The Real Wealth of Nations: Pathways to Human Development

Similar documents
Lao People's Democratic Republic

Explanatory note on the 2014 Human Development Report composite indices. Cambodia. HDI values and rank changes in the 2014 Human Development Report

Country Briefing: Peru Multidimensional Poverty Index (MPI) At a Glance

Explanatory note on the 2014 Human Development Report composite indices. Serbia. HDI values and rank changes in the 2014 Human Development Report

Panel 1: Multidimensional Poverty Measurement: Uses for a New Understanding of the Meaning of Poverty and Deprivation

Explanatory note on the 2014 Human Development Report composite indices. Armenia. HDI values and rank changes in the 2014 Human Development Report

Trade led Growth in Times of Crisis Asia Pacific Trade Economists Conference 2 3 November 2009, Bangkok. Session 10

Statistical Yearbook. for Asia and the Pacific

ANNEX 1: Human Development Indicators for Bosnia & Herzegovina. Prepared by Maida Fetahagić

The former Yugoslav Republic of Macedonia

Sri Lanka. Country coverage and the methodology of the Statistical Annex of the 2015 HDR

Explanatory note on the 2014 Human Development Report composite indices. Belarus. HDI values and rank changes in the 2014 Human Development Report

Methodological Innovations in Multidimensional Poverty Measurement

Explanatory note on the 2014 Human Development Report composite indices. Palestine, State of

Human Development Indices and Indicators: Viet Nam s 2018 Statistical updates

Poverty & Inequality: What s next? Seven Suggestions

Hungary. HDI values and rank changes in the 2013 Human Development Report

Asia and the Pacific s Perspectives on the Post-2015 Development Agenda

Albania. HDI values and rank changes in the 2013 Human Development Report

Country Briefing: Nigeria Multidimensional Poverty Index (MPI) At a Glance

Explanatory note on the 2014 Human Development Report composite indices. Dominican Republic

INCLUSIVE GROWTH AND POLICIES: THE ASIAN EXPERIENCE. Thangavel Palanivel Chief Economist for Asia-Pacific UNDP, New York

Country Briefing: Egypt Multidimensional Poverty Index (MPI) At a Glance

Social Outlook for Asia and the Pacific: Poorly Protected. Predrag Savic, Social Development Division, ESCAP. Bangkok, November 13, 2018

Trade, Employment and Inclusive Growth in Asia. Douglas H. Brooks Jakarta, Indonesia 10 December 2012

Explanatory note on the 2014 Human Development Report composite indices. Solomon Islands

2010 Human Development Report: 40-year Trends Analysis Shows Poor Countries Making Faster Development Gains

Hong Kong, China (SAR)

Development Report The Rise of the South 13 Analysis on Cambodia

MIND THE GAP. Gender Responsive Policies. Lorena Aguilar Global Senior Gender Adviser

Human Development Indices and Indicators: 2018 Statistical Update. Indonesia

Country Briefing: Bolivia Multidimensional Poverty Index (MPI) At a Glance

Venezuela (Bolivarian Republic of)

Official development assistance of the Czech Republic (mil. USD) (according to the OECD DAC Statistical Reporting )

A COMPARATIVE HUMAN DEVELOPMENT INDEX (HDI) AMONG ASEAN COUNTRIES: THE ECONOMIC DEVELOPMENT REPERCUSSIONS OF THE 2009 REPORT TO ASEAN COUNTRIES

Pakistan 2.5 Europe 11.5 Bangladesh 2.0 Japan 1.8 Philippines 1.3 Viet Nam 1.2 Thailand 1.0

ADVANCED REGIONAL GOVERNMENT PROCUREMENT WORKSHOP FOR ASIAN ECONOMIES. Bangkok, Thailand January 2015 PROGRAMME

Aid for Trade in Asia and the Pacific: ADB's Perspective

Bangkok Declaration 2 nd Asia Cooperation Dialogue (ACD) Summit One Asia, Diverse Strengths 9 10 October 2016, Bangkok, Kingdom of Thailand

Opportunities for enhancing connectivity in Central Asia: linking ICT and transport

Venezuela (Bolivarian Republic of)

MDG s in Asia and the Pacific

Poverty and interlinkages Two critical points and two recommendations in seven minutes

Oxford Poverty and Human Development Initiative (OPHI)

Population. C.4. Research and development. In the Asian and Pacific region, China and Japan have the largest expenditures on R&D.

CIE Economics A-level

Human Development Indices and Indicators: 2018 Statistical Update. Pakistan

Session 5: Who are the furthest behind? Inequality of Opportunity in Asia and the Pacific

2013 (received) 2015 (received) Local Local Local Local currency. currency (millions) currency. (millions)

Measures of Poverty. Foster-Greer-Thorbecke(FGT) index Example: Consider an 8-person economy with the following income distribution

Country Briefing: Benin Multidimensional Poverty Index (MPI) At a Glance

OPHI. Identifying the Bottom Billion : Beyond National Averages

Current Situation and Outlook of Asia and the Pacific

Exploring relations between Governance, Trust and Well-being

Vulnerabilities and Challenges: Asia

Female Labor Force Participation: Contributing Factors

Development Progress. Exploring what works and why. odi.org/developmentprogress

Interrelationship between Growth, Inequality, and Poverty: The Asian Experience

Transformation of Women at Work in Asia

MEASURING POVERTY A MULTIDIMENSIONAL PERSPECTIVE. Suman Seth Oxford Poverty & Human Development Initiative (OPHI) University of Oxford

07 Asia-Pacific Regional Cooperation and Integration Index

Creating an enabling business environment in Asia: To what extent is public support warranted?

Skills for Trade, Employability and Inclusive Growth. Matching skills for the future of work and regional integration in Asia and the Pacific

2016 (received) Local Local Local Local currency. currency (millions) currency. (millions)

Poverty, Growth and Inequality in Some Arab Countries

2018 Social Progress Index

Oxford Poverty and Human Development Initiative (OPHI)

2015 (received) 2016 (received) 2017 (received) Local Local Local Local currency. currency. currency (millions) (millions)

The Multidimensional Financial Inclusion MIFI 1

APPENDIXES. 1: Regional Integration Tables. Table Descriptions. Regional Groupings. Table A1: Trade Share Asia (% of total trade)

End poverty in all its forms everywhere

Evaluation Methodology

VIII. Government and Governance

Southeast Asian Economic Outlook: With Perspectives on China and India Thematic focus: Narrowing development gaps 2013 edition

Human Development Indices and Indicators: 2018 Statistical Update. Cambodia

GLOBAL RISKS OF CONCERN TO BUSINESS WEF EXECUTIVE OPINION SURVEY RESULTS SEPTEMBER 2017

RETHINKING GLOBAL POVERTY MEASUREMENT

Human Resources in R&D

Country Briefing: Gambia Multidimensional Poverty Index (MPI) At a Glance

Trademarks FIGURE 8 FIGURE 9. Highlights. Figure 8 Trademark applications worldwide. Figure 9 Trademark application class counts worldwide

Growth and Poverty Reduction: An Empirical Analysis Nanak Kakwani

The Beijing Declaration on South-South Cooperation for Child Rights in the Asia Pacific Region

Inequality in Asia and the Pacific

Item 4 of the Provisional Agenda

Asian Development Bank

Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all

Engendering Human Development. K. Seeta Prabhu 1

Poverty Reduc-on in India: Issues and Policies Comments. Stephen C. Smith, GWU Nov Presenta-on by Prof. S. Mahendra Dev

Leaving no one behind in Asia and the Pacific

Southeast Asian Economic Outlook With Perspectives on China and India, 2013

ECONOMIC GROWTH, PUBLIC EXPENDITURE AND HUMAN DEVELOPMENT IN ASIA

Thematic Area: Disaster Risk Reduction and Resilience

Country Briefing: Uganda Multidimensional Poverty Index (MPI) At a Glance

HUMAN RESOURCES IN R&D

Guanghua Wan Principal Economist, Asian Development Bank. Toward Higher Quality Employment in Asia

The Challenge of Inclusive Growth: Making Growth Work for the Poor

Trade Facilitation and Better Connectivity for an Inclusive Asia and Pacific

A PERIODICAL CHANGE OF HUMAN DEVELOPMENT IN INDIA IN COMPARISION WITH SURRONDING COUNTRIES

Briefing Paper Pakistan Floods 2010: Country Aid Factsheet

Figure 1.1: Percentage Distribution of Population by Global Region, and by Economy in Asia and the Pacific, 2014

Transcription:

The Real Wealth of Nations: Pathways to Human Development Quality of Life Indices and Innovations in the 2010 Human Development Report International Society of Quality of Life Studies December 9, 2010, Bangkok

Human Development Reports Introduced in 1990, first chapter, Defining and Measuring Human Development, opened with People are the real wealth of a nation. The basic objective of development is to create an enabling environment for people to live long, healthy and creative lives. This may appear to be a simple truth. But it is often forgotten in the immediate concern with the accumulation of commodities and financial wealth. Independence. Under UNDP umbrella, but not subject to board clearance. Innovation. In each global report, seek breakthrough(s) on at least one front : conceptual, measurement and/or policy (ways and means) Foster open and informed public debate and discussion. An alternative outlook on key issues of universal interest.. pragmatic Human Development Index introduced in 1990 as an alternative to sole focus on incomes very successful

3

Improving our summary measure: Refined HDI The HDI is the geometric mean of normalized indices measuring achievements in education, health and income. Major changes this year - Indicators - Normalization - Aggregation

HDI 2010: Old and new methodologies

What about missing dimensions? 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 7

Measure of political freedom (Polity IV) Life satisfaction score Beyond the HDI: Good things don t always come together EMPOWERMENT SUBJECTIVE WELLBEING 12 8 4 0-4 -8-12 LO 0.0 0.2 0.4 0.6 0.8 1.0 HDI 10 9 8 7 6 5 4 3 2 1 0 0 0.2 0.4 0.6 0.8 1 HDI

Happiness and human development: synergies and contrasts Happiness Subjective Likely to differ over time and place All countries All people Silent on participation Acceptance of self-report Stresses people's values Human Development Open-ended Principles are enduring but can evolve All countries All people, with priorities for the poor Requires participation and debate Concern over 'physical condition neglect' Stresses what people value and have reason to value

New measures of empowerment & subjective well-being

Innovative measures offer new insights Refined HDI incorporates new indicators and advances in measurement. Three new indices address major criticism that HDI is only about averages Inequality Adjusted HDI Gender Inequality Index Multidimensional Poverty Index

Incorporating inequality: Inequality Adjusted HDI Methodology: Based on a distribution-sensitive class of composite indices proposed by Foster, Lopez-Calva and Szekely (2005), with inequality measured within each dimension using Atkinson inequality measure & aversion parameter of 1. IAHDI is calculated as geometric mean of geometric means, calculated for each dimension separately.

HDI HDI losses from inequality largest in low and medium HDI countries Loss in HDI due to multidimensional inequality by HDI level 1.0 0.9 0.8 17% 6% 0.7 31% 8% 0.6 44% 14% 0.5 0.4 25% 0.3 0.2 45% 0.1 0.0 Mozambique Ghana Namibia Moldova Peru Ukraine S. Korea Czech Rep. Low HDI (average loss 32%) Medium HDI (average loss 24%) High HDI (average loss 20%) Very high HDI (average loss: 10%) Inequality-adjusted HDI Loss due to inequality

A different approach to poverty : Multidimensional Poverty Index

Methodology for MPI The index is the product of two aspects of poverty: 1. Incidence of multi-dimensional poverty: the percentage of people who are poor according to a cut-off k (30%) of indicators (At risk, k=20%) 2. Intensity of people s poverty: the average share of indicators in which poor people are deprived Note: Each dimension is weighted equally. See Alkire and Foster 2009; Alkire and Santos 2010

Understanding the MPI Interpretation: Identifies the share of the population suffers multiple deprivations at the same time, adjusted by the intensity of the deprivations suffered. Insights : o Different concept and thus results, compared to $ day. o An improvement on HPI because uses data from the same survey and thus identifies people who are poor in multiple dimensions at the same time. o Can be decomposed to show extent to which different groups suffer multidimensional poverty and each deprivation. o Robustness: Cut offs ranging between 20 and 40% of indicators produce generally robust rankings, as do a range of weights, particularly for the poorest countries.

MPI and income poverty levels across Asia Percentage of people living in poverty - MPI and income poverty, selected countries Nepal Bangladesh India Cambodia Pakistan Lao Indonesia Mongolia Viet Nam Philippines China Sri Lanka Thailand 0 10 20 30 40 50 60 70 $1.25/day poor MPI headcounts Headcount

People are the Real Wealth of Nations