Mrunal Economic Survey Ch13_ Human Development Report 2014

1/17/2015 MrunalEconomicSurveyCh13:HumanDevelopmentreport2014

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[EconomicSurvey]Ch13:P1UNDPsHumanDevelopmentreport2014,HDI,GenderDevelopment,genderinequality,Multidimensionalpoverty,WorldBanksGiniCoefficient

PostedByOn06/08/2014@1:12pmInEconomy|88Comments

1. Prologue2. HumanDevelopmentReport

1. FiveindexesunderHDR20142. Index#1:Humandevelopmentindex(HDI)

1. Ranking2. TieinRanking

3. NorankinginHDR20144. Index#2:InequalityadjustedHDI5. Index#3:GenderDevelopmentIndia(GDI)6. Index#4:Genderinequalityindex7. Index#5:Multidimensionalpovertyindex

3. HumanDevelopment:4culprits&6prescriptions4. HyogoFrameworkforAction5. WorldHumanitarianSummit6. GiniCoefficient:incomeinequality

Prologue

PS:slightcorrectioninpart2:PovertylineTendularhadincludedfood,health,educationandclothinginhisformula.

SummaryofEconomicSurveyChapter13:Humandevelopment.Ihadtodivideitintotalsixpartsforeaseinrevision&loadingimagesonmobileinternet.

1. UNDPsHumanDevelopmentreport2014&WorldBanksGiniCoefficient2. PovertyLine:TendulkarvsRangarajan,EngelsLaw,MNREGA,Aajeevikaa,UrbanLivelihood3. Healthcare,womenandchildren,statisticsandbudgetschemes4. DemographicDividend:Education,youth,SkillDevelopment5. Minorities,SC,ST,PH,Elderly,Sports&Defense6. Ruralandurbaninfrastructure:schemes&budgetannouncements

HumanDevelopmentReportWhopublishesthisreport? UNDPHQ:NewYorkchief:HelenClark

Whodesignedthissystem? IndianEconomistAmartyaSenPakiEconomistMahbubulHaq

SinceWhen? 1990Reportthemes

2013 RiseoftheSouth:HumanProgressinaDiverseWorld2014



SustainingHumanProgress:ReducingVulnerabilityandBuildingResilience

FiveindexesunderHDR2014

Humandevelopmentrelated(2) 1. HumandevelopmentindexHDI2. inequalityadjusted(HDI)

Genderrelated(2) 3. GenderDevelopmentindex4. Genderinequality

Povertyrelated(1) 5. Multidimensionalpovertyindex

total 5indexes

Letscheckemonebyone

Index#1:Humandevelopmentindex(HDI)

PrakashJhasGangaajalshouldbeincludedinGS4(Ethics)syllabus

Itrankshumandevelopmentintermsofthreebasicparameters:

Parameter Quantitativemeasure(INDEX)A.tolivealongandhealthylife A.lifeexpectancy@birth(years)

B.tobeeducatedandknowledgeable

B1:MeanyearsofschoolingB2:ExpectedyearsofSchooling

FromtheseyougetEducationindex,letscallitB

C.toenjoyadecenteconomicstandardofliving. C.Percapitagrossnationalincome($$)thenyounormalizeA,BandCbythisformula(whichnotimportantforexam)

(actualvaluemin.value)/(maxvalueminvalue)



finallyHDIistheGeometricMeanofthreenormalizedvalues

=cuberootof(AxBXC)

HDIdoesntusearithmeticmean(A+B+C)/3,becauseevenlargevalueinonepart,hidedeficiencyinotherareas.ExampleArithmeticmean(90,0,0)=30.sooverallgooddevelopment,butcountryhasZEROdevelopmentoneducationandincomepart!GeometricMean(90,0,0)=0willdisclosethisbogusness.

Ranking

Onlyfocusingonbest&mostbogusIndia,itspartners&neighbors

VeryHIGH(0.994onwards) High(0.790onwards)

1. Norway2. Australia3. Switzerland4. Netherlands5. USA

57.Russia73.SriLanka79.Brazil91.China

Medium(0.698onwards) Lowest(0.540onwards)

103.Maldives(highestamongallMedium)135.India(HDI=0.586)136.Bhutan142.Bangladesh

Inreverseorder

1. Niger(187)2. Congo(186)3. CentralAfricanRepublic4. Chad5. SierraLeone

India:Onerankimprovement

report Indiasrank source*2012 134outof187 Surveypage.2302013 136outof186 Surveypage.2302014 135outof187 alloverInternet

*clarificationbecauseoneofthearticleinTimesofIndiasaysrankunchanged.Butrankhasimproved.

TieinRanking

SinceHDR2013,theyveintroducedtheconceptoftie.iftwocountrieshavesameHDIindexnumberupto3decimalpoints,thentheyregivensamerank.Forexample,inHDR2014report,Austria,BelgiumandLuxembourgeachhasHDIvalueof0.881,thereforegivensamerank#21.Butthennextrankwillbe24(Iceland).Noonewillgetranknumber22,23.LastrankisNiger187,meanstotal187countrieshavebeenranked.

NorankinginHDR2014Followingarenotgivenanyrank



1. NorthKorea2. Monaco(Frenchborder)3. SanMarino(ItalianPeninsula)4. Somalia5. SouthSudan

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

Index#2:InequalityadjustedHDI

HDIrankingcomparesdifferentcountriesonthreeparameters:health+education+income.Butwhataboutinternalinequalitywithinsamecountry.Forthis,anotherrankcreatedinequalityadjustedHDI.IndiaRanksameforbothHDIandinequalityadjustedHDI=135.Thenwhatspointofcalculating?Ans.theAbsolutefiguretellsushowmuchhumandevelopmentlostduetoinequalitywithinacountry.

Indiasperformance absolutefigureHDI 0.586inequalityadjusted 0.418%differenceoverHDI 29%

Inotherwords,29%ofHumandevelopmentislostduetoinequality.

lossduetoinequality %Russiaandhighlyadvancedeconomies 12%India 29%world 23%

Index#3:GenderDevelopmentIndia(GDI)

CalculationStoppedsince2010.Butresumedwith2014sreport.Onlycalculatedfor148countriesandnotforallthose187rankedinHDI.Formula=FemaleHDI/MaleHDISo,thebestcountry,wherefemaleandmaleHDIissame,whatwillbetheanswer0,0.5or1?Ans.1.Becausenumeratoranddenominatorwillcanceleachother.So,whichcountrygotfirstrank?Norway?Ans.No,wrongguess.

country G.D.index rankinGDISlovakia(CapitalBratislava) 1.000 1Norway 0.997 5India 0.828 132(HDI135)

Moralofthestory:NorwayandKeralawontget#1everywhere.so,donttickMCQsonguessworkandgutfeeling.

Index#4:Genderinequalityindex(GII)Basedonthreeparameters

Parameter components India

1. ReproductivehealthMMR 200/lakhAdolescentbirthrate 32/1000



2. Empowerment womeninparliament 10.9%highereducation 26.6%

3. Economicactivity Laborforceparticipation 28.8%

InGenderinequalityindex:0=noinequalityand1=maximuminequality.Onlycalculatedfor157countries.(NOTall187)

GII2014rankingRank GenderInequality1 SloveniaCapitalLjubljana(notSlovakia)2 Switzerland3 Germany3794 China>Rus>Brazil>S.Africa127 India(Value0.563)

Index#5:Multidimensionalpovertyindex

Firstwevetofindtwothings:

PovertyIncidence PovertyIntensityhasthreeindicators

1. health2. education3. std.ofliving

Howmanyindicatorsdoesthegivenhouseholdlacks?

Finally,MPI=(incidencexintensity)

Alloverworldtotal1.5billionjuntasufferingfrommultidimensionalpoverty.

Country %ofjuntasufferingmultidimensionalpoverty?Maldives 2China 6SouthAfrica 10Nepal 41Pakistan 46Bangladesh 50India 55

Wearedonewithfiveindexes.Nowsomefillertopics



IndiasuckseverywhereexceptLifeexpectancywhereAfricasucksduetoAIDS

HDI:IndiavsBRICS Overallworld

IndialowestamongallBRICSexceptlifeexpectancy(SouthAfricalowest)S.AfricalowestlifeexpectancyamongBRICSduetoAIDSLifeexpectancy:China>>S.AfricaGNIpercapita:Russia>Brazil>China>Africa>India

Overallgendergapintheworldis8%percapitaincomeofmenisdoublethanwomenHumandevelopmentsloweddownworldwide

HumanDevelopment:4culprits&6prescriptions



FodderforMainsandEssay

FourculpritsthatslowedHumanDevelopmentworldwide:

1. Climatechange2. Conflict3. Socialunrest4. Economiccrisis

SIXprescriptiontocombatthose4culprits.

1. Universalbasicservice:health,education,watersupply,sanitationandpublicsafety(policing).

2. [email protected]. First1000daysafterbirth2. Whenhejoinscoachingclasses3. WhenEnteringworkforce4. Whenleavingworkforce(duetoretirementordisability)

Otherwise,setbackatthesethreestagescanbeparticularlydifficulttoovercomeandmayhaveprolongedimpacts.e.g.malnutrition=>lowskilled=>lesssocialsecurity@retirement.



Recallthat2014sreportthemeisSustainingHumanProgress:ReducingVULNERABILITYandBuildingResilience.Thischartdirectlycopiedfromreport.

3. Socialprotection(80%ofworldlacks).Lackofsocialsecurity=peopleselltheirassets,takeoutchildrenfromschool&sentthemtochildlabor.

4. Fullemployment(50%worldinformaljobs).Unemployment=crime,suicideschildreneducation,healthalsosuffers.

5. Inclusionofwomen,disabledandminoritiesindevelopment.6. Disasterpreparedness.Becausenaturaldisastersworsentheexistingvulnerabilities,

suchaspoverty,inequality,environmentaldegradationandweakgovernance.

IndiaspecificprescriptioninHDI:

IndianeedstospendjustfourpercentofitsGDPtoensureasocialsecuritynet.ThissocialsecuritynetshouldincludeNREGA,universalprimaryhealthcoverage,oldageanddisabledpensionsandchildbenefits1999Odishacyclone>10,000deadbut2013cyclonewithsameintensityyetlessthan



1994 Yokahoma(Japan):WorldConferenceonNaturalDisasterReduction

2005 HyogoFrameworkforAction(20052015)HyogoisinHonshuislandofJapan.

HyogoframeworkWho? UnitedNationsOfficeforDisasterRiskReduction(UNISDR)Theme buildingresilienceofnationsandcommunitiestodisasters.Target reduceglobaldisasterriskby2015

168countriesadopteditIthasfivepriorityareas,andstepsonhowtoimplementthem.MCQwisenotmuchtoaskbecause2005stopic.ButlotoffodderforMainsGS3.Rightnow,Imnotdwellingintoitbecauseofspaceandtimelimit.Youcanrefertoitstwopagesummarychartfromthislinkunisdr.org/files/8720_summaryHFP20052015.pdf

WorldHumanitarianSummit

Basicsimportant,becausementionedinHDR2014report

Where Istanbul,Turkey

When 2016.Buttheconsultationprocesshasstartedtwoyearsinadvance(i.e.since2014)

Bywhom?

initiativebyUNSecretaryGeneralBanKimoonUNOfficefortheCoordinationofHumanitarianAffairs(OCHA)

purpose Addressthehumanitariancrisiscausedbynaturaldisastersandconflicts.

Beyondthat,notmuchtowritebecausemostlybolbachchan.youcanfindithere:

worldhumanitariansummit.org/whs_about

GiniCoefficient:incomeinequality

firstdrawagraph:(cumulative)householdsonxaxisand(cumulative)wealthonyaxisIfanimaginarycountryhasequalincomedistributionofwealth,thengraphwillbea45degreeline.itcanbeinterpretedas

10%ofhouseholdsown10%ofnationswealth40%ofthehouseholdsown40%ofnationalwealthandsoon.

Butarealcountrysgraphwillnotshow45degreegraph.insteaditlllookcurvedline(LorentzCurve)asinfollowingimage:


http://mrunal.org/2014/08/economicsurveych13undphumandevelopmentreport2014hdigenderdevelopmentinequalitymultidimensionalpovertygini 10/11

ForIndiaGinicoefficientis~33%butstillwearebetterthanBRICS,US,SwizalthoughJapsandGermanshaveevenlesserinequalitythanIndia.

Thebluecurvedline(Lorenzcurve)canbeinterpretedas:

poorest30%householdsownonly2%ofnationswealthRichest10%own90%ofnationalwealthandsoon.

OkbutwhatisGinicoefficient?

inthegraph,straightline=equalwealthdistributionandcurvedline=reallifeincomeinequality.so,Ginicoefficientisderivedbyfindingareaunderpink(A)andBlue(B),thenformulais

Ginicoefficient=(A/A+B)

mugupthistableforMCQsGinivalue Interpretation0 equalwealthdistribution

between0to1

inequalityinwealthdistributionForexample,India=0.334.(sometimesexpressedinpercentageformi.e.33.4%)Inthiscriteria,IndiahaslesserinequalitythanBRICS,USAandSwitzerland.

1 mostunequaldistribution

LetstrysomedirectMCQfrom22ndJanuary2014sThehindusBusinessline

Q1.Considerfollowingstatements

1. WorldBankpublishesGiniCoefficient


http://mrunal.org/2014/08/economicsurveych13undphumandevelopmentreport2014hdigenderdevelopmentinequalitymultidimensionalpovertygini 11/11

2. GiniCoefficientisaninternationallyacceptedmeasureofincomeinequality3. HighertheGiniCoefficient,lowertheinequality

Whichoftheabovestatementsarecorrect?

1. Only1and22. Only23. Only2and34. Only1and3

CorrectAnswer:A1and2correct.Thirdstatementwrongbecausehighergini=higherinequality.

LetstryonemorefromthesameHinduarticle:

Q2.FindincorrectstatementaboutGinicoefficient

1. InIndia,incomeinequalityislowerthanUSA,asperGiniCoefficient.2. Itsapurelymathematicalmeasureofinequalitywithinapopulation.3. ItsnamedafterItalianstatisticianCorradoGini

Answerchoices

1. Only1and22. Only23. Only2and34. None

CorrectAnswer:DNone.(Becauseallstatementsareright.)

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