2013,theyveintroducedtheconceptoftie.
iftwocountrieshavesameHDIindexnumberupto3decimalpoints,thentheyregiven
samerank.
Forexample,inHDR2014report,Austria,BelgiumandLuxembourgeachhasHDI
valueof0.881,thereforegivensamerank#21.
Butthennextrankwillbe24(Iceland).Noonewillgetranknumber22,23.
LastrankisNiger187,meanstotal187countrieshavebeenranked.

NorankinginHDR2014
Followingarenotgivenanyrank
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1.
2.
3.
4.
5.

NorthKorea
Monaco(Frenchborder)
SanMarino(ItalianPeninsula)
Somalia
SouthSudan

6. MarshallIslands(Oceania)
7. Nauru(Oceania)
8. Tuvalu(Oceania)

Index#2:InequalityadjustedHDI
HDIrankingcomparesdifferentcountriesonthreeparameters:health+education+
income.
Butwhataboutinternalinequalitywithinsamecountry.
Forthis,anotherrankcreatedinequalityadjustedHDI.
IndiaRanksameforbothHDIandinequalityadjustedHDI=135.
Thenwhatspointofcalculating?Ans.theAbsolutefiguretellsushowmuchhuman
developmentlostduetoinequalitywithinacountry.
Indiasperformance
HDI
inequalityadjusted
%differenceoverHDI

absolutefigure
0.586
0.418
29%

Inotherwords,29%ofHumandevelopmentislostduetoinequality.
lossduetoinequality
Russiaandhighlyadvancedeconomies
India
world

%
12%
29%
23%

Index#3:GenderDevelopmentIndia(GDI)
CalculationStoppedsince2010.Butresumedwith2014sreport.
Onlycalculatedfor148countriesandnotforallthose187rankedinHDI.
Formula=FemaleHDI/MaleHDI
So,thebestcountry,wherefemaleandmaleHDIissame,whatwillbetheanswer0,
0.5or1?
Ans.1.Becausenumeratoranddenominatorwillcanceleachother.
So,whichcountrygotfirstrank?Norway?Ans.No,wrongguess.
country
Slovakia(CapitalBratislava)
Norway
India

G.D.index
1.000
0.997
0.828

rankinGDI
1
5
132(HDI135)

Moralofthestory:NorwayandKeralawontget#1everywhere.so,donttickMCQson
guessworkandgutfeeling.

Index#4:Genderinequalityindex(GII)
Basedonthreeparameters
Parameter
components
MMR
1. Reproductivehealth
Adolescentbirthrate

India
200/lakh
32/1000

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2. Empowerment

3. Economicactivity

womeninparliament

10.9%

highereducation

26.6%

Laborforceparticipation 28.8%

InGenderinequalityindex:0=noinequalityand1=maximuminequality.
Onlycalculatedfor157countries.(NOTall187)
Rank
1
2
3
3794
127

GII2014ranking
GenderInequality
SloveniaCapitalLjubljana(notSlovakia)
Switzerland
Germany
China>Rus>Brazil>S.Africa
India(Value0.563)

Index#5:Multidimensionalpovertyindex
Firstwevetofindtwothings:
PovertyIncidence
hasthreeindicators
1. health
2. education
3. std.ofliving

PovertyIntensity

Howmanyindicatorsdoesthegivenhouseholdlacks?

Finally,MPI=(incidencexintensity)
Alloverworldtotal1.5billionjuntasufferingfrommultidimensionalpoverty.
Country
Maldives
China
SouthAfrica
Nepal
Pakistan
Bangladesh
India

%ofjuntasufferingmultidimensionalpoverty?
2
6
10
41
46
50
55

Wearedonewithfiveindexes.Nowsomefillertopics

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IndiasuckseverywhereexceptLifeexpectancywhereAfricasucksduetoAIDS
HDI:IndiavsBRICS

Overallworld

IndialowestamongallBRICSexceptlife
expectancy(SouthAfricalowest)
S.AfricalowestlifeexpectancyamongBRICS
duetoAIDS
Lifeexpectancy:China>>S.Africa
GNIpercapita:Russia>Brazil>China>Africa
>India

Overallgendergapinthe
worldis8%
percapitaincomeofmenis
doublethanwomen
Humandevelopmentslowed
downworldwide

HumanDevelopment:4culprits&6prescriptions

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FodderforMainsandEssay
FourculpritsthatslowedHumanDevelopmentworldwide:
1.
2.
3.
4.

Climatechange
Conflict
Socialunrest
Economiccrisis

SIXprescriptiontocombatthose4culprits.
1. Universalbasicservice:health,education,watersupply,sanitationandpublicsafety
(policing).
2. Apersonismostvulnerable@3stagesinlifecycle.Govt.mustprotecthere
1. First1000daysafterbirth
2. Whenhejoinscoachingclasses
3. WhenEnteringworkforce
4. Whenleavingworkforce(duetoretirementordisability)
Otherwise,setbackatthesethreestagescanbeparticularlydifficulttoovercomeandmay
haveprolongedimpacts.e.g.malnutrition=>lowskilled=>lesssocialsecurity@retirement.

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Recallthat2014sreportthemeisSustainingHumanProgress:ReducingVULNERABILITY
andBuildingResilience.Thischartdirectlycopiedfromreport.
3. Socialprotection(80%ofworldlacks).Lackofsocialsecurity=peopleselltheirassets,
takeoutchildrenfromschool&sentthemtochildlabor.
4. Fullemployment(50%worldinformaljobs).Unemployment=crime,suicideschildren
education,healthalsosuffers.
5. Inclusionofwomen,disabledandminoritiesindevelopment.
6. Disasterpreparedness.Becausenaturaldisastersworsentheexistingvulnerabilities,
suchaspoverty,inequality,environmentaldegradationandweakgovernance.
IndiaspecificprescriptioninHDI:
IndianeedstospendjustfourpercentofitsGDPtoensureasocialsecuritynet.This
socialsecuritynetshouldincludeNREGA,universalprimaryhealthcoverage,oldage
anddisabledpensionsandchildbenefits
1999Odishacyclone>10,000deadbut2013cyclonewithsameintensityyetlessthan
<50deadthankstoDisasterpreparedness.Meaningimprovementpossible,allittakes
ispoliticalandbureaucraticwill.
InMCQs,UPSCisunlikelytoaskwhatarethefourculpritsorsixprescriptions.Butyoucan
usethisstructuretoframegoodessayonhumanDevelopment,demographicdividendetc.
Anyways,enoughofHumanDevelopment,letsmovetoothertopics

HyogoFrameworkforAction
Topicimportantbecause
1. mentionedinHDR2014report
2. GS3hasdisasterManagementtopic.
DisasterManagementconferences
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1994 Yokahoma(Japan):WorldConferenceonNaturalDisasterReduction
HyogoFrameworkforAction(20052015)
HyogoisinHonshuislandofJapan.

2005

Hyogoframework
Who? UnitedNationsOfficeforDisasterRiskReduction(UNISDR)
Theme buildingresilienceofnationsandcommunitiestodisasters.
Target reduceglobaldisasterriskby2015
168countriesadoptedit
Ithasfivepriorityareas,andstepsonhowtoimplementthem.MCQwisenotmuchto
askbecause2005stopic.ButlotoffodderforMainsGS3.
Rightnow,Imnotdwellingintoitbecauseofspaceandtimelimit.Youcanrefertoits
twopagesummarychartfromthislinkunisdr.org/files/8720_summaryHFP20052015.pdf

WorldHumanitarianSummit
Basicsimportant,becausementionedinHDR2014report
Where
When

Istanbul,Turkey
2016.Buttheconsultationprocesshasstartedtwoyearsinadvance(i.e.since
2014)

By
whom?

initiativebyUNSecretaryGeneralBanKimoon
UNOfficefortheCoordinationofHumanitarianAffairs(OCHA)

purpose

Addressthehumanitariancrisiscausedbynaturaldisastersandconflicts.

Beyondthat,notmuchtowritebecausemostlybolbachchan.youcanfindithere:
worldhumanitariansummit.org/whs_about

GiniCoefficient:incomeinequality
firstdrawagraph:(cumulative)householdsonxaxisand(cumulative)wealthonyaxis
Ifanimaginarycountryhasequalincomedistributionofwealth,thengraphwillbea45
degreeline.itcanbeinterpretedas
10%ofhouseholdsown10%ofnationswealth
40%ofthehouseholdsown40%ofnationalwealthandsoon.
Butarealcountrysgraphwillnotshow45degreegraph.insteaditlllookcurvedline
(LorentzCurve)asinfollowingimage:

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ForIndiaGinicoefficientis~33%butstillwearebetterthanBRICS,US,Swiz
althoughJapsandGermanshaveevenlesserinequalitythanIndia.
Thebluecurvedline(Lorenzcurve)canbeinterpretedas:
poorest30%householdsownonly2%ofnationswealth
Richest10%own90%ofnationalwealthandsoon.
OkbutwhatisGinicoefficient?
inthegraph,straightline=equalwealthdistribution
andcurvedline=reallifeincomeinequality.
so,Ginicoefficientisderivedbyfindingareaunderpink(A)andBlue(B),then
formulais
Ginicoefficient=(A/A+B)
Ginivalue
0

between0to
1

mugupthistableforMCQs
Interpretation
equalwealthdistribution
inequalityinwealthdistribution
Forexample,India=0.334.(sometimesexpressedinpercentageform
i.e.33.4%)
Inthiscriteria,IndiahaslesserinequalitythanBRICS,USAand
Switzerland.
mostunequaldistribution

LetstrysomedirectMCQfrom22ndJanuary2014sThehindusBusinessline
Q1.Considerfollowingstatements
1. WorldBankpublishesGiniCoefficient
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2. GiniCoefficientisaninternationallyacceptedmeasureofincomeinequality
3. HighertheGiniCoefficient,lowertheinequality
Whichoftheabovestatementsarecorrect?
1.
2.
3.
4.

Only1and2
Only2
Only2and3
Only1and3

CorrectAnswer:A1and2correct.Thirdstatementwrongbecausehighergini=higher
inequality.
LetstryonemorefromthesameHinduarticle:
Q2.FindincorrectstatementaboutGinicoefficient
1. InIndia,incomeinequalityislowerthanUSA,asperGiniCoefficient.
2. Itsapurelymathematicalmeasureofinequalitywithinapopulation.
3. ItsnamedafterItalianstatisticianCorradoGini
Answerchoices
1.
2.
3.
4.

Only1and2
Only2
Only2and3
None

CorrectAnswer:DNone.(Becauseallstatementsareright.)

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developmentreport2014hdigenderdevelopmentinequalitymultidimensionalpoverty
ginicoefficient.html

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