H dconcepts

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

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
Nairobi – September - 2007

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”


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

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)


• 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

• Contrasts with a common view that
poverty is purely deprivation of income
• Rests on four essential pillars:
– Equality
– Productivity
– Empowerment
– Sustainability


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.


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


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

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

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

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

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

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

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

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)

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


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


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


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

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


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


GEM concept
• Measures opportunities rather than
capabilities
• Three concepts
– Parliamentary empowerment
– Occupational/legislative empowerment
– Economic empowerment


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


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

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


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 $)

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


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


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