Critical Literature Review of the Human Development Indices

1. Critical Literature Review of the Human Development Indices Prepared for UNDP Practicum in International AffairsMay 2009 Semra Hailelul Alula Alex Iyasu Vitali Tcherniak Markus Urek Advisor Manisha Mehta

2. Project Objective • Review the four major indices of Human Development Report: • Human Development Index (HDI) • Gender-related Development Index (GDI) • Gender Empowerment Measurement (GEM) • Human Poverty Index (HPI) • Highlight strengths and weaknesses • Summarize proposals for improvement • Compile database of literature reviews • Prepare final report

3. Methodology • Reviewed Human Development Reports • Conducted extensive literature review utilizing: • The New School Library sources • JSTOR, Bobcat, eJournals • NYU Library sources • ProQuest, Dissertation Abstracts, PubQuest • Google and Google Scholar • The United Nations University Internet Library

4. Deliverables Snapshot of the database

5. What is HDR?"The basic purpose of development is to enlarge people's choices”. Mahbub ul Haq, Founder of HDR • Annual report launched in 1990 • Commissioned by the United Nations Development Program (UNDP) • Translated to over thirteen languages • Expanded to include four major indices since 1990 • Symbolizes a paradigm shift in defining development • From GDP based human development measurement • Created indices that measure human freedoms

6. Human Development IndexComposite human well-being measurement • HDI measures average achievements in a country in three basic dimensions of human development: • A long and healthy life • A decent standard of living • Knowledge • Ranks countries on a scale of 0 to 1

7. Positive Reviews of HDI • Simple and manageable index • Provides an alternative to measuring development solely based on GDP • Useful tool for policy formulation • Popularized development discourse • Allows for cross-country comparison • Comprehensive indicators

8. Criticisms of HDI Indicators • Too few or the wrong indicators • Restrictive measurement scale Distribution • Does not capture resource allocations within a country • Conceals levels of inequality within country Measurement • Arbitrary selection of goalposts • Equal weights assigned to indicators • Unreliable data especially from developing countries

9. Gender-related Development IndexMeasuring Inequalities in Achievements between Women and Men • GDI is a composite index • Measures average achievement in the three basic dimensions captured in the HDI • BUT adjusted to account for inequalities between men and women • The greater the gender disparity in basic capabilities, the lower a country's GDI compared with its HDI .

10. Positive Reviews of GDI Reliably tracks gender inequality on quality of life Tracks impact of gender inequality on overall human development Helped the creation of other regional indices Allows for global comparison

11. Criticisms of GDI Indicators: • Do not adequately assess gender disparities Distribution: • Biases in women and men’s access to full-time paid work not measured • Self-employed women are not taken into account Measurement: • Data is not always available or accurate

12. Gender Empowerment MeasureA Measure of Agency • GEM was created in 1995 • Evaluates progress in advancing women's standing in political and economic forums and decision-making • Composed of three indicators: • Proportion of seats held by women in national parliaments • % of women in economic decision-making positions • Female share of household income

13. Positive Reviews of GEM • Allows for a global comparison • Important means of analyzing gender inequality and its impact on overall development • Utilized by policy makers • Focuses debates on gender inequality

14. Criticisms of GEM Indicators: • Do not capture gender empowerment on household level • Does not measure empowerment issues like sexuality, religion, culture and women’s rights Measurement: • Relies on international databases instead of national data Scope: • Fails to include some non-economic dimensions of decision making power

15. Human Poverty IndexMeasuring Basic Deprivation • Introduced in 1997 • Measures deprivation level of the most disadvantaged population • Two categories: • HPI-1 Developing countries • HPI-2 Developed countries

16. Positive Reviews of HPI • Effective tool for advocacy • Effective tool for identifying areas of concentrated poverty and type of deprivation • Research tool

17. Criticism of HPI • Neglects important measures of deprivation • Limited by availability, accuracy, and completeness of data • Limited applicability to developed nations • Unable to identify specific group of people (culture, area, group, gender)

18. Summary of Major Recommendations HDI: • Report as “estimates” since data is unreliable • Expand indicators to include political freedoms and human rights • Measure environmental degradation and resource utilization GDI: • Create detailed indices (Individual Disposable income index) • Construct to reflect specific problems faced by women in developing countries • Adjust to identify source of income (labor, rent, etc.)

19. Summary of Major Recommendations, cont. HPI: • Include hunger, malnutrition and unemployment indices • Use Standard of Living and Quality of Life indices instead GEM: • Include mother/daughter comparisons • Measure gender based violence, control over sexuality and reproduction • Percentage of women in parliament should be complimented by percentage in local government All • Include a measurement of Human Security • Literacy, Mortality and Earnings should be gender-specific measurements

20. Thank You