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

Sreesanth, Saxena, Sengupta

Prologue

Human Development Index (HDI)

HDI=Geometric Mean

HDR: last three reports

HDI index 2012

Tie in HDI?

Experimental Indexes

#1: Inequality adjusted HDI (IHDI)

#2: Gender Inequality Index?

#3: Multidimensional Poverty Index

(MPI)

Poverty

Tendulkar vs Saxena?

Saxena vs Sengupta?

Rural Infra

Urban Infra

Programs

MNREGA

Aajeevika

Aajeevika: salient features

Swarna Jayanti Shahari Rozgar Yojana (SJSRY)

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 mePublic Health related Government schemes, already done click me

Human Development Index (HDI)

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

DimensionMeasured via (till2010)

Changes in 2010

1.Healthlife expectancy@birth

Same

2.income

GDP per capitaadjusted forpurchasing-

now it is measured viapurchasing-power-adjustedper-capita Gross NationalIncome (GNI)because GNI includes

power parity(PPP US$).

remittances from abroad, henceprovides better economic pictureof many developing countries likeIndia.

3.Education

grossenrollment(1/3rdweight) + adultliteracy (2/3rdweight)

via

1. Expected years of schooling for aschool-age child in a countryentering school today

2. mean years of prior schooling foradults 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 Bx C)why? because in Geometric mean, low achievement in one dimension isnot compensated for by high achievement in another dimension.thus Poor performance in any dimension (health, wealth or edu) is nowdirectly reflected in the new HDI.

HDR: last three reports

Human Development Report (HDR) is released by United NationsDevelopment 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 developingcountriesBrazil, China and Indiaalone will surpass the aggregateproduction ofCanada, France, Germany, Italy, the United Kingdom and

the United States.

The middle class in the South is growing rapidly in size, income andexpectations.The sheer number of people in the Souththe billions of consumers andcitizensmultiplies the global human development consequences ofactions by governments, companies and international institutions in theSouth

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

1. enhance equity (+women)2. enable greater voice and participation of citizens (+youth)3. confront environmental pressures4. manage demographic change

HDI index 2012

The HDR report = released in 2013. But the HDI index (and ranking) isgiven for 2012.If a country has HDI index number close to 1=totally awesome. forexample #1 rank given to Norway, it has index 0.955.but if their index number is close to 0=most bogus. for example bottomtwo Niger and Congo have 0.304lets check rankings of top3, BRICS, and Indias 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

Indias HDI rank in 2011=136 and in 2012=again 136. Thus rank hasntimproved but the HDI index number has improved. Although Index valuehas improved (from 0.551 to 0.554).by the way, if you want to see the whole ranking of all countries, thensimply 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, thentheyre given same rank.for example, Ireland and Sweden, each with an HDI value of 0.916, areboth ranked #7 in the new HDI.But then next rank is skipped that meansSwitzerland 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 forlast place and whenever there is tie, next rank is skipped. Hence total is187: courtesy Mr.Palas Nuwal.)

Experimental Indexes

2010s 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 humandevelopment in three basic dimensions: health, education and income.but Like all averages, HDI conceals disparities in human developmentacross 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 womens disadvantage in threedimensions

Dimension Measured via

1.ReproductiveHealth

1. maternal mortality ratio2. adolescent fertility rate.

2.Empowerment

1. share of parliamentary seats held by each sex2. by secondary and higher education attainment

levels.

3.Labour Market Womens 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 (extremeinequality between men and women).India got score of 0.610 (meaning there is lot of inequality between menand women). Netherland scores only 0.045 (=very close to 0)

#3: Multidimensional Poverty Index (MPI)

Identifies multiple deprivations at the individual level in health, educationand standard of living.Each person in a given household is classified as poor or non-poordepending on the number of deprivations his or her householdexperiences.

Anyways enough talk about international HDR, lets get back to desi topics.

Poverty

Planning Commission estimates poverty using data from the large samplesurveys 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 percapita 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 Commissions affidavit in Supreme court

Poverty

Line

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?

ChiefSuresh Tendulkar(died in 2011)

Dr.NC Saxena

setup by Planning Commission Rural Development Ministry

Setup in 2005 2009

Submittedreported in

2009

to reviewalternateconcepts ofpoverty

to advise the rural

Objective?to recommendchanges in theexistingprocedure usedfor officialestimates ofpoverty.

ministry on thesuitablemethodology forBPLCensus.and *not* forestimation of poverty.

Recommendation?

recommendedthe MixedReferencePeriod (MRP)equivalentPoverty LineBasket (PLB)This newreference PLBhas been appliedto rural as well asurban populationin all the States.

automatic exclusion andexclusion of ruralhouseholds from the BPLlist+ grading of remaininghouseholds.

Saxena vs Sengupta?

ChiefDr.NCSaxena

Arjun Sengupta

Who set itup?

Checktheprevioustable!

MSME ministry

Why was itsetup?

National Commission for Enterprises in theUnorganized Sectorto examine the problems confrontingenterprises in the Unorganized Sector andmake appropriate recommendation toprovide technical, marketing and creditsupport to the enterprises.

He saysatleast

Whycontroversy?*

50%IndianJunta isBPL.

He says 77% of Indian junta is BPL.

*but as per Tendulkars method only ~37% junta is BPL in 2004-05 and thisnumber has further declined to ~30% in 2009!

Rural Infra

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

IndiraAwas

Yojana(IAY)

MIS software AwaasoftGovernment increased the money given to rural

households from 1st April 2013.Plains: Rs.70kHills/difficult areas/Naxal affected:75k

(draft)Homesteadbill, 2013

by Rural Development ministry,promises every landless and homeless poor family inrural 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 arehomeless.

Ruraldrinking

water

fully covered habitat = those with the provision of atleast 40 litres per capita per day (lpcd) of safe drinkingwater.

12th FYP= the focus is on increasing the service levelfrom 40 lpcd to 55 lpcd + piped water supply schemesand household tap connections.

TSC

Total Sanitation Campaign (TSC)= now renamed intoNirmal Bharat Abhiyan (NBA).It aims to transform rural India into Nirmal Bharat byachieving 100 per cent access to sanitation for all ruralhouseholds by 2022.

According to Census 2011, only 32.7 per cent of ruralhouseholds have latrine facilities. (Improving from 32to 100% is miles to go!)

Urban Infra

JNNURM Already done in earlier article.

RAYRajiv Awas Yojana (RAY)for creating a slum-free India.in-situ rehabilitation of slum dwellers.

ILCSIntegrated Low Cost Sanitation Scheme (ILCS):The ILCS aims at conversion of individual dry latrines intopour flush latrines thereby liberating manual scavengers.

Major Programs

Poverty removal /employment generation

Social security

1. MNREGA2. Aajivika/NRLM3. Swarna Jayanti

Sahari SwarojgarYojana

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 oldarticles. check www.Mrunal.org/economy

MNREGA

under Ministry of Rural Development

at least one hundred days of guaranteed wage employment in a financialyearto 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 expandedElectronic fund management system (eFMS) to reduce delay in paymentof wagesfor drought-affected talukas/ blocks: Additional employment over andabove 100 days per household.Aadhaar to prevent leakage and ghost accounts.Convergence with the Total Sanitation Campaign (TSC).funding Centre: State=90:10wage: material ratio=60:40Social 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, theycould have saved the mental trouble for UPSC aspirants by directlynaming it afteryou know who!)

Aajeevika: salient features

self-employment programmeto lift the assisted rural poor families (swarozgaris) above the poverty linegives them income-generating assets through a mix of bank credit andgovernment subsidy.one woman member from each identified rural poor household to bebrought under the SHG network,ensuring 50 per cent of the beneficiaries from SC/STs, 15 per cent fromminorities, and 3 per cent persons with disability while keeping in view theultimate target of 100 per cent coverage of BPL familiestraining, innovation, capacity building and other fancy stuff.

Swarna Jayanti Shahari Rozgar Yojana (SJSRY):

to providing gainful employment to the urban unemployed and

underemployedhelps them set up self-employment ventures orcreating wage employment opportunities.Curiously, unlike SGSY this scheme hasnt been renamed.

Social Security Agreements (SSAs):

Basics of social security already coveredunderhttp://mrunal.org/2012/07/economy-social-security.htm

SSAs are bilateral instruments to protect Indian professionals workingabroad (including self-employed)SSAs facilitate mobility of professionals between two countries.SSAs exempting them from double payment of social securitycontributions.SSA also provides for exportability and totalization in case of contributionsmade in foreign country.

exportability of social security benefits when person relocates toIndia or any other country after having made the due social securitycontribution.totalization of the periods of contribution made in both countries forthe purpose of assessing eligibility for the benefit/pension in eachcountry.

2006: 1st SSA signed between India and BelgiumSo 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 andrecently with Pourtugal.