NITISH DEY :The development index is a very useful tool for the Statisticians, Economists and politicians for comparing the standard of living of the different strata of the people. Human Development Index (HDI) is a statistic composite index of life expectancy, education and per capita indicators which are used to rank countries into the four tier of human development. HDI was developed by Indian Nobel prize winner Amartya Sen and Pakistani economist Mahbub ul Haq with the help of Gustav Ranis of Yale University and Lord Meghnad Desai of the London School of Economics which is used to measure a country’s development by United Nations Development Programme (UNDP)’s Human Development Report Office.
According to the UNDP, India’s rank is 130 among the 189 countries in terms of the value of human development index all over the world and it gained one place than the previous ranking. But, according to the UNDP country head Fracine Pickup, India loses a quarter of its human development value due to inequality. According to Pickup, women continue to be deprived of healthy life, knowledge and decent standard of living despite overall progress. It also said women have to wait another 200 years to achieve equality in the workforce. Women specially continue to have a lower HDI than that of men primarily because of fewer opportunities in education and at work. India’s HDI value for the year 2017 was 0.640 which put the country into the middle human development country category. According the UNDP, the average of the HDI of South Asia could be 12 percent lower by 2050 due to global warming, ever increasing migration, displacement and negatively affect livelihoods. But, the HDI have some drawbacks such as, higher national wealth does not imply higher development, even higher national wealth hides the inequality in the country.
According the socialist point of view, the country should not have the income inequality to reach higher development. So, they always recommend the measure of human development which measures the inequality within the country. Multidimensional Poverty Index could be the best answer for this. MPI is a measure that takes into account the incidence of poverty and the extent of deprivation. It takes several factors living standard, health and education. India’s MPI is lower than the global average of 0.159 and the south-Asian countries but higher than BRICS countries excluding Russia. India’s MPI stood at 0.121 in 2016 half of what it was in 2006.
According to the capitalist point of view, the country will be developed when they have a good quality of human capital. The human capital Index will be the best answer for this. At the time of globalization, this index has a very powerful implication and may be that is why the Human Capital Index (HCI) will be the part of the World Development Report, 2019. UNDP constructs Human Development Index (HDI) every year. The HCI uses survival rates and stunting rates instead of life expectancy as a measure of health and quality adjusted learning instead of merely years of schooling as a measure of education. Two significant changes from HDI are exclusion of the income component and introduction of quality adjustment in learning. The first HDI is published in the October,2018 at the annual meetings of the fund bank comes with a conclusion that 56% of the world’s population the HCI is at or below 0.5; and for 92%, it is below 0.75. Hence only 8% of the population can expect to be 75% productive as they could be.
These indexes have the shortcomings as well. first we take the human development index. Though it is widely used but it is not except of shortcomings. Higher HDI value can not gurantee the higher amount of welfare as it can not take the income inequality into its consideration. Let us consider the second index, the multidimensional Poverty Index. It takes into consideration only the income inequality but one can not measure the development by only the income inequality. Let shift to the third index, Human Capital Index (HCI). There are several key factors which are excluded in the study of the HCI such as health and education. These are the indexes that are meant for measuring the human development.