Human Development Report: 

• The Human Development Report (HDR) is an annual publication by the United Nations Development Programme (UNDP). 
• It aims to measure and assess various aspects of human development across countries worldwide. 
• The report provides insights into key indicators such as life expectancy, education, income, and overall standard of living. 
• Its primary focus is to shift the emphasis of development policies from purely economic growth to a more holistic approach that includes human well-being and quality of life.

Primary constituents of the Human Development Report:

• Human Development Index (HDI): The HDI is a composite index that measures a country’s average achievements in three basic dimensions of human development. The HDI is one of the most widely used indicators of human development.
• Inequality-adjusted Human Development Index (IHDI): While the HDI provides a snapshot of average human development within a country, the IHDI adjusts the HDI to account for inequality in distribution across the population. It reflects the extent to which inequality reduces human development.
• Gender Inequality Index (GII): The GII measures gender disparities in three key dimensions of human development. It provides insights into gender gaps in various aspects of life within a country.
• Multidimensional Poverty Index (MPI): The MPI goes beyond income-based measures of poverty by assessing multiple deprivations in health, education, and living standards. It provides a more comprehensive understanding of poverty and helps policymakers identify vulnerable populations in need of targeted interventions.
• Other thematic chapters: The HDR often includes thematic chapters that delve into specific issues related to human development, such as climate change, urbanisation, technological innovation, or migration. These chapters provide in-depth analysis and policy recommendations on emerging challenges and opportunities for human development.

Human Development Index(HDI):

• The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development: 
  • a long and healthy life, 
  • being knowledgeable and 
  • having a decent standard of living. 

• The HDI is the geometric mean of normalised indices for each of the three dimensions.
• The health dimension is assessed by life expectancy at birth.
• The education dimension is measured by average years of schooling for adults aged 25 years and more; and expected years of schooling for children of school entering age. 
• The standard of living dimension is measured by gross national income per capita. 
• The HDI can be used to question national policy choices, asking how two countries with the same level of GNI per capita can end up with different human development outcomes. 
• The HDI simplifies and captures only part of what human development entails. It does not reflect on inequalities, poverty, human security, empowerment, etc.

Gender Inequality Index(GII):

• GII is a composite metric of gender inequality using three dimensions: reproductive health, empowerment and the labour market. A low GII value indicates low inequality between women and men, and vice-versa.

u

• GII reflects gender-based disadvantage in three dimensions— reproductive health, empowerment and the labour market. 
• It shows the loss in potential human development due to inequality between female and male achievements in these dimensions. 
• It ranges from 0, where women and men fare equally, to 1, where one gender fares as poorly as possible in all measured dimensions. 

Multidimensional Poverty Index(MPI):

• The global MPI is a key international resource that measures multidimensional poverty across more than 100 developing countries. 
• The global MPI begins by constructing a deprivation profile(indicators not present in the households) for each household and person in it that tracks deprivations in 10 indicators spanning health, education and standard of living.

• All indicators are equally weighted within each dimension, so the health and education indicators are weighted 1/6 each, and the standard of living indicators are weighted 1/18 each. 
• MPI values are the product of the incidence (H, or the proportion of people who live in multidimensional poverty) and intensity of poverty (A, or the average deprivation score among multidimensionally poor people). Put simply, MPI = H × A. 
• The MPI ranges from 0 to 1, and higher values imply higher poverty. 
• Global MPI values decline when fewer people are poor or when poor people have fewer deprivations.

India and HDI:

• With an HDI value of 0.644, the latest HDR places India in the medium human development category. Between 1990 and 2022, the country saw its HDI value increase by 48.4 percent, from 0.434 in 1990 to 0.644 in 2022. 
• India has also shown progress in reducing gender inequality and ranks 108 out of 166 countries in the GII 2022. The GII measures gender inequalities in three key dimensions – reproductive health, empowerment, and labour market. 
• The country’s GII value of 0.437 is better than the global average of 0.462 and the South Asian average of 0.478. 
• India’s performance in reproductive health is better than the average of other countries in the medium human development group or South Asia. 
• India’s adolescent birth rate in 2022 was 16.3 (births per 1,000 women ages 15-19), an improvement from 17.1 in 2021. 
• However, India also has one of the largest gender gaps in the labour force participation rate—a 47.8 percentage point difference between women (28.3%) and men (76.1%). 

Challenges for India to reach high HDI:

• Income and wealth inequality: India faces significant income and wealth inequality, with the top earners accumulating a disproportionately large share of national income and wealth. This inequality affects the distribution of resources and opportunities, impacting overall human development.
• Gender disparities: Despite improvements in the Gender Inequality Index (GII), India still struggles with gender gaps in various aspects, including labor force participation. The significant difference between women and men in labor force participation rates indicates ongoing challenges in achieving gender equality, which is crucial for overall human development.
• Rising inequality: The Human Development Report highlights concerns about rising inequality globally, with implications for human development. India’s loss in HDI, when adjusted for inequality, is substantial, indicating that inequality exacerbates challenges in achieving higher levels of human development.
• Economic polarisation: The skewed income distribution and growth patterns suggest a potential reduction in the size of the middle class, with economic polarisation between the affluent and the rest of the population. Such polarisation can hinder inclusive development and exacerbate social tensions.
• High household debt levels: The increasing household debt levels, coupled with low savings rates, pose challenges to economic stability and long-term development. High debt levels can limit households’ ability to invest in education, healthcare, and other human capital-enhancing activities, impacting overall human development outcomes.

An alternate growth strategy that prioritises human development as a means to accelerate overall growth. This requires political will and a shift in the development narrative to focus on long-term human welfare rather than short-term gains.