Economics Project On Human Development Index For Class12th CBSE

DEVELOPMENT AND GROWTH

In economics, growth and development are two connected but different ideas. An economy is said to be experiencing economic growth when there is an increase in the production and consumption of goods and services, which is often quantified by changes in the GDP. Contrarily, development refers to a broader process of enhancing people’s well-being that takes into account social, political, and economic aspects.

Although economic growth can aid in development, it cannot do so on its own. For instance, a nation may experience rapid economic growth, yet development may not be possible if the rewards are not divided evenly. Similarly, unsustainable growth or growth that harms the environment may ultimately impede progress.

The HDI is an effort to incorporate development and growth into a single measure. The HDI gives a more complete picture of how well a nation is doing at increasing the well-being of its citizens by taking into account indicators of health, education, and income in addition to those of income. Policymakers can use this information to pinpoint problem areas and make sure that social and environmental advancements follow economic growth.

While raising the standard of living for people is vital, economic expansion is simply one step in the development process. The HDI offers a more comprehensive view of development that takes into consideration a variety of elements that affect people’s well-being.

FOUR PILLARS OF HUMAN DEVELOPMENT

The idea that individuals should be at the centre of development plans and initiatives is the foundation of the concept of human development. Four human development pillars have been highlighted by the United Nations Development Programme (UNDP) as crucial to accomplishing this objective:

Equity: Reducing income, wealth, and opportunity gaps is necessary for human growth. No matter their origin or circumstances, everyone should have access to the tools and chances need to realise their full potential.

Sustainability: Human growth must be able to satisfy existing needs without jeopardising the capacity of future generations to satisfy their own. This necessitates striking a balance between economic, social, and environmental factors.

Productivity: In order to improve living conditions and fight poverty, it is imperative to support economic growth and productivity. Economic growth must be inclusive and sustainable, though, and it must not compromise social or environmental objectives.

Empowerment: Empowerment is necessary for human development because it allows individuals to take part in decision-making and control their own life. This includes advancing social inclusion, institutional improvement, and the advancement of gender equality and human rights.

These four pillars are crucial for ensuring sustainable human development since they are interrelated and mutually reinforcing. The HDI offers a framework for tracking advancement in these categories and pinpointing areas that need improvement. Policymakers and development professionals may work towards a more just, sustainable, and inclusive future for all by concentrating on these pillars.

EVALUATION OF HUMAN DEVELOPMENT

The most widely used indicator of human progress is the Human progress Index (HDI). The United Nations Development Programme (UNDP) created it in 1990 as a means of expressing the multifaceted nature of human development. Three fundamental aspects of human development are combined in the HDI: access to knowledge, a long and healthy life, and a reasonable level of living. A group of indicators are used to gauge each of these dimensions:

The average number of years a newborn can anticipate to live is called life expectancy at birth. It displays a population’s level of health and happiness.

Education is assessed using two indicators: (a) mean years of schooling, which represents the typical number of years of education received by adults aged 25 and older; and (b) expected years of schooling, which represents the anticipated number of years of education that a child of school-age will receive.

Gross national income (GNI) per capita: This gauges the standard of living in a nation while accounting for variations in cost of living.

The HDI is calculated by allocating an equal amount of weight to each of these indicators. Based on their HDI values, which range from 0 to 1, with 1 representing the highest degree of human development, countries are ranked.

Although the HDI is a useful instrument for assessing human growth, it has certain drawbacks. For instance, it fails to account for crucial facets of human development including political liberties, social acceptance, and environmental sustainability. The UNDP has created other indices like the Multidimensional Poverty Index (MPI) and the Gender Development Index (GDI) in order to address these constraints. These indexes give a more complex picture of human development and aid decision-makers in pinpointing problem areas.

HDI CALCULATION WITH AN ILLUSTRATION

The following formula is used to calculate the HDI:

(LEI x EI x GNI) / (1/3) HDI

where:

Calculated as (life expectancy – 20) / (85 – 20), LEI stands for life expectancy index.
EI is the education index, which is determined as the geometric mean of two indicators: (a) the mean years of schooling index, which is calculated as the mean years of schooling / 15; and (b) the expected years of schooling index, which is calculated as the predicted years of schooling / 18
Calculated as ln(GNI per capita) – ln($100), GNI is the gross national income per capita index.
A higher value on the HDI scale, which spans from 0 to 1, indicates a higher level of human development. The highest level of human development is represented by a score of 1, and the lowest by a score of 0.

Here is an illustration of how the HDI is determined for a fictitious nation:

75 years old at birth, life expectancy
Average number of years in school: 10
13 years of schooling are anticipated.
$20 000 is the gross national income per person.

LEI = (75 – 20) / (85 – 20) = 0.706
EI = √[(10 / 15) x (13 / 18)] = 0.676
GNI is equal to (20000 – 100) ln = 4.605.

HDI = (0.706 x 0.676 x 4.605)^(1/3) = 0.819

The country’s HDI score in this case is 0.819, which denotes a high level of human development.

It’s crucial to remember that the HDI is but one indicator of human development and should be analysed in conjunction with other metrics and details regarding the social, economic, and environmental circumstances of a nation.

WORLDWIDE COMPARISON

International comparisons of human development among nations are possible thanks to the HDI. The Human Development Report, a yearly publication of the United Nations Development Programme (UNDP), provides country rankings based on HDI ratings.

Norway, Switzerland, and Ireland are the top three countries with the greatest HDI scores, according to the 2021 Human Development Report. These nations have excellent standards of living, income, and education. On the other hand, Sub-Saharan Africa is home to the majority of the nations with the lowest HDI scores, and these nations are frequently distinguished by extreme levels of disease, conflict, and poverty.

Policymakers can find areas for improvement and learn from other nations’ experiences by comparing HDI rankings across borders. For instance, policies and programmes from nations with high HDI scores might be adaptable and adopted in other nations to advance human development. Additionally, comparing HDI rankings among nations might encourage international collaboration and cooperation in the pursuit of the Sustainable Development Goals (SDGs).

The HDI, however, should be seen in the context of other indicators and data regarding a country’s social, economic, and environmental conditions as it is only one indicator of human development. Furthermore, key components of human development including political liberties, social inclusion, and environmental sustainability are not included in the HDI. Therefore, to guide their judgements and policies towards encouraging human development, policymakers should use a variety of indicators and information.

WORLDWIDE HDI STANDING

The United Nations progress Programme (UNDP) calculates and publishes the Human Development Index (HDI), a measure of human progress, in its yearly Human Development Report. Health, education, and income are the three components of human development that the HDI uses to rank nations.

The top 10 nations with the highest HDI scores, per the 2021 Human Development Report, are:

Sweden (0.957)
0.955 Switzerland
Europe (0.955)
Norway (0.949)
Europe (0.947)
Finland (0.947)
Canada (0.944)
United Kingdom (0.944)
Norway (0.940)
Sweden (0.938)
Sub-Saharan Africa is home to the majority of the nations with the lowest HDI scores, and these nations are frequently distinguished by extreme levels of disease, conflict, and poverty. The ten nations with the lowest HDI scores, according to the same survey, are:

Niger (0.390)
(0.397) Central African Republic
Chad (0.408)
0.413 South Sudan
Myanmar (0.433)
Nigeria (0.450)
Mali (0.445)
0.452 Burkina Faso
0.458 Sierra Leone
(0.468) Mozambique
It’s crucial to remember that the HDI is but one indicator of human development and should be analysed in conjunction with other metrics and details regarding the social, economic, and environmental circumstances of a nation. Furthermore, key components of human development including political liberties, social inclusion, and environmental sustainability are not included in the HDI. Therefore, to guide their judgements and policies towards encouraging human development, policymakers should use a variety of indicators and information.

ASPECTS OF INDIA’S HDI

Over the past several decades, India has significantly improved its HDI. India is placed 131 out of 191 nations in the medium human development category, according to the 2021 Human Development Report, with an HDI score of 0.645.

India has achieved improvements in wealth and education relative to the three pillars of human development, but health remains a weakness. Specifically:

Education: The average number of years spent in school in India increased from 5.9 in 1990 to 6.9 in 2019. From 10.2 years in 1990 to 12.2 years in 2020, more schooling is anticipated.

Income: Gross national income (GNI) per person in India increased from $680 in 1990 to $2,129 in 2019 (in 2019 PPP$).

Health: India’s birth life expectancy is 69.7 years, which is lower than the global average for nations with medium levels of human development.

India’s states and regions have different HDI scores. The northern states of Bihar, Uttar Pradesh, and Jharkhand have the lowest HDI scores, compared to the southern states of Kerala, Tamil Nadu, and Karnataka. India has a high rate of gender disparity, with males scoring 0.914 on the gender development index (GDI) and females scoring 0.698.

Even though India’s HDI has increased, more investment in health, education, and income is still required to further enhance human development outcomes. Efforts to reduce gender inequality and regional disparities can also support India’s transition to a more inclusive and sustainable human development model.

PROGRAMME HDI IN INDIA

The Institute of Applied Manpower Research (IAMR), a division of the Ministry of Human Resource Development, is responsible for creating India’s National Human Development Report (NHDR). The NHDR offers a thorough examination of India’s human development trends, problems, and policies and is a crucial instrument for creating and implementing policies.

In addition to the NHDR, the Indian government has started a number of initiatives and programmes to advance human development, such as:

National Health Mission (NHM): The NHM strives to provide all residents with easily accessible, reasonably priced, and high-quality healthcare, with an emphasis on rural and underserved areas.

Sarva Shiksha Abhiyan (SSA): The Sarva Shiksha Abhiyan (SSA) program aims to provide free and mandatory education to all children between the ages of 6 and 14 with a particular emphasis on enhancing access for girls and youngsters from underrepresented groups.

National Rural Employment Guarantee Act (NREGA): The NREGA aims to empower women and advance rural development by guaranteeing 100 days of pay employment annually to all rural households in India.

National Skill Development Mission (NSDM): With a focus on enhancing employability and encouraging entrepreneurship, the NSDM intends to offer skill training to youth and adults.

The outcomes of India’s human development have improved as a result of these programmes and policies. To support more equitable and sustainable human development in the nation, there is still a need for ongoing investments in health, education, and income as well as actions to address regional inequities and gender inequality.

HDI BY STATE

The Institute of Applied Manpower Research (IAMR), a division of the Ministry of Human Resource Development, is responsible for creating India’s National Human Development Report (NHDR). The NHDR offers a thorough examination of India’s human development trends, problems, and policies and is a crucial instrument for creating and implementing policies.

In addition to the NHDR, the Indian government has started a number of initiatives and programmes to advance human development, such as:

National Health Mission (NHM): The NHM strives to provide all residents with easily accessible, reasonably priced, and high-quality healthcare, with an emphasis on rural and underserved areas.

Sarva Shiksha Abhiyan (SSA): The Sarva Shiksha Abhiyan (SSA) program aims to provide free and mandatory education to all children between the ages of 6 and 14 with a particular emphasis on enhancing access for girls and youngsters from underrepresented groups.

National Rural Employment Guarantee Act (NREGA): The NREGA aims to empower women and advance rural development by guaranteeing 100 days of pay employment annually to all rural households in India.

National Skill Development Mission (NSDM): With a focus on enhancing employability and encouraging entrepreneurship, the NSDM intends to offer skill training to youth and adults.

The outcomes of India’s human development have improved as a result of these programmes and policies. To support more equitable and sustainable human development in the nation, there is still a need for ongoing investments in health, education, and income as well as actions to address regional inequities and gender inequality.

FOLLOWING DETAILS THE HDI BY INDIAN STATE

There are 28 states and 8 union territories in the federal nation of India. These states and territories’ HDI rankings and scores range widely, reflecting regional differences in human development outcomes.

The top 5 states in terms of HDI scores are, as of the most recent statistics from the National Human Development Report (NHDR) 2020, as follows:

Kerala has an HDI rating of 0.777.
The HDI score for Chandigarh is 0.775.
Goa scored 0.761 on the HDI.
Delhi has an HDI rating of 0.754.
Punjab has an HDI rating of 0.732.
On the other side, according to HDI scores, the bottom 5 states are:

HDI score of 0.580 for Bihar
0.579 on the HDI scale for Jharkhand
Assam has an HDI rating of 0.592.
HDI score for Uttar Pradesh is 0.642.
The HDI score for Madhya Pradesh was 0.643.
These rankings reflect the fact that states in the south and west often have higher HDI scores compared to states in the north and east. It’s crucial to remember, though, that there is also a substantial amount of variety within each region.

Policymakers can use these state-level HDI rankings and scores as useful tools to pinpoint regional differences in human development outcomes and create specialised policies and programmes to address them.

STATE-BY-STATE LIFE EXPECTANCY

A key measure of human progress is life expectancy at birth, which reflects availability to food, shelter, and other essentials of life. The top 5 states for life expectancy at birth are as per the most recent data from the National Health Profile 2021:

India: 77.3 years
Delhi – aged 76.9
Kashmir and Jammu – 75.6 years
75.5 years in Punjab
74.9% in Himachal Pradesh
The lowest 5 states in terms of life expectancy at birth are, however:

68.9 years in Uttar Pradesh
69.1 years in Bihar
69.2 years in Madhya Pradesh
Punjab – 69.4 years
69.7 years for Chhattisgarh
These rankings are a reflection of the fact that life expectancy tends to be greater and lower in southern and northern states, respectively. It’s crucial to remember, though, that there is also a substantial amount of variety within each region.

Policymakers can use these state-level life expectancy rankings as useful tools to spot regional differences in health outcomes and create specialised policies and programmes to address them.

INDIA’S HIGHEST HDI STATE

According to the most recent information from the National Human Development Report (NHDR) 2020, Kerala has the highest HDI score of any state in India, at 0.780. Due to its emphasis on human development through investments in healthcare, education, and social welfare programmes, Kerala consistently ranks first among Indian states in HDI rankings.

The high rates of literacy, low infant mortality, and long life expectancy at birth in Kerala are responsible for the state’s high HDI ranking. The state also boasts a strong public healthcare system that guarantees everyone access to healthcare services and a well-established social welfare system that includes initiatives to fight poverty, empower women, and take care of the elderly.

Chandigarh, Goa, Delhi, and Punjab are additional states with high HDI rankings; all four of these states have HDI scores above 0.7. These states have also made major investments in human development, leading to notable advancements in crucial areas like gender equality, healthcare, and other critical indicators like education.

These top-performing states demonstrate how consistent investments in human development can significantly increase residents’ well-being and can act as a template for other states to follow.

INDIA’S LOWEST HDI STATE

According to the most recent information from the National Human Development Report (NHDR) 2020, Bihar has India’s lowest HDI score, at 0.548. Due to its subpar performance in crucial human development indicators including education, healthcare, and gender equality, Bihar has frequently scored poorly among Indian states in HDI rankings.

In this densely populated state, a sizeable section of the populace lives in poverty and lacks access to necessities like healthcare, clean water, and sanitary facilities. In addition to having a far lower literacy rate than the national average, Bihar also has a high percentage of child labour and child marriage, especially among girls.

Assam, Uttar Pradesh, and Jharkhand are among states with low HDI rankings; all three have scores below 0.6. In terms of poverty, low levels of education, and inadequate healthcare facilities, these states similarly face comparable difficulties.

It is crucial to remember that these state-level HDI rankings should be analysed in light of India’s greater regional and national differences in human development achievements. The underlying social and economic causes of these discrepancies must be addressed by targeted policies and programmes as well as ongoing expenditures in human development.

SIGNIFICANCE OF HDI

Beyond conventional metrics like wealth and economic growth, the Human Development Index (HDI) is a significant indicator of a nation’s level of human development and well-being. The HDI offers a more thorough and holistic perspective of human development outcomes by accounting for elements including education, health, and standard of living.

The HDI is crucial for policymakers because it gives them a way to compare results across nations and regions and track the evolution of human development over time. This enables decision-makers to pinpoint areas where advancements have been made and those that require additional focus and funding.

Additionally, the HDI has the potential to be an effective lobbying tool for advancing human development and wellbeing. The HDI can mobilise support for policies and programmes that promote human development and lessen poverty and inequality by increasing public understanding of the value of spending money on social welfare, healthcare, and educational initiatives.

Finally, governments can be held accountable for their performance in human development using the HDI. The HDI can assist identify policy failures and triumphs and can offer useful feedback to policymakers on the efficacy of their programmes and policies by following development over time and comparing outcomes across different areas and countries.

Overall, the HDI is a crucial tool for assessing and promoting human development and well-being, and it has a major impact on the creation of policies and initiatives that can help fight inequality and poverty while advancing sustainable development.

HDI LIMITATIONS

Although the HDI is a useful instrument for assessing human growth and well-being, there are certain limitations that should be considered when interpreting the results.

First off, the HDI only takes into account a select group of variables, including standard of living, health, and education. Other crucial facets of human development, such political liberties, social cohesiveness, and environmental sustainability, are not included.

Second, within a nation or region, the HDI does not account for inequality. For instance, two nations with identical HDI scores may have extremely disparate degrees of inequality in terms of income, access to education, and quality of healthcare.

Thirdly, the HDI may rely on erroneous or partial data, especially in developing nations with shoddy data collecting and monitoring systems.

The HDI also assumes that all of the indicators it measures are equally significant in influencing the results of human development. In actuality, a country’s or region’s background and culture may influence the relative value of each indicator.

The HDI is nevertheless a useful instrument for monitoring and advancing human development and wellbeing despite these drawbacks. Complementing the HDI with additional indicators and metrics that reflect other crucial facets of human development and wellbeing is crucial to overcoming some of its shortcomings.

THE BHUTAN CASE

Bhutan, a tiny nation in the eastern Himalayas, is renowned for its innovative use of the Gross National Happiness (GNH) concept to gauge societal progress. GNH is predicated on the idea that material prosperity and economic progress by themselves cannot ensure human pleasure and well-being. Instead, it emphasises the value of encouraging a balance between human development on the one hand and spiritual development on the other, cultural preservation, environmental sustainability, and good governance.

Bhutan created the Gross National Happiness Index (GNHI) to gauge GNH, which takes into account nine factors including living standards, cultural variety and resilience, community vitality, excellent governance, and psychological well-being. A complete and multi-dimensional measure of national well-being is produced by further subdividing each category into a number of indicators.

The GNHI has drawn attention from throughout the world as a distinctive and cutting-edge method of assessing national well-being, even while it does not serve as a replacement for conventional economic indicators like GDP or the HDI. Other nations and international organisations have recently expressed interest in implementing similar methodologies to assessing well-being and results in human development.

The case of Bhutan emphasises the significance of adopting a thorough and all-encompassing strategy for assessing national well-being and fostering human development outcomes, as well as the potential for alternatives to conventional economic indicators to inform policy choices and enhance quality of life.

WHY DOES INDIA HAVE A LOW HDI?

India’s economy is among the fastest-growing in the world, yet the HDI still shows that it is lagging behind in terms of overall human development. India’s low HDI ranking is caused by a number of causes, including:

India has one of the highest rates of income disparity in the world, which means that a sizeable section of the population lacks access to necessities like food, housing, and healthcare. Human development outcomes like life expectancy and education are negatively impacted by this.

Poor health outcomes: Malnutrition, high infant mortality rates, and communicable diseases like malaria and tuberculosis continue to be problems in India. The results of general human development and life expectancy are negatively impacted by these health issues.

Low educational attainment: A sizeable section of the Indian population still cannot read or write, despite recent increases in access to school. This restricts prospects for social and economic mobility and has a detrimental effect on the results of human growth.

Gender inequality: Due to high rates of gender-based violence, low levels of female involvement in the workforce, and inadequate access to healthcare and education for women and girls, India has a low ranking in terms of gender equality. This has a detrimental effect on how women and society as a whole develop as people.

The National Health Mission, the National Rural Employment Guarantee Act, and the Sarva Shiksha Abhiyan are just a few of the policies and initiatives the Indian government has put in place to address these issues and improve human development outcomes. But for India to achieve better results in human development and lessen inequality, there must still be a lot of improvement.

CONCLUSION

In conclusion, the Human progress Index (HDI) is a thorough assessment of human progress that considers elements including income, health, and education. Despite recent considerable advancements, India still lags behind in terms of human development outcomes, coming in 131st place out of 189 nations in the most current HDI assessment.

The core causes of inequality and poverty, such as economic disparity, poor health outcomes, low educational attainment, and gender inequality, must be addressed in order to enhance human development results in India. This necessitates a variety of policies and initiatives that support social inclusion, economic growth, and access to fundamental services like healthcare and education.

Even though the HDI has its limits, it is nonetheless a valuable instrument for tracking advancements towards human development objectives and highlighting areas that require additional attention. We can endeavour to create a more just and sustainable society where everyone has the chance to prosper by adopting a thorough and multifaceted approach to evaluating human development.

Certificate of Completion

This is to certify that I, [Your Name], a student of Class 12th, having pursued Economics as a subject in the CBSE curriculum, have successfully completed the project titled “Human Development Index for India. ” This project was undertaken as a part of my academic journey during the [Academic Year].

In this project, I delved into the intricacies of the Human Development Index (HDI) and its significance in measuring a country’s progress in terms of its citizens’ well-being. Through extensive research, data analysis, and thoughtful insights, I explored the factors that influence India’s HDI ranking and identified key challenges hindering the nation’s overall human development.

This project required dedicated efforts in gathering relevant information, studying various economic indicators, and analyzing the social and developmental aspects of India’s human progress. It provided me with a deeper understanding of the complexities that influence a country’s development journey, beyond mere economic growth.

Throughout this project, I encountered challenges in handling complex data, interpreting economic concepts, and presenting the findings coherently. However, each obstacle served as a learning opportunity, enhancing my analytical and research skills.

I express my heartfelt gratitude to my esteemed Economics teacher, [Teacher’s Name], whose guidance and encouragement played a pivotal role in the successful completion of this project. Their valuable insights and support fueled my enthusiasm to explore the intricacies of human development.

Furthermore, I am grateful to my parents and well-wishers for their constant encouragement and belief in my abilities. Their unwavering support motivated me to strive for excellence in this academic pursuit.

I take immense pride in presenting this project, confident that it will contribute to the broader discourse on human development and its significance for India’s progress. May it serve as a testament to my dedication and passion for understanding economic dynamics and fostering a sense of responsibility towards building a more inclusive and prosperous society.

Date: [Date of Completion]

Place: [Your Location] [Your Name](Class 12th Student)
[Name of Your School]

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