INDEXINDEX

An An indexindex is a composite of indicators that is a composite of indicators that produces a single calculation which can produces a single calculation which can then be ranked. then be ranked.

Let’s look at some examples!!Let’s look at some examples!! The Body Mass IndexThe Body Mass Index   The Wind Chill IndexThe Wind Chill Index The Big Mac IndexThe Big Mac Index  

HUMAN DEVELOPMENT HUMAN DEVELOPMENT INDEXINDEX

Human Development Index is a tool developed Human Development Index is a tool developed by UNDP to illustrate the total life quality in a by UNDP to illustrate the total life quality in a country. Factors like GDP per capita, life country. Factors like GDP per capita, life expectancy, enrollment rate and adult literacy expectancy, enrollment rate and adult literacy rate are used to create a value where 1.0 is the rate are used to create a value where 1.0 is the highest possible score. With the calculation highest possible score. With the calculation methods used, a country cannot score 0.0. …is methods used, a country cannot score 0.0. …is the best known composite the best known composite indexindex of social and of social and economic well being economic well being

How the UNDP How the UNDP Measures Measures  Human  Human Development Development 

The HDI consists of three equally The HDI consists of three equally weighted components: weighted components:

(1) “A long and healthy life” (Health) (1) “A long and healthy life” (Health) (2) “Knowledge” (Education) (2) “Knowledge” (Education) (3) “A decent standard of living” (Wealth) (3) “A decent standard of living” (Wealth)

Deconstructing Each Deconstructing Each MeasureMeasure   

Each component of the HDI is measured in the Each component of the HDI is measured in the following way: following way:

Health Health Measured by Measured by life expectancy at birthlife expectancy at birth. . Education Education Measured as a combination of Measured as a combination of adult literacyadult literacy

(with two-thirds weight) and (with two-thirds weight) and gross enrollmentgross enrollment (with one-third weight). (with one-third weight).

Wealth Wealth Measured by Measured by GDP per capitaGDP per capita. .

Social&economic indexSocial&economic index

Economic and social indexes are like Economic and social indexes are like those we just talked about except they those we just talked about except they include economic and social data (such include economic and social data (such as income, educational attainment, as income, educational attainment, health, etc.) rather than wind speeds, health, etc.) rather than wind speeds, body weight, and the like. body weight, and the like.

Human Development Human Development Index MeasureIndex Measure

Human Development Index is calculated each is calculated each year by the U.N. Development Program as a year by the U.N. Development Program as a summary indicator of “Human Development,” summary indicator of “Human Development,” combining data on life expectancy at birth. combining data on life expectancy at birth. Andrew Gelman takes a Andrew Gelman takes a close look at this new at this new state-based index, comparing a state’s ranking state-based index, comparing a state’s ranking in this new state-based human development in this new state-based human development measure and its ranking on average income. measure and its ranking on average income.

Methodology & Methodology & Measurement of HDI Measurement of HDI

1. The Concept of Human Development1. The Concept of Human Development As the 1990 Human Development Report As the 1990 Human Development Report

argued, a basic distinction needs to be made argued, a basic distinction needs to be made between the means and the ends of development. between the means and the ends of development. Human beings are the real end of all activities, and Human beings are the real end of all activities, and development must be centered on enhancing their development must be centered on enhancing their achievements, freedoms, and capabilities. It is the achievements, freedoms, and capabilities. It is the lives they lead that is of intrinsic importance, not lives they lead that is of intrinsic importance, not the commodities or income that they happen to the commodities or income that they happen to possess. Income commodities ("basic" or possess. Income commodities ("basic" or otherwise), and wealth do of course have otherwise), and wealth do of course have instrumental importance but they do not constitute instrumental importance but they do not constitute a direct measure of the living standard itselfa direct measure of the living standard itself

2. Aggregative Indicators and 2. Aggregative Indicators and Intrapopulation InequalityIntrapopulation Inequality

The usual measures of group The usual measures of group performance (such as the gross national performance (such as the gross national product, net national income, life product, net national income, life expectancy at birth) tend to be aggregative expectancy at birth) tend to be aggregative indicators that are based on averaging the indicators that are based on averaging the individual circumstances. This inevitably individual circumstances. This inevitably involves the loss of some valuable involves the loss of some valuable informationinformation

Other Measures Of Other Measures Of DevelopmentDevelopment

The UNDP has also developed a number The UNDP has also developed a number of other indicators to measure of other indicators to measure development development

Gender Development Index Gender Development Index Gender Empowerment measure Gender Empowerment measure Human Poverty Index (HPI) Human Poverty Index (HPI)

In 1991 in the UNDP has developed a one of In 1991 in the UNDP has developed a one of indicator called the Human Freedom Index indicator called the Human Freedom Index (HFI). (HFI).

The World Bank developed its own indicator The World Bank developed its own indicator called the World Bank Development Indicator called the World Bank Development Indicator (WBDI). (WBDI).

smaller economic development indicator is the smaller economic development indicator is the Measurement of Economic Welfare. Measurement of Economic Welfare.

GENDER RELATED GENDER RELATED DEVELOPMENT INDEXDEVELOPMENT INDEX

The Gender Development Index attempts The Gender Development Index attempts to capture achievement in same of basic to capture achievement in same of basic variables as used in the HDI. Hence , variables as used in the HDI. Hence , the GDI also uses life expectancy, the GDI also uses life expectancy, educational attainment &income in its educational attainment &income in its construction ,but the contribution of construction ,but the contribution of males &females is separated. The GDI males &females is separated. The GDI therefore adjusts the HDI of gender therefore adjusts the HDI of gender inequality.inequality.

GENDER EMPOWERMENT GENDER EMPOWERMENT

MEASUREMEASURE The Gender Empowerment Measure The Gender Empowerment Measure

(GEM) is another measure of gender (GEM) is another measure of gender disparity. The GEM measures inequality disparity. The GEM measures inequality in the main areas of economic & political in the main areas of economic & political participation & decision making power, participation & decision making power, women’s & men’s share in administrative women’s & men’s share in administrative & managerial positions & their share of & managerial positions & their share of professional & technical jobs are used professional & technical jobs are used

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