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Tuesday, January 4, 2011

Inequality Adjusted Human Development

The Human Development Reports are in the forefront to advocate the expansion of the choices and capabilities ensuring freedom in society. The concept and the reach of human development is seen through empirical lens of partial index like HDI. However the 2010 report has methodological departures in assessing well being of a given society or the state of the economy. For example it takes note of the fact a literacy criterion would well be captured by years of schooling rather than mere knowledge to read and write like primary enrollment; the more the schooling years captured by enrollment in longer hours of education, it brings into direct focus the benefits of sustainable development by ensuring effective participation. The longer the time horizon for human development, it calls for value decomposition for each sub group, a fairly well advanced concept in inequality measurement. The loss of Human Development then can be captured by the extend of this inequality as illustrated in the technical notes of the Human Development Report, 2010.