The Human Development Approach Francesco Burchi - - PowerPoint PPT Presentation

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The Human Development Approach

Francesco Burchi

Francesco.burchi@die-gdi.de

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Table of Contents

 Recent evolution of development

thinking

 Capabilities/Human Development

Approach

 Means and Ends of Human

Development

 UNDP Human Development Reports

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History of development thinking

 Growth-only approaches  Economic Development  UNRISD Social Indicators  Scandinavian School of the Quality of Life  Basic Needs Approach  Capability Approach  Human Development Approach  Happiness

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“First generation of Development Theories”

 Development = capacity of an economy to

achieve a sustained growth process (Todaro and Smith 2003, 15).

 Development (2) = capacity of a nation to

reach per-capita GDP growth rates above population growth rates

 “Growth-only” Approach for poor and rich

countries

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Economic Development

 A country with high growth rates but rising poverty and

inequality is “developing”? Specific problems of LDCs

 Economic Development involves, along with GDP, other

dimensions such as the quality of growth, a process of institutional change, and the improvement of life expectancy, education, and other goals which go beyond GDP (e.g., Brinkman, 1995; Seers)

 Great emphasis on reduction in levels of poverty and

inequality, together with the pursuit of social goals, such as improved health and education, which should increase accordingly during the process of economic growth.

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Economic Development (2)

 Growth with redistribution  Growth with employment  Pro-poor Growth (World Bank)  “High-quality growth” (IMF)

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UNRISD

 1960s: Social Indicators for Development  E.g. “The Level of Living Index” measures “the

level of satisfaction of the needs of the population as measured by the flow of goods and services enjoyed in a unit of time”

 It considers “physical” (nutrition, shelter, health)

and “cultural” needs (education, leisure, security)

 Problems: an incredible amount of variables, lack

• f theoretical foundation, lack of data for cross-

country comparison.

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Physical Quality of Life Index

 Proposed by M.D. Morris (Overseas

Development Council)

 Measures the fulfillment of minimum human

needs

 It aggregates literacy, infant mortality and life

expectancy, with equal weights

 Shortcomings: it lacks an adequate

theoretical foundation, the weighting system is not justified and, more relevant, 2 dimensions – infant mortality and life expectancy – provide similar information.

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Basic Needs Approach

 In the 1970s ILO proposes a new approach in

• rder to shift attention towards other

dimensions such as unemployment and underemployment.

 Development is conceived as satisfaction of at

least basic needs such as drinkable water, medical care, education and a decently remunerated job.

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Basic Needs Approach (2)

 Half 1980s: two development economists,

Frances Stewart and Paul P. Streeten, re-launched the BNA.

 Poverty reduction policies aim at enhancing

“full life”

 Innovative elements: income is not a good

thermometer of life conditions. We should be looking at essential factors such as access to water, food and education.

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Capability/Human Development Approach

 The Capability Approach was proposed in the 1980s

and it is the theoretical foundation of the Human Development Approach

 Development is conceived as a process of

enlargement of human choices (Ul Haq, UNDP Report 1990)

 In Sen’s terminology, Development= capability

expansion (Sen, 1983), or, at a later stage, enlargement of human freedoms (Sen, 1999).

 It is an “approach”, not a “theory”

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Capability Approach

• Functionings: the set of things a person

“is” and “does”. E.g., being healthy, being well educated, being adequately nourished, having a decent job,... But also being able to participate in community and public life, being able to move around without feeling ashamed,..

• Functionings are constitutive elements of

people’s life.

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Capability Approach (2)

• Capabilities: the set of things a person

“can be” and “can do”; alternatively, the set of all potential functionings, among which she chooses the final functionings (achieved functionings).

• Ex: fasting vs. not having enough

resources

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The ends of development

 The final goal is not to enlarge income,

and not even commodities production, but the extension of (basic) capabilities

 What counts at the end is not income or

goods, but what an individual has reason to value. Thus, we should see how income is converted in valuable capabilities.

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Standard consumer theory

 Consumers are agents maximizing utility  Economists measure utility through 1 focal

variable: income.

 The utility obtained by the purchase of 1

good is given by its market value/price: thus, all people achieve the same utility from 1 given commodity (same utility function).

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Utility and Wellbeing

Do people achieve the same

wellbeing level from a given amount

• f income or commodities?

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Functionings vs. Income (1)

• Ex. 1: 3 individuals:

 All have the same income  2 have perfect health conditions  1 has a parasitic disease  Do they finally have the same

functionings: “being adequately nourished” and “being in a good health status”?

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Functionings vs. Income (2)

• Ex. 2: 3 individuals:

 All have the same income  2 live in areas where all types of food

are available in local markets

 1 live in an area where more nutritious

foods are not available

 Is the level of income leading to the

same nutritional status for the 3 individuals?

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Functionings vs. Income (3)

• Ex. 3: 3 individuals:

 All have the same income  2 live in areas with bland climate  1 live in an area where it is very cold  Do these people have the same

functioning “to be sheltered”?

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Functionings vs. Income (4)

• Ex. 4: 3 women:

 All have the same income  2 live in areas where they are free to move

around alone, and they have all human freedoms

 1 live in an area where she can’t leave the house

and go to the market without a man

 Do these women have the same functionings?

(e.g., nutrition, health, possibility to move around, to have social relations, to participate in public life,…).

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Functionings vs. Commodities (1)

• Ex. 1: 3 individuals:

 Have the same bicycle  2 don’t have health problems  1 doesn’t have a leg  Are the benefits of owning a bike the

same for the 3 people? (in terms of the possibility to move freely and faster surely no….)

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Functionings vs. Commodities (2)

• Ex. 2: 3 individuals:

 Have the same amount of food  2 don’t have health problems  1 has a disease that doesn’t allow her/him to

absorb properly the food eaten

 Are the benefits of having a given amount of food

with specific characteristics (calories) the same for the 3 people? (in terms of being adequately nourished surely no…..if we consider food as a commodity helping to get-together in front of meals, socialize, or to meet the demand of social conventions maybe yes).

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The role of “Conversion Factors”

 The relationship income-functionings is not

univocal

 “Personal” (sex, age, metabolism, health,..),

“Social” (customs,..), “Environmental” (weather conditions, natural disasters), and “Institutional” (rules, norms, law) conversion factors affect: A) The conversion of income into functionings and capabilities (thus, wellbeing) B) The conversion of commodities into functionings and capabilities (thus, wellbeing)

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Source: Robeyns (2005, p. 98)

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CA vs. HDA

 The CA provides the theoretical foundations of

the HDA

 The CA concerns wellbeing, development,

poverty, inequality; the HDA is an approach to development

 The CA is “micro” (individuals, households),

while the HDA is “macro” (countries, regions)

 The HDA is more operational, more concerned

with policies to achieve human development

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The Institutional View: UNDP Human Development Approach

 “The basic objective of development is to

create an enabling environment for people to enjoy long, healthy, and creative lives” (UNDP 1990, p. 9)

 Focus on human beings

People-centered approach

 This is the result of new development

theories and quality of life literature, but was also strongly embedded in classical economists (Smith, Ricardo, Marx…).

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Ends and Means

• f Human Development

 Economic growth is only a means to

promote development (or an “intermediate objective” Sen, 1983).

 We need to “rediscover” the “real

purpose” of economic growth (Ul Haq, 1995)

Master HDFS - Burchi 28  “The real point of departure of human development

strategies is to approach every issue in the traditional growth models from the vantage point of people. Do they participate in economic growth as well as benefit from it? Do they have full access to the opportunities of expanded trade? Are their choices enlarged or narrowed by new technologies? Is economic expansion leading to job-led growth or jobless growth? Are budgets being balanced without unbalancing the lives of future generations? Are “free” markets open to all people? Are we increasing the

• ptions only of the present generation or also of the

future generations?” (ul Haq 1995, p. 23).

Economic Growth and Human Development (1)

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Economic Growth and Human Development (2)

 Commodity production and economic growth are a

necessary, but not sufficient condition for sustained achievements in human development

 Further elements such as quality of growth, re-

distribution, investments in social services and people’s participation in decision-making and identification of life priorities make the HDA unique.

 It follows that the HDA requires a much larger

informational basis for development assessments than, say, growth-only or BN approaches

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• 1. Countries with high economic growth:
• Countries that were successful in increasing life

expectancy (e.g., South Korea and Taiwan)

• Countries that were not successful in increasing life

expectancy (e.g., Brazil)

• 2. Countries that have increased life expectancy:
• Countries registering high economic growth

(e.g. South Korea and Taiwan)

• Countries not registering high growth

(e.g. Indian State of Kerala and Sri Lanka).

Country Experiences: Growth Vs. Life Expectation

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GNP Vs. Life Expectancy

Source: Sen, 1999

An example: South Africa. High growth, high inequality, low exp. In health care, sprad of HIV-AIDS, decreasing LE

Master HDFS - Burchi 32 Source: http://blog.euromonitor.com/2014/03/economic-growth-and-life-expectancy-do-wealthier- countries-live-longer.html

Cross-country comparison



http://www.gapminder.org/world/#$majorMode=chart$is;shi=t; ly=2003;lb=f;il=t;fs=11;al=30;stl=t;st=t;nsl=t;se=t$wst;tts=C $ts;sp=5.59290322580644;ti=2013$zpv;v=0$inc_x;mmid=XCO ORDS;iid=phAwcNAVuyj1jiMAkmq1iMg;by=ind$inc_y;mmid=YC OORDS;iid=phAwcNAVuyj2tPLxKvvnNPA;by=ind$inc_s;uniValue =8.21;iid=phAwcNAVuyj0XOoBL_n5tAQ;by=ind$inc_c;uniValue =255;gid=CATID0;by=grp$map_x;scale=log;dataMin=194;data Max=96846$map_y;scale=lin;dataMin=23;dataMax=86$map_s; sma=49;smi=2.65$cd;bd=0$inds=;example=75



http://www.gapminder.org/answers/how-does-income-relate-to- life-expectancy/

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Source: HDR 2015, UNDP.

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Public Policies for growth/Human Development

 Growth-led Approach

Income Income Income

 Support-led Approach

Income Income

Education Health Education Health

Human Development

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Two elements should be analyzed:

1.

Human Development as a process: already in 1980s great success.

2.

Human Development in terms of levels: still high deprivations in many dimensions.

Human Development: human progress and deprivations

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Master HDFS - Burchi 38 Source: HDR 2015

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Human Development Reports



1st Report in 1990, under the guide of ul Haq. The conditions that led to the birth of new paradigm were:

1.

At the end 1980s people were starving and suffering even in time of production expansion, and other societies were living fairly well with modest income and growth rates.

2.

Everywhere high inequalities.

3.

SAP policies by IMF and WB.



Until now 22 Global HDRs



Regional and National HDRs.



Website: http://hdr.undp.org/en/reports/

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23 HDRs: topics



2015: Work for Human Development



2014: Sustaining Human Progress



2013: The Rise of the South: Human Progress in a Diverse World



2011: Sustainability and Equity



2010: 20 years of HD



2009: Migration



2007/8: Climate change



2006: The global water crisis



2005: Aid, trade and security



2004: Cultural liberty



2003: MDGS



2002: Deepening democracy



2001: New technologies



1999: Globalization



1998 Consumption



1997: Poverty



1996: Economic growth



1995: Gender inequality



1994: Human security



1993: Citizens' participation in development



1992: International trade



1991: National and intern. strategies for development



1990: Concepts and measurements of development



2000: Human rights

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Results

“The UNDP team, under a Pakistani economic guru, offers the World Bankers some healthy competition” (The Economist)

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Strengths

 Accessible by academics, politicians, policy-

makers, development practitioners and civil society (in 13 languages).

 Bravely reporting examples of successful

stories as well as failures.

 Introduction of a new indicator, the Human

Development Index, nowadays world-wide known…………………………...

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“high-quality growth” (HQG)

 IMF defines HQG as “…growth that is sustainable,

brings lasting gains in employment and living standards and reduce poverty. HQG should promote greater equity and equality of opportunity. It should respect human freedom and protect the environment”; and it should “…bear the primary responsibility for the care, nutrition, and education. Achieving HQG depends, therefore, not only on pursuing sound economic policies, but also on implementing a broad range of social policies” (IMF, 1995: 286).