Human Development Index

What is HDI? HDI ( homosexual maturement indication) is a way of measuring instruction by combining forefingers of tone hope, fosteringal attainment and income. The breakthrough for the HDI was the design of a single statistic which was to serve as a frame of type for both nettleible and stintingal erupt result. The HDI score a minimum and a level best for each dimension, c soloed goalposts, and then shows w present each orbit stands in relation to these goalposts, verbalized as a value between 0 and 1.It is to a fault employ to distinguish to a bighearted extent, whether the country is a developed, a ontogeny or an underdevelop country, and also to flier the impact of frugal policies on tincture of manners. NEED FOR HDI - The HDI was created to evince that lot and their capabilities should be the ultimate criteria for assessing the training of a country, not frugal app lay offage alone. The HDI hatful also be employ to question earthal policy cho ices, asking how deuce countries with the like level of GNI per capita can end up with such varied kind-hearted cultivation outcomes.For example, the Bahamas and New Zea globe stomach alike(p) levels of income per person, precisely brio forethought and expected eld of schooltime differ greatly between the two countries, resulting in New Zealand having a much nobleer HDI value than the Bahamas. These hit contrasts can stimulate contention about g everywherening body policy priorities. - advisement OF HDI 1) look expectancy world power (LEI) = (LE-20)/(83. 4-20) 2) Education index (EI) = v(MYSI*EYSI)/ 0. 951 3) Income mogul (II) record (GNIpc)-log(100)/ Log (107721) log (100) LE Life expectancy at line MYS recollect historic period of schooltime (Years that a 25- course of study-old person or older has pass in schools) EYS judge age of teaching (Years that a 5-year-old peasant leave spend with his education in his whole life) - GNIpc Gross mansion(a) income at purchasing position parity per capita COUNTRY crude(a) domestic product array HDI RANK HDI India 4 134 0. 571 U. S 1 4 0. 910 U. K 8 28 0. 863 china 2 101 0. 87 Pakistan 29 one hundred forty-five 0. 50 Oman 77 89 0. 705 India arranges a depression 134 among 187 countries in damage of the kind increment index (HDI), which assesses long-term make in health, education and income indicators, verbalize a UN chronicle released on Wednesday. Although move in the medium category, Indias standing(a) is way behind scads of economically less developed countries, including destroyed Iraq as well as Philippines. Indias ranking in 2010 was 119 out of 169 countries Sri Lanka has been ranked 97, China 101 and the Maldives 109.Bhutan, early(a)wise respected for its quality of life, has been malld at 141, behind India Pakistan and Bangladesh ar ranked 145 and 146 in the advert of countries that is headed by Norway and in which the representative Re domain of Congress is a t the bottom. The other two countries in South Asia, Nepal and Afghanistan, occupy ranks 157 and 172. tally to the UN humanity discipline Report, 2011 Sustainability and In opposeity, Indias HDI is 0. 5 comp bed to 0. 3 in 2010. COMPONENTS OF THE HUMAN training indicantThe education parcel of the HDI is now measured by mean of geezerhood of schooling for adults aged 25 years and expected years of schooling for children of school entering age. Mean years of schooling be estimated ground on educational attainment selective information from cens consumptions and surveys available in the UNESCO head for the hills for Statistics selective informationbase and Barro and Lee (2010) methodology). Expected years of schooling estimates be based on enrolment by age at all levels of education and existence of prescribed school age for each level of education.Expected years of schooling atomic number 18 capped at 18 years. The indicators ar normalized using a minimum value of ze ro in and maximum set atomic number 18 facility to the actual observed maximum value of mean years of schooling from the countries in the time series, 19802010, that is 13. 1 years estimated for Czech Republic in 2005. Expected years of schooling are maximized by its cap at 18 years. The education index is the geometric mean of two indices. The life expectancy at birth component of the HDI is calculated using a minimum value of 20 years and maximum value of 83. 4 years.This is the observed maximum value of the indicators from the countries in the time series, 19802010. Thus, the longevity component for a country where life expectancy birth is 55 years would be 0. 552. For the wealth component, the goalpost for minimum income is $100 (PPP) and the maximum is $107,721 (PPP), both estimated during the corresponding period, 1980-2011. The decent standard of living component is measured by GNI per capita (PPP$) kinda of gross domestic product per capita (PPP$) The HDI uses the logar ithm of income, to reflect the diminishing importance of income with increasing GNI.The scores for the trio HDI dimension indices are then aggregated into a entangled index using geometric mean. The HDI facilitates instructive comparisons of the starts within and between incompatible countries. FACTORS AFFECTING HDI in that location are unlike brokers that affect the economic education of any deliverance like health, education, per capita income, gender dissimilarity, deforestation, state, pollution levels, literacy post, infant death prescribe rate etc. Let us see a somewhat of them one by one and try to flummox where India lags behind legal age of the economies and why thither is a mismatch in Indias proceeds and evelopment. A) Education index Education is an evetful indicator of a nations well world, standard of living and is a measure of the economic developing and quality of life which further helps in determining whether an saving is developed, exploit ation or underdeveloped. Indias Shortfalls The Indian governance has been lethargic in this reflection and has failed in ensuring a break education framework. Here, the government alone is not to be blamed. A majority of Indian bulk tend to fail prime education. Poverty has been a major cause leading to press chain reactor literacy judge in India.Poor parents in underdeveloped states and plunk forward regions make their children work to support the family financially. Girls in agrestic areas are forced to stay back at syndicate and do daily chores. Also, education funding in farming(prenominal) areas is quite suffering. Uneducated parents dont find it important to educate their children and this vicious cycle continues leaving the whole community uneducated. The government is not spending enough in education. Currently round 4% of gross domestic product is being spent on education much rase than the target of 6% of GDP.Lower enrolment, mettlesome dropout pass judg ment, teacher absenteeism, brusk instruction qualities, ugly infrastructural facilities like classrooms, libraries, mortified encouragement and gender in pitity are the showtime causes of low education index in India. About 30% of the lands unknowing macrocosm belongs to India. COUNTRY EDUCATION mogul India 0. 450 The U. S 0. 939 The U. K 0. 815 Pakistan 0. 386 China 0. 623 Oman 0. 539 SCALE EDUCATION INDEX Very broad(prenominal) 0. 894 senior high school 0. 715 Medium 0. 561 Low 0. 392 B) Health exponent 2% of Indias children below the age of threesome are malnourished, al some twice the statistics of sub-Saharan African region of 28%. Although Indias economy grew 50% from 20012006, and its child-malnutrition rate followly dropped 1%, lagging behind countries of similar return rate. Malnutrition impedes the friendly and cognitive learning of a child, reducing his educational attainment and income as an adult. These irreversible damages result in lower productivity. I nfant death rate rate Approximately 1. 72 million children die each year before turning one.The under five deathrate and infant mortality rates piss been declining, from 202 and 190 deaths per thousand live births respectively in 1970 to 64 and 50 deaths per thousand live births in 2009. However, this rate of spurn is slowing. Reduced funding for immunization leaves except 43. 5% of the young in full immunized. Infrastructure like hospitals, roads, water and sanitation are missing in inelegant areas. Shortages of healthcare allow forrs, rueable intra- severaliseum and newborn care, diarrheal diseases and acute respiratory infections also contri entirelye to the high infant mortality rate.Inadequate safe beverage water Access to protected sources of drinking water has improved from 68% of the existence in 1990 to 88% in 2008. However, only 26% of the slum area population has access to safe drinking water,and 25% of the full population has drinking water on their premise s. This problem is exacerbated by falling levels of groundwater ca employ chiefly by increasing extraction for irrigation. Insufficient maintenance of the environment around water sources, groundwater pollution, excessive arsenic and fluoride in drinking water perplex a major threat to Indias health. Rural healthRural India contains over 68% of Indias get population with half of it living belowstruggling for better and loose access to health care and avails. Health issues confronted by campestral flock are diverse and many from hard malaria to un construeled diabetes, from a sternly infected wound to cancer. Postpartum agnatic morbidity is a just problem in resource- unfortunate settings and contri moreoveres to maternal mortality, especially in rural India however, Misoprostal has been diagnose as a cost-effective maternal mortality intervention for home births. A study conducted in 2009, using multinomial logistic reversion methods, install that 43. % of mothers re ported to adjudge experienced postpartum morbidities six weeks later on delivery. Rural health check practitioners are highly sought after(prenominal) by people living in rural India as they to a greater extent financially affordable and geographically accessible than practitioners working in the formal public health care sector. TheNational Rural Health Mission(NRHM) was launched in April 2005 by the Government of India. The goal of the NRHM is to provide effective healthcare to rural people with a focus on 18 states which gestate poor public health indicators and/or weak floor. COUNTRY HEALTH INDEX India 0. 717 The U. S 0. 923 The U.K 0. 949 Pakistan 0. 717 China 0. 843 Oman 0. 836 SCALE HEALTH INDEX Very High 0. 946 High 0. 838 Medium 0. 784 Low 0. 611 C) GDP per capita (PPP) It is defined as GDP divided by the total population of a country. Per capita income is often used as a measure of the wealth of the population of a nation, particularly in comparison to other nations. The very particular that India in malice of being the 4th macrost economy stands 140th in terms of per capita income indicates that the income is distributed jaggedly where a very percentage of the population is rich while majority is poor. COUNTRY GDP per capita($)India 2933 The U. S 41761 The U. K 32147 Pakistan 2369 China 6200 Oman 23333 COUNTRY INCOME INDEX India 0. 508 The U. S 0. 869 The U. K 0. 832 Pakistan 0. 464 China 0. 618 Oman 0. 778 Poverty in Indiais widespread, with the nation estimated to check a third of the worlds poor. In 2011,World Bankstated, 32. 7% of the total Indian people falls below theinternational poverty rail line get outofUS$1. 25 per day (PPP) while 68. 7% live on less thanUS$2 per day. Lack of a market economy & over government regulation and red tape, known as License Raj is the main cause of poverty in India.While other Asiatic countries like China, Singapore and South Korea started with the same poverty level as India after independenc e, India adopted a socialist centrally planned, closed economy. other cause is a high population evolution rate, although demographers mainly tot that this is a symptom rather than cause of poverty. While inspection and repairs and diligence stool grown at double digit figures, agriculture growth rate has dropped from 4. 8% to 2%. About sixty percent of the population depends on agriculture whereas the contribution of agriculture to the GDP is about 18 percent.The surplus of labor movement in agriculture has caused many people to not have jobs. Farmers are a large vote bank and use their votes to resist reallocation of land for higher-income industrial projects. D) Gender Inequality power on that point is strong evidence to suggest that India is a country of high relate in relation to missing women. The 2011 Census found a worrying trend in child sex ratios with only 914 female persons for 1,000 males, a drop from 927 in 2001. Using info from the 2011 Census in India, after adjusting for excess mortality rates in girls, the estimates of tally of selective abortions of girls rosebush from 0 to 2 million in the 1980s, to 1. to 4. 1 million in the 1990s, to 3. 1 to 6. 0 million in the 2000s. The study shows that the problem is in fact growing amongst the middle class which suggests that missing women cannot be attributed to poor socio-economic status. The male/female sex ratio for the total population in 2012 is 1. 08. According to entropy from the 2006-2007 Demographic and Health Survey for India, 41. 5% of girls and 45. 3% of boys under the age of two had received all their vaccinations. Under-five mortality rates were higher for girls than for boys (79. 2 per 1000 live births for girls, 69. % for boys), while malnutrition rates were equal or slightly higher for girls. Given that in some contexts, rates of under-five mortality and malnutrition are higher for boys than for girls, this would indicate bias towards sons in imply to early childhoo d care. Gender-disaggregated data in regard to child labor was unavailable. Primary and lower-ranking school enrolment and attendance rates are lower for girls than for boys indicating some son preference in regard to access to education. COUNTRY GENDER INEQUALITY INDEX India 0. 646 The U. S 0. 311 The U. K 0. 216 Pakistan 0. 611 China 0. 224 Oman 0. 09 Conclusion Economic growth and development of any economy should go hand in hand unlike Indian economy where there is a huge contrast in this regard. India should focus on primary education, basic healthcare, gender equality and other social, environmental and economic aspects to hear sustainable development. India has been very slow in reacting to the transformation of economy restructuring. citizenry need to be educated about family planning, importance of education, gender inequality especially in rural areas so that they dont reduce much time to adapt to an environment which is essential for development.Educational institutes should be set up on a large scale focusing more on basic education. Healthcare sector needs to be accustomed prime importance. We need to take advantage of the technology available to us. degeneracy is the biggest hindrance coming in the way of development and thus should be kept in check. India has till date come up with many schemes and programs for the poor section but has repeatedly failed to implement them effectively. So, while economic growth is vital to the economy, humankind being development is to be given equal importance which decides or shows the true picture of the economy. gracious maturation IndexWhat is HDI? The serviceman schooling Index (HDI) is a complicated statistic used to rank countries by level of human development, taken as a synonym of the older terms standard of living and/or quality of life, and distinguishing very high human development, high human development, medium human development, and low human development countries. HDI was devised and l aunched by Pakistani economist Mahbub ul Haq, followed by Indian economist Amartya Sen in 1990. The HDI is a comparative measure of life expectancy, literacy, education, and standards of living of a country.It is a standard means of measuring well-being, especially child welfare. It is also used to distinguish whether the country is a developed, a developing or an underdeveloped country, and also to measure the impact of economic policies on quality of life. There are also HDI for states, cities, villages, etc. by local organizations or companies which have interest in the matter. The HDI law result is a number from 0 to 1, 1 being the best outcome possible. Components of HDI What does HDI tell us?The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. The HDI 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. For example, the Bahamas and New Zealand have similar levels of income per person, but life expectancy and expected years of schooling differ greatly between the two countries, resulting in New Zealand having a much higher HDI value than the Bahamas.These striking contrasts can stimulate debate about government policy priorities. What are the criteria for a country to be acknowledged in the HDI? The Human suppuration Report Office strives to hold as many UN member countries as possible in the HDI. To include a country in the HDI we need modern, reliable and comparable data for all three dimensions of the Index. For a country to be included, statistics should ideally be available from the relevant international data agencies. Indias position in the worldIndia ranks a low 134 among 187 countries in the list that is headed by Norway and in which the Democratic Republic of Congo is at the very bottom in terms of the h uman development index (HDI). Indias ranking in 2010 was 119 out of 169 countries. According to the UN Human Development Report 2011 Sustainability and Inequality, Indias HDI is 0. 5 equald to 0. 3 in 2010. Comparison of India with a few(prenominal) other countries Countries Per Capita income in US $ Literacy Rate Life Expectancy in years HDI Rank India 1600 74% 67. 1 134US 48,147 99% 79 4 Canada 51,147 99% 80. 7 6 Germany 40,631 99% 79. 4 9 Nepal 650 68. 2% 66. 5 157 Pakistan 1250 70% 66. 3 145 emersion invention of India Factors responsible for growth of India The then Prime diplomatic minister Narasimha Rao, along with his finance minister Manmohan Singh, initiated the economic liberalization of 1991. The reforms did away with the evidence Raj, reduced tariffs and interest rates and ended many public monopolies, allowing self-acting blessing of foreign direct investment in many sectors.Since then, the boilers suit thrust of liberalization has remained the same, although no government has tried to take on powerful lobbies such as trade unions and kindleers, on contentious issues such as reforming labour justnesss and reducing agricultural subsidies. By the turn of the twentieth century, India had progressed towards a free-market economy, with a substantial reduction in state control of the economy and sum upd financial liberalization. This has been accompanied by increases in life expectancy, literacy rates and food security, although urban residents have benefited more than agricultural residents.Also the arrest in IT and other industries in services sector helped India to achieve economic strength whereby foreign currency started pouring in into the market. This was supported by the availability of skilled labours, talented brains and large young population. Growth Pattern of Nepal Nepals economic growth continues to be adversely affected by the political uncertainty. Nevertheless, real GDP growth is estimated to increase to almost 5 percent f or 2011/2012. This is a considerable receipts from the 3. 5 percent GDP growth in 2010/2011 and would be the second highest growth rate in the post-conflict era.Sources of growth include agriculture, construction, financial and other services. The contribution of growth by consumption fueled by remittances has declined since 2010/2011. While remittance growth slowed to 11 percent (in Nepali Rupee terms) in 2010/2011 it has since increase to 37 percent. Remittances are estimated to be equivalent to 25-30 percent of GDP. Inflation has been reduced to a three-year low to 7 percent. The proportion of poor people has declined substantially in recent years. The percentage of people living below the international poverty line (people earning less than US$1. 5 per day) has halved in only seven years. At this measure of poverty the percentage of poor people declined from 53. 1% in 2003/2004 to 24. 8% in 2010/2011. With a higher poverty line of US$2 dollars per-capita per day, poverty declin ed by one quarter to 57. 3%. However, the income dispersion remains grossly uneven. Growth Pattern of Canada Factors responsible for growth in Canada The Canadian economy improved dramatically after 1896, and from that year until 1914, Canada had the worlds hurrying growing economy. The westward was settled, the population grew quickly.The cause of this boom is debated. Whether the settlement of the west was a cause or effect of the boom is one of the most important issues. Globally the economy was improving with the end of the Long Depression. The operate semi-humid farmland in the joined States was exhausted, leaving Canada with the best unexploited farm land in North America. Technological changes from the steel plow to blend in harvesters played an important role, but perhaps the most important development was the practice of dry farming that allowed farmers to profitably grow wheat on the semi-arid southern prairies.The most noted expansion was in western Canada, but at th e same time Central Canada was undergoing a period of important industrialization. While western and central Canada boomed during the pre-World War I years the economies of the three Maritime Provinces grew far more slowly. Investors from US and UK helped fuel countrys economic growth. Growth pattern of USA Factors responsible for growth in USA In the early years of American history, most political leaders were reluctant to involve the federal government too to a great extent in the private sector, except in the area of transportation.In general, they accepted the ideal of laissez-faire, a doctrine opposing government interference in the economy except to maintain law and assign. This attitude started to change during the latter part of the 19th century, when small business, farm, and labor movements began asking the government to intercede on their behalf. By the turn of the century, a middle class had developed that was suspect of both the business elite and the somewhat radi cal political movements of farmers and laborers in the Midwest and air jacket.Known as Progressives, these people favored government regulation of business practices to, in their minds, ensure competition and free enterprise. Congress enacted a law regulating railroads in 1887 (the Interstate Commerce Act), and one preventing large firms from compulsory a single industry in 1890 (the Sherman Antitrust Act). Many of todays U. S. regulatory agencies were created during these years, including the Interstate Commerce Commission and the Federal Trade Commission. Electrification in the U. S. started in industry ca. 1900 and by 1930 about 80% of power used in industry was electric.Tractors began being mass- traind. In the 1980s, Japan was accele rank its speed and catching up to the USA. In the face of competition from Japan, Americans did not give up hope, but acted with a great sense of urgency. Ronald Reagan called on the industrial association and think-tanks to establish countermea sures. Through investigation and analysis, they found that the calculating machine and communications industries were beginning to show vitality and had large market potential. In the future, it was possible that they would develop into the worlds largest industries.Therefore, the Reagan governing body declined to adopt a short-term, profit-oriented competition strategy rather, it adopted methods that allowed universities to work collaboratively with enterprises to co-develop the computer and communications industries. During the Clinton administration, a large investment was do in construction up the worlds internet highway. Growth Pattern of Pakistan Growth Pattern of Germany Factors responsible for growth of Germany Germanys economic growth stemmed from a number of causes. One of the main personal reasons behind economic growth was the sophistication of infrastructure.Between 1845 and 1870 5000 more miles of rail had beenbuilt and in 1850 Germany was building her own locomoti ves. This increase of rail transport created a huge demand for coal, iron and buildings, consequently industry began on a plant style level. All of this increased the amount of labour needed. The labour need was fuelled by a population growth. From 35 million people in 1840 Germanygrew to 49 million people in 1875 creating a young dynamic workforce,full of innovated ideas for the new industry. Not only was the workforce gained from a population increase, urbanisation also added to the need.People working in factories grew from 4% to 10%. Banks, particularly investment banks gave a great remark to industrialization. It was a combination of commercial enterprise, investment, and investment trusts backed by large central banks. The second industrial revolution was promoted by a number of important factors. Most important of these was probably the scientific-technological developments at the end of the century. another(prenominal) factor which propelled German industry forward was the unification of the monetary system, made possible in part by political unification.Another economic factor was the increased markets,domestic and overseas. Comparison of growth patterns Why HDI of India is low? While we are steadily increasing our investments in health and education, we have been let down at the most basic level female mortality rates. Our maternal mortality figures are 450 deaths per 100,000, which is the worst in south Asia. Our adolescent grandness rates also let us down, as do figures for female education. Yet, a quick stroll through the HDI figures does show some improvement crosswise sectors in most parts of the country.The stumbling blocks are Uttar Pradesh, Bihar, Madhya Pradesh, Jharkhand, Chhattisgarh, parts of West Bengal and even Maharashtra. Quite obviously, in our die hard to get ahead, we have forgotten the basics. It has taken us over 60 years since the Constitution was adopted to pass the Right to Education Act for free and compulsory secondary e ducation to all, even though it has long been a part of our directing Principles. Our dropout rate is high and the girl child is the first to lose the race to school. to a greater extent painful is the rich-poor divide.Our cities may be full of state-of-the-art hospitals, draw to cater to medical tourists, but village after village in India does not even have access to primary health care. We render doctors all over the world but are unable to service our own needy. It is almost as if we have got so used to being a poor country that we hardly notice it any more. still as the Sensex and the economy show, India is no longer an ultra-poor country in the aggregate. moreover we still have a shockingly large proportion of poor people who are being deprived of just about everything.This HDI report is just one more reminder of how far we have to go. It tells us where our priorities should be. India has made huge strides in the field of education and water fork over system but the bigg est block in the human development indices for India is in the field of sanitation where 58 per cent of open defecation in the world takes place in India. A mere expenditure of Rs 2000 crore (Rs 20 billion) in the field of sanitation is being made while the cipher for water supply was Rs 20,000 crore (Rs 200 billion). AgricultureSlow agricultural growth is a concern for policymakers as some two-thirds of Indias people depend on rural employment for a living. Current agricultural practices are neither economically nor environmentally sustainable and Indias yields for many agricultural commodities are low. Poorly retained irrigation systems and almost universal lack of proper extension services are among the factors responsible. Farmers access to markets is hampered by poor roads, rudimentary market infrastructure, and excessive regulation. country output of India lags far behind its potential.The low productivity in India is a result of several factors. According to the World Ban k, Indias large agricultural subsidies are hampering productivity-enhancing investment. While overregulation of agriculture has increased costs, price risks and uncertainty, governmental intervention in labour, land, and credit markets are hurting the market. Infrastructure such as rural roads, electrical energy, ports, food storage, retail markets and services are piteous. Further, the average size of land holdings is very small, with 70% of holdings being less than one hectare in size.The partial failure of land reforms in many states, exacerbated by poorly maintained or non-existent land records, has resulted in sharecropping with cultivators lacking ownership the right ways, and consequently low productivity of labour. Adoption of modern agricultural practices and use of technology is inadequate, hampered by ignorance of such practices, high costs, illiteracy, slow progress in implementing land reforms, inadequate or inefficient finance and marketing services for farm produc e and impracticality in the case of small land holdings. The allocation of water is inefficient, unsustainable and in just.The irrigation infrastructure is deteriorating. Irrigation facilities are inadequate, as revealed by the fact that only 39% of the total cultivable land was irrigated as of 2010, resulting in farmers still being hooked on rainfall, specifically the monsoon season, which is often inconsistent and unevenly distributed across the country. corruption Corruption has been one of the pervasive problems affecting India. A 2005 study by Transparency International (TI) found that more than half of those surveyed had firsthand experience of paying bribe or peddling influence to get a job done in a public office in the preliminary year.A follow-on 2008 TI study found this rate to be 40 percent. In 2011, Transparency International ranked India at 95th place amongst 183 countries in perceived levels of public sector corruption. In 1996, red tape, bureaucratism and the Lic ence Raj were suggested as a cause for the institutionalised corruption and inefficiency. More recent reports suggest the causes of corruption in India include excessive regulations and approval requirements, mandated spending programs, monopoly of certain hots and service providers by government controlled institutions, bureaucracy with arbitrary powers, and lack of transparent laws and processes.The Right to Information Act (2005) which requires government officials to fork over information requested by citizens or face punitive action, computerisation of services, and various central and state government acts that established vigilance commissions, have well reduced corruption and opened up avenues to redress grievances. The number of people employed in non-agricultural occupations in the public and private sectors. Totals are rounded. confidential sector data relates to non-agriculture establishments with 10 or more employees. The current government has concluded that most spending fails to reach its intended recipients.A large, cumbersome and tumor-like bureaucracy sponges up or siphons off spending budgets. Indias absence rates are one of the worst in the world one study found that 25% of public sector teachers and 40% of public sector medical workers could not be found at the workplace. The Indian economy has an tube economy, with an alleged 2006 report by the Swiss Bankers Association suggesting India topped the intercontinental list for black money with almost $1,456 billion stashed in Swiss banks. This amounts to 13 times the countrys total external debt. EducationIndia has made huge progress in terms of increasing primary education attendance rate and expanding literacy to approximately three-fourth of the population. Indias literacy rate had grown from 52. 2% in 1991 to 74. 04% in 2011. The right to education at elementary level has been made one of the vestigial rights under the eighty-sixth Amendment of 2002, and legislation has been enac ted to further the objective of providing free education to all children. However, the literacy rate of 74% is still lower than the worldwide average and the country suffers from a high dropout rate.Further, there exists a severe disparity in literacy rates and educational opportunities between males and females, urban and rural areas, and among different social groups. Infrastructure In the past, development of infrastructure was completely in the hand of the public sector and was plagued by slow progress, poor quality and inefficiency. Indias low spending on power, construction, transportation, telecommunications and real estate, at $31 billion or 6% of GDP in 2002 had prevented India from sustaining higher growth rates.This has prompted the government to part open up infrastructure to the private sector allowing foreign investment, and most public infrastructure, barring railways, is today constructed and maintained by private contractors, in exchange for assess and other conc essions from the government. While 80% of Indian villages have at least an electricity line, just 44% of rural homes have access to electricity. Some half of the electricity is stolen, compared with 3% in China. The stolen electricity amounts to 1. 5% of GDP.Transmission and distribution losses amount to around 20%, as a result of an inefficient distribution system, handled mostly by cash-strapped state-run enterprises. some all of the electricity in India is produced by the public sector. Power outages are common, and many buy their own power generators to ensure electricity supply. 6 whole improvements in water supply infrastructure, both in urban and rural areas, have taken place over the past decade, with the proportion of the population having access to safe drinking water rising from 66% in 1991 to 92% in 2001 in rural areas, and from 82% to 98% in urban areas.However, quality and availability of water supply remains a major problem even in urban India, with most cities ge t water for only a few hours during the day. Economic disparities A diminutive problem facing Indias economy is the sharp and growing regional variations among Indias different states and territories in terms of poverty, availability of infrastructure and socio-economic development. Six low-income states Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa and Uttar Pradesh are home to more than one third of Indias population.Severe disparities exist among states in terms of income, literacy rates, life expectancy and living conditions. The five-year plans, especially in the pre-liberalization era, attempted to reduce regional disparities by encouraging industrial development in the interior regions and distributing industries across states, but the results have not been very encouraging since these measures in fact increased inefficiency and hampered effective industrial growth.After liberalization, the more advanced states have been better placed to benefit from them, with we ll-developed infrastructure and an educated and skilled workforce, which attract the manufacturing and service sectors. The governments of backward regions are trying to reduce disparities by offering tax holidays and cheap land, and focusing more on sectors like tourism which, although being geographically and historically determined, can become a source of growth and develops faster than other sectors.In fact, the economists fail to realize that ultimately the problem of equitable growth or inclusive growth is intricately related to the problems of good governance and transparency. HDI for Indian states State HDI Rank Maharashtra 0. 689 12 Madhya Pradesh 0. 375 33 Kerala 0. 921 1 Reasons for low HDI in Madhya Pradesh and Maharashtra as compared to Kerala Life Expectancy The life expectancy in MP is 56. 5 years for male and 56. 2 years for females averaging around 56. 4. The life expectancy in Maharashtra is 64. 5 for males and 67 for females averaging to 65. 8 years for the total population.The life expectancy in Kerala is 73. 5 years. As an important component of HDI life expectancy should be higher, but here it is low as compared to Kerala. Literacy rate The literacy rate in MP is only 64. 11% which is very low. More than that literacy rate of women is very low. The literacy rate in Maharashtra is 77. 21 % whereas in Kerala it is 90. 92 %. Literacy is reasonably a good indicator of development in a society. Spread and diffusion f literacy is generally associated with essential trait of todays civilization such as urbanization, modernization, industrialization, communication and commerce.Standard of living The main factors influencing standard of living are poverty, physiologic infrastructure, regional imbalance. Poverty is very high in MP. Also the fleshly infrastructure is very poor. Poverty is high I Maharashtra because of high population. The physical infrastructure varies from region to region. In cities like Mumbai and Pune the infrastructure is wor ld class, but in other regions of the state the infrastructure is not so good which shows regional imbalance Poverty in Kerala is very low. All over Kerala the physical infrastructure is good, there is no regional imbalance.Human Development IndexIntroduction The Human Development Index (HDI) is a composite statistic used to rank countries by level of human development and branch very high human development, high human development, medium human development, and low human development countries. The Human Development Index (HDI) is a comparative measure of life expectancy, literacy, education and standards of living for countries worldwide.It is a standard means of measuring well-being, especially child welfare. It is used to distinguish whether the country is a developed, a developing or an under-developed country, and also to measure the impact of economic policies on quality of life. There are also HDI for states, cities, villages, etc. by local organizations or companies. oscill oscope The origins of the HDI are found in the annual Human Development Reports of the United Nations Development Programme (UNDP).These were devised and launched by Pakistani economist Mahbub ul Haq in 1990 and had the hard-core purpose to shift the focus of development economics from national income story to people centered policies. To produce the Human Development Reports, Mahbub ul Haq brought together a group of well-known development economists including Paul Streeten, Frances Stewart, Gustav Ranis, Keith Griffin, Sudhir Anand and Meghnad Desai. But it was Nobel laureate Amartya Sens work on capabilities and functionings that provided the underlying inventionual framework.Haq was sure that a mere(a) composite measure of human development was needed in order to convince the public, academics, and policy-makers that they can and should evaluate development not only by economic advances but also improvements in human well-being. Sen initially unlike this idea, but he went o n to help Haq develop the Human Development Index (HDI). Sen was worried that it was difficult to capture the full complexity of human capabilities in a single index but Haq persuaded him that only a single number would shift the attention of policy-makers from concentration on economic to human well-being.Data collection Life expectancy at birth is provided by the UN Department of Economic and sociable Affairs mean years of schooling by Barro and Lee (2010) expected years of schooling by the UNESCO Institute for Statistics and GNI per capita by the World Bank and the International Monetary Fund. For few countries, mean years of schooling are estimated from nationally representative household surveys. Many data gaps still exist in even some very basic areas of human development indicators.While actively advocating for the improvement of human development data, as a principle and for practical reasons, the Human Development Report Office does not collect data today from countries or make estimates to fill these data gaps in the Report. Dimensions and calculation create on 4 November 2010, starting with the 2010 Human Development Report the HDI combines three dimensions 1. A long and healthy life Life expectancy at birth 2. Access to knowledge Mean years of schooling and Expected years of schooling 3.A decent standard of living GNI per capita (PPP US$) The HDI combined three dimensions up until its 2010 report 1. Life expectancy at birth, as an index of population health and longevity 2. Knowledge and education, as measured by the adult literacy rate (with two-thirds weighting) and the combined primary, secondary, and tertiary gross enrollment ratio (with one-third weighting). 3. Standard of living, as indicated by the instinctive logarithm of gross domestic product per capita at purchasing power parity. New methodology for 2010 data onwardsIn its 2010 Human Development Report the UNDP began using a new method of calculating the HDI. The undermentioned three indices are used LE-20 1. Life Expectancy Index (LEI) = 63. 2 vMYSI . EYSI 2. Education Index (EI) = 0. 951 ln (GNIpc) ln (163) 3. Income Index (II) = ln(108,211) ln (163) Finally, the HDI is the geometric mean of the previous three normalized indices HDI = v LEI . EI . II 2010 report The 2010 Human Development Report by the United Nations Development Program was released on November 4, 2010, and calculates HDI values based on estimates for 2010. CriticismsThe Human Development Index has been criticised on a number of grounds, including failure to include any ecological considerations, focusing exclusively on national performance and ranking (although many national Human Development Reports, looking at subnational performance, have been published by UNDP and othersso this last claim is untrue), not paying much attention to development from a global perspective and based on grounds of measuring stick error of the underlying statistics and formula changes by the UNDP which can lea d to severe misclassifications of countries in the categories of being a low, medium, high or very high human evelopment country. early(a) authors claimed that the Human Development Reports have lost touch with their original passel and the index fails to capture the essence of the world it seeks to portray. The index has also been criticized as redundant and a reinvention of the wheel, measuring aspects of development that have already been exhaustively studied. The index has further been criticised for having an inappropriate treatment of income, lacking year-to-year comparability, and assessing development differently in different groups of countries.Economist Bryan Caplan has criticised the way HDI scores are produced each of the three components are bounded between zero and one. As a result of that, rich countries effectively cannot improve their rating (and thus their ranking relative to other countries) in certain categories, even though there is a lot of scope for economic growth and longevity left. This effectively means that a country of immortals with infinite per-capita GDP would get a score of . 66 (lower than South Africa and Tajikistan) if its population were illiterate and never went to school. He argues, Scandinavia comes out on top according to the HDI because the HDI is essentially a measure of how Scandinavian your country is. Economists Hendrik Wolff, Howard Chong and Maximilian Auffhammer discuss the HDI from the perspective of data error in the underlying health, education and income statistics used to construct the HDI. 18 They identify three sources of data error which are due to (i) data modify, (ii) formula revisions and (iii) thresholds to classify a countrys development status and find that 11%, 21% and 34% of all countries can be interpreted as currently misclassified in the development bins due to the three sources of data error, respectively.The authors suggest that the United Nations should discontinue the practice of cla ssifying countries into development bins because the cut-off values depend arbitrary, can provide incentives for strategic behavior in reporting official statistics, and have the potential to misguide politicians, investors, charity donators and the public at large which use the HDI. In 2010 the UNDP reacted to the criticism and updated the thresholds to classify nations as low, medium and high human development countries.In a comment to The Economist in early January 2011, the Human Development Report Office responded24 to a January 6, 2011 expression in The Economist which discusses the Wolff et al. paper. The Human Development Report Office states that they undertook a systematic revision of the methods used for the calculation of the HDI and that the new methodology now addresses the critique by Wolff et al. in that it generates a system for continuous updating of the human development categories whenever formula or data revisions take place.The chase are common criticisms d irected at the HDI that it is a redundant measure that adds little to the value of the individual measures composing it that it is a means to provide legitimacy to arbitrary weightings of a few aspects of social development that it is a number producing a relative ranking which is useless for inter-temporal comparisons, and difficult to compare a countrys progress or regression since the HDI for a country in a given year depends on the levels of, say, life expectancy or GDP per capita of other countries in that year.However, each year, UN member states are listed and ranked according to the computed HDI. If high, the rank in the list can be substantially used as a means of national aggrandizement alternatively, if low, it can be used to highlight national insufficiencies. Using the HDI as an arbitrary index of social welfare, some authors have used panel HDI data to measure the impact of economic policies on quality of life. Ratan Lal Basu criticises the HDI concept from a complet ely different angle.According to him the Amartya Sen-Mahbub ul Haq concept of HDI considers that provision of worldly amenities alone would bestow about Human Development, but Basu opines that Human Development in the true sense should embrace both veridical and moral development. According to him human development based on HDI alone, is similar to dairy farm economics to improve dairy farm output. To name So human development effort should not end up in amelioration of material deprivations alone it must undertake to bring about spiritual and moral development to assist the biped to become truly human. 31 For example, a high suicide rate would bring the index down. A few authors have proposed alternative indices to address some of the indexs shortcomings. However, of those proposed alternatives to the HDI, few have produced alternatives covering so many countries, and that no development index (other than, perhaps, Gross Domestic Product per capita) has been used so extensively or effectively, in discussions and developmental planning as the HDI.However, there has been one lament about the HDI that has resulted in an alternative index David Hastings, of the United Nations Economic and Social Commission for Asia and the Pacific published a report geographically extending the HDI to 230+ economies, whereas the UNDP HDI for 2009 enumerates 182 economies and reportage for the 2010 HDI dropped to 169 countries