What is a good HDI score?

Basic Human Needs

The Human Development Index [HDI] of the United Nations exhibits four key aspects on the basics of human quality of living: infant mortality, population growth rate, longevity, and [il]literacy[49], p202. Every world citizen can be believed to strive to an HDI of close to one, implying a fulfilling of the basic needs. Figure 3.9, showing both the HDI and the ecological footprint, reveals the desired area to be in [69,70].

As can be expected, the four key aspects also show a strong correlation with the gross national product [GNP], [21], however, to a certain point. Figure 3.10 gives another indication of welfare, in terms of subjective well-being. After a certain point, the increase in the percentage happy and satisfied with life does not substantially increase anymore [71]. As GNP is closely coupled to the carbon intensity, more goods, energy usage, and therefore increased carbon intensity do not imply to add a broader feeling of well-being.

11.4.5 Human development index [HDI]

The Human Development Index [HDI] is an indicator of social standards that consists of three areas: life expectancy, access to education and literacy, and living conditions and income. The index depends on a number of factors based on development, including the ability to perform tasks, such as access to proper nutrition, health, occupation, education, and community participation. The relationship between the HDI and the per capita water resources of Ukraine is shown in Fig. 11.8.

According to research conducted in different countries, the results obtained in accordance with the data of Ukraine have an upward trend with per capita water resources. As a result, the availability of water increases the quality of life, improves the economic situation, and develops relevant indicators.

2.4.1 Can Water Security Ensure Economic Growth?

International development discussions are often characterized by polarized contentions on whether money or policy reform is more crucial for progress in human development [various authors as cited in HDR, 2006, p. 66]. Scholars have already discussed the two possible causal chains, one that runs between economic growth and human development, and the other that runs between human development and economic growth [Ranis, 2004]. The causality in the first case occurs when resources from national income are allocated to activities that contribute to human development. Ranis [2004] argued that a low level of economic development would result in a vicious cycle of low levels of human development and a high level of economic development would result in the virtuous cycle of high levels of human development. Whereas in the second case, as indicated by several evidences, better health and nutrition lead to better productivity of the labor force [Behrman, 1993; Cornia and Stewart, 1995]. Education opens up new economic opportunities in agriculture [Schultz, 1975; Rosenzweig, 1995], impacts on the nature and growth of exports [Wood, 1994], and results in greater income equality, which in itself results in economic growth [Bourguignon and Morrison, 1990; Psacharopolous et al., 1992; Bourguignon, 1995; Ranis, 2004].

If the stage of economic development determines a country’s water situation rather than the reverse, the variation of human development index, should be explained by variation in per capita GDP, rather than water situation in orders of magnitude. We have used data for 145 countries to examine this closely. The regression shows that per capita GDP explains HDI variations to an extent of 90%. The regression equation was Y = 0.129ln [X]-0.398. But, it is important to remember that HDI already includes per capita income, as one of the subindices.

Therefore, analysis was carried out using decomposed values of HDI, after subtracting the per capita income index, the graphical representation of which is presented in Fig. 2.2. The regression value came down to 0.75 [R2 = 0.75] when the decomposed index, which comprises education index and life expectancy index, was run against per capita GDP. What is more striking is the fact that 21 countries having per capita income below 2000 dollars per annum have medium levels of decomposed index. Again 50 countries having per capita GDP [ppp adjusted] less than 5000 dollars per annum have medium levels of decomposed HDI. Significant improvements in HDI values [0.30–0.9] occur within the small range in per capita GDP. The remarkable improvement in HDI values with minor improvements in economic conditions, and then “plateauing” means that improvement in HDI is determined more by factors other than economic growth. Our contention is that the remarkable variation in HDI of countries belonging to the low-income group can be explained by the quality of governance in these countries, ie, whether good or poor.

Many countries that show high HDI also have good governance systems and practices, and institutional structures to ensure good literacy and public health. For instance, Hungary in eastern Europe; some countries of Latin America, namely, Uruguay, Guatemala, Paraguay, Nicaragua, and Bolivia; and countries of the erstwhile Soviet Union, namely, Turkmenistan, Kyrgyzstan, and Armenia have welfare-oriented policies. They make substantial investments in water, health, and educational infrastructure.2

Incidentally, many countries, which have extremely low HDI, have highly volatile political systems, and ineffective governance and corruption. The investments in building and maintenance of water infrastructure are consequently very poor in these countries [Shah and Kumar, 2008] in spite of huge external aid. Sub-Saharan African countries, namely, Angola, Benin, Chad, Eritrea, Ethiopia, Burundi, Niger, Togo, Zambia, and Zimbabwe; and Yemen in the Middle East belong to this category. Sub-Saharan Africa has the lowest irrigated to rain-fed area ratio of less than 3% [FAO, 2006, Figure 5.2, p. 177], whereas Ethiopia has the lowest water storage of 20 m3/capita in dams [World Bank, 2005]. How water security decoupled human development and economic growth in many regions of the world was illustrated in the human development report [HDR, 2006, pp. 30–31].

The public expenditure on health and education is extremely low in these African countries and Yemen when compared to the many other countries which fall under the same economic category [below US $ 5000 per capita per annum]. Over and above, the pattern of public spending is more skewed toward the military [source: HDR, 2006, Table 19, pp. 348–351]. Besides, access to water supply and sanitation is much higher in the countries which have higher HDI, as compared to those countries which have very low HDI [based on data in HDR, 2006, Table 7, pp. 306–309].

Some of the striking features of these regions are the high incidence of water-related diseases such as malaria and diarrhea, high infant mortality, and high school dropout rate mainly due to lack of access to safe drinking water; and scarcity of irrigation water in rural areas, poor agricultural growth, high food insecurity and malnutrition [source: based on HDR, 2006]. Consequently, their HDI is very low.

6 Conclusions

Energy has a determinant influence on the HDI, particularly in the early stages of development, in which the vast majority of the world's people, particularly women and children, are classified. The influence of per capita energy consumption on the HDI begins to decline between 1000 and 3000 kg of oil equivalent [koe] per inhabitant. Thereafter, even with a tripling of energy consumption, the HDI does not increase. Thus, from approximately 1000 koe per capita, the strong positive covariance of energy consumption with HDI starts to diminish. The efficiency of energy use is also important in influencing the relationship between energy and development.

Another aspect of the problem is the mix of supply-side resources that dominate the world's energy scene today. Fossil fuels have a dominating role [81% of supply in OECD countries and 70% in developing countries], although, as a rule, renewables are more significant for low-income populations. However, there are significant advantages to increasing the role of renewable sources since they enhance diversity in energy supply markets, secure long-term sustainable energy supplies, reduce atmospheric emissions [local, regional, and global], create new employment opportunities in rural communities offering possibilities for local manufacturing, and enhance security of supply since they do not require imports that characterize the supply of fossil fuels.

More generally, development, including the generation of jobs, depends on a number of factors in addition to GNP per capita. Furthermore, although an essential ingredient of development, energy is more important with regard to low rather than high incomes.

Appendix Development Indicators

Table 1.3.3. Development Indicators[1]

CountryHuman Development Index**Fragile States Index***Population Growth****Fertility Rate****
2013Rank 2014% per Year [2000–2012]Birth per Woman [2000–2015]Benin165743.14.9Burkina Faso181392.95.7Chad18463.46.3Cote d'Ivoire171141.74.9Gambia172593.15.8Ghana1381182.53.9Guinea179122.25Guinea-Bissau177162.25Mali176363.16.9Mauritania161282.84.7Niger187193.77.6Nigeria152172.66Senegal163622.85Sierra-Leone183353.14.8Sudan*16652.44.5Togo166412.64.7Entire region2.7

Table 1.3.4. Development Indicators [2]

CountryUndernourished
People**Cereal Import Dependency Ratio***Population Living on Degraded Land****Gross National Product per Capita*****
% of Total Population
2012–20142009–2011% of Total Population 2010In Purchase Power Parities, 2012Benin9.736.21.61570Burkina Faso20.710.473.21510Chad34.89.545.41320Cote d'Ivoire14.761.31.31960Gambia643.817.9510Ghana