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1/17/2015 MrunalEconomicSurveyCh13:HumanDevelopmentreport2014
http://mrunal.org/2014/08/economicsurveych13undphumandevelopmentreport2014hdigenderdevelopmentinequalitymultidimensionalpovertyginic 1/11
Mrunalhttp://mrunal.org
[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
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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)
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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
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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
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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
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IndiasuckseverywhereexceptLifeexpectancywhereAfricasucksduetoAIDS
HDI:IndiavsBRICS Overallworld
IndialowestamongallBRICSexceptlifeexpectancy(SouthAfricalowest)S.AfricalowestlifeexpectancyamongBRICSduetoAIDSLifeexpectancy:China>>S.AfricaGNIpercapita:Russia>Brazil>China>Africa>India
Overallgendergapintheworldis8%percapitaincomeofmenisdoublethanwomenHumandevelopmentsloweddownworldwide
HumanDevelopment:4culprits&6prescriptions
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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.
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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
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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:
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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
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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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