THINK GLOBAL ACT LOCAL INDICES FOR HUMAN DEVELOPMENT

THINK GLOBAL - ACT LOCAL: INDICES FOR HUMAN DEVELOPMENT Jon Hall Human Development Report Office, UNDP Seeta Prabhu UNDP India 1

Why Do We Measure Human Development? What we measure affects what we do. If we have the wrong metrics, we will strive for the wrong things. If our measurements are flawed, decisions may be distorted Joseph Stiglitz 2

Why Do We Measure Human Development But different types of measurement reach different audiences, affect different actions, and are used for different decisions. • Indices vs Sets of Indicators vs Microdata • Internationally Comparable Data vs National Data vs Local Data Strengths and Weaknesses with each approach. We need an armoury of indicators to tackle the world’s challenges, affect different levels of decision making and influence all citizens. 3

A Global Index • Can be a powerful tool to encourage broad debate – the media like to compare countries • Can challenge conventional notions and paradigms – that “economic growth leads to development” is no longer the only game in town But…. • Relies on the lowest common denominator of international data • Not locally owned … and can miss local contexts, local innovations 4

A National Index • Can make use of more focused and relevant data • Can be a vehicle for collecting more data • Can address local problems But…. • Lacks international context • Can be controversial and/or more difficult to sell to policy makers than an international standard 5

Human Development and its Measurement Several important steps Conceptual: How to define human development? Operational: How to observe and measure its components and determinants? How to aggregate the different indicators to obtain a commonly acceptable single index of human development in order to measure its changes? 6

Human Development and its Measurement A standard definition of human development as “a process of enlarging people’s choices. The most critical ones are to lead a long and healthy life, to be educated and to enjoy a decent standard of living. ” A broader definition (2010 HDR): “Human development is the expansion of people’s freedoms to live long, healthy and creative lives; to advance other goals they have reason to value; and to engage actively in shaping development equitably and sustainably on a shared planet” 7

Principles At the onset there were six basic principles (Ul Haq, 1998) The HDI should 1. Measure the basic concept of human development to enlarge people’s choices 2. Include a limited number of variables to keep it simple and manageable 3. Be a composite rather than a plethora of separate indices; 4. Cover both social and economic choices; 5. Be sufficiently flexible in both coverage and methodology; 6. Not be inhibited by lack of reliable and up-to-date data series. 8

Definition of HDI The Human Development Index (HDI) is a summary composite index that measures a country's average achievements in three basic aspects of human development: health, knowledge, and income. The HDI was recognized from the onset as simple and crude 9

The Human Development Index 10

What Does the HDI Tell Us? • People and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. • It can also be used to question national policy choices, asking how two countries with the same level of GNI per capita can end up with such different human development outcomes. • Example: Saudi Arabia has GNI per capita more than $2000 higher than Czech Republic, but life expectancy and expected years of schooling differ greatly between the two countries. Czech Republic is much higher ranked than Saudi Arabia. • These striking contrasts can directly stimulate debate about government policy priorities. 11

National Human Development Reports • a policy advocacy document to generate political attention and public debate; • a process which provides space for democratic debate • presents people-centered recommendations • contains objective analysis, accurate and unbiased data

How Many? Since 1992 some 700 national and sub-national HDRs + 40 regional HDRs Latin America and the Caribbean 131 Africa 168 Arab States 58 Europe and the CIS 247 Asia and the Pacific 100

On What Themes? Africa: HIV/AIDS, gender, governance, poverty, peace and postconflict reconstruction Asia: Gender, agriculture, democracy, empowerment Latin America: Social capital, people’s participation, vulnerability Arab States: Knowledge and information, youth, general HD Eastern Europe/CIS countries: Role of the state, market transition, ICT, peace and human security, HIV/AIDS

5 Ways To Act Local • Introduction of a new composite index • New issues from an HD perspective • Expanding the analysis of HD • New data sources: household and perception surveys • Disaggregation 15

5 Ways To Act Local 1. Introduction of a new composite index • The Arab States Report (2003) introduced a measure of knowledge based on years schooling, use of newspapers, radios and tv, the numbers of scientists, patent applications, published books, telephone lines and internet providers • The Bosnia & Herzegovnia Report (2007) measured social exclusion, looking at the long term unemployed and people below the poverty line, people without health insurance, people without primary school education, people not voting or participating in social activities, people without a telephone 16

5 Ways To Act Local 1. Introduction of a new composite index Plus – Russia (2004) – Knowledge Index – Ghana (2007) – Inclusion Index – Costa Rica (2005) – Citizen Insecurity Index – Colombia (2003) – Armed Conflict Index – Mexico (2004) – Political Competition Index – Thailand (2003) – Human Achievement Index – Nepal (2004) – Human Empowerment Index – Chile (2004) – People’s Power Index – Delhi (2006) – Quality of Service Index 17

5 Ways To Act Local 2. New issues from an HD perspective – The Egypt Report (2001) looks at how globalization interacts with human development – The China Report (2002) reviews the nexus between environmental challenges and people’s health and livelihoods – The Peru Report (2005) looks at economic, social and political competitiveness 18

5 Ways To Act Local 3. Expanding the analysis of HD – The Georgia Report (2002) explores different definitions of poverty (including intermediate and extreme poverty) – The Mozambique Report (2007) looks at HIV Aids and its implications on demographic, social and economic development. 19

5 Ways To Act Local 4. New data sources: household and perception surveys – The Latvia Report (2001) surveyed the public and policy makers to investigate whether people had sufficient voice in the policy process – The Central and Eastern Europe Regional Report (2003) surveyed 5000 Roma to analyze their Human Development – The Somalia Report (2012) surveyed 3500 young people to understand their feelings, frustrations and potential 20

5 Ways To Act Local 5. Disaggregation – The Bulgaria Report (2000) calculated a municipal HDI for 262 Bulgarian towns – The Kyrgyzstan Report (2002) looks at HDI according to different altitudinal zones – The El Salvador Report (2008) looks at HDI according to labour force status – Plus Uganda (2002), Nepal (2001), Malawi (2001), Mongolia (2003), Egypt (2003 &04), Lebanon (1998) 21

Going Local-Human Development Reports in India has the largest number of sub-national HDRs globally • 25 Sub National/State • 44 District • 2 City • 2 National • 2 award winning SHDRs Chhattisgarh and West Bengal • District HDR awards Manav Vikas in 2012 Three key features: Government owned participatory and independence of analysis 22

HDI Computed at District Level Serious data challenges • Lack of data on income and HD indicators at the required level of disaggregation • Non comparability of data across time points • Lack of consistency of data from different sources – variations across department, district and state level • Non availability of data disaggregated by sex and social group • Data constraints have led to adaptation of indicators used for HDI and poverty – – Reciprocal of IMR combined with life expectancy at age one used in place of life expectancy – Consumption expenditure used as proxy for income/poverty 23

Innovations in HD Measurement at Local Level • Use of HD Radars - India NHDR 2002, Bankura DHDR • HDI and HPI for Social Groups- Scheduled Caste and Scheduled Tribes • Inequality Adjusted HDI for States in India 24

Innovations Enabling HD Measurement at Local Level • District Human Development Report Cards- PAHELI- People’s Audit of Health, Education and Livelihood – Data collection becomes an engaging and participatory exercise – Pictographic and easy to understand survey tools used- in local languages – Wider dissemination of report cards possible to encourage greater public participation in planning Sample PAHELI Toolkit Sample HD District Report Card 25

Impact of Local Level HDRs Low HDI districts prioritized by State governments for • Resource allocation across regions – Finance Commission, State governments • Local level planning for improving HD indicators • Establishing special institutional mechanisms – Human Development Missions in Bihar and Maharashtra • Detailed diagnostic studies in wards with low HDI in cities – Mumbai M-Ward initiative led by municipality 26

Impact of Local Level HDRs Local level HDRs have led to • New programmatic initiatives to tackle specific issues – Education Guarantee Scheme in Madhya Pradesh • Impetus to collection of statistics on HD at local level • Sensitized local elected representatives to human development issues in their constituencies • Enabled people’s participation in planning processes – Chhattisgarh HDR – 17000 village report cards 27

HDI as a Tool to Assess Inclusion • Inclusion a much aspired objective of development policy in many countries in the global south including India • No widely accepted composite measure of inclusiveness of human development outcomes or growth exists • Computing HDI disaggregated by regional, income levels and across the divides of various social groups an answer • Example- HDI, HPI for marginalized groups like indigenous people and religious and ethnic minorities 28

Conclusions • Think Global: The purpose of HDI rankings is to stimulate debate and policy discussion • Act Global: The HDI data show there are different paths to development • Think Local: A wealth of knowledge in 20 years’ worth of national reports and a wealth of innovation too • Act Local: local data are needed for local problems 29

More Information @ WWW. HDR. UNDP. ORG WWW. UNDP. ORG. IN 30