Introduction

The 2016 Human Development Report (HDR) focuses on how human development can be ensured
for every one—now and in future. It starts with an account of the hopes and challenges of today’s
world, envisioning where humanity wants to go. Our vision draws from and builds on the 2030
Agenda for Sustainable Development that the 193 member states of the United Nations endorsed
in 2015—and the 17 Sustainable Development Goals (SDGs) the world has committed to achieve.
The Report explores who has been left behind in human development progress—and why. Human
development progress over the past 25 years has been impressive on many fronts. But the gains
have not been universal. There are imbalances across countries; socioeconomic, ethnic and racial
groups; urban and rural areas; and women and men. Millions of people are unable to reach their
full potential in life because they suffer deprivations in multiple dimensions of human
development. Besides mapping the nature and location of deprivations, the Report raises some
specific analytical and assessment issues. To find out if everyone benefits from the human
development progress, an average perspective is not going to work—a disaggregated approach is
needed. Nor will a purely quantitative assessment succeed—qualitative aspects are needed, too.
Data on agency freedom also need to be reviewed, particularly on voice and accountability.
Finally, good generation and dissemination of data are important, requiring further in-depth
research, experiments, consultations and alliance building among stakeholders. The Report also
identifies the national policies and key strategies to ensure that will enable every human being
achieve at least basic human development and to sustain and protect the gains. And it addresses
the structural challenges of global institutions and presents options for reform.

Human Development Index (HDI)

The HDI is a summary measure for assessing progress in three basic dimensions of human
development: a long and healthy life, access to knowledge and a decent standard of living. A long
and healthy life is measured by life expectancy at birth. Knowledge level is measured by mean
years of education among the adult population, which is the average number of years of education
received in a life-time by people aged 25 years and older; and access to learning and knowledge
by expected years of schooling for children of school-entry age, which is the total number of years
of schooling a child of school-entry age can expect to receive if prevailing patterns of age-specific
enrolment rates stay the same throughout the child's life. The standard of living is measured by
Gross National Income (GNI) per capita expressed in constant 2011 international dollars converted
using purchasing power parity (PPP) conversion rates.1

India
India’s HDI value for 2015 is 0.624— which put the country in the medium human development
category— positioning it at 131 out of 188 countries and territories. 2

1
Human Development Report 2016, UNDP
2
Human Development Report 2016, UNDP
Between 1990 and 2015, India’s HDI value increased from 0.428 to 0.624, an increase of 45.7
percent. Table A reviews India’s progress in each of the HDI indicators. Between 1990 and 2015,
India’s life expectancy at birth increased by 10.4 years, mean years of schooling increased by 3.3
years and expected years of schooling increased by 4.1 years. India’s GNI per capita increased by
about 223.4 percent between 1990 and 2015.

Table A: India’s HDI trends based on consistent time series data

Life Expected Mean years GNI per
expectancy at years of of schooling capita (2011 HDI value
birth schooling PPP$)
1990 57.9 7.6 3.0 1,751 0.428
1995 60.4 8.2 3.5 2,035 0.460
2000 62.6 8.3 4.4 2,495 0.494
2005 64.5 9.7 4.8 3,191 0.536
2010 66.5 10.8 5.4 4,358 0.580
2011 66.9 11.3 5.3 4,594 0.590
2012 67.3 11.5 5.6 4,776 0.599
2013 67.6 11.6 5.8 5,027 0.607
2014 68.0 11.6 6.1 5,329 0.615
2015 68.3 11.7 6.3 5,663 0.624

Figure 1 below shows the contribution of each component index to India’s HDI since
1990.
Figure 1: Trends in India’s HDI component indices 1990-2015

Inequality-adjusted HDI (IHDI)

The HDI is an average measure of basic human development achievements in a country.

Like all averages, the HDI masks inequality in the distribution of human development
across the population at the country level. The 2010 HDR introduced the IHDI, which
takes into account inequality in all three dimensions of the HDI by ‘discounting’ each
dimension’s average value according to its level of inequality. The IHDI is basically the
HDI discounted for inequalities. The ‘loss’ in human development due to inequality is
given by the difference between the HDI and the IHDI, and can be expressed as a
percentage. As the inequality in a country increases, the loss in human development also
increases. The coefficient of human inequality as a direct measure of inequality which is
an unweighted average of inequalities in three dimensions.
India’s HDI for 2015 is 0.624. However, when the value is discounted for inequality,
the HDI falls to 0.454, a loss of 27.2 percent due to inequality in the distribution of the
HDI dimension indices.
The Human inequality coefficient for India is equal to 26.5 percent3.
Gender Development Index (GDI)

In the 2014 HDR, HDRO introduced a new measure, the GDI, based on the sex-
disaggregated Human Development Index, defined as a ratio of the female to the male
HDI. The GDI reflects gender inequalities in achievement in the same three dimensions
of the HDI: health (measured by female and male life expectancy at birth), education
(measured by female and male expected years of schooling for children and mean years
for adults aged 25 years and older); and command over economic resources (measured
by female and male estimated GNI per capita).
The GDI is calculated for 160 countries in the 2015 HDR. The female HDI value for India is
0.549 in contrast with 0.671 for males, resulting in a GDI value of 0.819
Gender Inequality Index (GII)

The 2010 HDR introduced the GII, which reflects gender-based inequalities in three
dimensions – reproductive health, empowerment, and economic activity. Reproductive
health is measured by maternal mortality and adolescent birth rates; empowerment is
measured by the share of parliamentary seats held by women and attainment in secondary
and higher education by each gender; and economic activity is measured by the labour
market participation rate for women and men. The GII can be interpreted as the loss in
human development due to inequality between female and male achievements in the three
GII dimensions.

3
Human Development Report 2016, UNDP
India has a GII value of 0.530, ranking it 125 out of 159 countries in the 2015 index.
In India, 12.2 percent of parliamentary seats are held by women, and 35.3 percent of adult
women have reached at least a secondary level of education compared to 61.4 percent of
their male counterparts. For every 100,000 live births, 174 women die from pregnancy
related causes; and the adolescent birth rate is 24.5 births per 1,000 women of ages 15-
19. Female participation in the labour market is 26.8 percent compared to 79.1 for men.
Multidimensional Poverty Index (MPI)
The 2010 HDR introduced the MPI, which identifies multiple overlapping deprivations suffered
by households in 3 dimensions: education, health and living standards. The education and health
dimensions are each based on two indicators, while standard of living is based on six indicators.
All of the indicators needed to construct the MPI for a country are taken from the same household
survey. The indicators are weighted to create a deprivation score, and the deprivation scores are
computed for each household in the survey. A deprivation score of 33.3 percent (one-third of the
weighted indicators) is used to distinguish between the poor and non-poor. If the household
deprivation score is 33.3 percent or greater, the household (and everyone in it) is classified as multi
dimensionally poor. Households with a deprivation score greater than or equal to 20 percent but
less than 33.3 percent live near multidimensional poverty. Finally, households with a deprivation
score greater than or equal to 50 percent live in severe multidimensional poverty. The MPI is
calculated for 102 developing countries in the 2015 HDR.
The most recent survey data that were publically available for India’s MPI estimation refer to
2005/2006. In India, 55.3 percent of the population (642,391 thousand people) are
multidimensionally poor while an additional 18.2 percent live near multidimensional poverty
(212,018 thousand people). The breadth of deprivation (intensity) in India, which is the average
deprivation score experienced by people in multidimensional poverty, is 51.1 percent.

Switzerland
Switzerland is a peaceful, prosperous, and modern market economy with low unemployment, a
highly skilled labor force, and a per capita GDP among the highest in the world. Switzerland's
economy benefits from a highly developed service sector, led by financial services, and a
manufacturing industry that specializes in high-technology, knowledge-based production. The
Swiss have brought their economic practices largely into conformity with the EU's, in order to
enhance their international competitiveness, but some trade protectionism remains, particularly for
its small agricultural sector. The global financial crisis and resulting economic downturn put
Switzerland in a recession in 2009 as global export demand stalled.
The Swiss National Bank during this period effectively implemented a zero-interest rate policy in
a bid to boost the economy and prevent appreciation of the franc. Switzerland's economy grew by
2.7% in 2010, when Berne implemented a third fiscal stimulus program, but its prized banking
sector has recently faced significant challenges. The country's largest banks suffered sizable losses
in 2008-09, leading its largest bank to accept a government rescue deal in late 2008. Switzerland
has also come under increasing pressure from individual neighboring countries, the EU, the US,
and international institutions to reform its banking secrecy laws. Consequently, the government
agreed to conform to OECD regulations on administrative assistance in tax matters, including tax
evasion. The government has renegotiated its double taxation agreements with numerous
countries, including the US, to incorporate the OECD standard, and it is working with Germany
and the UK to resolve outstanding issues, particularly the possibility of imposing taxes on bank
deposits held by foreigners. Parliament passed the first five double-taxation agreements, including
that with the US, in March 2010. The agreement with the US awaits US Senate approval. In 2009,
Swiss financial regulators ordered the country's largest bank to reveal at Washington's behest the
names of US account-holders suspected of using the bank to commit tax fraud. These steps will
have a lasting impact on Switzerland's long history of bank secrecy.4

Switzerland’s HDI value and rank

Switzerland’s HDI value for 2015 is 0.939— which put the country in the very high human
development category—positioning it at 2 out of 188 countries and territories.5 The rank is shared
with Australia. Between 1990 and 2015, Switzerland’s HDI value increased from 0.831 to 0.939,
an increase of 13.0 percent. Table A reviews Switzerland’s progress in each of the HDI indicators.
Between 1990 and 2015, Switzerland’s life expectancy at birth increased by 5.5 years, mean years
of schooling increased by 3.7 years and expected years of schooling increased by 2.6 years.
Switzerland’s GNI per capita increased by about 18.3 percent between 1990 and 2015.6

Table A: Switzerland’s HDI trends based on consistent time series data

Life expectancy Expected years Mean years of GNI per capita
HDI value
at birth of schooling schooling (2011 PPP$)
1990 77.6 13.4 9.7 47,638 0.831
1995 78.5 14.4 9.8 45,899 0.846
2000 79.9 15.2 11.4 52,331 0.888
2005 81.2 15.2 12.0 55,434 0.904
2010 82.2 15.6 13.4 57,464 0.932
2011 82.4 15.7 13.4 55,079 0.932
2012 82.6 15.8 13.4 55,786 0.934
2013 82.8 15.9 13.4 55,931 0.936
2014 83.0 16.0 13.4 55,745 0.938
2015 83.1 16.0 13.4 56,364 0.939

Figure 1 below shows the contribution of each component index to Switzerland’s HDI since
1990.

Figure 1: Trends in Switzerland’s HDI component indices 1990-2015

4
CIA, The World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html
5
September1, 2016 UNDP Report
6
Human Development Report 2016, UNDP
In its economic forecasts that are updated every quarter, SECO said it expected Swiss economic
growth of 1.5 percent, unchanged from its forecast in its September assessment. Economic growth
for 2017 is expected at 1.8 percent, also unchanged from September. In its first forecast for
2018, the Swiss government expects growth of 1.9 percent. Inflation was forecast at -0.4 percent
for this year and 0.0 percent in 2017, compared to -0.4 percent and 0.3 respectively in September.
It sees price growth of 0.2 percent in 2018.7
Inequality-adjusted HDI (IHDI)
Switzerland’s HDI for 2015 is 0.939. The Human inequality coefficient for Switzerland is equal to 8.4 percent.

Gender Development Index (GDI)

The female HDI value for Switzerland is 0.926 in contrast with 0.951 for males, resulting in a GDI value of
0.974,

Gender Inequality Index (GII)

Switzerland has a GII value of 0.040, ranking it 1 out of 159 countries in the 2015 index. In Switzerland, 28.9
percent of parliamentary seats are held by women, and 96.1 percent of adult women have reached at least
a secondary level of education compared to 97.4 percent of their male counterparts. For every 100,000
live births, 5 women die from pregnancy related causes; and the adolescent birth rate is 2.9 births per
1,000 women of ages 15-19. Female participation in the labour market is 62.7 percent compared to 74.8
for men.
Multidimensional Poverty Index (MPI)
Due to a lack of relevant data, the MPI has not been calculated for this country.

7
http://www.reuters.com/article/us-opec-oil/opec-again-raises-demand-forecast-for-its-oil-
points-to-2018-deficit-idUSKBN1CG1DX
Comparison
This geographically small country- Switzerland has consistently ranked as one of the most
innovative economies in the world. Their top education system and research industry have born,
raised or sheltered 47 Nobel Prize winners. Over the years, more and more people have taken
notice of the Swiss’s economic dynamism. Today, Switzerland is the sixth largest investor in the
U.S. economy with $258 billion in cumulative direct investment. Swiss companies are active
investors in the manufacturing, wholesale, retail, and services sectors. And Swiss affiliates are
especially powerful contributors in pharmaceuticals, medicines and food manufacturing.

Switzerland has outstanding universities which not only teach the next generation, but inspire them
to conduct research and development on their own terms, supporting Swiss entrepreneurship.
The Global Innovation Index ranked Switzerland No. 1 in innovation again last year. The
country’s lack of natural resources forces them to rely on brain power. Education and skill
development is the key feature to their economic success along with an openness to public-private
partnerships, entrepreneurship, socio political atmosphere and academic institutions.

On the other hand, India has slipped from the 130 th rank to 131 st among the 188 countries on
the human development index according to the latest UNDP’s Human Development Report
(2016). India’s latest GDP growth rate is an astounding 7.1 per cent in the last quarter despite
the demonetisation woes and its consequent economic disruptions. India is among the fastest
growing countries in the world and has climbed up in the Ease of Doing Business Index by
four notches in 2016. Clearly something is wrong somewhere. While India is surging ahead
in terms of GDP growth, it is faring poorly on the human development front which means
that millions of Indians have less healthcare and education than in more advanced countries
or even in Emerging Economies like the BRICS where India’s rank is the lowest.

In a hugely patriarchal country like India, one cannot expect India to score high on gender
equality. India Gender Development Index is not surprisingly lower than the average at 0.810.
Switzerland is number 1 with Gender Inequality Index at 0.040. India’s maternal mortality
ratio remains high 174 per 10,000 live births (2015). Switzerland’s IMR is only 5. India’s aim
was to reach 140, which also was the Millennium Development Goal by 2016. But it
couldn’t. India has shown an improvement in overall life expectancy by 10.4 years between
1990 and 2015 and there has been a modest gain in infant and under 5 mortality rate. But when
the public health expenditure is as low at 1.4 per cent of the GDP, it is difficult to achieve the
goal towards universal healthcare. The Modi government’s new health policy may be able to
fill some gaps if the target of increasing expenditure to 2.5 per cent of GDP is achieved.
Otherwise, there will be a huge disparity between urban and rural healthcare. Rural India is
painfully short of doctors, nurses, medicines and hospitals today and the regional inequality in
HDI cannot be mitigated unless attention is paid to cover this shortage fast.

However, the number of poor in India has decreased no doubt, but there are 200 million people
or 21.2 per cent living below poverty line defined as people with income below $1.90 per day.
The report praises NREG for creating work that can reduce poverty and also build physical
assets and infrastructure to protect the poor against shocks. The report praises India for its
South-South Cooperation training programme in which 10,000 participants from least
developed countries came to share India’s expertise in IT, telecom, renewable energy, SMEs,
rural development and management in 2014-15.