Human Development Index and Case Studies

Human Development Index (HDI)

• Measures national socioeconomic development combining education, health, and adjusted real income per capita.
• Ranges from 0 to 1.
• Current rankings based on long/healthy life (life expectancy), knowledge, and decent standard of living (adjusted GDP per capita).
• Adjusts for diminishing marginal utility of income using a logarithmic scale for GDP per capita; higher incomes contribute less to the HDI.

Diminishing Marginal Utility

• Subjective value of additional consumption (income) decreases as total consumption increases.

Pakistan and Bangladesh Case Study

• Social Development:

  • Bangladesh has higher female than male education enrollment, with women finding increased autonomy in the garment sector. Tragic factory incidents (2012, 2013) highlighted unsafe conditions, impacting women and children workers. The Accord agreement by European retailers proved more effective than North American initiatives. Risks remain with subcontractors not always monitored.
  • Pakistan has lower female education enrollment (less than 75%). Garment factory conditions are also unsafe, with 2012 fire that killed over 300 workers.

• Gender Inequality:

  • Both countries show gender inequality, with a male-to-female ratio slightly above 1 (indicating higher female mortality and selective abortion). Women's safety is prioritized, especially in garment factories.

• Foreign Aid:

  • Pakistan has been a top aid recipient since 1947, especially after 9/11. Effectiveness has varied, with elites potentially benefitting more.
  • Bangladesh is also a major aid recipient, but NGOs (like BRAC and Grameen Bank) significantly improve aid effectiveness, with a focus on women's empowerment.

• Governance and Military Influence:

  • Pakistan: Military has strongly influenced governance (especially during Musharraf's rule), along with long-standing conflicts with India. Corruption is a problem and the 2013 civilian transfer was considered a milestone but instability persists. An "elitist growth model" has prioritized growth for elites, hindering wider benefits. Low literacy rates may have been used to maintain elite control. Rural regions show landowning dominance over tenants, reinforcing inequality.
  • Bangladesh: Military involvement reduced after the 1990s, but corruption and some political polarization remain. Political stability improved after the military withdrawal but challenges remain.

• Civil Society:

  • Bangladesh: A vibrant NGO sector, among Asia's most advanced, making a significant impact on poverty reduction and women's empowerment. The Rohingya refugee crisis response (2018) was widely praised.
  • Pakistan: A smaller, less developed NGO sector with potential for growth. Educated Pakistanis abroad could contribute to civil society.

• Governance Models:

  • Pakistan: Elitist growth model with elites (military and bureaucrats) dominating; limited checks and balances. Investment in health, education and literacy is limited, keeping much of the population subservient. Women's education has been deprioritized by elites.
  • Bangladesh: Better development in social areas, specifically education and women’s empowerment. The military withdrawal in the 1990s likely aided progress. However, political polarization and instability continue.

Ghana and Côte d'Ivoire Comparison

• Development Comparison: Ghana's development has exceeded expectations, bettering CIV, particularly regarding income growth and inequality.

• Income Growth: Ghana's income growth was faster than in CIV, although average incomes still slightly higher in CIV.

• Inequality: Ghana has lower income inequality than CIV.

• HDI: Ghana classified as medium human development (HDI 0.592) while CIV is low (HDI 0.492). Ghana's HDI exceeds its predicted value by income. CIV's HDI is worse than predicted by income.

• Poverty Trends: Ghana had significantly higher poverty levels than CIV at independence but now has a lower poverty rate, with 12% below the $1.90/day poverty line versus 28.2% in CIV.

• Multidimensional Poverty Index (MPI): Ghana's MPI (0.132) is much lower than CIV's (0.236), with less of its population in severe multidimensional poverty.

• Economic Growth: Ghana's 2017 GDP per capita PPP surpassed CIV's.

• Life Expectancy and Mortality: Ghana's life expectancy was 63 years in 2017 versus 55 for CIV, and lower under-5 mortality.

• Education: Ghana had higher youth literacy rate (85.7% in 2010) compared to CIV (53% in 2014).

• Colonial Legacies:

  • Both countries experienced colonial exploitation and extractive institutions.
  • Ghana was a British colony, adopting common law and potentially aiding its financial development and investment. CIV, French colonial, used civil law.
  • British indirect rule in Ghana and French direct rule in CIV possibly influenced governance and decentralization.

• Postcolonial relations: Post-colonial ties between France and CIV likely contributed to differences.

• Ethnolinguistic Fractionalisation: Both countries are diverse, with CIV more ethnolinguistically fractionalized. Ethnic divisions in CIV contributed to civil conflicts.

Development Economics

• Development economics efficiently allocates resources to achieve sustained growth over time. Also addresses social, political, and institutional mechanisms driving development.

Poverty Vicious Cycle

• Low income leads to low savings, investment, productivity, and access to healthcare/education, reinforcing poverty. External interventions are critical to break the cycle.

Similar Problems in Diverse Countries (Africa, Asia, Latin America)

• Poverty and inequality, weak institutions, high population growth, dependence on primary commodities, inadequate infrastructure, and limited access to education/healthcare, conflict, environmental challenges.

PPP vs. Exchange Rate Measures of Income

• PPP measures account for varying prices within countries, reflecting purchasing power parity, making differences between poor/wealthy countries smaller than exchange rate methods in income levels alone.

Explore the Human Development Index (HDI) and its role in measuring socioeconomic development through education, health, and income. This quiz delves into diminishing marginal utility and presents a case study comparing social development in Pakistan and Bangladesh. Test your understanding of these critical concepts.