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Progress in Human Development - Are we on the right path?

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  • Hippu Salk Kristle Nathan

    (Indira Gandhi Institute of Development Research)

  • Srijit Mishra

Abstract

The conventional measure of Human Development Index (HDI) is a linear average across dimensions, HDI1. Under this, poor attainments in any dimension gets perfectly compensated for better attainments in any other dimension HDI2, which is based on Euclidean distance measuring shortfall from the ideal, addresses the above anomaly. In our analysis of progress, we use HDI2 to develop the notion of an ideal path and penalty to capture deviation from this; and a measure of fluctuation. The measures are applied to 127 countries for the period 1990-2004. The results show that Sub-Saharan countries have suffered on account of sharp decline in health suggesting prevalence of human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS) epidemic. In case of Commonwealth of Independent States (CIS), the income dimension got jolted in the nineties indicating their economic collapse after Soviet disintegration. We also find some of the emerging economies progressing well along the ideal path. On the eve of the 20th anniversary of Human Development Report, this paper is timely and would engage academia and public policy to have a critical look favouring a balanced development across the three dimensions of HDI - health, education and standard of living.

Suggested Citation

  • Hippu Salk Kristle Nathan & Srijit Mishra, 2010. "Progress in Human Development - Are we on the right path?," Development Economics Working Papers 23019, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:develo:23019
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    1. World Bank, 2002. "Transition, The First Ten Years : Analysis and Lessons for Eastern Europe and the Former Soviet Union," World Bank Publications - Books, The World Bank Group, number 14042.
    2. George Gray Molina and Mark Purser, 2010. "Human Development Trends since 1970: A Social Convergence Story," Human Development Research Papers (2009 to present) HDRP-2010-02, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    3. Malcom Dowling & Ganeshan Wignaraja, 2006. "Central Asia after fifteen years of transition: growth, regional cooperation, and policy choices," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 13(2), pages 113-144, December.
    4. Hippu Salk Kristle Nathan & Srijit Mishra & B. Sudhakara Reddy, 2008. "An Alternative approach to measure HDI," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-001, Indira Gandhi Institute of Development Research, Mumbai, India.
    5. Samuel H. Preston & Jessica Y. Ho, 2009. "Low Life Expectancy in the United States: Is the Health Care System at Fault?," NBER Working Papers 15213, National Bureau of Economic Research, Inc.
    6. Srijit Mishra & Hippu Salk Kristle Nathan, 2008. "On A Class of Human Development Index Measures," Development Economics Working Papers 22340, East Asian Bureau of Economic Research.
    7. Nauro F. Campos & Abrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 793-836, September.
    8. Augustin Kwasi Fosu and Germano Mwabu, 2010. "Human Development in Africa," Human Development Research Papers (2009 to present) HDRP-2010-08, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    9. Dowling, Malcolm & Wignaraja, Ganeshan, 2006. "Central Asia after Fifteen Years of Transition: Growth, Regional Cooperation, and Policy Choices," Working Papers on Regional Economic Integration 3, Asian Development Bank.
    10. Malcolm Dowling & Ganeshan Wignaraja, 2006. "Central Asia’s Transition After Fifteen Years : Growth and Policy Choices," Macroeconomics Working Papers 22416, East Asian Bureau of Economic Research.
    11. John Malcolm Dowling & Ganeshan Wignaraja, 2006. "Central Asia’s Transition After Fifteen Years: Growth and Policy Choices," Working Papers 04-2006, Singapore Management University, School of Economics.
    12. Amartya Sen, 2000. "A Decade of Human Development," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 1(1), pages 17-23.
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    Cited by:

    1. Sushanta K. Mallick, 2014. "Disentangling the Poverty Effects of Sectoral Output, Prices, and Policies in India," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 773-801, December.
    2. Srijit Mishra & Hippu Slak Kristle Nathan, 2013. "Measuring human development index: The old, the new and the elegant," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2013-020, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. T.V.S.Ramamohan Rao, 2011. "Contemporary Relevance and Ongoing Controversies Related to the CES Production Function," Journal of Quantitative Economics, The Indian Econometric Society, vol. 9(2), pages 36-57, July.
    4. Albino Prada & Patricio Sánchez-Fernández, 2019. "Transforming Economic Growth into Inclusive Development: An International Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(1), pages 437-457, August.

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    More about this item

    Keywords

    Human Development Index (HDI); Ideal path; Measure of fluctuation; Measure of normalized-change; Sub-Saharan; Commonwealth of Independent States (CIS);
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • I00 - Health, Education, and Welfare - - General - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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