Comparison of the Quality of Life Using the Human Development Index Based on the Global Supply Chain
Total Page:16
File Type:pdf, Size:1020Kb
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by ExcelingTech Publishing904 Company (E-Journals) Int. J Sup. Chain. Mgt Vol. 8, No. 5, August 2019 Comparison of the Quality of Life Using the Human Development Index Based on the Global Supply Chain Askar Nailevich Mustafin1*, Nataliya Sergeevna Seliverstova1, Jaroslav Gonos2 , Viera Ivankova2 1Institute of Management, Economics and Finance, Department of Economic Theory and Econometrics, Kazan Federal University 2University of Prešov, Faculty of Management, Department of Economic Sciences and Economy [email protected] [email protected] [email protected] [email protected] Abstract— Quality of life and methods of its of values of the HDI index in Slovakia over ten measurement are topics that are quickly becoming years and compared with a development in the the subject of both professional and social discussions countries of the EU [11]. based on the global supply chain. The basic idea of The relationship between the economic success and this article is to compare the quality of life in the socio-economic indicators has always been Russian Federation and Germany. These are discussed and investigated in the economic powerful economies that offer an interesting literature, for example Pourmohammadi and confrontation. We also contribute to this comparison Valibeigi identified the interactions between using Slovakia as an example of the confrontation of quality of life indicator and eegional development large and economically strong countries with a small [9], [23-28]. Bechtel investigated the relationship country. The main indicator for expressing the between GDP and HDI index, Ulas and Keskin confirmed a positive correlation between HDI and quality of human life in the article is the Human economic performances [1], [18]-[21]. Development Index (HDI), based on which we used a In the first part of the paper, we tried to comparative analysis. The first part of the article characterize the index and to analyze the indicators provides a theoretical framework and characteristics that it works with. In the second part, we analyzed of indicators. In the second part of the article, we the values of the HDI of selected countries in the analyzed the 10-year development of the selected set time horizon and dealt with the nature of their countries' indicators. The results show a positive development, or the facts that have a major impact trend in the growth of quality of life, where Germany on their development. is clearly the leader among the selected countries, and we can state the gradual slow convergence of the 1.1 Human Development Index Russian and Slovak economy to the German one. Keywords— Quality of life, HDI, comparative analysis, The aim of UNDP was thus to create such an Russia, global supply chain, Germany, Slovakia. indicator which would represent the quality of human capital more effectively and more 1. Introduction objectively. Man is controlled by his active needs, and the variety allows you to use entrepreneurs in various directions of stimulus of improvement of Nowadays, when a professional and general quality of human capital: from the creation of attention is focused on the development of conditions to meet the lower biological needs, to countries, the human development index is creation of comfortable social and psychological increasingly mentioned as one of the factors of environment [5]. Therefore, this index works not measuring a human welfare. Since 1990, the United only with economic indicators but it also uses Nations Development Programme (UNDP) uneconomical indicators because their prepares reports about human development. The implementation provides better information value HDI was created to emphasize that people and their of the monitored index. The HDI is one of the capabilities should be the ultimate criteriafor aggregated indicators measuring the progress of assessing the development of a country, not society in three dimensions relating to health, economic growth alone [1-14]. This argument is education and living standards of the population.It reinforced by the fact that many studies deal with a means that the country can be a leader in economic human development and quality of life [2], [8], [15- statistics but people live there in anxiety, illiterate 22]. Soltes and Novakova evaluated a development and without a possibility of education. For people, ______________________________________________________________ International Journal of Supply Chain Management IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/) 905 Int. J Sup. Chain. Mgt Vol. 8, No. 5, August 2019 it is much more important whether they live long method. It reaches the values in the interval <0,1> and healthy, have unlimited access to education or and based on it, it is possible to make the to such a basic material as water in global supply categorizations of countries into developed and chain. Or whether they can contribute to the developing and it uses 4 zones according to the country’s development without any limitations as level of reached index value and it is a very high mentioned by sociologists who prepare the report. human development, high human development, This index is standardized and internationally medium human development and low human comparable if it is calculated by using the same development [13], [23]. Fig. 1. Human development index and its components Source: [14] The health dimension is assessed by life analysis model as an alternative to the HDI. In expectancy at birth, the education dimension is criticizing the nature of the HDI, Hou et al. measured by mean of years of schooling for adults proposed a different way of constructing the HDI in aged 25 years and more and expected years of terms of capturing the pure flow of human schooling for children of school entering age. The development in the areas of material well-being, standard of living dimension is measured by gross health, and education [3]. Based on a comparison, national income per capita. The HDI uses the authors proposed the HDIF that replaces the HDI. logarithm of income, to reflect the diminishing HDI simplifies and captures only part of what importance of income with increasing GNI. The human development brings. It does not reflect scores for the three HDI dimension indices are then inequalities, poverty, human security, aggregated into a composite index using geometric empowerment, etc. The HDRO offers additional mean [14] , [25]. composite indexes to replace some key issues of Kilimova pointed out the relationship between human development, inequality, gender inequality human development and quality of life through a and poverty [14]. comparative analysis of the HDI ranking of a number of countries during the economic crisis [4]. 1.2 Inequality-Adjusted Human It is revealed that the quality of life becomes Development Index (IHDI) evident in the subjective satisfaction of population with life and possibility to achieve full potential; While the HDI can be viewed as an index of the quality of life is reflected in a number of average achievements in human development objective characteristics. Being a complex dimensions, the IHDI is the level of human category, the quality of life is a guarantee not only development when the distribution of achievements of human society development but also of human across people in the society is accounted for. The physical and social health. On the one hand, human IHDI will be equal to the HDI when there is no potential and its development is the basis of social- inequality but falls below the HDI as inequality economic growth, and, on the other, it is the basis rises. The difference between the IHDI and HDI is of the population safety. Author used a comparative the human development cost of inequality, also analysis of the HDI ranking of a number of termed – the loss to human development due to countries during the economic crisis is presented. inequality. The IHDI combines a country’s average Nuhu et al. examined the effect of healthcare achievements in health, education and income with spending on the relationship between the HDI and how those achievements are distributed among maternal and neonatal mortality. Their results show country’s population by “discounting” each that higher healthcare spending among countries dimension’s average value according to its level of with low HDI could improve outcomes of maternal inequality. Thus, the IHDI is distribution-sensitive and neonatal mortality [7], [24]. The study by van average level of HD. Two countries with different den Bergh and Botzen considers the HDI index as distributions of achievements can have the same an alternative criterion for judging the welfare average HDI value. Under perfect equality the effects of climate policy [12]. IHDI is equal to the HDI, but falls below the HDI On the other hand, Qiu et al. expressed potential when inequality rises.The IHDI is calculated for defects of HDI and proposed a Bayesian factor 151 countries [15]. 906 Int. J Sup. Chain. Mgt Vol. 8, No. 5, August 2019 1.3 Gender Development Index (GDI) 2. Methods The GDI measures gender gaps in human In this paper, basic scientific methods such as development achievements by accounting for observation, the method of comparing, disparities between women and men in three basic generalizing, analysis and synthesis were used. dimensions of human development—health, These methods of a cognitive cycle were used at knowledge and living standards using the same the same time in several steps. The method of component indicators as in the HDI. The GDI is the comparison was based on a systematic and ratio of the HDIs calculated separately for females purposeful perception of a subject and a given and males using the same methodology as in the issue. One of the quantitative methods of HDI. It is a direct measure of gender gap showing processing the outputs was the use of contingency the female HDI as a percentage of the male HDI.