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Bhutan Development |
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Human Development Reports
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Human
Development Index (HDI) 2005 |
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The
human development index (HDI) is a composite index that measures the average
achievements in a country in three basic dimensions of human development:
 a
long and healthy life, as measured by life expectancy at birth
knowledge,
as measured by the adult literacy rate and the combined gross enrolment
ratio for primary, secondary and tertiary schools
and
a decent standard of living, as measured by GDP per capita in purchasing
power parity (PPP) US dollars.
The
index is constructed from indicators that are currently available globally
using a methodology that is simple and transparent . While the concept
of human development is much broader than any single composite index can
measure, the HDI offers a powerful alternative to income as a summary measure
of human well-being. It provides a useful entry point into the rich information
contained in the subsequent indicator tables on different aspects of human
development.
The
HDI in the reports covers 175 UN member countries (2005), along with Hong
Kong, China (SAR), and the Occupied Palestinian Territories.
To
enable cross-country comparisons, the HDI is, to the extent possible, calculated
based on data from leading international data agencies available at the
time the Report was prepared (see Primary international data sources below).
But for a number of countries data are missing from these agencies for
one or more of the four HDI components.
In
response to the desire of countries to be included in the HDI table, and
striving to include as many UN member countries as possible, the Human
Development Report Office has made special efforts to obtain estimates
from other international, regional or national sources when data are lacking
from the primary international data agencies for one or two of the HDI
components for a country. In a very few cases the Human Development
Report Office has produced an estimate. They are of varying quality
and reliability and are not presented in other indicator tables showing
similar data.
Primary
international data sources
Life
expectancy at birth
The
life expectancy at birth estimates are from the 2004 Revision of World
Population Prospects (UN 2005), the of- ficial source of UN population
estimates and projections. They are prepared biannually by the Population
Division of the United Nations Department of Economic and Social Affairs
on the basis of data from national vital registration systems, population
censuses and surveys. In the 2004 Revision the United Nations Population
Division incorporated national data available through the end of 2004.
For assessing the impact of HIV/AIDS, the latest HIV prevalence estimates
prepared by the Joint United Nations Programme on HIV/AIDS are combined
with a series of assumptions about the demographic trends and mortality
of both the infected and non-infected people in each of the 60 countries
for which the impact of the disease is explicitly modelled.
The
volatile dynamics of major infectious diseases like HIV/AIDS pose serious
challenges for population estimates and projections. The availability of
new empirical evidence on the HIV/AIDS epidemic and demographic trends
often requires adjustment to earlier estimates. For example, while the
most recent HIV prevalence estimate is similar to earlier estimates for
most countries, it is notably lower for Cameroon, Côte d'Ivoire,
Ethiopia, Kenya, Rwanda, Zambia and Zimbabwe and higher for Equatorial
Guinea and Senegal. These changes are the result mainly of reassessments
of input data and estimation methods rather than a reflection of real changes.
Similarly, a significant decrease in life expectancy estimates for some
Sub-Saharan African countries (such as Botswana, Nigeria and São
Tomé and Principe) and many transition economies (such as Azerbaijan,
Kazakhstan and Russian Federation) are based on more recent and accurate
data that imply higher levels of mortality than previously estimated.
The
life expectancy estimates published by the United Nations Population
Division are usually five-year averages. This year, for the first time,
the United Nations Population Division produced annual life expectancy
estimates and projections through interpolation based on these five-year
averages. The life expectancy estimates for 2003 shown in table 1 and those
underlying table 2 are from these interpolated data (UN 2005c). For details
on the 2004 Revision of World Population Prospects (UN 2005h), see http://www.un.org/esa/population/unpop.htm.
Adult literacy rate. Data on the adult literacy rate are usually collected
during national population censuses, generally conducted every 5 or 10
years, or from household surveys.
This
Report uses data on adult literacy rates from the United Nations Educational,
Scientific and Cultural organisation (UNESCO) Institute for Statistics
(UIS) April 2005 Assessment (UNESCO Institute for Statistics 2005a),
which combines direct national estimates with UIS estimates. The national
estimates, made available through targeted efforts by UIS to collect recent
literacy data from countries, are obtained from national censuses or surveys
between 2000 and 2004 (with the exception of a few cases referring to 1995-99).
The
UIS estimates, produced in July 2002, were based mostly on national data
collected before 1995. For details on these literacy estimates, see http://www.uis.unesco.org.
Many
high-income countries, having attained high levels of literacy, no longer
collect literacy statistics in national population censuses or household
surveys and thus are not included in the UNESCO data. In calculating
the HDI, a literacy rate of 99.0% is applied for these countries. In collecting
literacy data, many countries estimate the number of literate people based
on self-reported data. Some use educational attainment data as a proxy,
but measures of school attendance or grade completion may differ. Because
definitions and data collection methods vary across countries, literacy
estimates should be used with caution.
The
UIS, in collaboration with other partner agencies, is actively pursuing
an alternative methodology for measuring literacy, the Literacy Assessment
and Monitoring Programme (LAMP). LAMP seeks to go beyond the current
simple categories of literate and illiterate by providing information on
a continuum of literacy skills.
Combined
gross enrolment ratio for primary, secondary and tertiary schools. Gross
enrolment ratios are produced by the UIS based on enrolment data collected
from national governments (usually from administrative sources) and population
data from the United Nations Population Division's 2002 Revision of
World Population Prospects (UN 2003). The ratios are calculated by
dividing the number of students enrolled in all levels of schooling by
the total population in the official age group corresponding to these levels.
The tertiary age group is set to five cohorts immediately following on
the end of upper secondary school in all countries.
Countries
are asked to report numbers of students enrolled at the beginning of the
academic year in each level of education as de- fined by the International
Standard Classification of Education (ISCED). A revised version of
ISCED was introduced in 1997 that led to some changes in the classifications
of national programmes of education. These changes, however, have less
impact on the estimation of combined gross enrolment ratios for primary,
secondary and tertiary schools. For details on enrolment data and the ISCED,
see http://www.uis.unesco.org.
Though
intended as a proxy for educational attainment, combined gross enrolment
ratios do not reflect the quality of education outcomes. Even when used
to capture access to education opportunities, combined gross enrolment
ratios can hide important differences among countries because of differences
in the age range corresponding to a level of education and in the duration
of education programmes. Grade repetition and dropout rates can also distort
the data. Measures such as the mean years of schooling of a population
or school life expectancy could more adequately capture education attainment
and should ideally supplant the gross enrolment ratio in the HDI. However,
such data are not yet regularly available for a sufficient number of countries.
As
currently defined, the combined gross enrolment ratio does not take into
account students enrolled in other countries. Current data for many smaller
countries where many people pursue tertiary education abroad could significantly
underrepresent access to education or the educational attainment of a population
and thus lead to a lower HDI value.
GDP
per capita (PPP US$)
In
comparing standards of living across countries, economic statistics must
be converted into PPP terms to eliminate differences in national price
levels. The GDP per capita (PPP US$) data for the HDI are provided for
164 countries by the World Bank based on price data from the latest International
Comparison Program (ICP) surveys and GDP in local currency from national
accounts data. The last round of ICP surveys covered 118 countries, for
which PPPs have been estimated directly by extrapolating from the latest
benchmark results. For countries not included in the benchmark surveys,
estimates are derived through econometric regression. For countries not
covered by the World Bank, PPP estimates provided by the Penn World Tables
of the University of Pennsylvania (Aten, Heston and Summers 2001, 2002)
are used.
In
a limited number of cases where reliable PPP estimates are not available
from the two international sources, the Human Development Report Office
has worked with regional and national agencies to obtain a PPP estimate
for a country. For example, in the case of Cuba, a technical team of national
and international experts has been formed to explore different methodologies
for obtaining a better PPP estimate. The results of this effort will be
reflected in future Reports.
Though
much progress has been made in recent decades, the current PPP data set
suffers from several deficiencies, including lack of universal coverage,
of timeliness of the data and of uniformity in the quality of results from
different regions and countries. Filling gaps in country coverage with
econometric regression requires strong assumptions, while extrapolation
over time implies that the results become weaker as the distance lengthens
between the reference survey year and the current year.
The
importance of PPPs in economic analysis underlines the need for improvement
in PPP data. A new Millennium Round of the ICP has been established and
promises much improved PPP data for economic policy analysis, including
international poverty assessment. For details on the ICP and the PPP methodology,
see the ICP Web site at http://www.worldbank.org/data/icp.
Comparisons
over time and across editions of the Report
The
HDI is an important tool for monitoring long-term trends in human development.
To facilitate trend analyses across countries, the HDI is calculated at
five-year intervals for the period 1975-2003. These estimates, presented
in table 2, are based on a consistent methodology and on comparable trend
data available when the Report is prepared.
As
international data agencies continually improve their data series, including
updating historical data periodically, the year-to-year changes in the
HDI values and rankings across editions of the Human Development Report
often reflect revisions to data-both specific to a country and relative
to other countries-rather than real changes in a country. In addition,
occasional changes in country coverage could also affect the HDI ranking
of a country, even when consistent methodology is used to calculate the
HDI. As a result, a country's HDI rank could drop considerably between
two consecutive Reports, but when comparable, revised data are used to
reconstruct the HDI for recent years, the HDI rank and value may actually
show an improvement. For these reasons HDI trend analyses should not be
based on data from different editions of the Report. For HDI values and
ranks recalculated for 2002 (the reference year of the HDI in Human Development
Report 2004) based on data and country coverage comparable to this year's
Report, please visit http://hdr.undp.org/statistics.
HDI
for high human development countries
The
HDI in this Report is constructed to compare country achievements across
all levels of human development. The indicators currently used in the index
yield very small differences among the top HDI countries, and thus the
top of the HDI ranking often reflects only the very small differences in
these underlying indicators. For these high-income countries, an alternative
index-the human poverty index -can better reflect the extent of human deprivation
that still exist among the populations and help direct the focus of public
policies.
| Source:
United Nations Development Programme UNDP 2006 |
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Bhutan National Human Development Report 2011
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World
Bank: International Comparison Program (ICP) |
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The
ICP is the world's largest statistical initiative, involving 107 countries.
It produces internationally comparable price levels, economic aggregates
in real terms, and Purchasing Power Parity (PPP) estimates that inform
users about the relative sizes of markets, the size and structure of economies,
and the relative purchasing power of currencies. An ICP Global Office,
housed in the World Bank, manages the global program. National Statistical
Offices implement the program on the ground, under the general guidance
and coordination of regional agencies. The Global Office works in close
collaboration with the OECD/Eurostat's program for 43 countries, and publishes
global data linking ICP and OECD/Eurostat results for 150 benchmark countries.
| Source:
World Bank 2006 |
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