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India: The Human Development Report - 2006
Alex M Thomas
The Human Development Report for the year 2006 has been released. This year's HDI refers to 2004. India has moved one step up to be ranked 126 among a total of 159 countries. [Last year India was ranked 127] India's HDI rank falls under the category of 'medium human development countries'.
The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and enrolment at the primary, secondary and tertiary level) and having a decent standard of living (measured by purchasing power parity, PPP, income). The index is not in any sense a comprehensive measure of human development. It does not, for example, include important indicators such as inequality and difficult to measure indicators like respect for human rights and political freedoms. What it does provide is a broadened prism for viewing human progress and the complex relationship between income and well-being. Read more on HDI here.
HDI Rankings
Norway is ranked first in this year's HDR report, while the USA is ranked 8th, Japan 7th, China 81st and Pakistan 134th. And Nigeria is ranked last at 159.
India: Human Development [A few indicators]
1) HDI Rank: 126
2) The population below income poverty line of 2$ per day is 79.9%, though as per the national poverty line it is 28.6%.
3) The HPI (Human Poverty Index) for the 102 developing countries rank India at 55.
4) The Annual Population growth rate is pegged at a rate of 1.3%. [2004-15]
5) The Public health expenditure of India as a percentage of GDP is 1.2%, while that of the private is 3.6%. [2003]
6) The percentage of total population who are undernourished is 20%. [2001/03]
7) Life expectancy at birth: 63.1 [2000-05]
8] Infant mortality rate per 1000 live births: 62 [2004]
9) The public expenditure on Education as a per cent of GDP is 3.3% [2002-04] which has fallen from 3.7% in 1991.
An irony
"Only 25% of the poorest households in developing countries have access to piped water in their homes as compared to 85% of the richest households." Says HDR 2006.
The same report states that only 14% of people in India lack access to an improved water source. This implies that 86% of people in India have access to improved water, thereby rendering India almost in par with developed countries in terms of access to an improved water source. This figure has been definitely deflated. One of the major reasons for this deflated figure is due to lack of adequate and complete statistics.
Conclusions
The HDI alone or the GDP alone cannot give the real picture of any economy. Both the HDI and the GDP do not take into account the inequalities. India is a country which is characterised by stark inequalities in wealth, income, education, health, land etc. India is the land of the billionaires as well as people who go hungry everyday and the land where little children are forced to work.
The authorities' rhetoric of trickle down effects of an 8% GDP will not work, due to lack of proper institutions to cater to the needs of the poor. Microfinance, an institution which is working needs to be implemented more effectively and in a transparent manner, because the misuse of Microfinance institutions can lead to more trouble than not having them at all.
The main focus of this year's HDR is on the Water Crisis which is plaguing countries both developed and developing alike. Adverse effects of pollution, increased green house gases can be witnessed in unanticipated floods and droughts plaguing many countries. And in the last few years, we had to face the Tsunami which wreaked havoc. According to Developments, "97% of all the deaths from natural disasters are in poor countries".
The Indian populace has been repeatedly told that India is reducing its poverty and that it is well under 30%. They are right. Keeping in mind the needs of the people for a decent livelihood a family needs at least an income of 2000 rupees per month!
On the whole, there is nothing in the report that makes India proud. India needs to step up its expenditure specifically targeting education and health sectors. The draft to the 11th 5 year plan, speaks about inclusive growth, but adequate emphasis has not been given to sectors which need development.
India: The Human Development Report - 2006
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Anindo
November 10, 2006
11:47 PM
Agree with your points. We did not need a UN report to tell us that many citizens of our country live under bad conditions. The question is how to solve this? What are the solutions?
As far as I can see from your article, you have provided vague explanations about what needs to be done. Can you be more specific about them?
Regards,
Aninda
Alex
URL
November 11, 2006
12:20 AM
Aninda,
I have not tried to provide remedies in my article. I just wnated to highlight the importance of human development rather than the current emphasis on the 'GDP mantra'.
Our tax-GDP rates hover around 10 to 11%, which is low in comparison with other developed nations. Tax policies have to be implemented which results in more tax compliance and less evasion.
In view of the indirect taxes, recently, the Government of the sate of Kerala, introduced 'Lucky VAT' whereby the customers whose purcheases are more than Rs1000 are entitles to a coupon. This to a certain extent, reduces the unbilled transactions.
Health and education expenditures need to be stepped up. The publuc contribution to the ehalth sector is low, which further aggravates the inequality crisis.
Moreover, this year's HDR talks about the imminent 'Climate crisis'. High levels of pollution is damaging ecosysystems throughout the world, and the effects are pervading the global village.
neville
URL
November 11, 2006
02:48 AM
alex
excellent post, we need this reality check on a saturday when we the minority read our supplements about the newest gadgets, latest takeovers, snazzy holiday location and more reasons why india is shining.
anindo
what would you suggest? i feel education is the most important aspect to improve the quality of life.
and how do we bring more accountability to our politicians and babus?
Alex
URL
November 11, 2006
03:19 AM
Neville,
Thank you.
Accountability will come when there is transparency and proper demarcation of responsibilities. Today, in India we have a system of 'collective responsibility' and what happens generally is that, we do not know who to blame.
Giving gretaer powers to 'Local self governments' is crucial and not wait for the 'trickle down effects'.
Education, definitely is crucial. Moreover, opportunities need to be provided more or less on an equal basis to the whole of the population. The stress is on 'opportunities'.
Sujai
URL
November 11, 2006
03:39 AM
Alex:
Thanks for the report. It gives us an idea where we stand. How we want to take this report is upto each of us. Some may want to discard it citing flaws in the parameters used for measurements. While few others would work towards improving the nation keeping in perspective some of these figures. The idea of working towards improving the nation is not to make these figures look attractive. The key idea is to make us aware of how we are progressing and why we need to do more. Once you work towards betterment that would naturally make these figures look better, which is a byproduct, not the end goal.
Alex
URL
November 11, 2006
03:43 AM
Sujai,
You are absolutely right. Numbers and statistics are just indicators.
Soham
URL
November 11, 2006
09:49 AM
India's biggest problem is its population. But except for lip service no one tries to tackle that problem head on. Excess population means more stress on limited resources. Needless to say most of the population growth comes from the poorer section of the society. However you will find more activists rallying against dams and industries than those who try to have mass campaigns to educate the people about the need to have smaller families.
Also India needs to stop being afraid of industrialization and urbanization. Moreover we need to take the good of both capitalism and socialism. We cannot be rigid and say Marx said so and so - and that's why it's as good as God's word. Our policy makers and intellectuals (mostly brought up on leftist-socialist values) are still fighting over what Marx said and what is practical. What is the harm in being less fundamentalist and having practical approach to a problem?
And a point of note: Just as India's government statistics are not very reliable, the UNDP stats aren't very reliable either. It all depends on the people who are interpreting the data (the source is often the same). If it is leftist JNU type economists, then a bleak picture is painted because that is their politcal agenda. Bring in a right wing economist and you will see a better picture. No point in naming names, one can easily guess.
The reality is best seen on the ground. Is the life of people improving in general? Go check out a village yourself. Ask them before and after questions. Don't see rural India through the eyes of "experts" or document writers and seminar papers.
You will find a lot of things have improved and a lot of things haven't. But things will change for the better because humans always find a way out even when they get no help from politicans supposedly rallying for the poor in politburo meetings.
Stop ignoring eastern India. That's where most of the problem lies. if Bangladesh can improve so dramatically, so can laggards like Uttar Pradesh, Bihar, major parts of West Bengal (despite leftist rule for decades such areas are no better than Bihar badlands), Orissa, Assam, Jharkhand.
And if you can, please help organizations like Asha.
Cheers
Alex
URL
November 11, 2006
10:01 AM
Soham,
You are right in talking about the increased burden of the population.
And yes, some things have improves while others have deteriorated.
S Singh
URL
November 11, 2006
04:18 PM
Guys, Don't waste your time by arguing each other on an utopian agenda like "Developing India". Living in India is the best experience than looking over the surveys.
I love an idea promoted by a funny blog here. ESCSAPE!
http://escapeindia.blogspot.com/
sridhar
November 12, 2006
01:41 AM
Dear Alex,
Excellent article and it avoids the blather of Shining India.
Some other figures on real India- three fourths of India's rural population and half of urban population do not get the minimum recommended calories.The IT related services account for 0.25 per cent of the work force. Nearly half of India's total working age population (15-50 years of age)are unemployed.Average rate of growth of agricultural production during the past decade 1995-96 to 2004-05 is just 0.6% per year.
Would agree with you that trickle down theory is one of the biggest shams in Development economics.
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