DATA150

11/2 Essay: Since this is a course on human development, I think you should be aware there exists a “Human Development Index (HDI)”. This index attempts to quantify the level of human development of a country. It was developed by Pakistani economist Mahbub ul Haq and Indian Nobel laureate Amartya Sen. The United Nations Development Programme (UNDP) compiles the HDI of 189 countries in their annual Human Development Report. You can see the latest rankings here. It attempts to place people at the center of the development process in terms of economic debate, policy, and advocacy and is framed in terms of whether people are able to “be” and “do” desirable things in life. The indicators used in the 2020 report were life expectancy at birth, expected years of schooling for children, mean years of schooling for adults, and gross national income per capita. These indicators are used to create a health index, an education index, and an income index, each with a value between 0 and 1. Read this for an overview. Do you think additional information or data could be added to the HDI calculation to possibly improve it or make it a more accurate measurement of human development? If yes, what things? If no, why no? Keep in mind the conversation with Tyler Cowen. You have until 10:05.

The Human Development Index (HDI) was created by Mahbub ul Haq and Amartya Sen in an attempt to be a more comprehensive measure of human development than purely economic measures such as gross domestic product. The index incorporates three dimensions of human development: a long and healthy life, knowledge, and decent living standards. I do believe that additional information and data could be added to the HDI calculation to improve it for a more accurate measurement. A fuller picture of a country’s level of human development does require analysis and measurement of other indicators. According to the UNDP, the HDI only captures part of what human development entails, excluding reflecting on a country’s inequalities, poverty, human security, and empowerment, all important aspects of a country’s development. Another indicator I believe would improve the accuracy of the HDI measurement would be gross domestic product. As Tyler Cowen mentioned in his conversation with Ezra Klein, the future is as important as the present and economic growth is the driver of future growth.