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    HUMAN DEVELOPMENT IN KARNATAKA STATE: AN INTER-

    DISTRICT DISPARITIES

    Dr. Gopalakrishna B.V. & Dr. Devaraj.K

    1.1 Introduction

    Economic development of a country is traditionally judged in terms of Gross

    Domestic Product (GDP). The greater the volume of GDP per capita, higher the state of

    development and prosperity. But, the GDP measure of development completely ignores

    the welfare of the people. It is not necessarily true that high GDP generates well-being to

    the people. It is not the volume of GDP per se, but its distribution that matters much for

    the well-being of the people. It is for these reasons that economists like Nobel laureate

    Amartya Sen, Mahbub Ul Haq, Frances Stewart, Paul Streeten and others have

    considered GDP as an inadequate measure of development and instead advocated the

    concept of human development.

    The first Human Development Report (HDR), published by the United Nations

    Development Programme (UNDP) in 1990, clearly stressed the primary message of every

    HDR at global, national and sub-national level the human centered approach to

    development that places human well being as the ultimate end of development. People

    are the real wealth of a nation. The basic objective of development is to create an

    enabling environment for people to enjoy long, healthy and creative lives. This may

    appear to be a simple truth, but it is often forgotten in the immediate concern with the

    accumulation of commodities and financial wealth.

    Human Development is the process of widening peoples choices and their level of

    well-being. The choices change over time and differ among societies according to their

    stage of development. The three essential choices for people are - to lead a long and

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    healthy life, to acquire knowledge and to have access to the resources needed for a decent

    standard of living. If these choices are not available, many other opportunities remain

    inaccessible. Other choices, highly valued by many people include political, economic

    and social freedom, access to opportunities for being creative and productive and

    enjoying self-respect and guaranteed human rights. (UNDP, 1994, 1995).

    The Human Development Index (HDI) is a simple composite measure that measures

    the overall achievements of a region in terms of three basic dimensions of human

    development a long and healthy life, knowledge, a well as a decent standard of living

    health status (measured by longevity), knowledge (measured by literacy and enrolments)

    and a decent standard of living (measured by per capita income). These three dimensions

    are measured by life expectancy at birth, educational attainment (adult literacy and the

    combined gross primary, secondary and tertiary enrolment ratio) a proxy for a decent

    standard of living and as a surrogate for all human choices not reflected in the other two

    dimensions.

    The Planning Commission of India prepared and published the first HDR of India in

    2001 in which all the Indian states are ranked in the order of their achievement in terms

    of the indicators that reflect human development. Therefore the Planning Commission

    has also been encouraging state governments to produce their own human development

    reports. In fact, Madhya Pradesh was the first state in India to produce a HDR long before

    the Planning Commission. Karnataka state was the second state brought out such report

    in 1999. The other Indian States have come out with their state level reports, one by one.

    Against this background, this paper mainly focused on progress of human

    development of Karnataka State by focused on inter district disparities in HDI and GDI

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    values across districts in Karnataka though simple composite indices such as human

    development index and gender related development index

    1.2 Objectives of the Study

    The following are the objectives of the study

    1. To examine progress of human development index in the Karnataka State.2. To identification of inter-district disparities in human development in the state.3. To examine the role of state in Human development and to draw the policy

    implications.

    1.3 Karnataka: A Profile

    Karnataka State is situated in the Southern part of India, it lies between the latitudes

    11.310

    and 18.450

    North and the longitudes 74.120

    and 78.400

    East on the western part of

    the Deccan Plateau. The state covers a total area of 1, 91,791 Sq km, accounting for 5.83

    per cent of the total geographical area of the country. The state is bounded by

    Maharashtra and Goa states in the north and northwest by the Arabian Sea in the west by

    Kerala and Tamil Nadu states in the south and by Andhra Pradesh on the east.

    Demographically, Karnataka State has total population 53 million out of which 5.13

    percent of Indias population. Out of which 27 millions are males and 26 millions are

    females. The Sex Ratio of 965 in the state stands above the all India average of 933. The

    highest sex ratio in the state is recorded by Udupi district (1,130) and the lowest by

    Bangalore (908). The state has the Density of Population 275 as compared to 324 at the

    all-India level in 2001. Bangalore has the highest density of population of (2,985 persons

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    per Kms) where as Uttar Kannada has lowest density of 132. The literacy rate among the

    population is 67.04 percent 59.68 percent in rural and 81.05 percent in urban areas.

    For administrative purposes, Karnataka has been divided into 4 divisions (Madaiah

    and Ramapriya, 1989), Coastal Region, Malnad Region, Northern Region and Southern

    Region. State comprises of 176 taluks, 27 districts, 27,481 inhabited villages, 1,925

    uninhabited village and 270 towns have been conceded by Karnataka state itself. Bijapur

    has the largest area of 17,069 Sq Kms and Kodagu has the smallest area of 4,102 Sq

    Kms. Karnataka had highest growth rate of GDP and per capita Income in the country

    during 1990-2001 of 7.6 percent and 5.9 percent respectively. Nevertheless, the state

    continues to be in the middle-income states, with per capita income slightly below the all

    India average.

    The state is relatively better placed in economic development and it ranked 6th

    in

    terms of per capita GSDP among the 15 major states of India in 2001-02 (KHDR, 2005).

    However, the state ranked only 7th

    in terms of per capita consumption expenditure Rs.

    639 as compared to Rs. 591at all India level in 2005-06. Due to a strong agricultural

    recovery supplemented by improved scorecard of the services sector. The incidence of

    poverty in the state is somewhat higher than the national average. The expert group set up

    by the planning commission has estimated that in 1999-2000, 20.04 percent of the

    population was living below the poverty line in Karnataka compared to the all India

    average of 26.10 percent (Government of India 2001, Planning Commission). However,

    when only rural areas are considered, poverty ratio was slightly lower in Karnataka 17.38

    percent in comparison to 27.09 percent at the all India level. Urban poverty appears to be

    particularly high in Karnataka where as estimated 25.25 percent of the population live

    below the poverty line in comparison to 23.62 percent at the all India level.

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    Presently, Karnataka is being recognized as the new growth center in a reforming

    Indian economy powered by knowledge based industries such as software, electronic,

    biotechnology pharmaceuticals and back offices for many overseas companies. The state,

    which started a software revolution, has been aggressively wooing job seekers not only

    from across the country but also from overseas. Karnataka in recent times seems to be

    surging ahead powered by its booming higher education sector to produce manpower for

    diverse jobs in a booming economics.

    1.4 Status of Human Development in Karnataka

    Human development situation in Karnataka State was mostly guided by the

    Millennium Development Goals (UNDP, HDR 2001). The progress of human

    development of Karnataka state was reasonably good, since the last two decades of

    human development experiences in terms of literacy rate, life expectancy at birth, infant

    mortality rate and other human development indicators has been better than all India

    average. For example, the improvement in the literacy rate in the state during 1991-01

    was 66.64 percent (76.10 and 56.87 percent for male and female literacy rate

    respectively) against an increase of 56.64 percent (67.26 & 44.34 percent for male and

    female respectively) during 1981-91. The increase in the literacy rate in the 1990s was

    less than half of the achievement in the 1980s. Similarly life expectancy was also

    improved marginally during 1991-92 to 2001-02 62.1 years (61.0 & 63.2 years to 65.8

    years (64.5 & 67.0 years). The Infant Mortality Rate was decline from 82 per 1000

    population in 1991-92 to 55 per 1000 in 2001-02.

    Karnataka State has medium human development rank it improves from 0.541 to

    0.650 between 1991 to 2001 with 7th rank of the 15 Indian states were well above the

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    national average 0.423 and 0.621 respectively during same period. The level of human

    development of Karnataka state is more or less equal with that of Egypt and considerably

    higher than South Asian countries such as Pakistan, Nepal, Bhutan and Bangladesh in

    2001. At the international level, state has 120th

    rank while the country has 127th

    rank

    (UNDP, HDR 2003). The human development indicators such as per capita NSDP, life

    expectancy at birth, literacy and infant mortality rate are also improved over the period of

    time. The states per capita gross state domestic product (GSDP) is above the national

    average and it occupies sixth place in the ranking of 15 major states in India. The total

    fertility rate in 1999 state has 3rd

    place, which is equal with Tamil Nadu next only to

    Kerala and West Bengal. Life expectancy at birth for males and females was 62.4 and

    66.4 respectively. The literacy rate has been increasing over the years and reached the

    level of 66.6 percent in 2001.

    Table 1.1 Selected Indicators of human development of Karnataka and other

    neighbor states

    Sl

    No.

    Name of the

    Districts

    Per Capita

    NSDP

    Life Expectancy

    at Birth (LEB)

    Literacy

    Rate 2001

    Infant

    Mortality

    Rate HDI

    1. Andhra Pradesh 10,590 63.9 61.11 59 0.609

    2. Karnataka 10,709 65.8 66.64 52 0.650

    3. Maharashtra 14,892 68.3 77.27 42 0.706

    4. Kerala 10,832 73.4 90.92 11 0.746

    5. Tamil Nadu 12,717 68.4 73.47 43 0.687

    India 10,774 64.8 65.49 57.4 0.627

    Source: Government of Karnataka (2006) Karnataka Human Development Report 2005.

    The table 1.1 presents selected indicators of human development of Karnataka with

    other neighboring states. It also infers relative human development position of Karnataka

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    State with other neighbouring states such as Maharashtra, Tamil Nadu, Kerala and

    Andhra Pradesh. Karnataka has accounted per capita NSDP Rs. 10,709, life expectancy at

    birth 65.8 years, infant mortality rate has 52 per 1000 birth, and literacy rate has 66.64

    percent and HDI value of 0.650. While most of the neighboring states except Andhra

    Pradesh well above Karnatakas relative position in all respects.

    According to National Human Development Report (NHDR) prepared by the

    planning commission, Karnataka state has improved HDI values from 0.346, 0.412 and

    0.478 during 1981, 1991 and 2001 among 15 major Indian states and its rank was sixth in

    1981 and seventh position in 1991 and 2001. (NHDR, 2001). Specific data on each of

    the indicators such as life expectancy, literacy and income suggests, however, that

    Karnataka is placed well above the all India, it still lags behind neighbouring states.

    Kerala is well ahead of Karnataka and top among Indian states followed by Tamil Nadu

    and Maharashtra, in literacy and life expectancy at birth, while Maharashtra is ahead in

    LEB and income. The GDI values of Karnataka state has improved from 0.525 to 0.637

    during 1991 to 2001 which is well above the national average of 0.621 in 2001 but when

    compared with other neighbouring states except Andhra Pradesh 0.621 Kerala, Tamil

    Nadu and Maharashtra above the state average value of 0.746, 0.706 and 0.687

    respectively. Therefore, Karnataka long way to go to reach to high human development

    states.

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    This is not because the state has achieved the optimum levels of literacy or IMR,

    when rate of improvement would slow down. The marginal improvement in these two

    rates is at a comparatively low level of achievement. This has been the case in spite of the

    increase in the rate of economic growth in state during the 1990s.

    1.5 Linkages: EG and HD in the State

    A closer examination of the level of achievement in the three indicators of human

    development reveals some insight into their inter-relationship. The importance of income

    for achieving higher standards of living it well known. Income gives people the ability to

    buy goods and services that is as income increases it widens the range of consumption

    options. Nonetheless high literacy and health can be achieved even with low per capita

    income is a typical example of this category.

    It is common experience that good economic performance has not always led to a

    good human development index. Infact, India has done much better in terms of income

    growth than in terms of human development. For example Maharashtra and Punjab

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    income growth is fairly high, but these states have not made significant progress in the

    social sector literacy and health. Whereas, Kerala with a relatively low per capita

    income has made rapid strides in human development. The point to note is, therefore, that

    enhancing income level of the people is no doubt necessary but it must be ensured that

    the increased income is used by the people for improving their literacy and health status.

    Accessibility and affordability of education and health services for the people is crucial

    states to improve their level of human development.

    Even Karnataka state is not exceptions from trade off relationship between economic

    growth and human development For example - Mysore and Bellary districts are placed at

    5th

    and 10th

    ranks in terms of per capita income. Whereas they are placed at 14th

    and 17th

    ranks respectively in terms of HDI. Probably one of the important reasons for the

    distortion of this relationship of economic growth and human development is inadequate

    attention paid to the development of social infrastructure through public policy on health

    and education (HPCFRRI, 2004). Various districts of Karnataka state have differences in

    per capita income and human development index and this has been classified into three

    groups.

    Mutually reinforcing growth and human development - some of districts such as

    Bangalore Urban, Dakshina Kannada, Kodagu, Shimoga and Bangalore Rural fall in the

    category of higher human development with highest per capita income.

    Mutually stifling growth and human development other districts have remained at

    low human development with low per capita income. For example Raichur, Chamaraja

    Nagar suffered slow advances in human development and slow economic growth.

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    Modest growth and Human Development The rest of districts of the state have either

    human development or per capita income growth, which, includes Tumkur, Mysore,

    Hassan and Mandya and Chitradurga.

    The table 1.2 presents district-wise estimates of HDI and per capita income 1991-92

    and 2001-02. It may be noted that there is no trade off relationship between ranks of per

    capita income with HDI. Bangalore Urban, Dakshina Kannada, Udupi, Kodagu and

    Bangalore Urban has shown highest per capita income with highest human development

    index of the state were above the state average, while Raichur, Gulbarga, Bijapur and

    Haveri were lowest development in both per capita income and human development

    index. Mysore, Bellary and Bagalkot has lopsided stifling development of better

    performance in per capita income than HDI in one hand on the other hand Lopsided

    development were found in Shimoga, Uttar Kannada, Tumkur, and Kolar has better HDI

    performance than per capita income.

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    Table: 1.2

    Per capita income and human development index of Karnataka State

    Name of the

    districts

    Per capita GDP at 1993-94 prices (Rs.) Human Development Index (HDI)

    1991-92 2001-02 1991 2001

    Values Ranks Values Ranks Values Ranks Values Ranks

    Bangalore Urban 9,816 5 24,774 1 0.623 4 0.753 1

    Dakshina Kannada 13,390 16 20,682 2 0.661 1 0.722 2

    Udupi 10,714 3 15,471 5 0.659 2 0.714 3

    Kodagu 16,090 1 18,838 3 0.623 3 0.697 4

    Shimoga 7,797 7 12,152 10 0.584 5 0.673 5

    Bangalore Rural 6,427 19 17,144 4 0.539 11 0.653 6Uttar Kannada 7,788 8 12,043 11 0.567 6 0.653 7

    Belgaum 7,028 10 11,085 13 0.545 9 0.648 8

    Chikmagalur 10,132 4 13,328 6 0.559 7 0.647 9

    Dharwad 7,905 6 12,549 8 0.539 10 0.642 10

    Hassan 6,681 15 10,263 16 0.519 16 0.639 11

    Davangere 6,815 13 9,989 19 0.548 8 0.635 12

    Gadag 5,918 23 10,607 15 0.516 17 0.634 13

    Mysore 6,888 12 13,178 7 0.524 14 0.631 14

    Tumkur 6,133 21 9,408 22 0.539 12 0.630 15

    Chitradurga 6,658 16 10,155 18 0.535 13 0.627 16

    Kolar 6,219 20 9,619 21 0.522 15 0.625 17

    Bellary 7,277 9 12,291 9 0.512 18 0.617 18

    Mandya 6,745 14 9,908 20 0.511 19 0.609 19

    Haveri 4,850 27 8,679 24 0.496 22 0.603 20

    Bidar 5,136 26 7,654 26 0.496 23 0.599 21

    Bagalkot 6,511 18 11,557 12 0.505 20 0.591 22

    Bijapur 6,562 17 9,092 23 0.504 21 0.589 23

    Chamaraja Nagar 6,985 11 10,182 17 0.488 24 0.582 24

    Gulbarga 5,505 24 8,616 25 0.453 25 0.576 25

    Koppal 5,476 25 10,882 14 0.446 26 0.564 26

    Raichur 6,022 22 7,579 27 0.443 27 0.547 27

    KARNATAKA 7,447 13,057 0.541 0.650

    Note: Shantappa, Coordinator, KHDR 2005 using latest UNDP Methodology.

    Source: 1. Directorate of Economics and Statistics, Karnataka

    2. Government of Karnataka (2006) Karnataka Human Development Report

    2005, Planning Commission

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    1.6 Inter district disparities in human development

    Since the publication of First Global Human Development Report in 1990, various

    countries of the World including India have started publishing Regional Human

    Development Reports which contain HDI that is believed to express the level of

    development in a better way than per capita income. In this regard Madhya Pradesh was

    the first Indian state which has published region-wise human development report in 1995.

    Karnataka was the second state, which has brought out its first human development

    report in 1999. There have been some independent studies which carried out works on

    inter district disparities in human development using latest UNDP methodology of which

    studies by Benerjee & Roy 1998, Rani 1999, Roy & Bhattacharya, 1999, Shanmugaum

    2005 and Vysula 1997 are significant. The Government of Karnataka again brought out

    his second successive human development report 2005 in 2006. In this report HDI has

    been computed for 27 districts in the state using the UNDP, HDR 1999 methodology.

    This can be infers the regional disparities in HDI of various districts in the state enables

    an understanding of the nature and changing magnitude of variations among districts.

    This, inturn points to either divergence or convergence of regional variations in human

    development among districts in the state.

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    Table 1.3. Top and Bottom Five Districts in Human Development

    Indicators of Karnataka State in 2001

    Indicators Top 5 Bottom 5

    Per Capita Income Bangalore Urban

    Dakshina Kannada

    Kodagu

    Bangalore Rural

    Udupi

    Raichur

    Bidar

    Gulbarga

    Haveri

    Bijapur

    Literacy Rate Bangalore Urban

    Dakshina Kannada

    Udupi

    Kodagu

    Uttar Kannada

    Raichur

    Gulbarga

    Chamaraja Nagar

    Koppal

    Bijapur

    Combined Gross

    Enrolment ratio of

    children (I X)

    Bangalore Urban

    Udupi

    Kodagu

    Gadag

    Kolar

    Bijapur

    Koppal

    Bellary

    Chamaraja Nagar

    Bangalore Rural

    Life Expectancy at

    Birth

    Udupi

    Belgaum

    Shimoga & Dakshina

    Kannada

    Bangalore Urban

    Bangalore Rural

    Bagalkot

    Dharwad

    Haveri

    Bijapur

    Gadag

    Source: Government of Karnataka (2006) Karnataka Human Development Report

    2005, Planning Commission, Bangalore.

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    The range of variation in human development index levels fairly alarming and varies

    from 0.753 to 0.547. Bangalore Urban takes the top position while Raichur is placed at

    the bottom. The high per capita income of Bangalore Urban has considerably influenced

    its HDI value. Bangalore Urban literacy rates and life expectancy are also fairly high

    followed by Dakshina Kannada, Kodagu and Bangalore Rural, were above the state

    average and national average, even best in international standards, while other districts

    like Gulbarga and Chamaraja Nagar were in bottom place which is not only lowest in

    state average but also less than national average and also lower than so called low human

    development countries such as Niger, Sierra Leone and others.

    The table 1.3 presented top and bottom of human development indicators in terms of

    per capita GDP, literacy rate, combined gross enrolment and life expectancy at birth of

    various districts of the state. Bangalore Urban district that is called as the silicon valley of

    India occupied top list in all human development. At the international level its rank is 83,

    which is on par with Philippines and above China and Srilanka. While Raichur district is

    bottom district of the state, its international status is at 133 rank on par with Papu and

    New Guinea and lower than Ghana, Botswana, Myanmar and Cambodia (KHDR, 2005

    Page No. 18).

    The following table 1.4 presents selected indicators of human development indicators

    of Karnataka State at the district level for the year 2001. Infact, Bangalore Urban district

    comes out with HDI value as high as 0.753 of the state, which has been higher than

    Keralas state average 0.746 While, Raichur which is the bottom district with the HDI

    value of 0.547, this is also the lowest index compared to other low human development

    states in the country. The HDI values for the state have been computed as 0.650. This

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    figure is higher than our countrys value of 0.621 in 2001 as per UNDP methodology1. In

    20 districts, the HDI values are found to be below the state figure. And rest of 7 districts

    was found to be above the value for the country.

    The overall literacy rate of Karnataka state is 67.04 percent, which is above the all-

    Indian average of 64.8 percent. Bangalore Urban district has highest literacy

    rate of 83.91 percent followed by Dakshina Kannada 83.47, Udupi 79.87, Kodagu 78.17,

    Uttar Kannada 76.59, Shimoga 74.86 and Chikmagalur 72.63 percent. While Raichur and

    Gulbarga have lowest literacy rate of 49.54 and 50.65 respectively.

    The Per Capita GDP of 2001-02 again Bangalore Urban district ensuring highest

    income of Rs.24, 774 followed by Dakshina Kannada, Kodagu, Bangalore Rural

    accounted Rs 20,682, 18,838 and 17,144 respectively. These districts were also above the

    state average of Rs.13, 057. While on the other hand districts such as Bidar, Bijapur,

    Tumkur and Kolara have lowest income of Rs 7,654, 9092, 9,408 and 9,619 respectively.

    The two poorest districts are Bidar and Gulbarga is adjacent to the two richest districts of

    Bangalore Urban and Dakshina Kannada. It is surprising that prosperity did not spread to

    the neighboring districts from Bangalore Urban and Dakshina Kannada.

    1

    Computed by V. Shantappa, Coordinator, KHDR 2005 using latest UNDP Methodology.

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    The combined gross enrolment ration of children (I-X) has been presented in 7th

    column. The overall gross enrolment ratio is highest in Bangalore Urban accounted

    113.97 was above the state average of 89.95, while lowest is in Raichur 89.95

    respectively. Another fact to be noted is that 21 out of 27 districts have a per capita

    income below the state average. The fact mentioned earlier, namely, the Per Capita

    Income of the poorest district is only 25-30 percent of that of the richest district of the

    state.

    The Life Expectancy at Birth for the State was 65.8 years and for India 64.8 years.

    Belgaum obtained the highest figure 67.7 years, while, Dharwad got the lowest 61.9

    years. In about 21 districts, the life expectancy at birth was below the state average only

    in six districts such as Bangalore Urban, Bangalore Rural, Belgaum, Bellary, Dakshina

    Kannada and Shimoga have above the state average. Surprisingly, Kodagu districts has

    3rd

    highest in HDI of the state has only 63.3 years which is below the state figures. Infant

    Mortality Rate for Karnataka State was 55 for 1,000 populations in 2001-02. In 17

    districts, the rate was above the state values. It may be noted that the highest infant

    mortality rate of 67 was in Gulbarga district.

    This information indicates that significant human development disparities exist

    between the districts. It is also seen that the poor districts are associated with low human

    development, low industrial development and low agricultural productivity.

    The following table 5.4 presents HDI of 27 districts of Karnataka state for 1981, 1991

    and 2001. The districts are ranked in the descending order of the HDI. The table reveals

    significant inter-district disparities in human development in Karnataka state. The HDI

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    values vary from 0.753 for Bangalore Urban to 0.547 for Raichur districts in 2001. In the

    1999 human development report, the variation was from 0.661 in Dakshina Kannada

    district to 0.443 in Raichur district. However, what is encouraging is the fact that the

    difference between the districts with the highest and the lowest HDI has narrowed from

    49.21 percent in 1991 to 37.6 percent in 2001. During 1981 Dakshina Kannada was the

    1st

    place among 20 districts of Karnataka state. But 1991 and 2001 Bangalore urban got

    first place and Dakshina Kannada pushed to 2nd place, while Raichur keeps the bottom of

    the state. Karnataka state has improved 0.360 in 1981 to 0.541 and 0.6450 in 1991 and

    2001 with 20.14 percentage changes during the same period.

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    Table 1.4 HDI of various Districts of Karnataka State during 1981 to 2001

    Sl

    No.

    Name of the

    Districts

    1981 1991 2001 Percentagechanges in

    2001 from

    1991Value Rank Value Rank Value Rank

    1. Bangalore Urban 0.435 2 0.623 4 0.753 1 20.86

    2. Dakshina Kannada 0.436 1 0.661 1 0.722 2 9.22

    3. Udupi - - 0.659 2 0.714 3 9.31

    4. Kodagu 0.429 3 0.623 3 0.697 4 11.87

    5. Shimoga 0.377 6 0.584 5 0.673 5 18.66

    6. Bangalore Rural - - 0.539 11 0.653 6 21.15

    7. Uttar Kannada 0.406 4 0.567 6 0.653 7 15.16

    8. Belgaum 0.352 5 0.545 9 0.648 8 18.89

    9. Chikmagalur 0.381 11 0.559 7 0.647 9 19.3210. Dharwad 0.360 7 0.539 10 0.642 10 19.10

    11. Hassan 0.357 8 0.519 16 0.639 11 23.12

    12. Davangere - - 0.548 8 0.635 12 17.16

    13. Gadag - - 0.516 17 0.634 13 23.20

    14. Mysore 0.338 13 0.524 14 0.631 14 20.41

    15. Tumkur 0.354 9 0.539 12 0.630 15 16.88

    16. Chitradurga 0.352 12 0.535 13 0.627 16 17.19

    17. Kolar 0.352 10 0.522 15 0.625 17 19.73

    18. Bellary 0.308 17 0.512 18 0.617 18 20.50

    19. Mandya 0.330 14 0.511 19 0.609 19 19.17

    20. Haveri - - 0.496 22 0.603 20 24.16

    21. Bidar 0.319 16 0.496 23 0.599 21 26.76

    22. Bagalkot - - 0.505 20 0.591 22 18.21

    23. Bijapur 0.324 15 0.504 21 0.589 23 20.76

    24. Chamaraja Nagar - - 0.488 24 0.582 24 18.00

    25. Gulbarga 0.305 18 0.453 25 0.576 25 24.50

    26. Koppal - - 0.446 26 0.564 26 31.07

    27. Raichur 0.298 19 0.443 27 0.547 27 23.47

    KARNATAKA 0.360 0.541 0.650 20.14

    Source: Government of Karnataka (2006) Karnataka Human Development Report 2005,

    Planning Commission

    Note: 1. 1981 human development index for computed only 20 districts of the state

    2. Shantappa, Coordinator, KHDR 2005 using latest UNDP Methodology.

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    Gender related development Index

    Karnataka has performed better in gender related development and occupies seventh rank

    among major states. But HDI values of Karnataka are higher than GDI values in all districts. It

    shows that the levels of socio-economic development of women are lower than the general level

    all over Karnataka. It is to be noted that a higher level of economic development does not ensure

    higher gender related development or human development. Districts of Malnad and coastal areas,

    which rank lower in per capita income, have higher gender development.

    The table 1.5 depicted progress of Gender related development of various districts of

    Karnataka state. The progress of GDI at the state level has improved from 0.525 in 1991 to 0.637

    in 2001 registering an increase of 21 percent in ten years. The pace of reduction in gender

    disparities is rather slow. It is only marginally higher than the increase of 20 percent in the HDI

    during the same period. Although the values for the GDI of districts are lower than the

    corresponding values for the HDI, the GDI ranking compares favorably within the HDI ranking

    for a majority of districts in 1991 and 2001. This indicates that districts with high human

    development levels will have lower gender disparities while districts with poor human

    development indicators will have greater gender inequality. However, there are significant

    variations in the GDI across districts.

    GDI indices vary from 0.645 in Dakshina Kannada and low of 0.422 in Raichur in 2001. It is

    also interesting to note that ranking in GDI almost follow the HDI ranking, a phenomenon that is

    not very common at the international level. The four districts such as Bangalore Urban, Dakshina

    Kannada, Udupi and Kodagu placed first four places from the top and Raichur, Gulbarga,

    Chamaraja Nagar and Koppal lie at the bottom of the list.

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    Table 1.5 GDI of various Districts of Karnataka State during1991 to 2001

    SL

    No.

    Name of the

    Districts

    1991 2001 Percentage

    changes in

    2001 from

    1991Value Rank Value Rank

    1. Bangalore Urban 0.592 4 0.731 1 23.47

    2. Dakshina Kannada 0.645 1 0.714 2 10.69

    3. Udupi 0.644 2 0.704 3 9.31

    4. Kodagu 0.617 3 0.690 4 11.83

    5. Shimoga 0572 5 0.661 5 15.55

    6. Bangalore Rural 0.524 12 0.640 6 22.137. Uttar Kannada 0.548 7 0.639 7 16.60

    8. Belgaum 0.525 11 0.635 9 20.95

    9. Chikmagalur 0.550 6 0.636 8 15.63

    10. Dharwad 0.531 8 0.26 11 17.89

    11. Hassan 0.507 14 0.630 10 24.26

    12. Davangere 0.530 9 0.621 13 17.16

    13. Gadag 0.502 16 0.625 12 24.50

    14. Mysore 0.496 18 0.605 18 21.97

    15. Tumkur 0.528 10 0.618 15 17.04

    16. Chitradurga 0,514 13 0.618 14 20.23

    17. Kolar 0.505 15 0.613 16 21.3818. Bellary 0.499 17 0.606 17 21.44

    19. Mandya 0.491 19 0.593 20 20.77

    20. Haveri 0.480 22 0.596 19 24.16

    21. Bidar 0.477 23 0.572 22 19.91

    22. Bagalkot 0.483 21 0.571 23 18.21

    23. Bijapur 0.486 20 0.573 21 17.90

    24. Chamaraja Nagar 0.472 24 0.557 25 18.00

    25. Gulbarga 0.432 25 0.543 26 25.69

    26. Koppal 0.428 26 0.561 24 31.07

    27. Raichur 0.422 27 0.530 27 25.59

    KARNATAKA 0.525 0.637 21.33Source: Government of Karnataka (2006) Karnataka Human Development Report 2005,

    Planning Commission

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    the governments commitment in terms of the expenditure incurred by it. In the post-reforms

    periods, these ratios don not show any radical improvement.

    Table 1.7 Expenditure ratios in Karnataka, 1990-91 to 2002-03

    (Percent)

    Year

    Public

    expenditure

    ratio (PER)

    Social

    allocation ratio

    (SAR)

    Social

    priority

    ratio (SPR)

    Human

    expenditure

    ratio (HER)

    1990-91 17.78 41.22 55.45 4.061991-92 17.61 40.20 53.72 3.80

    1992-93 19.18 36.77 52.54 3.71

    1993-94 18.45 39.50 54.03 3.94

    1994-95 17.70 39.19 53.83 3.73

    1995-96 17.79 37.62 51.94 3.48

    1996-97 17.75 36.90 51.02 3.34

    1997-98 16.73 38.40 51.99 3.34

    1998-99 16.33 39.49 52.55 3.39

    1999-2000 18.09 37.75 54.86 3.75

    2000-01 18.22 37.89 52.84 3.65

    2001-02 20.06 34.96 52.29 3.672002-03 18.83 34.36 50.69 3.28

    Note: Expenditure under different heads has been estimated as the sum of revenue

    | expenditure and capital expenditure (including loans and advances net of

    repayments)

    Source: Estimated from Finance Accounts of Karnataka, Account General, GOI

    The table 1.7 presented public expenditure ratio and other three ratio of Karnataka State

    between 1990-91 to 2002-03. The PER increased from 17.78 percent in 1990-91 to 18.83 percent

    in 2002-03, before declining to 16.33 percent in 1998-99. Thereafter, mainly due to pay and

    pension revision, the PER increased to constitute more than 18 percent of GSDP in 1999-2000.

    Infact, the full effect of the pay revision was seen in 2000-01 as the government had to incur

    substantial expenditures to pay arrears. Thus, in 2001-02, the public expenditure GDP ratio

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    increased to over 20.06 percent. However, the fiscal adjustment programme resulted in the

    deceleration of expenditure, to reduce the PER to 18.8 percent in the following years, and has

    stabilized at that level in subsequent years.

    Although the aggregate expenditure GDP ratio showed a significant increase over the years,

    social sector expenditures have actually shown a marginal decline. The share of social sector

    expenditures in the total or social allocation ratio declined by seven percentage points from 41.22

    percent in 1990-91 to 34.36 percent in 2002-03. As a ratio of GSDP too, social sector expenditures

    declined by about 0.8 percentage point, from 7.3 percent to 6.5 percent the decline in the

    expenditure. GDP ratio as well as the share of social sector expenditures implies that overall, the

    allocation to social sector in real terms has declined despite substantial increases in the pay and

    pension revision.

    The trend in the social priority ratio, which is a sub-set of SAR is similar. The SPR declined

    from 55.5 percent in 1990-91 to 50.69 percent in 2002-03 or as a ratio of GSDP in decline was

    from 4.1 percent to 3.3 percent. Thus, as compared to 1990-91 both SAR and SPR in 2002-03 were

    lower. This shows that the expenditures on sectors that are considered to have high social priority

    were crowded out by the pressure of increasing expenditure on salaries, debt servicing and other

    implicit and explicit subsidies in the wake of stagnant revenues. The second global human

    development report 1991suggested - PER for a country should be around 25 percent, SAR should

    be about 40 percent and SPR about 50 percent. The human expenditure ratio (HER) should be

    about 5 percent. However, data reveal that PER in Karnataka has been less than the suggested

    norm of 25 percent over the entire decade.

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    1.8 Summary

    Human development of Karnataka state was guided by the Millennium Development Goals.

    The progress of human development of Karnataka state was reasonably good. The HDI value of

    the state has improved from 0.541 to 0.650 between 1991 to 2001 with 7th

    rank of the 15 Indian

    states were well above the national average 0.423 and 0.621 respectively during same period, but

    lower than neighbouring states such as Kerala, Maharashtra and Tamil Nadu. GDI values are also

    improved from 0.525 to 0.637 during same period. But Karnatakas relative position was very

    lower than those neighbouring states.

    Therefore, government has to increase investment in social sectors targeted to the more needy

    districts is a necessary condition for achieving higher levels of human development and improving

    the wellbeing of the population. Enhanced allocations alone, however, are not sufficient to reach

    the desired objective. In-depth analysis of the social sectors indicators that the state has also to

    overcome structural inadequacies to get the maximum benefit from government intervention.

    1.9. References

    1. Government of Karnataka (2002): High Power Committee on Regional ImbalancesRedressel,Planning Commission, Bangalore.

    2. Government of Karnataka, Planning Commission (1999):Human Development inKarnataka,UBS Publishers Distributors Limited, Bangalore.

    3. GOI (2002): National Human Development Report 2001, Planning Commission,Government of India, New Delhi.

    4. Government of Karnataka, Planning Commission (2006):Human Development inKarnataka 2005,UBS Publishers Distributors Limited, Bangalore.