jamshed uz zaman. human poverty index human development index source undp, human development report...
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Jamshed uz Zaman
Human Poverty IndexHuman Development IndexSource UNDP, Human Development Report
-- Human Development Index (HDI)-- Human Poverty Index (HPI)
Human Development IndexHDI is based on
Life expectancy at birth (25-85 years)Educational Attainment (Adult literacy, 2/3
weight) (0-100%) and (combined enrolment ratios, 1/3 weight)
Standard of Living (Real PCY at PPP) $100 -$40,000) (complex)
Actual Value – Minimum ValueIndex = -------------------------------------------
Maximum Value – Minimum Value
Example (2001)India BangladeshLife Expectancy:62.9 – 25 37.9---------- = ------ = 0.6385 - 25 60Educational Attainment[56.5(2/3)+56(1/3)] ÷ 100
= 0.56GDP = 0.52HDI = (0.63 + 0.
56+0.52)/3 = 0.57
Life expectancy:58.9 – 25 33.9---------- = ------ = 0.56585 - 25 60
Educational Attainment[40.8(2/3) + 37(1/3)] ÷
100 = 0.395GDP = 0.45HDI = (0.565 + 0.395
+0.45)/3 = 0.47
Human Poverty Index (HPI)The percentage of the population not
expected to survive to the age of 40 (P1),
The adult illiteracy rate (P2),A deprivation index based on average
of two variables: the percentage of the population without access to safe water and the percentage of underweight children under five years old (P3).
Bangladesh HPI = [1/3{(21.4)3 +(59.2)3
+1/2(3+56)3}-3] 1/3
= 43.3
India HPI = [1/3{(16.7)3 +(43.5)3
+1/2(12+53)3}-3] 1/3
= 34.3
The Formula for HPIHPI = [1/3{P1
3 + p23 +
P33} – 3]1/3
Can the poor countries ever catch up
Y Dt = current level of per
capita income in developed countries say $25,000
YDCt = current level of per
capita income in poor countries say $1200
rD = per capita income
growth of developed countries,
rDc = per capita income
growth of poor countries,
Y D* = assumed PCY in
2020, say $45,000 of developed countries
rDC* = required per capita
growth rate of the poor countries.
How long it would take to catch up?
YDt = YDCt (1 + rDC)n
Or,
Or n =
log(2500/1200)/log(1.02)
Can the poor countries ever catch up? (contd.)
Or
n =
log(2500/1200)/log(1.02)
= 153 years
At a growth rate of 2% poor countries would require 153 years to reach current living standard of the developed countries.
Elimination of per capita income gapHow many years would it take
n =[log(2500/4000)] / [log(1.06)- log (1.03)]= 64 years
YDt ( 1+rD)n = YDCt ( 1+rDC)n
n = [log(YDt/ YDCt )]/[log(1+rDC)- log(1+rDC)]
Thank you