[Economic Survey Ch13] Human Development (Part 1 of 4): HDI-2012, HDR-2013, Poverty lines, Aajeevika, Tendulkar, Sreesanth, Saxena, Sengupta

economy-3 dimensions of HdI

[Economic Survey Ch13] Human Development (Part 1 of 4): HDI-2012, HDR-2013, Poverty lines, Aajeevika, Tendulkar, Sreesanth, Saxena, Sengupta

  1. Prologue
  2. Human Development Index (HDI)
    1. HDI=Geometric Mean
    2. HDR: last three reports
    3. HDI index 2012
    4. Tie in HDI?
    5. Experimental Indexes
      1. #1: Inequality adjusted HDI (IHDI)
      2. #2: Gender Inequality Index?
      3. #3: Multidimensional Poverty Index (MPI)
  3. Poverty
    1. Tendulkar vs Saxena?
    2. Saxena vs Sengupta?
  4. Rural Infra
  5. Urban Infra
  6. Programs
    1. MNREGA
    2. Aajeevika
    3. Aajeevika: salient features
    4. Swarna Jayanti Shahari Rozgar Yojana (SJSRY)
  7. Social Security Agreements (SSAs):

Prologue

finally, the last chapter. Contains three sub-parts

1 of 3 Human Development report 2013, poverty definition etc.
2 of 3 SC, ST, OBC and Minorities
3 of 3 Women, children, youth and PH
  • Education related Government  schemes already done click me
  • Public Health related Government schemes, already done click me

Human Development Index (HDI)

  • In 1990, Mahbub ul Haq (Pak), Amartya Sen (India), developed this Human development index (HDI)
  • HDI gives equal weightage to three dimensions

economy-3 dimensions of HdI

Dimension Measured via (till 2010) Changes in 2010

1.Health

life expectancy @birth Same

2.income

GDP per capita adjusted for purchasing-power parity (PPP US$).
  • now it is measured via purchasing-power-adjusted per-capita Gross National Income (GNI)
  • because GNI includes remittances from abroad, hence provides better economic picture of many developing countries like India.

3.Education

gross enrollment(1/3rd weight) + adult literacy (2/3rd weight) via

  1. Expected years of schooling for a school-age child in a country entering school today
  2. mean years of prior schooling for adults aged 25 and older.

HDI=Geometric Mean

  • Earlier HDI was arithmetic mean [(A+B+C)/3],
  • but since 2010, they have shifted to geometric mean=cube root of (A x B x C)
  • why? because in Geometric mean, low achievement in one dimension is not compensated for by high achievement in another dimension.
  • thus Poor performance in any dimension (health, wealth or edu) is now directly reflected in the new HDI.

HDR: last three reports

Human Development Report (HDR) is released by United Nations Development Programme (UNDP) (HQ=New York)

year Tagline
2010 The Real Wealth of Nations: Pathways to Human Development
2011 Sustainability and Equity: A Better Future for All
2013 The Rise of the South*: Human Progress in a Diverse World
  • *The “south” here means the leading developing countries, Brazil, China, India, Indonesia, Mexico, South Africa, Turkey etc.
  • By 2020, the combined economic output of three leading developing countries—Brazil, China and India—alone will surpass the aggregate production of Canada, France, Germany, Italy, the United Kingdom and the United States.
  • The middle class in the South is growing rapidly in size, income and expectations.
  • The sheer number of people in the South—the billions of consumers and citizens—multiplies the global human development consequences of actions by governments, companies and international institutions in the South

The 2013 Report identifies four specific areas of focus for sustaining development momentum:

  1. enhance equity (+women)
  2. enable greater voice and participation of citizens (+youth)
  3. confront environmental pressures
  4. manage demographic change

HDI index 2012

  • The HDR report = released in 2013. But the HDI index (and ranking) is given for 2012.
  • If a country has HDI index number close to 1=totally awesome. for example #1 rank given to Norway, it has index 0.955.
  • but if their index number is close to 0=most bogus. for example bottom two Niger and Congo have 0.304
  • let’s check rankings of top3, BRICS, and India’s neighbours.
Development Rank Country
Very high 1 Norway
2 Australia
3 USA
High 55 Russia
Medium 85 Brazil
92 Sri Lanka
101 China
104 Maldives
121 S.Africa
136 India
140 Bhutan
Low 146 (tie) Pak and Bangladesh.
149 Myanmar
175 Afghanistan
186 (tie) Niger and Congo
  • India’s HDI rank in 2011=136 and in 2012=again 136. Thus rank hasn’t improved but the HDI index number has improved. Although Index value has improved (from 0.551 to 0.554).
  • by the way, if you want to see the whole ranking of all countries, then simply download this PDF file and goto page 15. click me

Tie in HDI?

  • for the first time, HDR has introduced the concept of “tie”.
  • if two countries have same HDI index number upto 3 decimal points, then they’re given same rank.
  • for example, Ireland and Sweden, each with an HDI value of 0.916, are both ranked #7 in the new HDI.But then next rank is skipped that means Switzerland who is next in the line, will get 9th rank and not 8th.

Similarly there is tie between:

  • Hongkong + Iceland (for 13th rank)
  • Austria + Singapore (18th rank)
  • Finland + Slovania (21st rank)
  • Lituania + UAE ; Pak+Bangla and so on.

total countries evaluated = 187. (although last rank is 186. but there is tie for last place and whenever there is “tie”, next rank is skipped. Hence total is 187: courtesy Mr.Palas Nuwal.)

Experimental Indexes

2010’s HDR report introduced three experimental index viz

  1. Inequality adjusted HDI (IHDI)
  2. Gender Inequality Index  (GII)
  3. Multidimensional Poverty Index. (MPI)

HDR-2013 also published these indexes.

#1: Inequality adjusted HDI (IHDI)

  • The (normal/main) HDI represents a national average of human development in three basic dimensions: health, education and income.
  • but Like all averages, HDI conceals disparities in human development across the population within the same country.
  • Inequality adjusted HDI captures this inequality within the same country.
  • In terms of Inequality adjusted HDI, India ranks 91st while Norway again ranks 1st.

#2: Gender Inequality Index?

  • Gender Inequality Index (GII) reflects women’s disadvantage in three dimensions—
Dimension Measured via

1.Reproductive Health

  1. maternal mortality ratio
  2. adolescent fertility rate.

2.Empowerment

  1. share of parliamentary seats held by each sex
  2. by secondary and higher education attainment levels.

3.Labour Market

Women’s participation in the work force.
  • India ranks 132 here. 1st rank goes to Netherlands.
  • The GII ranges from 0 (=men and women treated equally) to 1 (extreme inequality between men and women).
  • India got score of 0.610 (meaning there is lot of inequality between men and women). Netherland scores only 0.045 (=very close to 0)

#3: Multidimensional Poverty Index (MPI)

  • Identifies multiple deprivations at the individual level in health, education and standard of living.
  • Each person in a given household is classified as poor or non-poor depending on the number of deprivations his or her household experiences.

Anyways enough talk about international HDR, let’s get back to desi topics.

Poverty

  • Planning Commission estimates poverty using data from the large sample surveys on household consumer expenditure.
  • These surveys are carried out by the National Sample Survey Office (NSSO) every five years.
  • Planning Commission defines poverty line on the basis of monthly per capita consumption expenditure (MPCE).
Survey year (MPCE) in Rs. % of Poors (Tendulkar Method)
Rural Urban Rural Urban Overall
2004-05 447 579 41.8 25.7 37.2
2009-10 673 860 33.8 20.9 29.8

2011: Planning Commission’s affidavit in Supreme court

PovertyLine Spending Rs.
Monthly Daily
Urban 965 32
Rural 781 26
  • 2012: Planning Commission setup an Expert Group under Dr.C. Rangarajan to ‘Review the Methodology for Measurement of Poverty’.

Tendulkar vs Saxena?

Chief Suresh Tendulkar (died in 2011) Dr.NC Saxena
setup by Planning Commission Rural Development Ministry
Setup in 2005 2009
Submitted reported in 2009
Objective?
  • to review alternate concepts of poverty
  • to recommend changes in the existing procedure used for official estimates of poverty.
  • to advise the rural ministry on the suitable methodology for BPL Census.
  • and *not* for estimation of poverty.
Recommendation?
  • recommended the Mixed Reference Period (MRP) equivalent Poverty Line Basket (PLB)
  • This new reference PLB has been applied to rural as well as urban population in all the States.
  • automatic exclusion and exclusion of rural households from the BPL list+ grading of remaining households.

Saxena vs Sengupta?

Chief Dr.NC Saxena Arjun Sengupta
Who set it up? Check the previous table! MSME ministry
Why was it setup?
  • National Commission for Enterprises in the Unorganized Sector
  • to examine the problems confronting enterprises in the Unorganized Sector and make appropriate recommendation to provide technical, marketing and credit support to the enterprises.
Why controversy?* He says atleast 50% Indian Junta is BPL. He says 77% of Indian junta is BPL.

*but as per Tendulkar’s method only ~37% junta is BPL in 2004-05 and this number has further declined to ~30% in 2009!

Rural Infra

  • Bharat Nirman- most of it already covered in previous articles. hence giving just selective updates/points.

Indira Awas Yojana (IAY)

  • MIS software ‘Awaasoft’
  • Government increased the money given to rural households from 1st April 2013.
  • Plains: Rs.70k
  • Hills/difficult areas/Naxal affected:75k

(draft) Homestead bill, 2013

  • by Rural Development ministry,
  • promises every landless and homeless poor family in rural areas a homestead “of not less than 10 cents” (0.1 acre or 4,356 sq ft),
  • as per 11th FYP: more than 8 million rural families are homeless.

Rural drinking water

  • fully covered habitat = those with the provision of at least 40 litres per capita per day (lpcd) of safe drinking water.
  • 12th FYP= the focus is on increasing the service level from 40 lpcd to 55 lpcd + piped water supply schemes and household tap connections.

TSC

  • Total Sanitation Campaign (TSC)= now renamed into Nirmal Bharat Abhiyan (NBA).
  • It aims to transform rural India into ‘Nirmal Bharat’ by achieving 100 per cent access to sanitation for all rural households by 2022.
  • According to Census 2011, only 32.7 per cent of rural households have latrine facilities. (Improving from 32 to 100% is miles to go!)

Urban Infra

JNNURM Already done in earlier article.
RAY
  • Rajiv Awas Yojana (RAY)
  • for creating a slum-free India.
  • in-situ rehabilitation of slum dwellers.
ILCS
  • Integrated Low Cost Sanitation Scheme (ILCS):
  • The ILCS aims at conversion of individual dry latrines into pour flush latrines thereby liberating manual scavengers.

Major Programs

Poverty removal / employment generation Social security
  1. MNREGA
  2. Aajivika/NRLM
  3. Swarna Jayanti Sahari Swarojgar Yojana
Insurance related: example

  1. Aam Admi Bima Yojana(AABY)
  2. Janshree Bima Yojana (JBY)
  3. Universal Health Insurance Scheme (UHIS)
  4. Rashtriya Swasthya Bima Yojana (RSBY)

Note: above schemes already covered in the article on 5th chapter click me

Pension related:NPS lite, NSAP etc: they too were covered in old articles. check www.Mrunal.org/economy

MNREGA

  • under Ministry of Rural Development
  • at least one hundred days of guaranteed wage employment in a financial year
  • to every rural household (and not to every individual)
  • unskilled manual work (machinery, contractors not allowed)
  • one-third participation of women.

Major recent initiatives under the MGNREGA

  • basket of permissible activities has been expanded
  • Electronic fund management system (eFMS) to reduce delay in payment of wages
  • for drought-affected talukas/ blocks: Additional employment over and above 100 days per household.
  • Aadhaar to prevent leakage and ghost accounts.
  • Convergence with the Total Sanitation Campaign (TSC).
  • funding Centre: State=90:10
  • wage: material ratio=60:40
  • Social audit, Ombudsman, unemployment allowance

Aajeevika

  • original name= Swarnjayanti Gram Swarozgar Yojana (SGSY).
  • later name changed to= National Rural Livelihood Mission (NRLM).
  • again name changed to “Aajeevika.” (Instead of renaming it twice, they could have saved the mental trouble for UPSC aspirants by directly naming it after you know who!)

Aajeevika: salient features

  • self-employment programme
  • to lift the assisted rural poor families (swarozgaris) above the poverty line
  • gives them income-generating assets through a mix of bank credit and government subsidy.
  • one woman member from each identified rural poor household to be brought under the SHG network,
  • ensuring 50 per cent of the beneficiaries from SC/STs, 15 per cent from minorities, and 3 per cent persons with disability while keeping in view the ultimate target of 100 per cent coverage of BPL families
  • training, innovation, capacity building and other fancy stuff.

Swarna Jayanti Shahari Rozgar Yojana (SJSRY):

  • to providing gainful employment to the urban unemployed and underemployed
  • helps them set up self-employment ventures or
  • creating wage employment opportunities.
  • Curiously, unlike SGSY this scheme hasn’t been renamed.

Social Security Agreements (SSAs):

  • SSAs are bilateral instruments to protect Indian professionals working abroad (including self-employed)
  • SSAs facilitate mobility of professionals between two countries.
  • SSAs exempting them from double payment of social security contributions.
  • SSA also provides for exportability and totalization in case of contributions made in foreign country.
    • exportability of social security benefits when person relocates to India or any other country after having made the due social security contribution.
    • totalization of the periods of contribution made in both countries for the purpose of assessing eligibility for the benefit/pension in each country.
  • 2006: 1st SSA signed between India and Belgium
  • So far India has signed 17 SSAs with Belgium, Germany, Switzerland, France, Luxembourg, Netherlands, Hungary, Denmark, Czech Republic, Republic of Korea, Norway, Finland, Canada, Sweden, Japan, Austria and recently with Pourtugal.

Mock questions after 3rd part is finished.

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