It has been long established that national measures of wealth, such as the Gross Domestic Product (GDP), do not tell the whole story of people’s lives. The search for a more inclusive representation of what is important has been on for a few decades. The Human Development Index (HDI), for example, was first published in 1990 by the United Nations Development Programme (UNDP) as a direct response to Amartya Sen’s capability approach. This Nobel Prize winning economist’s groundbreaking insights argued that governments should not only focus on increasing citizens’ monetary wealth, but on ensuring that they are able and capable of achieving their dreams, goals and full potential in the society they live in. The HDI, which was co-created by Sen himself, is a composite measure that takes into account the GDP, life expectancy and education levels in each country. Although it is still by no means perfect, since its conception, critiques of the HDI, namely measurement errors and the important things it still does not capture, have been incrementally addressed and incorporated into later versions. For example, the 2010 HDI was the first to factor in inequalities in the three mesaures between the world’s nations, creating a separate Inequality-adjusted Human Development Index (IHDI). You can download the full 2011 country rankings here.
By Anuradha Seth
The frequency of global financial and economic crises has increased over the past decade and a half, and they appear to have become a systemic feature of the international economy. The risk of economic growth and human development achievements being undermined by such volatile international developments is fostering an overall re-think about the inner nature of crises, the growing vulnerability of developing countries and their capacity to be resilient in the face of these shocks. Read More »