Human Development Index

Topics: Human Development Index, Poverty, Economics Pages: 10 (3581 words) Published: November 5, 2012
What is HDI?
The Human Development Index (HDI) is a composite statistic used to rank countries by level of "human development", taken as a synonym of the older terms "standard of living" and/or "quality of life", and distinguishing "very high human development", "high human development", "medium human development", and "low human development" countries. HDI was devised and launched by Pakistani economist Mahbub ul Haq, followed by Indian economist Amartya Sen in 1990. The HDI is a comparative measure of life expectancy, literacy, education, and standards of living of a country. It is a standard means of measuring well-being, especially child welfare. It is also used to distinguish whether the country is a developed, a developing or an underdeveloped country, and also to measure the impact of economic policies on quality of life. There are also HDI for states, cities, villages, etc. by local organizations or companies which have interest in the matter. The HDI formula result is a number from 0 to 1, 1 being the best outcome possible. Components of HDI

What does HDI tell us?
The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. The HDI can also be used to question national policy choices, asking how two countries with the same level of GNI per capita can end up with such different human development outcomes. For example, the Bahamas and New Zealand have similar levels of income per person, but life expectancy and expected years of schooling differ greatly between the two countries, resulting in New Zealand having a much higher HDI value than the Bahamas. These striking contrasts can stimulate debate about government policy priorities. What are the criteria for a country to be included in the HDI? The Human Development Report Office strives to include as many UN member countries as possible in the HDI. To include a country in the HDI we need recent, reliable and comparable data for all three dimensions of the Index. For a country to be included, statistics should ideally be available from the relevant international data agencies. India’s position in the world

India ranks a low 134 among 187 countries in the list that is headed by Norway and in which the Democratic Republic of Congo is at the very bottom in terms of the human development index (HDI). India's ranking in 2010 was 119 out of 169 countries. According to the "UN Human Development Report 2011: Sustainability and Inequality", India's HDI is 0.5 compared to 0.3 in 2010. Comparison of India with few other countries

Countries| Per Capita income in US $| Literacy Rate| Life Expectancy in years| HDI Rank| India| 1600| 74%| 67.1| 134|
US| 48,147| 99%| 79| 4|
Canada| 51,147| 99%| 80.7| 6|
Germany| 40,631| 99%| 79.4| 9|
Nepal| 650| 68.2%| 66.5| 157|
Pakistan| 1250| 70%| 66.3| 145|

Growth Pattern of India

Factors responsible for growth of India
The then Prime Minister Narasimha Rao, along with his finance minister Manmohan Singh, initiated the economic liberalization of 1991. The reforms did away with the Licence Raj, reduced tariffs and interest rates and ended many public monopolies, allowing automatic approval of foreign direct investment in many sectors. Since then, the overall thrust of liberalization has remained the same, although no government has tried to take on powerful lobbies such as trade unions and farmers, on contentious issues such as reforming labour laws and reducing agricultural subsidies. By the turn of the 20th century, India had progressed towards a free-market economy, with a substantial reduction in state control of the economy and increased financial liberalization. This has been accompanied by increases in life expectancy, literacy rates and food security, although urban residents have benefited more than agricultural residents. Also the boom in IT and other industries in...
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