human development index 18 jan 2008 r. shanthini

Human Development Index

18 Jan 2008 R. Shanthini

• GDP per capita


• Life Expectancy

• GDP per capita


• Life Expectancy

• GDP per capita

• Literacy Rate• School Enrollment


• Life Expectancy

• GDP per capita

HumanDevelopmentIndex


1/31/3

1/3


GDP per capita, PPP (const 2000 International $)

United States

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

1975 1980 1985 1990 1995 2000 2005



Singapore

United States

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

1975 1980 1985 1990 1995 2000 2005



Sri Lanka

Singapore

United States

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

1975 1980 1985 1990 1995 2000 2005


• United States is a very developed country!

• United States is more developed than Singapore!

• Sri Lanka has to develop like Singapore (at least)!

- based on GDP per capita


In 2005 Sri Lanka

Singapore

HDI rank 102102 2727

Sources: Human Development Report 2007/2008; World Development Indicators Online 2008


In 2005 Sri Lanka

Singapore

HDI rank 102102 2727Life Expectancy 7575 8080



In 2005 Sri Lanka

Singapore


Adult literacy Rate

91 91

(in 2001)(in 2001)93 93

(in 2000)(in 2000)



In 2005 Sri Lanka

Singapore


Adult literacy Rate

91 91

(in 2001)(in 2001)93 93

(in 2000)(in 2000)GDP per capita(PPP US$)

4,5954,595 29,66329,663



In 2005 Spain United States

Life Index 0.925 0.881

Education Index

GDP per capita(PPP US$)

HDI RankSource: Human Development Report 2007/2008




Education Index 0.987 0.971








27,169 41,890







27,169 41,890

HDI Rank 15 14Source: Human Development Report 2007/2008


In 2005 Sri Lanka

Turkey


Education Index




In 2005 Sri Lanka

Turkey






In 2005 Sri Lanka

Turkey




4,595 8,407



In 2005 Sri Lanka

Turkey




4,595 8,407

HDI Rank 102 87Source: Human Development Report 2007/2008


GDP per capita hasa strong influence on the HDI.


How important is GDP per capita in Human Development?


from 1977 to 2005Life expectancy at birth, total (years)

60

65

70

75

80

85

0 10000 20000 30000 40000

GDP per capita, PPP (const. 2000 International $)

Sri Lanka

Singapore

United States

Source: World Development Indicators Online 200818 Jan 2008 R. Shanthini

from 1970 to 1999 (not updated)

Adult Illiteracy Rate (% of people 15 and above)

Sri Lanka

5

10

15

20

25

30

0 10000 20000 30000GDP per capita

Singapore

from 1960 to 1995 (not updated)

School Enrollment, secondary (% gross)

Sri Lanka

20

30

40

50

60

70

80

0 10000 20000 30000GDP per capita

Singapore

It seems that GDP per capita plays only a marginal role in Human Development?


But, GDP per capita growth is important for people to live comfortably!

Is that true?18 Jan 2008 R. Shanthini

Let us take a look at the GINI Index, which is a measure of unequal distribution of wealth

• Gini Index of zero means absolute equality

• Gini Index of 100 means absolute inequality


Gini Index must be close to 0 for equal distribution of wealth

GDP per capita (PPP $) 2005

Gini Index

Sri Lanka 4,595Singapore 29,663United States

41,890

Source: Human Development Report 2007/2008


Gini Index must be close to 0 for equal distribution of wealth

GDP per capita (PPP $) 2005

Gini Index

Sri Lanka 4,595 40.2Singapore 29,663 42.5United States

41,890 40.8

Source: Human Development Report 2007/2008


GDPI_GI= GDPI*IEQI

Socially responsible GDP per capita index

where

IEQI = 1 - ln(Gini Index) - ln(20)

ln(100) - ln(20)

GDPI =ln(GDP per capita) - ln(100)

ln(40000) - ln(100)

and


• Life Expectancy

•Socially responsible GDP per capita

Socially Responsible Human Development Index


1/31/31/3


Is the GDP per capita-dependent Human Development environmentally responsible? No, it is not.


from 1975 to 2003

Source: World Development Indicators Online 2008

Electric Power Consumption (kWh per capita)

0

2000

4000

6000

8000

10000

0 5000 10000 15000 20000 25000


Sri Lanka

Singapore

Malaysia


from 1975 to 2003

Source: World Development Indicators Online 2008

CO2 emissions (metric tons per capita)

0

5

10

15

20

0 5000 10000 15000 20000 25000


Sri Lanka

Singapore

Malaysia


0

5000

10000

15000

20000

25000

30000

1750 1800 1850 1900 1950 2000Year

Global CO2 emissions from the burning of fossil fuels & the

manufacture of cement

(Unit: 109 kg)

Source: http://cdiac.ornl.gov/trends/trends.htm


courtesy NASA Earth Science EnterpriseSource: http://www.visionlearning.com/library/module_viewer2.php?mid=95&l=&let1=Ear


275

300

325

350

375

400

1750 1800 1850 1900 1950 2000Year

CO2 concentration in the atmosphere

(Unit: ppmv)

Source: http://cdiac.ornl.gov/trends/trends.htm


383.7

ERI= CEFI*ECRI

Environmentally Responsible Index

where

CO2I = ln(30) - ln(CO2pc)

ln(30) - ln(0.1)

and

ElecI = ln(30000) - ln(Elecpc)

ln(30000) - ln(10)


Responsible Human Development Index

• Life Expectancy

• Socially responsible GDP per capita


1/41/41/4

• Environmental Responsibility

1/4


The modified HDI is a good index?


No, it is not.

The biggest problem with HDI ishow the indices are defined.

Life Index = Life Expectancy - 25

85 - 25


Education Index =

2 Adult Literacy

3 100

2 Enrollment

3 100+

GDPI_GI= GDPI*IEQI

IEQI = 1 - ln(Gini Index) - ln(20)

ln(100) - ln(20)

GDP Index =ln(GDP per capita) - ln(100)

ln(40000) - ln(100)


Socially responsible GDP index

ERI= CEFI*ECRI

Environmentally Responsible Index

where

CO2I = ln(30) - ln(CO2pc)

ln(30) - ln(0.1)

and

ElecI = ln(30000) - ln(Elecpc)

ln(30000) - ln(10)


What is the problem?


No limit is placed on GDP per capita, CO2 emissions and Electricity consumption

sustainable

human development index 18 jan 2008 r. shanthini

Documents

shanthini slide

human development report

education index0

life expectancy gdp

world development indicators

hdi rank source

spainunited states life

education index gdp