District Development Indicators
“Think Globally Act Locally”
Centre for Good Governance
Rajeev Parmar
Knowledge Manager
Centre for Good Governance
Dr MCR HRD IAP Campus, Road No. 25, Jubilee Hills,
Hyderabad, Andhra Pradesh (India)
Tel. No. – 91-40-23541907, Fax No. – 91-40-23541953
Email: Rajeev_parmar@yahoo.com, rajeevparmar@cgg.gov.in
The views expressed in this paper are of the author and do not represent the opinion
of the Institution he belongs.
March 2004
District Development Indicators
Content
1. Executive Summary
2. Introduction
3. World Development Indicators
4. Why Indicators System?
4.1 Selection of the Indicators
5. What are District Development Indicators?
6. Why do we need District Development Indicators?
7. District Development Indicators
7.1 Goals to be considered while selecting District Development
Indicators
7.2 Focus areas for selecting District Development Indicators
7.3 District Development Indicators for Andhra Pradesh to be monitored
regularly
8. Future Action Plan for Districts
9. Conclusion
Acknowledgement
References
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District Development Indicators
1. Executive Summary
Improved statistics at regional level is necessary for districts to monitor their own
development, for the state and nation to measure progress towards the MDGs, and
for result-based management of development. The work gives a framework to
measure our efforts towards high growth path using the core development indicators
at district1 level. By deconstructing the components of district growth into discrete
measurements, we can articulate the main drivers of economic progress, which in
turn, reveal the necessary preconditions for a rising standard of living. The core
development indicators will be named as District Development Indicators (DDIs) like
existing World development indicators; latter being for nation’s former will show the
development scenario of districts in a state. The Millennium Development Goals
(MDGs) and the growing emphasis on results-focused development strategies have
in turn increased the demand for timely, reliable, and relevant data. Still till today
many countries lack the capacity to produce and use reliable statistical information.
A sound system of social statistics is vital to the effective development of social
policy, to informed decision-making on policy issues, and to the evaluation of the
impact of social and economic policy. For many countries, inadequate systems of
social statistics constitute a major impediment to effective social development.
Insufficient awareness of the importance of the linkages between policy development
and social statistics, the need for more internationally agreed statistical standards
and guidelines, and the need for improved frameworks in which to summarize policy
outcomes all point to the need for greater national and international priority to be
given to social statistics.
A shortage of skills, resources, and technology has often led to incomplete or
erroneous data. And the unreliability of data has meant less demand from potential
users and fewer resources for statistical agencies. This is an effort to improve
statistical information for districts which is comparable on the one hand and
comprehensive on the other. The main objective of district development indicators is
to produce a limited number of indicators, so that the main trends are highlighted.
The challenge is to strike a balance - the number of indicators should be as small as
possible so that the main messages are clear but at the same time the issues must
not be over-simplified. The purpose of the DDIs as a set of sustainable development
indicators is to complement those more specific indicators by presenting a balanced
set of measures which will allow sustainable development to be assessed. DDIs
should cover the three pillars of sustainable development, namely social progress,
economic growth and environmental protection, including people’s everyday
concerns like health, jobs, crime, air quality, traffic, housing, educational
achievement, wildlife and economic prosperity. Total number of DDIs covering 9
sectors is 45 for all the 23 districts in the state of Andhra Pradesh.
DDIs will also provide useful information to set policies, guide development programs
and monitor outcomes at a regional level. It will lead to effective and timely
monitoring of development effort by all the agencies at a regional level. The main
aim of developing DDIs is therefore to ensure that local players and institutions
acquire four types of skills required for regional competitiveness. Firstly, skills to
1
In India District is considered as an administrative unit at lower level
2
District Development Indicators
assess their environment, secondly, to take joint action, thirdly, to create links
between sectors by ensuring that maximum added value is retained, and lastly to
liaise with other districts and national economy. The DDIs can be further used to
calculate district competitiveness and sustainability indexes, which in turn provide
meaningful information regarding districts performance and future potential, also key
areas to be focused in a district. It is hoped that this publication would serve as
useful reference material for planners, administrators, policy makers, researchers
and other interested in socio-economic development of the state. DDIs are to be
specific, measurable, achievable, realistic and time bound (SMART).
Suggestions for improvement in this publication will be gratefully acknowledged and
appreciated.
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District Development Indicators
2. Introduction
“Growth alone will not be enough to halve poverty by 2015. Developing countries
need to ensure that all people, and especially poor people, have access to education,
health care and put in place the right investment climate to create opportunities, spur
productivity and make real improvements in people’s lives.”
- Nicholas Stern, Chief Economist, World Bank
A sound system of social statistics is vital to the effective development of social
policy, to informed decision-making on policy issues, and to the evaluation of the
impact of social and economic policy. For many countries, inadequate systems of
social statistics constitute a major impediment to effective social development.
Insufficient awareness of the importance of the linkages between policy development
and social statistics, the need for more internationally agreed statistical standards
and guidelines, and the need for improved frameworks in which to summarize policy
outcomes all point to the need for greater national and international priority to be
given to social statistics.
District development indicators should
competitiveness of a district in a state.
provide
complete
information
and
3. World Development Indicators
The World Development Indicators (WDI) is the World Bank's premier annual
compilation of data about development. WDI 2003 includes approx. 800 indicators in
87 tables, organized in six sections: World View, People, Environment, Economy,
States and Markets, and Global Links. The tables cover 152 economies and 14
country groups-with basic indicators for a further 55 economies.
When launched more than a quarter century ago, the World Development Indicators
presented a statistical snapshot of the world as seen by development economists.
As our understanding of the development process has grown, so has the World
Development Indicators. It now encompasses more than 500 indicators covering 152
countries, selected from a database spanning 40 years with more than 800
indicators for 208 countries. It provides a larger picture of poverty trends and social
welfare, the use of environmental resources, the performance of the public sector,
and the integration of the global economy.
The availability of internationally comparable statistics has encouraged a new focus
on measuring development outcomes. The Millennium Development Goals, adopted
by all members of the United Nations, set specific, quantified targets for reducing
poverty and achieving progress in health, education, and the use of environmental
resources. These goals and the growing emphasis on results-focused development
strategies have in turn increased the demand for timely, reliable, and relevant data.
But many countries still lack the capacity to produce and use reliable statistical
information. A shortage of skills, resources, and technology has often led to
incomplete or erroneous data. And the unreliability of data has meant less demand
from potential users and fewer resources for statistical agencies. The result is a long
history of underinvestment in the most public of all goods—information.
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District Development Indicators
In the past several years the World Bank (WB) has expanded its efforts to help
developing countries break out of this vicious cycle. Working in partnership with
national agencies and international donors, WB is helping to build the capacity of
statistical systems to collect, compile, and disseminate reliable statistics. The Bank
also supports training programs to increase the use of statistics to inform public
choices. And by participating in the international statistical system, it is helping to
provide frameworks and standards to guide practitioners.
Improving statistics requires real resources. The World Bank’s Trust Fund for
Statistical Capacity Building, supported by contributions from bilateral aid agencies,
provides grants to support planning of statistical systems. For larger, long-term
projects a new lending facility will provide funding for reforming and expanding
statistical services.
But making long-term improvements in statistics requires more than money. WB
works closely with the International Monetary Fund on the implementation of the
General Data Dissemination System and Data Quality Assessment Framework, both
of which encourage countries to improve the quality of official statistics. The World
Bank is an active member of the Partnership in Statistics for the 21st Century—the
PARIS21 consortium—which helps to build awareness of statistics and provides a
forum where statisticians, policymakers, and other users of data can interact and
articulate needs.
4. Why Indicators System?
An indicator system understands the linkages between economic strength and better
quality of life. By deconstructing the components of district growth into discrete
measurements, we can articulate the main drivers of economic progress, which in
turn, reveal the necessary preconditions for a rising standard of living. The indicator
system also serves as a tool for decision makers in government and sectors like
industry, agriculture, etc.
It identifies both problems and opportunities for
policymakers and business leaders, and indicates possible initiatives for
improvement. Used consistently over time, indicators can help track changes and
trends in economic performance, thereby revealing where policy might best be
employed to spur ongoing improvements in districts’ quality of life.
Some sample based data (for example, employment data from ASI) is less reliable
for small districts, especially when it is further disaggregated by sector of
employment or ethnicity of employees. Other data, such as GDP, is simply not
available below the sub-regional level. In these circumstances, smaller areas may
still find regional or sub-regional data useful to provide contextual information. The
indicators themselves also vary in reliability because of the way in which some of the
data is estimated (for example, GDP at subregional level) and so require careful
interpretation.
4.1 Selection of the indicators
A good indicator should satisfy a number of criteria. It should be scientifically sound
and technically robust, easily understood, sensitive to the change that it is intended
to represent, measurable and capable of being updated regularly. Ideally, we also
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District Development Indicators
need indicators which we can use now to report on progress, which means
information must be available already, or can readily be collected. The selected
indicators should give a broad overview of whether we are achieving a ‘better quality
of life for everyone, now and for future generations to come’. They should also cover
the three pillars of sustainable development, namely social progress, economic
growth and environmental protection, including people’s everyday concerns like
health, jobs, crime, air quality, traffic, housing, educational achievement, wildlife and
economic prosperity.
5. What are District Development Indicators?
DDIs are quantified information which will help to explain how things are changing
over time. They do not explain why particular trends are occurring, and they do not
necessarily reflect the situation in a particular sector of industry or society, or in a
geographical area. But, overall they will provide to policy-makers and the public
reasonable indicators of changes in the economy, assisting economic policy
decision-taking and allowing the public to judge for themselves how the economy is
performing overall.
If we are to make good decisions about policy relating to sustainable development,
we need reliable information about the state of the environment and the factors
which impact on it, including information on relative risks and on costs and benefits
of ameliorating any adverse impacts. There is a considerable amount of information
available about the environment, much of it already published, and similarly there is
a wealth of information about economic and social development. But it is easy to
become overloaded with data and to miss the key messages.
Therefore we need a set of summary statistics which highlight the main issues and
help both policy-makers and the public better understand them. The main objective
of DDIs is to produce a limited number of indicators, so that the main trends are
highlighted. The challenge is to strike a balance - the number of indicators should be
as small as possible so that the main messages are clear but at the same time the
issues must not be over-simplified.
6. Why do we need District Development Indicators?
There is already a package of internationally accepted key economic indicators
which are widely understood, and used to monitor how the economy is performing.
These include growth in the economy, rate of inflation, level of interest rates, balance
of payments, public sector borrowing and debt. The Government uses them in
making its economic policy decisions. They are also widely reported in the media
and are recognised by the public, who understand what levels of, or trends in, these
indicators mean in terms of the performance of the economy.
There are three basic functions DDIs needs to follow - simplification, quantification,
and communication. DDIs generally simplify in order to make complex phenomena
quantifiable so that information can be communicated. More specifically, we need
DDIs because:
6
District Development Indicators




People are concerned about sustainable development and the environment.
They need to be informed about the state of the environment and the
economy and how and why they are changing, so that they can understand
and monitor government policies, and see how their own personal actions
may have an impact. DDIs are therefore needed in a form which is relevant to
the general public and can be readily understood;
DDIs can provide a means of linking environmental impacts to socioeconomic activity, and may is some cases provide early warning of potential
environmental problems arising from human activity;
DDIs can help to measure the extent to which policies aimed at sustainable
development objectives are being achieved;
DDIs can help to clarify the confusion caused by the mass of environmental
and economic data available.
7. District Development Indicators
“Think Globally Act Locally”
The above phrase signifies to adopt a global strategy to improve the overall
producitivity of the districts by "thinking globally" but "acting locally" to address a
common development objective of high sustainable growth.
For developing countries key areas of attention is strengthening the rule of law and
infrastructure to improve the environment for private sector activity, improving the
quality of governance and strengthening capacity in the public sector and increasing
effectiveness of the delivery of human development and related services to poor
people. We need to have regional approach to planning to fight these concerns.
Improved statistics at regional level is necessary for districts to monitor their own
development, for the state and nation to measure progress towards the MDGs, and
for result-based management of development.
Sustainable development is a very complex concept and there are many
interconnections between the environment and socio-economic activity. In some
cases environmental improvement and economic development may go hand in hand,
for example, where industrial process improvements may make a plant more efficient
and reduce pollution. In other cases the benefits to the economy or the environment
may be accompanied by costs elsewhere. There may be a range of different impacts
on the environment from one particular activity; for example, nitrogen dioxide
emissions from transport in urban areas may cause health problems and damage to
the built environment, but the gas may disperse and result in acid deposition in far
away places, damaging soils, vegetation, and aquatic life.
A district’s ability to increase its prosperity is the function of many factors including its
macroeconomic environment, its microeconomic foundations for business and
individual success and its social and environmental health. The capacity for
innovation and upgrading should be the core component of our indicator system. It
should represent an integrated system of the following three elements:

Attitudes towards competitiveness, growth and relative global excellence;
7
District Development Indicators


Investments in education, research and development and commercialization;
Motivations for hiring, working and upgrading.
This gives the
Chart 1
following
AIM
Towards
Model (Chart 1).
 Competitiven
Although
the
ess
 Global
presence of each
Excellence
one
of
these
Attitudes
elements
in
a
In
region is essential
 Education
for
building
a
 Research
district’s capacity
 Infrastructure
Motivations
Investment
 Commercializ
for innovation and
ation
upgrading, it is
their
ongoing
To
interaction
that
 Work
ensures
the
 Hire
 upgrade
district’s ability to
sustain economic
prosperity. The key to close or narrow down the prosperity gap is to improve
productivity. Four elements to drive the district growth or productivity are:
Profile – the proportion of total population who are contributing to its economic
performance;
Utilisation – the proportion of working population who is actually employed;
Intensity – the amount of time those who do work are actually working;
Productivity – the success in translating working hours into products and services
of value to people in district and around the state/country. The high correlation of
productivity with urbanisation, wages around the world shows that it matters a lot in
promoting growth in a region. Only productivity can grow indefinitely. Through
Chart 2
Factor diving innovation
and upgrading
to strengthen the
elements
Attitudes
Structures
and generate
growth
Productivity
Intensity
Investment
GDDP Per Capita
Utilisation
Motivations
Profile
continuous innovation and upgrading we can generate more output from the
available resources. Raising productivity to reduce the prosperity gap – the ability of
the people, firms and government to create value from our labour, intellectual,
physical and natural resources. Increasing productivity does not mean we should all
8
District Development Indicators
work longer hours for less money. In fact, it means the opposite. We should be
creating higher value in our economy than ever before finding smarter ways for
individuals to work. The following Chart 2 defines this more clearly:
Presently the main indicators in AP covering the following listed areas/sectors are
given below (See Table 1). This exercise is done annually by Department of
Economics and Statistics (DES), Government of Andhra Pradesh. Proposed DDIs is
a combination of core indicators selected from existing ones and a set of new
indicators to cover development in more exact and comprehensive manner.
Table 1
Existing DDIs in AP
Sl. No Name of the Indicator
Population
1
Area, Population and Density of Population
2
Rural and Urban Population
3
Villages classified according to size of Population
4
Male and Female Population
5
Distribution of Population by Workers, Marginal Workers and Non-Workers
6
Distribution of Population of workers engaged in Agricultural Sectors
7
Distribution of Population of workers engaged in Non-Agricultural Sectors
8
No. of Houses occupied and Households
9
Literate Population
10
Houseless and Institutional Population
11
Scheduled Caste and Scheduled Tribe Population
12
Distribution of Scheduled Caste Population by Workers, Marginal Workers
and Non-Workers
13
Distribution of Scheduled Tribe Population by Workers, Marginal Workers
and Non-Workers
14
Religion-wise population
15
Scheduled Caste Literate Population
16
Scheduled Tribe Literate Population
Vital Statistics and Public Health
17
Government Medical Facilities (Allopathic)
18
Medical Facilities – Ayurveda
19
Medical Facilities – Unani
20
Medical Facilities – Homoeopathy
Climate
21
Rainfall, Season-wise
22
Area under Food and Non-Food Crops
23
Average Annual Rainfall
24
Maximum and Minimum Temperature at Different Stations
Agriculture
25
Land Utilisation
26
Area under Food and Non-Food Crops
27
Cereals: Area and Out-Turn
28
Pulses: Area and Out-Turn
29
Oil Seeds: Area and Out-Turn
30
Other Crops: Area and Out-Turn
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District Development Indicators
31
32
33
Percentage of Area under Principal Crops to Total Area Sown
Yield per Hectare of Principal Crops
Average Wholesale prices of Certain Commodities during Peak Marketing
Period
34
Agricultural Machinery and Implements
35
Number of Operational Holdings and Size Class
36
Percentage Distribution of Number of Holdings and Area Operated
according to Size Class
Irrigation
37
Area Irrigated by Sources
38
Area of Crops Irrigated
Livestock and Veterinary Services
39
Livestock Development Services
40
Livestock and Poultry Population
41
Marine Fish Production
42
Inland Fish Production
Industries
43
Working of Factories registered under sections 2m (i) and 2m(ii)
Mining
44
Production of Principal Minerals
Fuel and Power
45
Power Consumption, Category-wise
46
No. of Services and Connected Load, Category-wise
Transport and Communications
47
National Highways, P.W.D. (R&B) and Panchayati Roads
48
Number of Post Offices, Telegraph Offices, Telephone Exchanges, Public
Telephones and Telephone Connections
Public Finance
49
Excise: Demand, Collection and Balance
50
Land Revenue: Demand, Collection and Balance
Banks
51
Distribution of Commercial Banks and average population per Bank
52
Classification of Outstanding Credits and Deposits of all Scheduled
Commercial Banks
Education
53
Pre-primary Schools
54
Primary Schools
55
Upper Primary Schools
56
High Schools
57
Higher Secondary Schools
58
Special Schools
59
Oriental Schools (Hindi Vidyalayas and Sanskrit Pathasalas)
60
Reformatory Schools
61
Junior Colleges
62
Government Hostels for Scheduled Caste Students
63
Government Hostels for Scheduled Tribes and Ashram Schools
Co-Operation
64
Working of Primary Agricultural Credit Societies including Farmer Service
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District Development Indicators
Societies
Long Term Loans Disbursed by Andhra Pradesh State Co-operative Bank
65
Judicial
66
Number and Description of Registered Documents and Value of Property
transferred
Police and Crime
67
General Management of Police Force
68
Incidence of Major Cognizable Crimes (IPC) under different heads
Miscellaneous
69
Number of Printing Presses at work, Newspapers, Periodicals and Books
Registered
70
Incidents of Fire Accidents
71
Backward Classes and Economically Backward Classes
72
Number of Public Libraries
73
Public Distribution System
Source: Statistical Abstract 2003, DES, Government of Andhra Pradesh
Above table consists of indicators covering all districts apart from this there exists
indicators covering other areas like health, family welfare etc. Since DDIs main
objective is to capture the overall growth and development focus is on key/core
indicators.
7.2 Focus areas for selecting DDI’s
Economic strength - context of AP
The economy supplies the goods and services that individuals, firms, and
governments demand and pay for with the income they earn by supplying labor,
capital, and other resources—which in turn are used to produce goods and services.
The systematic analysis of this circular flow of economic activity and its codification
in a system of national accounts were among the important accomplishments of
20th-century economics.
While no person on earth is completely isolated from the global economy, some
economic transactions are not measured in the national accounts. Some exclusion
from the national accounts is deliberate—the goods and services produced by
women working at home are a famous example. But other types of production are
left out also because they are unpriced, unmarketed, and therefore unrecorded.
Often these are the activities of greatest importance to the poorest people. Other
omissions occur because the producers or consumers have reason to hide their
activities or because national statistical systems are inadequate for the task of
measuring them. And measurement errors affect the reliability of all economic
statistics.
Economic growth leads to higher living standards and greater prosperity for
individuals, generally improving the quality of life. The measure for district overall
growth is GDDP, and further showing the improvement in quality of life is GDDP per
capita. Gross Value Added (GVA) is used in the estimation of Gross State Domestic
Product (GSDP). GSDP is a key indicator of the state of the whole economy;
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District Development Indicators
similarly, Gross District Domestic Product (GDDP) indicates the overall health of the
district, districts contribution to GSDP can also be used as a proxy to measure
district growth.
Giving people opportunities for work is a key objective underlying sustainable
development. Employment provides income for individuals enabling them to improve
living standards and meet their social needs, and makes the best use of human
resources. Levels of employment are closely related to economic activity which is
covered by the GSDP/GDDP indicator. To minimize unemployment in the longer
term, people need the right skills to do the jobs available and this requires
investment in education and training.
Land use: New homes built on previously developed land
Land resources are finite, fragile, and
Andhra Pradesh : Land Utilisation, 2001-02
non renewable, so countries must
meet their increased need for food and
other agricultural products mainly by
raising and sustaining crop and
livestock yields and by using land
more
intensively.
Sustainable
development means
maximising the re-use of previously
developed land in order to protect the
countryside and also to encourage
regeneration of towns and cities.
Urban land use needs proper attention
for the development of a district.
Fallow Lands
16%
Forest
23%
Permanent Pastures and
grazing lands
2%
Barren & Uncultivable Waste
8%
Net Area Sown
39%
Land put to non Agricultural
Use
9%
Cultivable Waste
3%
2. Social investment
Social investment constitutes investment in public assets like transport, hospitals,
schools, water supply, sewerage and waste disposal services, etc. Sustainable
development means living off our income, not eroding our capital base, so that we
are not storing up problems for future generations. Especially important is investment
in "public" assets which benefits everyone. This indicator measures investment in
public assets which means investment which benefits everyone. Net investment
(after taking account of worn or obsolete assets) and capital stock is equally
important, and the indicator will be developed to include these measures if reliable
estimates can be made.
When assessing sustainability issues, this indicator should be considered alongside
other indicators; for example, investment in education should be assessed together
with changes in education standards; investment in health should be assessed with
changes in people's health; investment in rail and roads needs to be considered
together with changes in traffic volumes, and investment in sewage treatment needs
to be considered with changes in river quality.
(I) Industrial strength
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District Development Indicators
The competitive industrial performance index (CIP) as suggested by UNIDO to
benchmark industrial performances of economies can be constructed from four basic
indicators of industrial performance including manufacturing value added per capita;
manufacturing exports per capita; share of medium and high-tech activities in
manufacturing value added; and the share of medium- and high-tech products in
manufactured exports.
To raise awareness and assist governments, intermediary institutions and civil
society organizations, including business communities, on:
 How to compare and monitor industrial performance and drivers with other
districts in terms of Industrial policy of the state
 How to make an effort towards national strategies and policies for sustainable
industrial development;
 How to use the advanced sources of technology and knowledge to develop
domestic industrial capabilities;
 How to build competitive productive capabilities and upgrade them over time;
 How to strengthen the state innovation and learning systems.
(II) Infrastructure strength
Infrastructure in this era of globalization plays a crucial role in sustaining and
promoting the economic and social development of our economies. Further
infrastructure investment plays a vital role in reducing poverty and promoting
economic development by creating employment and increasing production in the
region.
4. Social strength
Pro-poor, sustainable economic development: This means development that is laborabsorbing, and is accompanied by policies and programs that facilitate employment
and income generation for the poor, particularly women and other traditionally
excluded groups. Along with this promoting a conducive environment for the private
sector and promotion of micro-finance planning and ''workfare'' schemes. The most
important role for external agencies (government, NGOs) is to create an enabling
environment in which the poor have an incentive to mobilize, rather than directly
supporting the mobilization of the poor (Joshi and Moore (1999).
Human development indicators for districts
Ensuring a better quality of life for everyone is central to sustainable development. A
priority for most people is enjoying a long and healthy life. The indicator shows how
life expectancy has been changing as a result of improvements in overall health and
in health care systems. Socio-economic factors have a strong influence on people's
health and expectation of long life. Expected years of healthy life are also influenced
by factors such as a good diet, non-smoking and regular exercise and improvements
in health will depend to some degree on people adopting healthier lifestyles.
Kerala tops the index and Bihar is at the lowest rank among the 15 major states.
The low rank of Andhra Pradesh shows that we need to monitor and improve our
position with respect to adult literacy rate, gross enrollment in school going age
group and life expectancy at birth.
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District Development Indicators
Housing quality in a district
Housing
is
another
key
Extent of Land Number
component of a decent quality of State
Acquired (Acres)
of
life. ‘Housing for all’ strategy
Beneficiaries
should focus on providing
34,289.59
10,36,969
housing to poor and socially Andhra
Pradesh
backward people in the district.
The table gives overall number of house sites distributed to scheduled castes,
scheduled tribes, backward classes and economically backward classes in the state
(as on 31.3.2001). Further, the quality of housing do needs serious consideration as
it causes harm to health, and is often linked with other social problems.
5. Competitiveness to attract capital
Development doesn't just "happen," no matter how much money you throw at it.
From over 50 years of experience in attempting to spur development growth, we
have learned several simple lessons. Development requires economic growth.
Economic growth occurs when people and their governments respond to economic
incentives. To attract capital sound economic policies and capacity building exercise
needs to be done in districts.
6. Environmental
A key sustainable development objective is to control air pollution in order to reduce
the risks of harm to human health, and to the natural environment. Climate change is
recognised as one of the greatest environmental threats facing the world today. All
countries have acknowledged the need to reduce greenhouse gases like carbon
dioxide, which are causing global temperatures to rise. Carbon dioxide emissions are
mainly driven by energy consumption. For business and the public sector, which
account for most of the total emissions, there is considerable scope to improve
energy efficiency cost effectively, which will also cut their costs. Households can
help to reduce emissions and save money by being more energy efficient, by
insulating their homes and using more energy efficient appliances.
The key sustainable development objective is to strike the right balance between the
ability of transport to assist economic progress and to meet people's needs for
access, while protecting the environment. In the past traffic growth has been highly
associated with economic growth, but now the resulting volume of traffic and
congestion is at the heart of many of the problems we face. The total number of
transport vehicles on road in the state has recorded a growth rate of 11.42% during
2001-02 over 2000-01 as on 31.3.2002.
Waste: Waste and waste disposal
Excessive production of waste may be a symptom of inefficient use of resources,
and dealing with waste once it has been produced has an impact on the environment.
The level of waste can be used as a proxy for a measure of the efficient use of
resources, but it does not give the full picture. The Government should consider
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District Development Indicators
ways of measuring the total resource consumption in the State and then in each
district.
Wildlife: Population of wild birds
We value wildlife for its own sake and because it is an integral part of our
surroundings and our quality of life. Birds are regarded as good indicators of wildlife
and the health of the wider environment. Birds are generally believed to be good
indicators of the broad state of wildlife and the countryside, as they are wide-ranging
in habitat distribution and tend to be at or near the top of the food chain. Birds are
well studied and monitored and reasonably reliable estimates of their populations are
available annually, so unlike many other species of animals and plants, a bird
indicator can be regularly updated. Another indicator to track is net change in key
species populations.
7. Good Governance
Andhra Pradesh (AP) is the first state to promote the principles of good governance
by setting up a centre named as ‘Centre for Good Governance’ (CGG) exclusively of
implementation of Governance reforms in the State. The state had made a route
map for the implementation of the programme. AP’s Vision 2020 describes the propoor governance as follows:
 Eradicate poverty and take care of it’s old, infirm and genuinely needy
 Empower and support it’s women and girls to fulfill their roles as equal
shapers with men of the economy and society
 Make it’s government Simple, Moral, Transparent, Accountable And
Responsive (SMART)
 Ensure that its people continue to have a strong voice and role in the
governance of their state
The above six fields are themselves strongly interconnected. For example, the
expansion of productive employment is a key issue affecting the status of women
and men and the incidence of poverty; changes in population composition affect the
demand and supply of labour; and gender issues are key determinants of population
growth and development.
7.3 DDIs for Andhra Pradesh to be monitored regularly
I. Economic strength
“Economic growth is (like) a wild horse; it needs to be trained to serve the real
interests of society. If the horse misbehaves in some societies, leading to deprivation
of many human lives, than the fault is not that of the horse but the skill of the rider.
Economic growth is essential in poor societies – but even more important is its
structure and distribution”
- Mahbub ul Haq
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District Development Indicators
Alongwith economic strength
also needed are health and
education systems that deliver
services to everyone, men and
women,
rich
and
poor.
Infrastructure that works and is
accessible to all. And policies
that
empower
people
to
participate in the development
process. Unemployment rate
can be calculated as a
percentage
of
employable
people actively seeking work,
out of the total number of
employable people.
S.
No.
1
Indicators for Economic Strength
Yield –
a) Total foodgrains b) cereals c) pulses d)
oilseeds e)other crops
2
Per capita income in a district
3
Contribution to GSDP
4
Employment generated
5
Unemployment rate
6
Population of a District
Fertiliser Use - There are
7
Consumption of Fertilizer
different types of fertilisers
which have varying potencies.
Application of fertiliser is measured in term of Nutrient Tons (N. Tons). Consumption
of fertiliser measured in N. Tons is divided by the cropped area of the district. This
will give how efficiently farmers are using the chemical fertilizers in a district.
II. Industrial strength
Business start-up and closure
rates and net new firm formation
Building Permits Total (Lakhs of
Rupees), Residential (Lakhs of
Rupees), Commercial (Lakhs of
Rupees), Industrial (Lakhs of
Rupees)
Small Scale Industries
Large & Medium Scale Industries
S.
No.
1
Indicators for Industrial Strength
Gross Value Added
2
Index of Industrial Production
3
Establishment of New Industries in a
district – Small, Medium and Large
scale
III. Infrastructure strength
High-quality infrastructure and other business services help determine the success
of manufacturing and agricultural businesses. Investments in water, sanitation,
energy, housing, and transport improve health and education and help reduce
poverty. Investment in infrastructure—whether in power, transport, housing,
telecommunications, or water and sanitation— enables businesses to grow. And
when private firms participate in infrastructure, bringing with them capital and knowhow, they can
16
District Development Indicators
improve access to basic
infrastructure services, a key
to reducing poverty.
Transport & Communication
The indicators are pucca road
per 100 Sq. Kms. katcha road
per 100 Sq. Kms, total motor
vehicles (Car, Jeep, Station
Wagons)
registered
per
thousand households, total
two wheelers registered in the
district, etc.
S. No.
Indicators for Infrastructure Strength
1
Banks in the Districts
2
Hospitals in the Districts
3
High Schools in the District
4
Post Offices in the District
5
Surfaced and Unsurfaced roads
6
Telephone Connections
7
Total Number of Vehicles registered in
Districts
Urban Population with Access to
Sanitation
8
IV. Information technology
Indicators
measure
the S. No. Indicators for Information Technology
percentage
of
population
1
Number of Internet Connections
online; the number of ".com"
domain name registrations;
2
Number of Personal Computers
technology in schools; the
degree to which districts
3
Number of ".com" Domain Name
governments use information
Registrations
technologies
to
deliver
4
Number of Services Delivered Online
services;
Internet
and
computer use by farmers;
Internet use by manufacturers; and access by residents and businesses to
broadband telecommunications.
V. Social strength
Education is a powerful instrument for reducing poverty and inequality, improving
health and social well-being, and laying the basis for sustained economic growth. It
is essential for building democratic societies and dynamic, globally competitive
economies.
Increasing the productivity of their labor through investments in education and health
is often the most effective way to improve their welfare. Investments in education
widen horizons, making it easier for people to take advantage of new opportunities
and helping them to participate in social and economic life.
Gender aspects
Of the many inequalities in human development, the most striking is that along
gender lines. Women are underrepresented in local and national decision making
bodies. They earn less than men and are less likely to participate in wage
employment. The accumulated empirical evidence demonstrates the centrality of
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District Development Indicators
gender equality for equitable and sustainable development and poverty reduction.
Many states that fail to promote equality between men and women tend to
experience slower economic growth and more persistent poverty in their populations
than those that promote equality. AP falls under high disparity profile as given in the
Map, source being World Bank. Overcoming women’s disadvantages in the labor
force and increasing their representation in public life will also help encourage girls to
attend and stay in school. Increasing opportunities for women will also contribute
toward other goals for reducing poverty, educating children, improving health, and
managing environmental resources. For example, there is strong evidence that the
children of mothers with less education are more likely to be malnourished and have
higher mortality rates—and that educated women make better decisions in seeking
health care for themselves and their families.
Sex Ratio – Prabhu et al. (1996) used female –male ratio as an indicator of gender
development as it more sensitive to the social and cultural factors that influence the
status of women in society.
Only a small proportion of women find that their work gets paid and recorded as
participation in the labour force. Labour force participation as a concept and in its
measurement grossly understates women's work even in the productive, commodity
producing sphere.
S.
Indicators for Social Strength
No.
Health
1 Sex ratio
Few indicators are
2 Life expectancy at birth (years) – male, female
doctors
for
ten
thousand, nurses per
3 Labour force participation – male, female
thousand, Para-medics
per thousand (Para4 Income / wages in a district – male, female
medics comprise of
Or
LHVS, radiographers,
Per Capita Gross District Domestic Product – male,
health
technicians,
female
dispensers/
persons
5 Literacy Rates – Male, female
dressers,
x-ray
6 Gross enrolment ratio (%) – male, female
technicians,
x-ray
assistants,
O.T.
7 Student per school in a district
technicians,
O.T.
assistants, laboratory
8 Student per teacher in a district
technicians, laboratory
assistants,
midwives
9 Teacher per school in a district
and dai-s), bed in
10 Percentage of people below poverty line
hospital
per
ten
thousand, etc.
VI. Environment strength
Sustainable development can be ensured only by protecting the environment and
using its resources wisely. The Millennium Development Goals call for integrating
principles of environmental sustainability into country policies and programs and
reversing environmental losses. This requires measuring and monitoring the state of
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District Development Indicators
the environment and its changes as well as the links between the economy and the
environment.
Given the close links between S. No. Indicators for Environment strength
economic
activity
and
1
Carbon Dioxide Emissions in a district
environmental change, there is a
strong argument for developing
2
Change in Forest Cover
indicators that integrate the
economy and the environment
3
Energy Consumption in a district
more closely. The MDGs draw
attention to some of the
4
District Population with Access to Water
environmental conditions that
need to be closely monitored—
5
Population of Birds and Animals in a
changes in forest coverage and
Districts
biological diversity, energy use
6
Net change in key species population
and the emission of greenhouse
gases, the plight of slum dwellers
7
Number of businesses operating a
in rapidly growing cities, and the
waste minimisation strategy
availability of adequate water
8
Quality of material recycled as a ratio of
and sanitation services.
solid waste generated
The lack of adequate data
hampers efforts to measure the
state of the environment and design sound policies. Another problem is that many
environmental indicators are not meaningful at the national level. Climate change
and air and water pollution have impacts that go beyond national boundaries. Other
environmental issues are local. So global, regional, or city indicators are often more
meaningful than national aggregates. Environmental and sustainable development
concerns – CO2 emissions per capita, GDDP per unit of energy use, population with
sustainable access to an improved water source (Rural & Urban), urban population
with access to sanitation.
The use of energy and, even more so, access to electricity are important in raising
people’s standard of living. But energy use and electricity generation also have
significant environmental consequences. Generating energy produces emissions of
carbon dioxide, the main greenhouse gas contributing to global warming. The other
indicators for waste management in a district are number of businesses operating a
waste minimisation strategy and quality of material recycled as a ratio of solid waste
generated.
VII. Trade for development
Districts should market the products, areas of
Expertise/excellence.
The S. No.
Indicators for Trade
exchange of goods and
1
Value of Trade between Districts, State,
services across states or
Other State, Other Countries
abroad is a primary indicator of
a district’s integration with the other regions or trading destinations. Trade spurs
economic growth by encouraging specialization in line with a district’s comparative
advantage while increasing potential capital inputs and consumer choice.
VIII. Good Governance strength
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District Development Indicators
Growth is fastest in a good investment climate where good economic policies and
good governance assure investors and workers of the rewards for their efforts.
Indicators of good governance included in the Millennium Development Goals
(MDGs) specify that the number of indicators should be small. As any single
objective indicator tends to measure only a very small part of the institutional and
governance environment, a large number of indicators is needed for a fair and
accurate depiction.
A Good Governance indicator incorporates Voice &
Accountability, Political Stability, Government Effectiveness, Regulatory Quality,
Rule of Law and Control of Corruption. Regulation & Promotion of Entry (for example,
Single Window System), Tax Revenue (Administrative Capacity), Budgetary
Volatility- theory and evidence indicate that volatile and unpredictable government
policy reduces private investment and Low Debt burden (Proper Planning, Volatile
and unpredictable government revenue collection policy can discourage adequate
long run planning).
More important than the size of government is its effectiveness. If public institutions
function poorly and governance is weak, the private sector will be stifled, debt
burden will be high, investment will be deterred, and growth and equitable
development will falter.
The only way to attain reasonable accuracy, while maintaining objectivity and
keeping the number of indicators low, is to aggregate indicators into smaller number
of indices. For example, trade taxes as a share of all government revenues is
sometimes used as a proxy for administrative capacity, but it also may be affected by
trade policy.
Good Governance Indicators can be the following: Districts Administrative Capacity
which is total domestic trade
S. No.
Indicators for Good Governance
taxes divided by the total
revenue in a district. For
measuring good governance at
1
Tax Revenue collected by the districts
state or district level (if data is
available) we should capture
2
Debt Burden of districts
the debt burden, tax revenue
and the level of corruption.
Crime data on violent crimes,
3
Level of corruption
property crimes and other
crimes in the districts. Violent
4
Crime data – Violent, Property and Other
crimes includes murder, rape,
Crime
robbery,
kidnapping
&
abduction- total, Women & Girls,
others and dowry deaths. Property crimes include burglary, dacoity, theft and
cheating. Other crimes include riots, criminal breach of trust, molestation & sexual
harassment and other IPC crimes.
Total number of DDIs covering 8 sectors is 45 for all the 23 districts in the state of
Andhra Pradesh.
Though key areas are covered by the list given above, the focus needs to be on
increasing efficiency (for example, energy efficiency) and productivity and to make
the growth sustainable in the districts. In AP, productivity growth during 1990s seems
to be lower in all sectors, and not limited to particular growth engines or certain
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District Development Indicators
products. In West Bengal and Punjab, the two states with good agricultural
performance, labor productivity growth is 2.3% compared to only 1% in AP. Similarly,
total factor productivity (TFP) growth in industry is only 0.3% in AP compared to
2.0% average growth rate in Gujarat, Karnataka, Maharashtra, and Tamil Nadu. In
services, AP’s labour productivity growth is same or marginally higher than the
corresponding number for the four states (World Bank Study).
8. Future Action Plan for Districts
All Districts should try to enhance and monitor progress on the basis of the following
economic development objectives from now onwards.
Strategic Economic
Development Objectives to be fulfilled from the DDIs in each of the district are as
below. Strategic Economic Development Objectives means strategies to be
designed covering all sectors to promote overall development and well being of a
district in a sustainable framework.
Objective 1 - Image of the District
To enhance the image of the District by building on existing unique assets, strengths,
opportunities in technology, manufacturing, commerce, independent retailing,
tourism, arts, agriculture, environment, etc.
Priority 1 - Develop partnerships and initiatives to coordinate marketing and
promotional activity across and between all sectors within the District.
Priority 2 – Promote the image of the district as a premier investment, business and
tourist location.
Priority 3 - Develop the theme of excellence across all sectors for different products,
activities and events associated in the district.
Priority 4 - Develop activities on information gathering, lobbying and advocacy to
ensure the District is well placed to maximise its profile and opportunities at local,
regional and national levels.
Objective 2 – Infrastructure
To encourage the sustainable development of the District’s infrastructure, meeting
the communications, transport, land development, housing and environmental needs
of the whole community.
Priority 1 – Ensure that there is sufficient supply of land, premises and housing, both
rural and urban to meet the needs of inward investors, new and existing businesses,
whilst safeguarding the environment.
Priority 2 – Promote the development of an integrated transport strategy for the
District recognising the special needs of rural areas.
Priority 3 - Develop an information and communications technology strategy for the
District and building of unique technological, industrial and educational strengths in
the area.
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District Development Indicators
Priority 4 – Continue to improve the quality of District facilities, centres and business
areas to create a safe and attractive environment for those living, working and
visiting the area.
Priority 5 – Develop the role of the District’s market towns and temple towns as hubs
for service delivery to the rural hinterlands.
Objective 3 – Business Support
To encourage innovation, growth, competitiveness and sustainability of all
businesses within the District, to diversity and strengthen its economic base.
Priority 1 – Develop and use methodologies like ‘Regional Innovation Strategy’ and
the technological strengths to promote research, development and knowledge
transfer to support new and existing innovation led businesses and to aid the
development of a high-tech cluster. (‘Regional Innovation Strategies’ are EUsupported programmes to enlarge the innovative capacity of regions, primarily
through local networking, collaboration and action-oriented research. They develop
a regional consensus and a strategy to improve business competitiveness through
innovation.)
Priority 2 - Support identified growth sectors/engines and the diversification of
business in the local economy.
Priority 3 – Work with partners to provide a single access point (like Single Window
System) to business advice, support and information, and to encourage start up of
new businesses. User friendly guide for Industrial clearances is in progress to help
potential investors for the same.
Priority 4 – Encourage and support the development of education and business
partnerships to encourage young people to stay, or return to the area.
Priority 5 – Recognise the special needs of rural businesses, particularly agriculture
and work with these businesses to help them grow and diversify.
Objective 4 – People
To maximise the opportunities for all people in the districts to achieve their full
academic, vocational, creative and personal potential.
Priority 1 – Seek to understand the current and future needs of local employers and
communicate these to the local workforce to balance supply and demand of skills
and support economic growth.
Priority 2 – Work with partners to promote a culture of lifelong learning and skills
development within the districts.
Priority 3 – Encourage local employers to develop links with local communities and
schools and recruit locally.
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District Development Indicators
Priority 4 – Identify areas of disadvantage, or where barriers to access to
employment exist, and develop initiatives to meet the special needs of these areas.
Priority 5 – Support community development initiatives to increase the capacity of
stakeholders, the voluntary and community sectors and local residents to deliver
activities as per the needs of the communities.
The aim of developing DDIs is therefore to ensure that local players and institutions
acquire four types of skills required for regional competitiveness. Firstly, skills to
assess their environment, secondly, to take joint action, thirdly, to create links
between sectors by ensuring that maximum added value is retained, and lastly to
liaise with other districts and national economy.
9. Conclusion
As per the study the total number of DDIs covering 8 sectors is 45 for all the 23
districts in the state of Andhra Pradesh. These DDIs can be further used to calculate
district competitiveness and sustainability indexes, which in turn provide meaningful
information regarding districts performance and future potential, also key areas to be
focused in a district. We hope that proposed DDI’s will serve the required purpose of
a policymakers, researchers, or interested citizens.
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District Development Indicators
Acknowledgement
I wish to thank Dr P. K. Mohanty (Director General & Executive Director, CGG) and
Dr C. S. Rangachary (Workstream Leader) for their comments on the earlier drafts of
this paper. I am also indebted to Shri Satish Chandra, Secretary to Chief Minister of
AP, for going through the entire report and giving his valuable comments.
I am also thankful to Mr. Ch Vijay Krishna, Presentation Specialist, for providing
valuable assistance for the paper.
References
“Constructing an Index of Objective Indicators of Good Governance”, Steve Knack &
Mark Kugler, PREM Public Sector Group, World Bank, October 2002
Statistical Abstract 2003, 2002, Directorate of Economics and Statistics, Government
of Andhra Pradesh (GoAP).
Economic Survey 2002-2003, GoAP, Planning Department, Hyderabad.
World Development Indicators, 2003, World Bank Publication.
World Development Report, 2003, World Bank Publication.
Fortin, P. (1999) “The Canadian standard of living: Is there a way up?” Benefactors
Lecture, C.D. Howe Institute, Toronto.
Human Development Report, 2002, 2003, UNDP.
“Better Measuring, Monitoring and managing for Development Results”,
Development Committee Meeting, International Monetary fund (IMF), September
2002
“Achieving the MDGs and related outcomes: A framework for monitoring policies
and actions”, Report to the Development Committee, World Bank, March, 2003
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