BALLB 2nd Year
ECONOMICS
CONCEPT OF HUMAN DEVELOPMENT INDEX AND
DETERMINATION OF HDI AND PQLI
SYNOPSIS:
1. Meaning of Human Development
2. Components of Human Development
3. Determination of HDI and PQLI
4. Meaning of HDI (Human development Index)
5. Importance of HDI
6. Determination of HDI
7. Limitation of HDI
8. Human Development Index of India
9. Meaning of PQLI (Physical Quality of Life Index)
10. Steps to calculate PQLI
11. Advantages of PQLI
12. Limitation of PQLI
INTRODUCTION :
Meaning of Human Development
The term ‘Human Development’ may be defined as an expansion of human capabilities, a widening of
choices, an enhancement of freedom, and a fulfillment of human right. At the beginning, the notion of
human development incorporates the need for income expansion of human capabilities. Hence
development cannot be equated solely to income expansion.
Income is not the sum-total of human life. As income growth is essential, so are health, education,
physical environment and freedom. Human development should embrace human rights, socio-eco-
political freedoms. Human Development Index (HDI) is constructed to serve as a more human
measure of development than a strictly income based benchmark of per capita GNP.
The UNDP defines Human Development as “a process of enlarging people’s choice, and strengthen
human capabilities in a way which enables them to lead longer, healtheir and fuller life.
From this broad definition of Human Development, one gets an idea of three critical issues involves in
human development interpretation.
These are,
1. To lead a long and healthy life
2. To enjoy a decent standard of living
3. To be educated
4.
Barring these these three critical parameters of human development as a process of enlarging
peoples choices, there are additional choice that includes political freedom, other guaranteed human
rights, and various ingredients of self respect.
COMPONENTS OF HUMAN DEVELOPMENT :-
1. Equality: If the development is viewed in terms of enhancing peoples basic capabilities, people
must enjoy equitable access to opportunities such may be called equality related capabilities.
, 2. Sustainability : Another important fact of human development is that development should
‘keepgoing’ should last long.
3. Productivity: Another important component of human development is productivity which requires
investment in people. This is called investment in human capital. Investment in human capital and
physical capital can add more to productivity.
4. Empowerment: The empowerment of people particularly women is another component of human
development. In other words, genuine human development requires empowerment in all aspects of
life.
DETERMINATION OF HDI AND PQLI
1. DETERMINATION OF HDI :
Definition of HDI :
United Nations development program has defined human development as a process of enlarging
people’s choices and their level of well-being.
Meaning of HDI :
The human Development index (HDI) is a statistical composite Index of life expectancy, education and
per capita income indicators, which are used to rank countries into four tiers of human
development.A country scores higher HDI when the life span is higher, and the GDP per capita is
higher.
The HDI was developed by a Pakistani economist Mahbub Ul Haq which was further used to measure
the country’s development by United Nations Development Program.
The Index is based on the human development approach, developed by Ul Haq, often framed in terms
of whether people are ‘able to be’ and ‘do’ desirable things in life.
Human Development is measured by constructing Human Development Index (HDI)
Importance of Human Development :
1. It is a end
2. Helps to control population
3. Increase efficiency
4. Other resources are better utilized.
5. The society becomes healthy and safe.
6. Conservation of environment
DETERMINATION
For constructing HDI, we have to prepare index numbers for each of the 3 dimension of Human
Development.
Sr Dimensions Index
No
.
1. Long and Healthy life Life Expectancy at birth index
dimension
2. Knowledge dimension Mean years of schooling and
expected years of schooling index
3. Standard of living Income Index (GNI per capita)
dimension
ECONOMICS
CONCEPT OF HUMAN DEVELOPMENT INDEX AND
DETERMINATION OF HDI AND PQLI
SYNOPSIS:
1. Meaning of Human Development
2. Components of Human Development
3. Determination of HDI and PQLI
4. Meaning of HDI (Human development Index)
5. Importance of HDI
6. Determination of HDI
7. Limitation of HDI
8. Human Development Index of India
9. Meaning of PQLI (Physical Quality of Life Index)
10. Steps to calculate PQLI
11. Advantages of PQLI
12. Limitation of PQLI
INTRODUCTION :
Meaning of Human Development
The term ‘Human Development’ may be defined as an expansion of human capabilities, a widening of
choices, an enhancement of freedom, and a fulfillment of human right. At the beginning, the notion of
human development incorporates the need for income expansion of human capabilities. Hence
development cannot be equated solely to income expansion.
Income is not the sum-total of human life. As income growth is essential, so are health, education,
physical environment and freedom. Human development should embrace human rights, socio-eco-
political freedoms. Human Development Index (HDI) is constructed to serve as a more human
measure of development than a strictly income based benchmark of per capita GNP.
The UNDP defines Human Development as “a process of enlarging people’s choice, and strengthen
human capabilities in a way which enables them to lead longer, healtheir and fuller life.
From this broad definition of Human Development, one gets an idea of three critical issues involves in
human development interpretation.
These are,
1. To lead a long and healthy life
2. To enjoy a decent standard of living
3. To be educated
4.
Barring these these three critical parameters of human development as a process of enlarging
peoples choices, there are additional choice that includes political freedom, other guaranteed human
rights, and various ingredients of self respect.
COMPONENTS OF HUMAN DEVELOPMENT :-
1. Equality: If the development is viewed in terms of enhancing peoples basic capabilities, people
must enjoy equitable access to opportunities such may be called equality related capabilities.
, 2. Sustainability : Another important fact of human development is that development should
‘keepgoing’ should last long.
3. Productivity: Another important component of human development is productivity which requires
investment in people. This is called investment in human capital. Investment in human capital and
physical capital can add more to productivity.
4. Empowerment: The empowerment of people particularly women is another component of human
development. In other words, genuine human development requires empowerment in all aspects of
life.
DETERMINATION OF HDI AND PQLI
1. DETERMINATION OF HDI :
Definition of HDI :
United Nations development program has defined human development as a process of enlarging
people’s choices and their level of well-being.
Meaning of HDI :
The human Development index (HDI) is a statistical composite Index of life expectancy, education and
per capita income indicators, which are used to rank countries into four tiers of human
development.A country scores higher HDI when the life span is higher, and the GDP per capita is
higher.
The HDI was developed by a Pakistani economist Mahbub Ul Haq which was further used to measure
the country’s development by United Nations Development Program.
The Index is based on the human development approach, developed by Ul Haq, often framed in terms
of whether people are ‘able to be’ and ‘do’ desirable things in life.
Human Development is measured by constructing Human Development Index (HDI)
Importance of Human Development :
1. It is a end
2. Helps to control population
3. Increase efficiency
4. Other resources are better utilized.
5. The society becomes healthy and safe.
6. Conservation of environment
DETERMINATION
For constructing HDI, we have to prepare index numbers for each of the 3 dimension of Human
Development.
Sr Dimensions Index
No
.
1. Long and Healthy life Life Expectancy at birth index
dimension
2. Knowledge dimension Mean years of schooling and
expected years of schooling index
3. Standard of living Income Index (GNI per capita)
dimension
