UPSC MainsECONOMICS-PAPER-I202215 Marks
Q22.

Distinguish between Gender Development Index (GDI) and Gender Empowerment Measure (GEM) in terms of their components and constructions.

How to Approach

This question requires a comparative analysis of two indices – GDI and GEM – used to measure gender equality. The answer should focus on their conceptual differences, components used in their calculation, and how they reflect different dimensions of gender disparity. A structured approach comparing their construction methodologies, data requirements, and interpretations is crucial. The answer should demonstrate an understanding of the evolution of gender measurement indices.

Model Answer

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Introduction

The quest for measuring development has evolved beyond purely economic indicators to encompass social dimensions like gender equality. Recognizing that traditional measures like GDP often mask gender disparities, the United Nations Development Programme (UNDP) introduced the Gender Development Index (GDI) in 1995, and later the Gender Empowerment Measure (GEM) in 1997. Both indices aimed to provide a more nuanced understanding of gender inequality, but they differed significantly in their approach. While GDI focused on disparities in basic capabilities, GEM highlighted inequalities in economic and political power. This answer will delineate the components and construction of both indices, highlighting their strengths and limitations.

Gender Development Index (GDI)

The GDI is a direct adjustment to the Human Development Index (HDI) to account for gender inequalities in three key dimensions of human development: health (life expectancy), education (mean years of schooling and expected years of schooling), and standard of living (Gross National Income per capita).

  • Components: The GDI is calculated by dividing the HDI for females by the HDI for males. It essentially shows the percentage of potential human development achieved if women and men had equal capabilities.
  • Construction:
    1. Calculate HDI for males and females separately using the standard HDI formula.
    2. GDI = (HDIfemale / HDImale)
    3. The GDI value ranges from 0 to 1, where 1 indicates perfect equality.
  • Interpretation: A lower GDI value indicates a greater disparity between the achievements of women and men in human development.

Gender Empowerment Measure (GEM)

The GEM, unlike the GDI, focuses on the power and agency of women in economic and political life. It measures women’s relative participation in three key areas: economic decision-making, political decision-making, and power over economic resources.

  • Components: GEM comprises three equally weighted dimensions:
    • Economic participation and decision-making: Measured by the share of women in paid employment.
    • Political participation and decision-making: Measured by the share of women in parliamentary seats.
    • Power over economic resources: Measured by the proportion of women who own land and have access to credit.
  • Construction:
    1. Calculate the index for each dimension by dividing the female value by the male value.
    2. GEM = (Indexeconomic * Indexpolitical * Indexpower)1/3
    3. The GEM value ranges from 0 to 1, where 1 indicates perfect equality.
  • Interpretation: A lower GEM value signifies a greater disparity in women’s ability to participate in and influence economic and political decision-making.

Comparative Analysis: GDI vs. GEM

The following table summarizes the key differences between GDI and GEM:

Feature Gender Development Index (GDI) Gender Empowerment Measure (GEM)
Focus Capabilities and achievements in health, education, and income. Power and agency in economic and political spheres.
Dimensions Health, Education, Standard of Living Economic Participation, Political Participation, Power over Economic Resources
Data Requirements Life expectancy, mean years of schooling, GNI per capita (disaggregated by gender). Employment rates, parliamentary representation, land ownership, access to credit (disaggregated by gender).
Interpretation Indicates the extent to which women are lagging behind men in basic human development. Indicates the extent to which women are excluded from economic and political decision-making.
Limitations Doesn’t capture power imbalances or agency. Data availability can be a challenge, particularly in developing countries.

It’s important to note that the GEM was discontinued in 2010 due to data limitations and methodological challenges. The UNDP subsequently introduced the Gender Inequality Index (GII) as a replacement, which combines aspects of both GDI and GEM, focusing on reproductive health, empowerment, and the labor market.

Conclusion

In conclusion, both the GDI and GEM were valuable tools in highlighting different facets of gender inequality. The GDI provided a broad measure of disparities in basic human development, while the GEM focused on women’s agency and power. While the GEM faced limitations and was eventually replaced by the GII, both indices contributed significantly to raising awareness about gender issues and informing policy interventions aimed at achieving gender equality. Understanding their distinct components and constructions is crucial for a comprehensive assessment of gender disparities and for designing effective strategies to promote women’s empowerment.

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.

Additional Resources

Key Definitions

Human Development Index (HDI)
A summary composite index measuring a country’s average achievements in three basic dimensions of human development: a long and healthy life, being knowledgeable and having a decent standard of living.
Gender Inequality Index (GII)
A composite index measuring gender inequalities in three dimensions: reproductive health, empowerment, and the labor market. It reflects the loss of human development due to gender inequality.

Key Statistics

In 2021, the global GDI value was 0.897, indicating that women, on average, achieved 89.7% of the human development attained by men. (Source: UNDP Human Development Report 2021/22 - Knowledge Cutoff 2023)

Source: UNDP Human Development Report 2021/22

According to the World Bank, women represent 49.7% of the global population, yet they earn only 77 cents for every dollar earned by men. (Source: World Bank, 2023 - Knowledge Cutoff 2023)

Source: World Bank

Examples

Norway's High GDI and GEM

Norway consistently ranks high on both the GDI and GEM (historically), demonstrating a strong commitment to gender equality across all dimensions of human development and empowerment. This is reflected in its high female labor force participation rate, significant representation in parliament, and equitable access to education and healthcare.

Frequently Asked Questions

Why was the GEM discontinued?

The GEM was discontinued primarily due to difficulties in obtaining reliable and comparable data across countries, particularly regarding women’s land ownership and access to credit. Methodological concerns regarding the weighting of its components also contributed to its discontinuation.

Topics Covered

EconomicsDevelopment EconomicsGender InequalityHuman DevelopmentSocial Indicators