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The Real Wealth of Nations: Pathways to Human Development

The Real Wealth of Nations: Pathways to Human Development. Human Development Report 2010 20 th Anniversary Edition February 9, 2010 Banatao Auditorium, Sutardja Dai Hall  University of California, Berkeley. Affirming human development: 20 years on. 1990 Human Development Report

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The Real Wealth of Nations: Pathways to Human Development

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  1. The Real Wealth of Nations: Pathways to Human Development Human Development Report 2010 20th Anniversary Edition February 9, 2010 Banatao Auditorium, Sutardja Dai Hall  University of California, Berkeley

  2. Affirming human development: 20 years on • 1990 Human Development Report • “People are the real wealth of a nation.” • Introduced Human Development Index: Composite of health, education and income. • We argue that the human development approach makes a difference to: • Defining success • Measuring inequality and poverty • Designing development policies

  3. 40 years of progress

  4. 40 years of progress

  5. 40 years of progress

  6. 40 years of progress

  7. 40 years of progress

  8. Diversity of paths Saudi Arabia Oman Tunisia China Congo Nepal Benin Djibouti Zambia Burundi DR Congo Zimbabwe

  9. Divergence in income, but convergence in human development. Per capita GDP Life Expectancy Pre

  10. Measuring progress

  11. A new lens on development success Top movers in HDI, 1970 – 2010

  12. A new lens on development success Top movers in HDI, nonincome HDI and GDP, 1970 – 2010

  13. Growth doesn’t always come with human development – even over 40 years

  14. Improvements in Gender Inequality Index HDI rank 1 Oman 2 China 38 3 Nepal 110 4 Indonesia 100 5 Saudi Arabia 128 6 Lao PDR 88 7 Tunisia 56 8 South Korea 20 9 Algeria 70 10 Morocco 104 Beyond the HDI: Good things don’t always come together. Top movers in HDI, 1970 – 2010

  15. Beyond the HDI: Good things don’t always come together EMPOWERMENT ENVIRONMENTAL SUSTAINABILITY

  16. The HDI and beyond • New HDI • HDI 2.0 • Need added focus on process freedoms, justice and global constraints. • Three new indices • Inequality Adjusted HDI • Gender Inequality Index • Multidimensional Poverty Index

  17. Changes to the Human Development Index • Dimension indicators: • Literacy is replaced by Mean Years of Schooling. • GER is replaced by expected years of schooling. • GDP is replaced by GNI • Aggregation formula • HDI is now the geometric mean • Upper bounds set to observed maxima • Lower bounds set to subsistence levels.

  18. HDI losses from inequality largest in low and medium HDI countries Loss in HDI due to multidimensional inequality by HDI level

  19. Large losses due to gender inequality, especially in low HDI countries Yemen DR Congo Saudi Arabia Zimbabwe Netherlands

  20. More MPI poor than income poor

  21. Beyond 2010: Looking ahead • The human development approach matters: • For our understanding of development. • For our measurement of inequality and poverty • For our thinking about policy prescriptions. • Answering many questions about development requires aggregation across dimensions • The HDI is one alternative and is meant to initiate a discussion.

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