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Calculating the Human Development Indices

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Calculating the Human Development Indices TECHNICAL NOTE 1 Calculating the human development indices Th e diagrams here summarize how the fi ve human development indices used in the Human Development Report are constructed, highlighting both their similarities and their diff erences. Th e text on the following pages provides a detailed explanation. HDI DIMENSION A long and A decent standard healthy life Knowledge of living INDICATOR Life expectancy Adult literacy rate Gross enrolment ratio GDP per capita at birth (GER) (PPP US$) Adult literacy index GER index DIMENSION Life expectancy index Education index GDP index INDEX Human development index (HDI) HPI-1 DIMENSION A long and healthy life Knowledge A decent standard of living INDICATOR Probability at birth Adult illiteracy rate Percentage of population Percentage of children of not surviving not using an improved under weight-for-age to age 40 water source Deprivation in a decent standard of living Human poverty index for developing countries (HPI-1) HPI-2 DIMENSION A long and A decent standard Social healthy life Knowledge of living exclusion INDICATOR Probability at birth Percentage of adults Percentage of people Long-term of not surviving lacking functional living below the unemployment rate to age 60 literacy skills poverty line Human poverty index for selected OECD countries (HPI-2) GDI DIMENSION A long and A decent standard healthy life Knowledge of living INDICATOR Female life Male life Female Male Female Male expectancy expectancy adult literacy Female adult literacy Male estimated estimated at birth at birth rate GER rate GER earned earned income income DIMENSION Female Male Female Male Female Male INDEX life expectancy life expectancy education education income income index index index index index index EQUALLY Equally distributed Equally distributed Equally distributed DISTRIBUTED life expectancy education index income index INDEX index Gender-related development index (GDI) GEM DIMENSION Political participation Economic participation Power over and decision-making and decision-making economic resources INDICATOR Female and male shares Female and male shares Female and male shares Female and male of parliamentary seats of positions as legislators, of professional and estimated earned senior officials and managers technical positions income EQUALLY EDEP for EDEP for EDEP for DISTRIBUTED parliamentary economic participation income EQUIVALENT representation PERCENTAGE (EDEP) Gender empowerment measure (GEM) HUMAN DEVELOPMENT REPORT 2007/2008 355 90 Goalpost 85 years 1.00 80 71.4 .800 70 0.773 60 .600 50 .400 40 .200 30 Goalpost 25 years 0 20 Life Life expectancy expectancy index (years) 100 1.00 90 87.4 68.7 0.812 80 .800 70 60 .600 50 40 .400 30 Goalpost for .200 maximum 1.00 20 value 10 .900 0 0 .800 Adult Gross Index .700 literacy enrolment Education value rate ratio index Indicator .600 value (%) (%) .500 .400 .300 .200 100,000 .100 Goalpost for Goalpost 1.00 minimum 0 US$40,000 value Dimension .800 Indicator index 10,000 8,407 0.740 .600 1,000 .400 .200 Goalpost US$100 0 GDP GDP per capita index (PPP US$) Log scale Dimension indices 4. Calculating the HDI HDI Once the dimension indices have been calculated, 1.00 1.00 Goalposts for calculating the HDI determining the HDI is straightforward. It is a 0.812 Maximum Minimum simple average of the three dimension indices. .800 0.775 .800 Indicator value value 0.773 0.740 Life expectancy at birth (years) 85 25 .600 .600 HDI = 1/3 (life expectancy index) + 1/3 (education index) Adult literacy rate (%)* 100 0 + 1/3 (GDP index) .400 .400 Combined gross enrolment ratio (%) 100 0 = 1/3 (0.773) + 1/3 (0.812) + 1/3 (0.740) = 0.775 GDP per capita (PPP US$) 40,000 100 .200 .200 * The goalpost for calculating adult literacy implies the 0 0 maximum literacy rate is 100%. In practice, the HDI is Life Education GDP calculated using an upper bound of 99%. expectancy 356 HUMAN DEVELOPMENT REPORT 2007/2008 HUMAN DEVELOPMENT REPORT 2007/2008 357 Calculating the GDI continues on next page 358 HUMAN DEVELOPMENT REPORT 2007/2008 Calculating the GDI (continued) Second, the female and male income indices are combined to create the equally distributed income index : FEMALE MALE Population share: 0.504 Population share: 0.496 Income index: 0.681 Income index: 0.877 Equally distributed income index = {[0.504 (0.681–1)] + [0.496 (0.877–1)]}–1 = 0.766 4. Calculating the GDI CalculatingtheGDIisstraightforward.Itissimplytheunweightedaverageofthethree component indices—the equally distributed life expectancy index, the equally distributed education index and the equally distributed income index. GDI = 1/3 (life expectancy index) + 1/3 (education index) + 1/3 (income index) = 1/3 (0.380) + 1/3 (0.773) + 1/3 (0.766) = 0.639 HUMAN DEVELOPMENT REPORT 2007/2008 359 360 HUMAN DEVELOPMENT REPORT 2007/2008 Selected readings Bardhan, Kalpana, and Stephan Klasen, 1999. “UNDP’s Gender-Related Indices. A Critical Review.” World Anand, Sudhir, and Amartya Sen. 1994. “Human Development Development 27 (6): 985–1010 (GDI, GEM) Index: Methodology and Measurement”. Occasional Paper 12, United Nations Development Programme, 1995. Human United Nations Development Programme, Human Development Report 1995. New York: Oxford University Press, Development Report Office, New York. (HDI) Technical notes 1 and 2 and chapter 3. (GDI, GEM) ——, 1995, “Gender Inequality in Human Development Theories ——, 1997, Human Development Report 1997. New York: and Measurement.” Occasional Paper 19, United Nations Oxford University Press. Technical note 1 and chapter 1. Development Programme, Human Development Report Office, (HPI-1, HPI-2) New York. (GDI, GEM) ——, 1999, Human Development Report 1999. New York: ——, 1997, “Concepts of Human Development and Poverty: Oxford University Press. Technical note (HDI, GDI) A Multi-dimensional Perspective.” In United Nations Klasen, Stephan. 2006. "UNDP's Gender-related Measures: Development Programme, Human Development Report Some Conceptual Problems and Possible Solutions." Journal 1997 Papers : Poverty and Human Development New York. of Human Development Alternative Economics in Action, 7 (2): (HPI-1, HPI-2) 243 - 274. HUMAN DEVELOPMENT REPORT 2007/2008 361 TECHNICAL NOTE 2 Measuring the short and long-term effects of climate-related disasters Human development is about expanding free- design is representative at national, urban and doms and capabilities. Yet, as explained in chap- rural levels. ter 2, this process can be derailed by climate-re- Although their primary focus is on women lated disasters. Besides their immediate costs in aged 15–49, DHS also collect information on terms of lives lost and livelihoods disrupted, cli- demographic indicators for all members of the mate-related shocks carry substantial intrinsic household. For children under fi ve years of age, costs that are likely to follow people throughout these surveys also collect such monitoring and their lives, locking them into low human devel- impact evaluation variables as health and nutri- opment traps. Climate change promises to raise tion indicators. these stakes for billions of vulnerable people. To capture the extent of the threat to International disasters database EM-DAT human development that is embedded in cli- Th e EM-DAT is an international disasters da- mate-related shocks, the short and long-term tabase that presents core data on the occur- eff ects of being born in a disaster-aff ected area rence of disasters worldwide from 1900 to the were measured. More specifi cally, some critical present. Disasters in EM-DAT are defi ned as: determinants of human development outcomes “a situation or event which overwhelms local were examined for children under fi ve years of capacity, necessitating a request to the national age and adult women between the ages of 15 or international level for external assistance, or and 30, and those who were aff ected by a di- is recognized as such by a multilateral agency saster were compared with those who were not. or at least by two sources, such as national, re- gional or international assistance groups and Data the media”. For a disaster to be recorded in the database, it has to meet one or more of the fol- Data for the research were derived from Demo- lowing criteria: graphic and Health Surveys (DHS) and the in- • 10 or more people are killed; ternational disasters database EM-DAT main- • 100 people or more are reported aff ected; tained by the University of Louvain. • A state of emergency is declared; • An international call for assistance is Demographic and Health Surveys (DHS) issued. Th e DHS are household and community sur- A key feature of this database is that it re- veys administered by Macro International and cords both the date of occurrence of a disas- partly fi nanced by the United States Agency ter—relatively recent ones—its location, and for International Development (USAID). the extent of its severity through the number Th ese surveys collect information on a wide of people aff ected, the number of casualties and range of socio-economic variables at indi- the fi nancial damage.1 vidual, household and community levels, and are usually conducted every fi ve years to allow Country selection criteria comparisons over time. DHS generally con- For the purposes of this study, only countries sist of a sample of 5,000–30,000 households where over 1,000,000 people were reported af- but are not longitudinal in design. Th e survey fected by a disaster were selected. For children 362 HUMAN DEVELOPMENT REPORT 2007/2008 under the age of fi ve countries that had a DHS • Subjects born during a disaster in an area with a geographic positioning system (GPS) that was not aff ected (born during, not af- module two to three years following a disas- fected—group 2, not aff ected). ter were selected. Th e selection of countries Using these diff erent groups, the following with GPS modules was necessary, especially model was estimated: for countries where some administrative dis- n φˆ = —1 Σ [(ya– ya)– (yna– yna)] y tricts were more aff ected than others.
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