India stuck low on UN development index

Shows insignificant improvement and is way behind other emerging nations

India has made insignificant improvement on the Human Development Index (HDI) between 2012 and 2013, the Human Development Report 2014, released on Thursday reveals. Stuck on the 135th rank like last year, the HDI value of the country rose marginally from 0.583 to 0.586 on the index.

HDI 2013 COMPARING COUNTRIES | Create Infographics

The Human Development Report, an assessment carried out by the United Nations Development Programme (UNDP), ranks countries on the basis of key social indicators to review how nations have fared on developmental and social goals. It ranks countries on an index reflecting long-term progress on human development — long and healthy life, access to education and standard of living. India has for years languished in the group of countries that attain medium HDI values and rank below the top 100 performers.

 

The report notes the slowing of the global economy had also reduced the pace of improvement in social development parameters, though some countries were impacted more than others.

UNDP advocates strongly for universal delivery of social programmes, including health care and right to education, warning that hundreds of millions remain vulnerable to slipping back in a trap of extreme poverty, as a consequence of economic shocks, natural calamities, environmental hazards and conflict.
 

For India, the report reiterates how badly the country has done on development parameters, even as it has improved per capita incomes substantially since the 1980s. India scores below the average HDI value for South Asia, as well as the average HDI value of countries in the middle HDI range. Since 1980, the per capita income of the country, measured in 2011 purchasing power parity basis in dollars, has increased fourfold but the HDI ranking has improved only 1.6 times over the 23 years.

INEQUALITY ADJUSTED HDI | Create Infographics

Comparing the India story with other emerging economies is not so straight and simple, the data shows. India is the poorest cousin in the group of emerging economies, though it often sits on the same table at international forums. Its per capita income is much lower than that of Brazil, China, South Africa and Indonesia, its HDI ranking is lower and so is the rate of improvement on the HDI values over time and economic growth.

China seems to have made the most rapid improvements in both income levels and on social parameters. Though the HDI report does not talk of it, China’s investments in social security have kept on increasing steadily (as a share of GDP) with increase in income levels, while in India these have not for critical areas such as health.

 

GENDER DEVELOPMENT INDEX | Create Infographics

On the face of it, much smaller economies in the Caribbean and Africa seem to be doing better than India but the data suggests the correlation with social development exists with per capita income levels and not gross national income levels.

With a few exceptions, the general trend shows that increase in per capita national incomes, regardless of the size of the country, pushes the countries up on the social indicators.

India does have two exceptional countries right next door — Bangladesh and Nepal. Despite having national income levels much lower (nearly half) than India’s, they do not fare that badly on the HDI rankings.

It’s an example often spoken about by development experts. The report shows Bangladesh does  better than India even when it comes to gender parity — how the HDI values for women and men measure against each other. India ranks on the Gender Development Index below Bangladesh, the South Asian average and the average for the middle HDI countries.