1. Which of the following statement best explains the meaning of ‘Human Development’?
A. Increase in GDP of nation
B. Increase in standard of living
C. Increase in structural growth
D. Increase in monetary status only
Solution
The correct answer is option 2.
Key Points
Human Development:
- It is a process of enlarging the range of people’s choices by increasing their opportunities for education, health care, income and empowerment.
- And covering the full range of human choices from a sound physical environment to economic, social and political freedom.
- Some of the non-negotiable aspects of human development:
- living a long and healthy life,
- access to education and resources are needed for a decent standard of living including political freedom,
- self-respect and guaranteed human rights. Hence, Option 2 is correct.
Additional InformationHuman Development Report 2021-22:
- India ranks 132 out of 191 countries and territories according to a report released by the United Nations Development Programme (UNDP).
- Ninety percent of countries have registered a reduction in their Human Development Index (HDI) value in 2020 or 2021, reversing much of the progress toward the Sustainable Development Goals.
- Like global trends, in India’s case, the drop in HDI from 0.645 in 2019 to 0.633 in 2021 can be attributed to falling life expectancy – 69.7 to 67.2 years.
- India is placed in the medium human development category.
- The report recommends implementing policies that focus on 3 I’s –
- investment — from renewable energy to preparedness for pandemics and
- insurance—including social protection— to prepare our societies for the ups and downs of an uncertain world.
- innovation in its many forms—technological, economic, cultural—can also build capacities to respond to whatever challenges come next.
2. Which famous economist developed the human development index?
A. Richard H. Thaler
B. Adam Smith
C. Mahbub ul Haq
D. More than one of the above
Solution
The correct answer is Mahbub ul Haq.
Key Points
- Mahbub ul Haq was a Pakistani economist.
- He served as the former Finance Minister of Pakistan
- The human development index was developed by Mahbub ul Haq in 1990.
- He is widely regarded as “the most articulate and persuasive spokesman for the developing world”.
- The Human Development Index (HDI) is a statistical tool used to measure a country’s overall achievement in its social and economic dimensions.
- United Nations Development Program (UNDP) is the agency responsible for creating the Human Development Index.
- Norway tops in the Human Development Index 2019.
- In accordance with the Human Development Report 2021-22, the rank of India is 132nd, among 191 countries.
| Richard H. Thaler | American economist.Served as the president of the American Economic Association.He was awarded the Nobel Prize in Economic Sciences for his contributions to behavioural economics in 2017. |
| Adam Smith | Scottish economist.Well known as ”The Father of Economics”.Notable works:The Theory of Moral Sentiments.An Inquiry into the Nature and Causes of the Wealth of Nations. |
| Dadabhai Naoroji | Father of Indian economics.The propounder of the Drain of Wealth Theory.The first person attempted to calculate national income in India. |
3. Human Development Index report is published by which of the following?
A. World Economic Forum
B. World Bank
C. United Nations Development Programme
D. International Monetary Fund
Solution
The correct answer is United Nations Development Programme.
Key Points
- Human Development Index (HDI)
- HDI is a statistical tool used to measure a country’s overall achievement in its social and economic dimensions.
- It is one of the best tools to keep track of the level of development of a country, as it combines all major social and economic indicators that are responsible for economic development.
- Pakistani economist Mahbub-ul-Haq created HDI in 1990 which was further used to measure the country’s development by the United Nations Development Program (UNDP).
- Every year UNDP ranks countries based on the HDI report released in their annual report.
- Based on three Basic Dimensions of Human Development:
- A long and healthy life,
- Access to knowledge, and
- A decent standard of living.
4. With reference to Human Development Index, which of the following is not used as an indicator?
A. Life expectancy
B. Education or access to knowledge
C. Gender Inequality
D. Income or standard of living,
Solution
The correct answer is Gender Inequality.
Key PointsHuman Development Index
- HDI is part of the Human Development Report that is published by the United Nations Development Programme (UNDP).
- 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
- A decent standard of living. So, option 3 is not used as an indicator.
- Classification of countries
- Very high human development (HDI 0.900 and above)
- High human development (HDI 0.800 – 0.899)
- Medium human development (HDI 0.500 – 0.799)
- Low human development (HDI below 0.500)
- India lies in the medium human development category.
So, the correct answer is option 3.
5. The First Human Development Report was published by the United Nations Development Programme (UNDP) in the year _________.
A. 1905
B. 1945
C. 1990
D. 1980
Solution
The correct answer is 1990.
Key Points
- The first Human Development Report was published in 1990 by Pakistani Economist Mahbub ul Haq and Indian Nobel laureate Amartya Sen.
- The Human Development Report (HDR) is an annual report published by the Human Development Report Office of the United Nations Development Programme.
- Human Development Report categories countries based on 3 dimensions
- A long and healthy life,
- Access to knowledge, and
- A decent standard of living.
- According to the 2020 report Norway has topped the list followed by Ireland and Switzerland.
- India holds the rank of 131 out of 189 countries in HDI 2021.
- Among Asian countries, Singapore topped the list with the rank of 11.
In News
- 136th is the rank of India in the Human Happiness Index 2022 report.
- The Happiness Index is a development philosophy as well as an index which is used to measure collective happiness in the Nation.
- Finland got the first rank in the human happiness index.
- Finland was named the happiest nation in the world for the last five years.
- Afghanistan got 146th rank in the happiness Index.
- India Rank in Human Happiness Index 2021 report: 139
6. The value of HDI lies between?
A. 1-5
B. 0-1
C. 0-100
D. 1-100
Solution
The correct answer is 0-1
Key Points
- HDI stands for Human Development Index.
- It was created to emphasize the people to expand their capabilities and to assess growth and development of a country.
- A country on the basis of its HDI can take measures to develop its economy.
- Meghnad Desai and Amartya Sen gave the concept of HDI.
- The first Human Development Report (HDR) was published in 1990 by UNDP (United Nations Development Programme) under the leadership of Mahbub Ul Haq.
- It is based on three dimensions:
- Long and healthy life: Measured by Life Expectancy at birth.
- Knowledge: Measured by mean years of schooling and expected years of schooling.
- A decent standard of living: Measured by Gross National Income Per Capita (GNIPC) at PPP (Purchasing Power Parity) of a particular country.
- The value of HDI remains between 0-1
Additional Information
- HDI index 2022
- The countries like Norway, Switzerland, Australia, and Ireland have the highest HDI ranking.
- While Niger, Central African Republic, South Sudan, Chad and Burundi have the lowest ranking in the HDI’s measurement.
- India’s rank in the global Human Development Index (HDI) slipped marginally to 132, out of 191 countries
- Among Asian countries, Singapore topped the list with the rank of 11.
7. Gender Inequality Index (GII) was introduced in which Human Development Report (HDR) of UNDP ?
A. HDR 2007
B. HDR 2008
C. HDR 2009
D. HDR 2010
Solution
The correct answer is HDR 2010.
Key Points
Gender Inequality Index (GII)
- An index for Measurement of Gender Disparity was introduced in the 20th Human Development Report -2010 by the United Nations Development Programme (UNDP).
- It shows the percentage of potential human development loss due to gender inequality and ranges from 0 representing “no lost opportunity” to 1 representing complete opportunity loss.
- India has moved up four positions since 2019 to become the third-most innovative lower-middle-income economy in the world, according to the report. India, at 48, also retains the highest rank in the central and southern Asia region.
Additional Information
There are Three critical dimensions to the GII :
- Reproductive health – GII’s dimension of reproductive health has two indicators :
- Maternal Mortality Ratio (MMR), the data for which come from UNICEF’s State of the World’s Children, and
- Adolescent fertility rate (AFR), the data for which is obtained through the UN Department of Economic and Social Affairs, respectively.
- Empowerment – The empowerment dimension is measured by two indicators :
- The share of parliamentary seats held by each sex, which is obtained from the International Parliamentary Union, and
- Higher education attainment level, which is obtained through the United Nations Educational, Scientific and Cultural Organization (UNESCO) and Barro-Lee data sets. The GII index of higher education evaluates women’s attainment of secondary education and above.
- Labour market participation – The labour market dimension is measured by women’s participation in the workforce. This dimension accounts for paid work, unpaid work, and actively looking for work. The data for this dimension is obtained through the International Labour Organization databases.
Important Points
GII Dimensions & Indicators :
8. Consider the following statements:
1. Economic growth is measured through the human development index.
2. Economic development is measured through Gross Domestic Product.
3. Economic growth is a broader concept than economic development.
Which of the statements given above is/are correct?
A. 1 and 3 only
B. 1, 2 and 3
C. 1 and 2 only
D. None of the above
Solution
The correct answer is None of the above.
Key Points
- Economic growth is measured in terms of the increase in the aggregate market value of additional goods and services produced, using economic concepts such as GDP and GNP. Hence, Statement 1 is incorrect.
- Economic development is a qualitative improvement in the life of citizens of a country and is most appropriately determined by the Human Development Index (HDI). Hence, Statement 2 is incorrect.
- Economic development refers to the overall development of the quality of life in a nation which includes economic growth and is a broader concept than Economic Growth. Hence, Statement 3 is incorrect.
Additional Information
- India dropped two ranks in the United Nations’ Human Development Index this year, standing at 131 out of 189 countries.
- Human Development Index (HDI):
- HDI is a statistical tool used to measure a country’s overall achievement in its social and economic dimensions.
- It is one of the best tools to keep track of the level of development of a country, as it combines all major social and economic indicators that are responsible for economic development.
- Pakistani economist Mahbub-ul-Haq created HDI in 1990 which was further used to measure the country’s development by the United Nations Development Program (UNDP).
- Every year UNDP ranks countries based on the HDI report released in their annual report.
- Various indicators under HDI:
- Calculation of the index combines four major indicators:
- Life expectancy for health,
- Expected years of schooling,
- Mean of years of schooling for education, and
- GNI per capita for the standard of living.
- Calculation of the index combines four major indicators:
9. Which one of the following states of India has the highest rank in the Human Development Index?
A. Tamil Nadu
B. Kerala
C. Punjab
D. Haryana
Solution
The correct answer is Kerala.
Key Points
- Kerala with the composite index value of 0.790 is placed at the top rank followed by Delhi, Himachal Pradesh, Goa, and Punjab. Hence, Option 2 is correct.
- As expected, states like Bihar, Odisha, and Chhattisgarh are at the bottom among the 23 major states in India.
- There are several socio-political, economic, and historical reasons for such a state of affairs.
- Kerala can record the highest value in the HDI largely due to its impressive performance in achieving near a hundred percent literacy.
- In a different scenario, the states like Bihar, Madhya Pradesh, Odisha, Assam, and Uttar Pradesh have very low literacy.
- States showing higher total literacy rates have fewer gaps between the male and female literacy rates.
- Apart from educational attainment, the levels of economic development play significant impacts on HDI.
- Economically developed states like Maharashtra, Tamil Nadu, and Punjab, and Haryana have higher values of HDI as compared to states like Chhattisgarh, Bihar, Madhya Pradesh, etc.
- Regional distortions and social disparities which developed during the colonial period continue to play an important role in the Indian economy, polity, and society.
- The Government of India has made concerted efforts to institutionalize balanced development with its main focus on social distributive justice through planned development.
- It has made significant achievements in most of the fields but, these are still below the desired level.
Additional Information
10. Which of the following neighbouring countries has better performance in terms of human development than India?
A. Bangladesh
B. Sri Lanka
C. Nepal
D. Pakistan
Solution
The correct answer is Sri Lanka.
Key Points
- Human development:
| Sr. No | Country | Per Capita Income in US$ Nominal | Life expectancy at birth |
| 1 | Sri Lanka | 3699 | 77.14 |
| 2 | India | 2543 | 69.89 |
| 3 | Myanmar | 1285 | 67.36 |
| 4 | Pakistan | 1562 | 65.6 |
| 5 | Nepal | 1203 | 71 |
