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The Real Wealth of Nations: Pathways to Human Development. Human Development Report 2010 20 th Anniversary Edition February 9, 2010 Banatao Auditorium, Sutardja Dai Hall  University of California, Berkeley. Affirming human development: 20 years on. 1990 Human Development Report

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The Real Wealth of Nations: Pathways to Human Development

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The real wealth of nations pathways to human development l.jpg

The Real Wealth of Nations: Pathways to Human Development

Human Development Report 2010

20th Anniversary Edition

February 9, 2010

Banatao Auditorium, Sutardja Dai Hall 

University of California, Berkeley


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Affirming human development: 20 years on

  • 1990 Human Development Report

    • “People are the real wealth of a nation.”

    • Introduced Human Development Index: Composite of health, education and income.

  • We argue that the human development approach makes a difference to:

    • Defining success

    • Measuring inequality and poverty

    • Designing development policies


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40 years of progress


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40 years of progress


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40 years of progress


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40 years of progress


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40 years of progress


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Diversity of paths

Saudi Arabia

Oman

Tunisia

China

Congo

Nepal

Benin

Djibouti

Zambia

Burundi

DR Congo

Zimbabwe


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Divergence in income, but convergence in human development.

Per capita GDP Life Expectancy

Pre


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Measuring progress


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A new lens on development success

Top movers in HDI, 1970 – 2010


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A new lens on development success

Top movers in HDI, nonincome HDI and GDP, 1970 – 2010


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Growth doesn’t always come with human development – even over 40 years


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Improvements in

Gender Inequality Index

HDI

rank

1

Oman

2

China

38

3

Nepal

110

4

Indonesia

100

5

Saudi Arabia

128

6

Lao PDR

88

7

Tunisia

56

8

South Korea

20

9

Algeria

70

10

Morocco

104

Beyond the HDI: Good things don’t always come together.

Top movers in HDI, 1970 – 2010


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Beyond the HDI: Good things don’t always come together

EMPOWERMENT ENVIRONMENTAL

SUSTAINABILITY


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The HDI and beyond

  • New HDI

    • HDI 2.0

    • Need added focus on process freedoms, justice and global constraints.

    • Three new indices

    • Inequality Adjusted HDI

    • Gender Inequality Index

    • Multidimensional Poverty Index


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Changes to the Human Development Index

  • Dimension indicators:

    • Literacy is replaced by Mean Years of Schooling.

    • GER is replaced by expected years of schooling.

    • GDP is replaced by GNI

  • Aggregation formula

    • HDI is now the geometric mean

    • Upper bounds set to observed maxima

    • Lower bounds set to subsistence levels.


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HDI losses from inequality largest in low and medium HDI countries

Loss in HDI due to multidimensional inequality by HDI level


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Large losses due to gender inequality, especially in low HDI countries

Yemen

DR Congo

Saudi Arabia

Zimbabwe

Netherlands


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More MPI poor than income poor


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Beyond 2010: Looking ahead

  • The human development approach matters:

    • For our understanding of development.

    • For our measurement of inequality and poverty

    • For our thinking about policy prescriptions.

  • Answering many questions about development requires aggregation across dimensions

    • The HDI is one alternative and is meant to initiate a discussion.


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