Global Human Development Report

FACTORS LEADING TO THE ALTERNATIVE DEVELOPMENT PARADIGM:

Issues and themes central to the approach

The Human Development approach arose in part as a result of growing criticism to the leading development approach of the 1980s, which presumed a close link between national economic growth and the expansion of individual human choices. Many, such as Dr. Mahbub ul Haq, the Pakistani economist who played a key role in formulating the human development paradigm, came to recognize the need for an alternative development model due to many factors, including:

Growing evidence that did not support the then prevailing belief in the “trickle down” power of market forces to spread economic benefits and end poverty;

The human costs of Structural Adjustment Programmes became more apparent;
social ills (crime, weakening of social fabric, HIV/AIDS, pollution, etc.) were still spreading even in cases of strong and consistent economic growth; A wave of democratization in the early 90’s raised hopes for people-centred models. Many of these key principles, however, could be found in the writings of scholars and philosophers from past eras and across many societies. As of 1990, the human development concept was applied to a systematic study of global themes, as published in the yearly global Human Development Reports under the auspice of the UNDP. The work of Amartya Sen and others provided the conceptual foundation for an alternative and broader human development approach defined as a process of enlarging people’s choices and enhancing human capabilities (the range of things people can be and do) and freedoms, enabling them to: live a long and healthy life, have access to knowledge and a decent standard of living, and participate in the life of their community and decisions affecting their lives. Human development has always been flexible and “open-ended” with respect to more specific definitions. There can be as many human development dimensions as there are ways of enlarging people’s choices. The key or priority parameters of human development can evolve over time and vary both across and within countries. Some of the issues and themes currently considered most central to human development include:

• Social progress - greater access to knowledge, better nutrition and health services.
• Economics – the importance of economic growth as a means to reduce inequality and improve levels of human development.
• Efficiency - in terms of resource use and availability. human development is pro-growth and productivity as long as such growth directly benefits the poor, women and other marginalized groups.
• Equity - in terms of economic growth and other human development parameters.
• Participation and freedom - particularly empowerment, democratic governance, gender equality, civil and political rights, and cultural liberty, particularly for marginalized groups defined by urban-rural, sex, age, religion, ethnicity, physical/mental parameters, etc.
• Sustainability - for future generations in ecological, economic and social terms.
• Human security - security in daily life against such chronic threats as hunger and abrupt disruptions including joblessness, famine, conflict, etc.

Human Development Indices

The four main Human Development Indices developed by the Human Development Report are:

HDI - Human Development Index (a summary measure of human development)

The first Human Development Report (1990) introduced a new way of measuring development by combining indicators of life expectancy, educational attainment and income into a composite human development index, the HDI. The breakthrough for the HDI was the creation of a single statistic which was to serve as a frame of reference for both social and economic development. The HDI sets a minimum and a maximum for each dimension, called goalposts, and then shows where each country stands in relation to these goalposts, expressed as a value between 0 and 1.

GDI - Gender-related Development Index (the HDI adjusted for gender inequality)

This index measures achievement in the same basic capabilities as the HDI does, but takes note of inequality in achievement between women and men. The methodology used imposes a penalty for inequality, such that the GDI falls when the achievement levels of both women and men in a country go down or when the disparity between their achievements increases. The greater the gender disparity in basic capabilities, the lower a country's GDI compared with its HDI. The GDI is simply the HDI discounted, or adjusted downwards, for gender inequality.

GEM - Gender Empowerment Measure (gender equality in economic and political participation and decision making)

The Gender Empowerment Measure (GEM) is a measure of agency. It evaluates progress in advancing women's standing in political and economic forums. It examines the extent to which women and men are able to actively participate in economic and political life and take part in decision-making. While the GDI focuses on expansion of capabilities, the GEM is concerned with the use of those capabilities to take advantage of the opportunities of life.

HPI - Human Poverty Index (the level of human poverty)

Rather than measure poverty by income, the HPI uses indicators of the most basic dimensions of deprivation: a short life, lack of basic education and lack of access to public and private resources. The HPI concentrates on the deprivation in the three essential elements of human life already reflected in the HDI: longevity, knowledge and a decent standard of living. Tools to calculate the indices are available in the statistics section. Interactive world maps that show the distribution of the indices along with other interesting interactive animated tools to see the data are also available on the same page.