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A Human Development Perspective Jeni Klugman Human Development Report Office, Lowy Institute, 17 June 2010, Sydney. Outline of Presentation . 1. Human Development and MDGs 2. Patterns of Advance of People 3. Patterns of Multi-dimensional Poverty . What is Human Development ? .

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Outline of Presentation

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  1. A Human Development Perspective Jeni KlugmanHuman Development Report Office, Lowy Institute, 17 June 2010, Sydney

  2. Outline of Presentation 1. Human Development and MDGs2. Patterns of Advance of People 3. Patterns of Multi-dimensional Poverty

  3. What is Human Development ? Human development expands people’s freedoms to live long, healthy and creative lives on a sustainable basis. Enabling individuals to enrich their own lives, human development pays attention to empowering people to engage actively in shaping equitable development processes – on a shared planet. People are both the beneficiaries and drivers of human development, as individuals and in groups. Global HDR launched in 1990, and published annually since – complemented and enriched by over 700 regional, national and sub-national HDRs

  4. Human Development and the MDGs: synergies and contrasts Human development needs its own specific goals like literacy or basic education for all. And it needs to be an overall goal- the main focus of development.” HDR ,1991

  5. Patterns of Advance: An HDI Lens Human Development Index is a summary (and crude) measure of human development Useful because captures a broader notion of wellbeing than income alone, and generates new, different, and interesting insights

  6. Source: Hidalgo 2010 based on HDRO 2010 database

  7. Trends since 1970 • Convergence in human development, not income • Economic growth doesn’t always come with human development • Global progress, local variability • Many countries underperform • Huge gaps within and between countries

  8. Convergence? • In general, health and education indicators are converging, while economic indicators are not • Yet in some countries life expectancy stagnated or worse…

  9. Little correlation between growth & changes in non-income aspects of HD • Some countries with high growth rates performed poorly in education & health improvements (e.g. China, Botswana and Thailand) and some low-growth countries achieved major gains in human development.

  10. Lopsided growth development is not good for you • Characterising 138 countries based on 1970-1990 performance  • 1990-2010 results for income, health, and education: • Growth-lopsided development does not significantly improve human development prospects, or even future economic growth • Human development-lopsided countries (e.g. Nepal and Peru) had higher average HDI improvements; but economic growth-lopsided countries (e.g. China and Botswana) had only higher rates of growth •  Human development-lopsided development tends to be sustained, while economic growth-lopsided development is not

  11. Global progress, local variability Source: HDRO calculations.

  12. Underperformance in HD, by region(% countries underperforming) • Correlates of performance • Underperformers: Similar initial HDI. HIV prevalence 4 times the rest of the world. Spend less on health, slightly less on education. Much less democratic. • Some countries with higher average incomes achieved success despite high income inequality when there were at least moderate social policy efforts – e.g. Mexico, Chile, Panama • Some low income countries overcame adverse conditions through economic growth, even without high social spending – e.g. Laos and Bangladesh Source: HDRO calculations.

  13. What about missing dimensions of HDI? • The HDI “captures a few of people’s choices and leaves out many that people may value highly – economic, social and political freedom, and protection against violence, insecurity and discrimination, to name but a few.” (HDR1990) • (MDGs face similar criticisms) • New measures for assessing inequality and multiple dimensions of poverty, building on better data and advances in methods

  14. Trends in Empowerment • Formal democratization has increased nationally & sub-nationally, globally and in the region: • In 1971, 6 percent of countries in the region democratic; in 2008, 44 percent – or 69 percent including those w/ no alternation as yet. • No countries in the region had locally elected sub-national govts in 1975; 7 did in 2009. • Protection of human rights increased – On scale of 1 to 5 (best), regional average rose from 1.4 to 2.75. Yet no strong link between empowerment and HDI performance: Among the ten countries in the region with best HDI performance since 1970, 3 democracies, 1 is a democracy w/ no alternation, 4 are non-democratic states (& the other is Hong Kong).

  15. Democratization, human rights and the HDI

  16. Multidimensional Poverty Index • 2010 Report will introduce a new poverty index that is simple and relevant to policymaking  applied in 104 countries : • Takes into account both number of households falling below the threshold, and extent of deprivation • Uses micro data (typically DHS type surveys) • Results show: • share of households experiencing overlapping deprivations • how many deprivations poor households have at one time • Alkire, Sabina and Foster, James. 2009. Counting and Multidimensional Poverty Measurement. OPHI Working Paper 32.http://ophi.qeh.ox.ac.uk.

  17. Dimensions & Indicators of Multidimensional Poverty

  18. MPI and dollar a day: a different pattern MPI reflects health and educational outcomes and in key services such as water and sanitation, electricity, etc  In some countries, many people and families above the monetary poverty line are affected by poor services and bad living conditions

  19. Key Insights from Multidimensional Poverty Index • Shows ‘hard core’ deprivations; few will argue that MPI poor households are not poor • Only measures households with multiple deprivations (joint distribution compensates for poor data quality) • Shows intensity of poverty – percent of deprivations an average household suffers at the same time • For Policy: • Measures deprivations directly, so will reflect key improvement and declines (e.g. enrolment) quickly • Recognising success and failure in access to key services • Provides richer information for policy – shows composition and dimensions of poverty among different groups

  20. In sum • Strong synergies between human development and the MDGs: • a critical lens to consider broaderpatterns of advance, and major challenges • draws attention to missing dimensions – equity, empowerment, sustainability • Over the past half century, we find • Steady, long-term advances for most, but not all, nations and groups in both education and health -- as well as important exceptions • No general convergence in incomes; despite major growth surges in East Asia and India, very few countries have caught up • Lack of correlation between changes in income, and in health and education – such that growth lopsided strategies do not work more broadly for human development •  Value of approaches which consider multiple dimensions of wellbeing, with implications beyond 2010, for measurement, research, and policy

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