India's low human development index (HDI) an alibi for
poor economic performance?
Ever since the world was divided into haves and have-nots,
the problem of development in the latter countries has
perplexed economists. Development literature in the form
of plans and welfare pacts has unfortunately given nothing
more than hope to these nations. The fact that India is
again ranked 127th out of 177 countries in
the Human Development Report of 2004 released by the United
Nations Development Programme (UNDP), leaves one wondering
as to why we are still lagging behind as far as growth
the approach towards human development was identified
by the economic growth only. Per capita income was the
sole criterion to measure human development. As a result
the countries engaged themselves in increasing their gross
national product, based on the per capita income. But
over the years it was observed that while countries made
economic progress, the living standard of the people remained
UNDP pioneered the concept of human development, which
according to it is the end whereas social development
and economic growth are the means to it. Hence in 1990,
the UN produced its first development report based on
the human development index, which focuses on three quantifiable
areas: being able to live a long and healthy life, being
able to afford an education and having a decent standard
since then, the UNDP has been releasing annual human development
reports and providing rankings to all its member nations
based on this index. The aim of human development in a
developing economy is to improve the productive capacity
of the people, which in the long run would help in narrowing
the gap between rich and poor nations.
there is a lot to be seen whether social development initiatives
are looked at as harbingers of growth or a lack of them
is taken as an alibi for the failure of its economic policies.
Despite not showing any improvement in the human development
indices this year, India has been praised for its initiatives
in religious tolerance, legal pluralism and socio-economic
policies, including reservation for the minorities.
India stands accused of having achieved little economic
growth, and even less human development, in spite of its
claims on human development, since independence. It is
disturbing to note that development efforts have failed
to lift the vast majority of the population from poverty.
is there a fault in the welfare-oriented paradigm of development?
Perhaps 'no'! The shortcoming lies in the reckless application
of this model. First, the human development approach has
not been that holistic. It has hovered around only 'education
and health' that have been slipped into the growth plans
as mere formalities. Human development in most of the
developing countries doesn't talk of empowerment of the
citizens and strengthening their capabilities to live
a life of contentment. Somehow, the country rankings have
gained more importance than the practices that lead to
where each country stands globally.
to a large extent the human development approach has failed
to integrate economic growth policies. There is a two-way
relationship between human development and economic growth.
Investments in human development lead to faster growth,
and rapid growth leads to higher levels of human development.
This fact, earlier overlooked, has gained recognition
the tenth five-year plan is underway, the government has
fixed a target growth rate of eight per cent. While achieving
this target on the economic front appears realistic, India's
HDI development is very demoralising. But when economic
growth and human development are counterparts then why
is India suffering a low HDI?
answer lies in bad governance. When a government is corrupt
and unaccountable to its citizens for the duration between
elections and fails to invest adequately in the health
and education of its people, economic growth will eventually
peter out, as it will create an insufficient number of
healthy and skilled workers. Sound governance in terms
of economic policies, well functioning institutions, social
security and protection of human rights
is what India needs today. One-sixth
of the world's population with 35 per cent of them under
the poverty line and a low literacy rate of 65 per cent
deserves nothing better than a rank of 127.