Model Answer
0 min readIntroduction
Development is a multifaceted concept extending beyond mere economic growth. While GDP per capita was traditionally used, it fails to capture crucial aspects of human well-being. Consequently, various composite indices have emerged to provide a more holistic assessment of development. The Human Development Index (HDI), introduced in 1990 by Mahbub ul Haq and Amartya Sen, revolutionized development measurement. Later, the Human Poverty Index (HPI) sought to highlight deprivation, while the Happy Planet Index (HPI), a more recent addition, emphasizes ecological sustainability alongside well-being. This answer will compare these three indices, highlighting their similarities, differences, and respective strengths and limitations.
Comparing HDI and HPI
Both HDI and HPI aim to assess human well-being, but they differ significantly in their approach. The HDI, as per the UNDP’s Human Development Report, is a summary composite index measuring average achievements in three key dimensions: a long and healthy life (life expectancy), being knowledgeable (mean years of education and expected years of schooling), and having a decent standard of living (GNI per capita). It ranges from 0 to 1, with higher values indicating greater human development.
The HPI, originally developed for developing countries and later for OECD nations, focuses on deprivation. It measures the proportion of people falling below certain thresholds in three essential dimensions: longevity (survival to age 60), knowledge (basic literacy skills), and a decent standard of living (access to safe water, sanitation, and adequate nutrition). Unlike HDI, HPI presents a percentage, indicating the proportion of the population experiencing poverty. The HPI was discontinued by the UNDP in 2010, replaced by the Multidimensional Poverty Index (MPI).
| Feature | Human Development Index (HDI) | Human Poverty Index (HPI) |
|---|---|---|
| Focus | Overall human development | Deprivation and poverty |
| Methodology | Average achievements in health, education, and income | Proportion of people below deprivation thresholds |
| Value Range | 0 to 1 | 0 to 100% |
| Interpretation | Higher value = greater development | Higher value = greater poverty |
Differentiating HPI from the Happy Planet Index
While both HPI and the Happy Planet Index (HPI) address well-being, their underlying philosophies and methodologies diverge considerably. The HPI, as previously discussed, is rooted in identifying and quantifying deprivation. The Happy Planet Index, developed by the New Economics Foundation, takes a different tack. It aims to show the ecological efficiency of supporting well-being in nations around the world.
The Happy Planet Index uses four components: well-being (measured through subjective life satisfaction surveys), life expectancy, inequality of outcomes (based on income distribution), and ecological footprint (measuring resource consumption and waste production). The formula is: (Life Expectancy * Well-being * Inequality of Outcomes) / Ecological Footprint. This index prioritizes maximizing well-being within ecological limits. A high HPI score indicates that a country achieves long and happy lives for its inhabitants with a relatively small ecological footprint.
Key Differences
- Philosophical Basis: HPI focuses on what people *lack*, while the Happy Planet Index focuses on how efficiently a nation delivers *well-being* within environmental constraints.
- Ecological Consideration: The Happy Planet Index explicitly incorporates ecological sustainability, a dimension absent in the original HPI.
- Subjective vs. Objective Measures: The Happy Planet Index relies on subjective well-being data, while the HPI primarily uses objective indicators of deprivation.
- Goal: HPI aims to identify poverty; the Happy Planet Index aims to identify sustainable development pathways.
For example, a country with high GDP and life expectancy but a large ecological footprint might score well on HDI but poorly on the Happy Planet Index. This highlights the trade-offs between economic growth and environmental sustainability.
Conclusion
In conclusion, HDI, HPI, and the Happy Planet Index offer distinct perspectives on development. HDI provides a broad measure of human progress, HPI highlights deprivation, and the Happy Planet Index emphasizes sustainable well-being. While HDI remains widely used, the HPI’s focus on poverty and the Happy Planet Index’s emphasis on ecological limits offer valuable complementary insights. The increasing recognition of environmental sustainability suggests that indices like the Happy Planet Index will gain prominence in shaping future development strategies, moving beyond purely economic indicators towards a more holistic and sustainable approach.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.