HUMAN DEVELOPMENT REPORT 2001

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HUMAN DEVELOPMENT REPORT2001

• An Introduction
• By
• A.M.Farahat

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CONTENTS

• Human Development
• Human Development Index (HDI)
• Human Development Report (HDR)
• Human Development Report 2001
• Review of Past Trends
• Ranking of ESCWA countries
• Purchasing Power Parity

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1. HUMAN DEVELOPMENT

• There has always been a quest for a QUANTITATIVE
  measure of Human Development (HD) for the
  purposes of
• RANKING and,
• COMPARISONS among countries.

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1. HUMAN DEVELOPMENT

• UNIDIMENSIONAL measures such as per capita
  income/GDP has several shortcomings. Chief among
  these are
• Exchange rate problems.
• Price level problems.
• These were largely solved through the Purchasing
  Power Parity (PPP) rate of exchange.

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HUMAN DEVELOPMENT Purchasing Power Parity (PPP)
rate of exchange

• Purchasing Power Parity (PPP) rate of exchange
• A rate of exchange that accounts for price
  differences across countries. PPP US1 has the
  same purchasing power in the domestic economy as
  1 US has in the United States.

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1. HUMAN DEVELOPMENT

• However there was still a need for a COMPOSITE
  MULTI-DIMENSIONAL measure which is more
  representative of HD.
• These requirements are largely satisfied in the
  HDR through computations of the HDI.

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1. HUMAN DEVELOPMENT Human Development Report

• Initiated in 1990 by the late Mahboub El Haq
  (1934-1998).
• The purpose is to monitor HDI for the various
  countries of the UN and rank them accordingly
• A report is published annually by UNDP

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2. HUMAN DEVELOPMENT INDEX (HDI)Introduction

• A COMPOSITE measure of human development
• Measures overall achievement of a COUNTRY in
  three basic DIMENSIONS.

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2. HUMAN DEVELOPMENT INDEX (HDI)Dimensions

• Longevity
• Knowledge.
• Decent standard of living.

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2. HUMAN DEVELOPMENT INDEX (HDI)Measures of
Dimensions

• Longevity Life expectancy index
• Knowledge Education attainment
  index
• Standard of living Per capita income index in
  Purchase Power Parity,US
• HDI is the simple average of the 3 dimensional
  indices.
• Uses World Bank PPP exchange rate

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2. HUMAN DEVELOPMENT INDEX (HDI)A
Multidimensional Composite Index
Dimension 1
Dimension 3
Dimension 2
Indicator2.1
Indicator2.2
Indicator1.1
Indicator 3.1
Index 2.1 (0-100)
Index 2.2 (0-100)
Index 1 (0-100)
Index 2 (0-100)
Index 3 (0-100)
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2. HUMAN DEVELOPMENT INDEX (HDI)
Dimension 1
Dimension 3
Dimension 2
A long and healthy life
Knowledge
A decent standard of living
Indicator2.1
Indicator2.2
Indicator1.1
Indicator 3.1
Life expectation at birth
Adult literacy rate
Gross enrolment ratio GER
GDP per capita (PPP US )
Index 2.1 (0-100)
Index 2.2 (0-100)
Adult literacy rate Index
GER Index
Index 1 (0-100)
Index 2 (0-100)
Index 3 (0-100)
Life expectancy Index
GDP Index
Education Index
HDI
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2. HUMAN DEVELOPMENT INDEX (HDI)Supplementary
Indices

• Human poverty index (HPI).
• HPI1
• HPI2
• Measures the backlog of deprivation that still in
  the 3 basic dimensions in developing countries
  (HPI1) and selected OECD countries (HDI2).
• Gender-related Development Index (GDI).
• Measures the inequality in the achievements in
  the three basic dimensions between men and women.
• Gender Empowerment Measure (GEM).
• It exposes inequality in opportunities in
  selected areas.

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3. HUMAN DEVELOPMENT REPORTS (HDR)Structure

• Each report is roughly made up of
• A main body focusing on a HD related theme.
• A set of tables showing for each country
• HDI
• HPI1, HPI2
• GDI
• GEM
• Associated indicators

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3. HUMAN DEVELOPMENT REPORT (HDR)Themes of
Previous Issues

• 1990 Concept and Measurement of Human
  Development
• 1991 Financing Human Development
• 1992 Global Dimensions of Human Development
• 1993 Peoples Participation
• 1994 New Dimensions for Human Security
• 1995 Gender and Human Development
• 1996 Economic Growth and Human Development
• 1997 Human Development and Poverty Eradication
• 1998 Consumption for Human Development
• 1999 The Humanitarian Aspects of Globalization
• 2000 Human Rights and Human Development

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4. HUMAN DEVELOPMENT REPORT (HDR) 2001Main
Features

• In addition to HDI and related indicators, the
  report provides
• A. Review of past trends
• B. Theme Making New Technologies Work for Human
  Development

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4. HUMAN DEVELOPMENT REPORT (HDR) 2001A. Review
of Past Trends
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4. HUMAN DEVELOPMENT REPORT (HDR) 2001A. Review
of Past Trends
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4. HUMAN DEVELOPMENT REPORT (HDR) 2001A. Review
of Past Trends
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4. HUMAN DEVELOPMENT REPORT (HDR) 2001A. Review
of Past Trends

• Progress in the last 30 years has been impressive

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4. HUMAN DEVELOPMENT REPORT (HDR) 2001A. Review
of Past Trends

• ...But the pace of the progress and the levels of
  achievement vary widely among regions and groups

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5. RANKING OF ESCWA COUNTRIES IN HDR 2001

• High HD
• Bahrain 40
• Kuwait 43
• United Arab Emirates 45
• Qatar 48
• Medium HD
• Lebanon 65
• Saudi Arabia 68
• Oman 71
• Jordan 88
• Syria 97
• Low HD
• Egypt 105
• Yemen 133
• Not mentioned
• Palestine
• Iraq

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THANK YOU
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6. PURCHASING POWER PARITY (PPP)

• A rate of exchange that accounts for price
  differences across countries. PPP US1 has the
  same purchasing power in the domestic economy as
  1 US has in the United States.

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6. PURCHASING POWER PARITY (PPP)

• PPP data generated by UN International
  Comparison Programme (IPC).
• Published by the University of Pensilvania and
  the World Bank.
• In spite of its associated reservations, its
  far superior to the available alternative

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6. PURCHASING POWER PARITY (PPP)

• PPP as a rate of conversion ensures that money
  exchanged for a dollar buys the same amounts of
  goods and services in every country. By
  equalizing prices every where, PPP rates deliver
  a measure of relative GDP which is based on what
  constitutes real incomethe volume of goods and
  services embodied in GDP. The method is analogous
  to evaluating quantities of different years at
  fixed base year prices.

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6. PURCHASING POWER PARITY (PPP)

• There are many methods of computing PPP rates,
  each yielding different estimates. PPP rates are
  estimated from survey data by computing price
  ratios of comparable items and aggregating them
  by their corresponding weights in GDP.