CASE STUDY : COUNTRY ANALYSIS USING HDI 1.Distinguish between economic growth and development ?

Economic Growth is a narrower concept than economic development. It is an increase in a country's real level of national output which can be caused by an increase in the quality of resources (by education etc.), increase in the quantity of resources & improvements in technology or in another way an increase in the value of goods and services produced by every sector of the economy. Economic Growth can be measured by an increase in a country's GDP (gross domestic product).

Economic development is a normative concept i.e. it applies in the context of people's sense

of morality (right and wrong, good and bad). The definition of economic development given by Michael Todaro is an increase in living standards, improvement in self-esteem needs and freedom from oppression as well as a greater choice. The most accurate method of measuring development is the Human Development Index which takes into account the literacy rates & life expectancy which affect productivity and could lead to Economic Growth. It also leads to the creation of more opportunities in the sectors of education, the per capita income of every citizen. Economic Growth does not take into account the size of the informal economy. The informal economy is also known as the black economy which is unrecorded economic activity. Development alleviates people from low standards of living into proper employment with suitable shelter. Economic Growth does not take into account the depletion of natural resources which might lead to pollution, congestion & disease. Development however is concerned with sustainability which means meeting the needs of the present without compromising future needs. These environmental effects are becoming more of a problem for Governments now that the pressure has increased on them due to Global warming. healthcare, employment and the conservation of the environment. It implies an increase in

Economic growth is a necessary but not sufficient condition of economic development.

2. What are the components of Human Poverty Index?

As it is defined by the UNDP (United Nations Development Programme), Human Poverty Index is a compound index, based on a number of component measures that calculates a summary statistic on the economic welfare of the poor in a

society. Since poverty is a multidimensional issue and a relative concept, therefore different factors and different expectations need to be taken into account in different countries. The HPI-2 indices developed by the UNDP have been used for the DESIRE project. HPI-2 has been based on four component measures of deprivation, each of which need to be defined:

Longevity: the percentage of the population with a life expectancy of less than 60 years. Illiteracy: the percentage of the population aged 15 years or over who are unable, with understanding, both to read and write a short, simple statement on their everyday life.

Standard of living: the percentage of the population living below the poverty line (defined as 50% of the median disposable personal income). Exclusion: percentage of the work force in long-term unemployment (12 months or more).

These four components have been computed using the following equation: HPI-2 = [0.25(P23+P43+P53+P63)] 0.33 Where: P2 = illiteracy rate for the people aged 15 years of older P4 = percentage of people not expected to survive more that 60 years P5 = percentage of people with disposable income < 50% of the median income P6 = percentage of people in long term unemployment. 3 .Distinguish between HDI and GDI?
Gender-related Development Index (GDI), measures achievement in the same basic capabilities as the HDI does, but takes note of inequality in achievement between women and men. The methodology used imposes a penalty for inequality, such that the GDI falls when the achievement levels of both women and men in a country go down or when the disparity between their achievements increases. The greater the gender disparity in basic capabilities, the lower a country's GDI compared with its HDI. The GDI is simply the HDI discounted, or adjusted downwards, for gender inequality. To get a measure of gender inequality, one should use the difference or the ratio of two indicators. In addition, the difference between the HDI and the GDI tend to be small because those captured by the three dimensions tend to be small, giving a misleading impression that gender gaps are irrelevant. Due to the aversion to inequality formula

used to calculate the GDI, gender disparities relating to employment and quality of education for example are not captured. 4 Distinguish between GDI and GEM ?

Gender Empowerment Measure (GEM), is a measure of agency. It evaluates progress in advancing women's standing in political and economic forums. It examines the extent to which women and men are able to actively participate in economic and political life and take part in decision-making. While the GDI focuses on expansion of opportunities of life. In HDR 2009 the GDI and GEM methodologies are applied at the global level to rank 155 countries according to the GDI and 109 according to the GEM. The same methodologies can also be applied at the national and sub-national levels through age groups, etc. disaggregated GDIs and GEMs so as to compare differences between regions, ethnic groups, capabilities, the GEM is concerned with the use of those capabilities to take advantage of the

to assess inequalities not only between men and women, but also between other groups such as rich and poor, young and old, etc. 4. What are the advantages of human development index as an indicator of the development in different countries

Moreover, the methodology used to construct the GDI and GEM could be used

introduced a new concept in the indication of development, the Human Development Index (HDI), with the objective of measuring human progress and quality of life at the global level. The initial report made so much of an impact on public and academic opinion that a a countries development progress. The HDI constitutes the first comprehensive attempt to measure achievements in development from a human perspective, expressed in terms of numerical indicators that permit inter-country and inter-temporal comparisons. The HDI combines in one composite most basic human capabilities: living a long life, being knowledgeable and enjoying a decent standard of living. The index also provides an initial working tool that could be further developed and refined, and that could guide country efforts to establish relevant databases. Additional indexes based on the HDI have been developed to examine, in more depth, specific issues, such as the Gender-related Development Index (GDI), the Gender-Empowerment Measure (GEM) index, indicators of health, education and income and intends to reflect achievements in the few years later, the international community adopted the HDI as the indicator to measure

The Human Development Index (HDI) In 1990 the UNDP

and the Human Poverty Index (HPI). Some countries have also developed complementary indexes to help policy-makers deal with specific national issues. The HDI does not capture all
the multiple dimensions of well-being, it is a very useful advocacy too and can be used to question capita can have different human development outcome. national policy choices. For example question how two countries with the same level of income per The 2010 Human Development Report (HDR) introduced some changes to the indicators

measuring the knowledge and decent standard of living dimensions, as well is the method for

calculating the HDI. This is in response to some of the criticisms levelled against the index and also

to take advantage of improvement in data availability. Even though the HDI, within a few years

after its introduction, was widely appreciated as a major policy instrument and a useful policy tool, it was recognized early on that it is a measure of average achievements in human development. It can neither measure deprivational aspect of development. reflect distributional aspect of development, particularly the issue of inequality, nor can it