HUMAN DEVELOPMENT REPORT
2001
An Introduction
By
A.M.Farahat
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CONTENTS
1. Human Development
2. Human Development Index (HDI)
3. Human Development Report (HDR)
4. Human Development Report 2001
A. Review of Past Trends
5. Ranking of ESCWA countries
6. Purchasing Power Parity
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1. HUMAN DEVELOPMENT
There has always been a quest for a
QUANTITATIVE measure of Human
Development (HD) for the purposes of :

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
RANKING and,

COMPARISONS among countries.
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1. HUMAN DEVELOPMENT
UNIDIMENSIONAL measures such
as per capita income/GDP has several
shortcomings. Chief among these are:
 Exchange rate problems.
 Price level problems.
 These were largely solved through the
Purchasing Power Parity (PPP) rate of
exchange.

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1. HUMAN DEVELOPMENT
Purchasing Power Parity (PPP) rate of exchange
Purchasing Power Parity (PPP) rate of
exchange
A rate of exchange that accounts for
price differences across countries. PPP
US$1 has the same purchasing power in
the domestic economy as 1 US$ has in
the United States.
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1. HUMAN DEVELOPMENT
However there was still a need for a
COMPOSITE
MULTIDIMENSIONAL measure which is
more representative of HD.

These requirements are largely
satisfied in the HDR through
computations of the HDI.

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1. HUMAN DEVELOPMENT
Human Development Report
Initiated in 1990 by the late Mahboub
El Haq (1934-1998).
 The purpose is to monitor HDI for the
various countries of the UN and rank
them accordingly
 A report is published annually by
UNDP

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2. HUMAN DEVELOPMENT INDEX (HDI)
Introduction
A COMPOSITE measure of human
development
 Measures overall achievement of a
COUNTRY in three basic
DIMENSIONS.

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2. HUMAN DEVELOPMENT INDEX (HDI)
Dimensions
Longevity
 Knowledge.
 Decent standard of living.

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2. HUMAN DEVELOPMENT INDEX (HDI)
Measures of Dimensions
Longevity
 Knowledge
: Life expectancy index
: Education attainment
index
 Standard of living : Per capita income index in
Purchase Power Parity,US$
 HDI is the simple average of the 3 dimensional
indices.
 Uses World Bank PPP exchange rate

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2. HUMAN DEVELOPMENT INDEX (HDI)
A Multidimensional Composite Index
Dimension 1
Indicator1.1
Dimension 2
Indicator2.1
Index 2.1 (0-100)
Index 1 (0-100)
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Indicator2.2
Dimension 3
Indicator 3.1
Index 2.2 (0-100)
Index 2 (0-100)
Index 3 (0-100)
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2. HUMAN DEVELOPMENT INDEX (HDI)
Dimension 1
Dimension 2
Dimension 3
A long and
healthy life
Knowledge
A decent standard
of living
Indicator1.1
Indicator2.1
Indicator2.2
Indicator 3.1
Life expectation
at birth
Adult literacy
rate
Gross enrolment
ratio GER
GDP per capita
(PPP US $)
Index 2.1 (0-100)
Index 2.2 (0-100)
Adult literacy
rate Index
GER
Index
Index 1 (0-100)
Index 2 (0-100)
Life expectancy
Index
Education Index
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HDI
Index 3 (0-100)
GDP Index
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2. HUMAN DEVELOPMENT INDEX (HDI)
Supplementary Indices

Human poverty index (HPI).

HPI1

HPI2
Measures the backlog of deprivation that still in the 3 basic
dimensions in developing countries (HPI1) and selected
OECD countries (HDI2).
Gender-related Development Index (GDI).
 Measures the inequality in the achievements in the three
basic dimensions between men and women.


Gender Empowerment Measure (GEM).
It exposes inequality in opportunities in selected areas.
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3. HUMAN DEVELOPMENT REPORTS (HDR)
Structure
Each report is roughly made up of:
A main body focusing on a HD related
theme.


A set of tables showing for each country:
 HDI
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
HPI1, HPI2

GDI

GEM

Associated indicators
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3. HUMAN DEVELOPMENT REPORT (HDR)
Themes of Previous Issues

1990: Concept and Measurement of Human Development

1991: Financing Human Development

1992: Global Dimensions of Human Development

1993: People’s Participation

1994: New Dimensions for Human Security

1995: Gender and Human Development

1996: Economic Growth and Human Development

1997: Human Development and Poverty Eradication

1998: Consumption for Human Development

1999: The Humanitarian Aspects of Globalization

2000: Human Rights and Human Development
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4. HUMAN DEVELOPMENT REPORT (HDR) 2001
Main Features
In addition to HDI and related indicators,
the report provides:
A. Review of past trends
B. Theme: Making New Technologies
Work for Human Development
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4. HUMAN DEVELOPMENT REPORT (HDR) 2001
A. Review of Past Trends
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4. HUMAN DEVELOPMENT REPORT (HDR) 2001
A. Review of Past Trends
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4. HUMAN DEVELOPMENT REPORT (HDR) 2001
A. Review of Past Trends
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4. HUMAN DEVELOPMENT REPORT (HDR) 2001
A. Review of Past Trends
Progress in the last 30 years has been impressive…
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4. HUMAN DEVELOPMENT REPORT (HDR) 2001
A. Review of Past Trends
...But the pace of the progress and the levels of
achievement vary widely among regions and groups
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5. RANKING OF ESCWA COUNTRIES IN
HDR 2001
High HD:
Bahrain
Kuwait
United Arab Emirates
Qatar
Medium HD:
Lebanon
Saudi Arabia
Oman
Jordan
Syria
Low HD:
Egypt
Yemen
Not mentioned:
Palestine
Iraq
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40
43
45
48
65
68
71
88
97
105
133
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THANK YOU
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6. PURCHASING POWER PARITY (PPP)
A rate of exchange that accounts for
price differences across countries. PPP
US$1 has the same purchasing power in
the domestic economy as 1 US$ has in
the United States.
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6. PURCHASING POWER PARITY (PPP)
PPP data generated by UN International
Comparison Programme (IPC).
 Published by the University of
Pensilvania and the World Bank.
 In spite of its associated reservations,
it’s far superior to the available alternative

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6. PURCHASING POWER PARITY (PPP)
PPP as a rate of conversion ensures that money
exchanged for a dollar buys the same amounts of goods
and services in every country. By equalizing prices
every where, PPP rates deliver a measure of relative
GDP which is based on what constitutes real income—
the volume of goods and services embodied in GDP.
The method is analogous to evaluating quantities of
different years at fixed base year prices.
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6. PURCHASING POWER PARITY (PPP)
There are many methods of computing PPP
rates, each yielding different estimates.
PPP rates are estimated from survey data
by computing price ratios of comparable
items and aggregating them by their
corresponding weights in GDP.
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