Mahbub ul Haq and Human Development: A Tribute

Author(s): Sanjaya Baru

Source: Economic and Political Weekly , Aug. 29 - Sep. 4, 1998, Vol. 33, No. 35 (Aug. 29 -
Sep. 4, 1998), pp. 2275-2279
Published by: Economic and Political Weekly

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 and local levels, on the 'human' dimension
Mahbub ul Haq and Human Development of development policy. "People are the
real wealth of a nation", said HDR 1990.
A Tribute "The basic objective of development is to
create an enabling environment for people
Sanjaya Baru to enjoy long, healthy, and creative lives".
Said HDR 1996: "Human development is
the end - economic growth a means".
Mahbub ul Haq led a multi-faceted life, but he will be remembered, Equally the HDR has forced all societies
in south Asia especially, for his contribution to the notion of 'human
to look inward and examine the range of
development', as which few ideas in development policy have in persisting inequalities and inequities -
recent times captured the imagination of economists, policy-makers,between men and women, between social
political activists and aid agencies. classes, between ethnic groups and bet-
ween regions. Said HDR 1996, the last
report that Haq was formally associated
NOTHING captured Mahbub ul Haq's annual publication, the World Develop- with, "Widening disparities in economic
undying faith in human endeavour and hisnient Report. performance are creating two worlds -
sense of purpose and optimism better than Returning home to Pakistan in 1982, evermore polarised. Everywhere, the struc-
the closing sentence of a book he wroteHaq served his government as finance, ture and quality of growth demand more
bringing together his life's work: "Human commerce and planning ministers till 1988. attention - to contribute to human develop-
destiny is a choice, not a chance". 1 It is outDuring this period he tried building ment, poverty reduction and long-term
of this conviction that Haq worked till his economic bridges with India but also sustainability...for policy-makers every-
dying day. helped fund the Pakistan bomb. His critics where, the focus must be on strengthening
Mahbub ul Haq, economist, politician,both in Pakistan and India never allowed the links between economic growth and
diplomat, propagandist, died at the age ofhim to live down the consequences of human development."
64 on July 16. 1998, in New York. Bornsome of the decisions he took as finance Human development was originally
in 1934 in Jammu in pre-partition India,minister, but on his part Haq always liked defined by HDR' 90 as a "process of enlarg-
Haq graduated from Government College,to remind them that as finance minister ing people's choices. The most critical of
Lahore, in 1953, secured a master's degreehe had done more for the human develop- these wide-ranging choices are to live a
from King's College. Cambridge in 1955ment agenda than any of his predecessors. long and healthy life, to be educated and
and a doctoral degree in economics fromIn 1989 Haq moved to New York whereto have access to resources needed for a
Yale University, USA, in 1957. At he became a special advisor to the UNDPdecent standard of living. Additional
Cambridge he befriended Amartya Sen administrator and set up the Humanchoices include political freedom, guaran-
and Manmohan Singh and through his life Development Report Office to produce anteed human rights and personal self-
he made friends with scores of Indian annual report. No other report of a UNrespect." The report drew attention to two
economists, politicians and mediapersons. agency has received as much attention oraspects of human development, namely:
My association with Haq began in been as controversial as the HDR. The the formation of human capabilities -
Stockholm in 1992. at a workshop on the credit for the report's popularitysuch and as improved health, knowledge and
Human Development Report, and was 'notoriety' goes almost entirely to skills Haq. - and the use people make of their
sustained through periodic interaction, the acquired capabilities - for leisure, produc-
HAQ AND THE HDR
last being in New Delhi earlier this year, tive purposes or being active in cultural,
when he came to launch the second South Few ideas in development policy have,social and political affairs. When a person's
Asian Human Development Report. Haq capability is enhanced his choices also
in recent times, captured the imagination
led a multi-faceted life, but it is his contri-
of economists, policy-makers, political widen and he is capable of exercising such
bution to the notion of 'human develop- activists and aid agencies as much as the According to this concept of human
choice.
ment' for which he will be remembered, Human Development Reports (HDR), development, income is clearly only one
especially in south Asia. This essay is written
an by a team led by Mahbub uloption
Haq that people would like to have,
obituary and a tribute. and published annually since 1990 byalbeitthe an important one. But it is not the
Mahbub ul Haq'sjourney to the Human United Nations Development Programme sum total of their lives. Development must,
Development Report began as an econo- (UNDP).2 therefore, be more than just the expansion
mist at Pakistan's Planning CommissionConcepts such as the human develop- of income and wealth. Its focus must be
(1957-70). His initial ideas on growth and ment index (HDI) and the gender-related people.
development (The Strategy of Economic HDI, called the GDI, have become as Subsequent HDRs have elaborated on
Planning, Oxford University Press, 1963) popular in the discourse on development this basic definition of human develop-
were reshaped by his experience in govern- as ideas on the relationship between eco-
ment, in terms of enlarging choices and
ment and exposure to the world. Haq nomic growth and human development. improving capabilities, to underscore the
questioned many of his own early premises In less than half a decade the HDR has role ofgoodgovernance-in the institutions
in his second book (The Poverty Curtain, of state and civil society as well as in
evolved from being merely an annual report
Columbia University Press, 1976) in which published by the UN system into an agendaglobal and multilateral institutions. Indeed,
are set out the building blocks of his laterfor action for governments and NGOs the andHDRs define good governance in terms
work on human development. At the World of the ability of both governments and
a catalyst for new thinking in development
Bank (1970-82), Haq was not only a key economics. other institutions of civil society to create
aide of Bank president Robert McNamaraThe HDR has helped focus public and the enabling environment within which
human development goals can be attained.
official attention, at the global, national
but also the principal architect of the Bank's

Economic and Political Weekly August 29, 1998 2275

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Human development does not merely entail the late 1950s, he and other Indian and income. Ironically, while in most industrial
increased investment in the social sectors, Pakistani economists trained South Korean countries, gender inequality has been
the assurance of employment or the elimi- economists in the intricacies of perspective substantially reduced in education, health
nation of poverty. It includes all these and planning and the writing of five-year plans, and nutrition standards, a gender gap
more. hut by the 1980s South Korea was holding persists in access to economic and political
Haq sought the help of Amartya Sen, in development for south
up examples opportunities. The GEM data show that
Meghnad Desai and Sudhir Anand Asia to in
learn from. The more than 7 per apart from the Nordic countries, where
constructing an index that he will
cent hence-
average annual per capita income women's representation in parliament is
growth rate of east Asia in the 1970s and
forth he remembered by. Measuring high, in most other countries not more
'human development' in terms of longe-
1 980s is the most sustained and widespread than 10 per cent of parliamentary seats and
vity, knowledge and living standard, development
with miracle of the 20th century, 6 per cent ministerial positions have gone
equal weight being assigned to perhaps each, allHaq
history, and Haq worried that to women. Women account for only up
and his associates constructed the human south Asia had not fully imbibed the lessons to 40 per cent of technical and professional
development index (HDI). Longevityofisthis miracle. jobs and a mere 10 per cent of administ-
measured by life expectancy at birth; know-Haq also worried about the downside
rative and managerial positions, even
ledge which is reflected in educational of the post-war growth experience. Incomethough 46 per cent of the female popula-
attainment is measured by a combination inequalities have widened and gendertion has access to primary, secondary and
of adult literacy (two-thirds weight) and
disparities persist. As HDR '92 showed tertiary education. The higher up one goes
combined primary, secondary and tertiarythe richest 20 per cent Qf the world's in the pyramid of economic and political
enrolment ratios (one-third weight); and,
people are at least 150 times richer thanpower the greater is the gender gap.
by poorest 20 percent and global disparity The most damning statistic on gender
finally, standard of living is measured the
real GDP per capita valued in terms has of doubled over the last 30 years. The inequality is the demographic profile of
purchasing power parity. overall gap between the top 20 per cent nations. The natural demographic sex ratio
The HDR has also served to remind us favours females with an average of 106
of the global population and the bottom 20
that the discipline of economics has fromper cent has gone up from a ratio of 30:1females to 100 males in most societies. For
its inception been concerned with income in 1960 to 60:1 in 1991 and has further sub-Saharan Africa this ratio comes down
distribution and not only the processes goneof up to 78:1 in 1994. The poorest 20to 102:100 and in China, south and west
production and consumption of goodsper Asia this ratio is 94:100. Economist
andcent of the world's population receives
services. The HDR has integrated intoonly its 0.2 per cent global commercial bankAmartya Sen has argued that if this rati
various measures of development a distri- is compared with what should have pre
lending, 1.3 per cent of global investment,
butional dimension, adjusting the indexes 1 per cent of global trade and a mere vailed.
1.1 as the natural ratio, then it is clear
for regional, income and gender imbalan- per cent of global income. Rich and poorthat in Asia (China, south Asia, south-eas
ces. A key message that Haq sought to
countries compete in the global market-Asia and west Asia) and north Africa ther
send through the HDRs was that not only place as unequal partners. If developing are over 100 million 'missing women'
is income an inadequate measure countries of are to compete on a more equal
The gender bias against females manifest
development but even other measures itself in female foeticide, infanticide, nutri-
footing, they will require massive invest-
ments in human capital and technological
which value the 'quality' of life can at best tional deprivation of the girl child, higher
be sub-optimal unless they take account development. female illiteracy, unequal access to econo
of distributional inequalities. mic, social and political opportunities an
GENDER DIMENSION OF HUMAN
Haq was always anxious that the HDRs the like. Together, these result in effectivel
DEVELOPMENT
also convey a message of hope. Challeng- curtailing the choices and capabilities o
ing pessimistic perspectives on failures Haq of was a superb wordsmith and a women.
growth and development and defeatist journalist's delight. Launching the 1995 All this is not to deny that the
development models which suggested HDR, that on the eve of the Beijing Women's gap has narrowed in all countri
the developing world was condemned to
Conference, Haq gave the media a sound-if at different rates and women have made
economic backwardness. the HDRs have byte it lapped up: "human development,considerable progress in a short time in
shown that north-south gaps have if beennot engendered, is endangered". Haqbuilding human capabilities and widening
bridged in terms of human development offered a comprehensive review of gender their choices through improved access to
indicators like health and education. bias in development, showing that in no health care and education. However, the
Developing countries have in 30society yearsdo women enjoy the same oppor-uncovered distance is still considerable.
achieved progress in human development tunities as men. While every country hasHDR '95 also analysed women's work
that took industrial countries more than
made progress in developing women's and suggested new ways of valuing it,
100 years. In HDR '96 Haq reminded capabilities,
us women and men still live in whether it is performed at home or outside
that "living standards for hundreds of an unequal world. HDR '95 introduced twothe home. Extensive research was under-
millions have risen. Basic education and new measures of gender inequality, GDItaken to estimate the time spent by women
(gender-related HDI) and GEM (genderand men in market and non-market acti-
literacy have expanded. Access to safe
empowerment measure).
water and sanitation has greatly increased. vities. The study, covering both industrial
And the gender gap in basic human capa- Analysis of GDI data shows that genderand developing countries, enabled the
bilities has narrowed considerably, even equality does not depend on the income valuation of household and other unpaid
though significant gaps in opportunities level of a society, with gender inequalitywork, performed mostly by women.
remain." prevalent in both developed and develop- A review of the 31 countries in the
Haq was deeply impressed by the growth ing countries. Equally, it was found, theresample shows that women work longer
experience of the east Asian economies. is no correlation between improvement in hours than men in nearly every country.
He would often recall the story of how in gender equality and level of national Of the total burden of work, women carry

2276 Economic and Political Weekly August 29. 1998

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on average 53 per cent in developing members. The council would arrive at a HDR '94 challenged the traditional
countries and 51 per cent in industrial political consensus on development policy,
notion of 'security' stating, "The concept
countries. In industrial countries, while to be implemented by the appropriate
of security has for too long been interpreted
men spend two-thirds of their work time agencies. It would consider all majorglobal
narrowly: as security of territory from
in paid activity (as defined by national issues, including poverty eradication,
external aggression, or as protection of
accounts statistics) and a third in unpaid human development, food security, trade
national interests in foreign policy or as
work, for women the ratio is reversed. In negotiations, commodity prices, debt,
global security from the threat of a nuclear
developing countries, more than three- holocaust. It has been related mnore to
development assistance, drug trafficking,
fourths of men's work is in paid activity. nation-states than to people... For most
refugees and the management of the global
To quote HDR '95: "Men receive the commons. Such global institutional reform
people, a feeling of insecurity arises from
lion's share of income and recognition for should also envelop existing multilateral
worries about daily life than from the read
their economic contribution - while most institutions like the World Bank, IMF, of a cataclysmic world event. Will they
of women's work remains unpaid, un-GATT/WTO, UNDP, UNEP and so on, and their families have enough to eat? Will
recognised and undervalued". to bring all of them on board a commonthey lose their jobs?..."
The value of 'unpaid' work which is nothuman development agenda that would Human security said HDR '94, "is not
recorded by official national accounts focus primarily on strengthening the capa-a concern with weapons - it is a concern
statistics is estimated to be as high as
bilities of global institutions and enable with human life and dignity". It defined
almost half of gross domestic product. themIf to make global markets more com-human security as safety from such chronic
more human activities were seen as marketpetitive and open. threats as hunger, disease and repression;
transactions at the prevailing wages, they HDR '94 proposed a new design for and, protection from sudden and hurtful
would yield a large monetary evaluation development co-operation which, apartdisruptions in the patterns of daily life -
of national income. A rough order of mag-fr'om reiterating the role ofODA, suggestedwhether in homes, in jobs or in commu-
nitude comes to a staggering $ 16 trillion nities. "Such threats can exist at all levels
the creation of global safety nets and a new
- or about 70 per cent more than the
framework of global governance. Theof national income and development".
officially estimated $ 23 trillion of global
framework of development co-operation Ironically, both developed and develop-
output. Says HDR '95, "The monetisationwill have to be altered to link foreign ing countries spend far too much money
of the non-market work of women is moreassistance to commonly agreed policyon military security, diverting precious
than a question of justice. It concernsobjectives-particularly
the poverty reduction resources away from human development
economic status of women in society. If
strategies, productive employment oppor- concerns and thereby have deepened the
women's unpaid work were properly tunities and the goals of sustainable humancrisis of human security rather than
valued, it is quite possible that womendevelopment. It would require apportion- resolved it. The human development para-
would emerge in most societies as the ing a certain share of ODA for human digm views excessive military expenditure
main breadwinners - or at least equal development, broadening the concept of as a drain on national and global resources
breadwinners - since they put in more development co-operation to also includewhich could otherwise have been spent on
hours of work than men." trade, investment, technology and labourhuman priority concerns and helped ensure
flows. An important proposal of HDR '94, human security worldwide. In 1980, Iraq,
GL(BAL COMPACT FOR HUMAN
made in the context of the UN Social
Somalia and Nicaragua had the highest
DEVELOPMENT
Summit's search for additional funding
ratios of military to social spending. By
Haq believed that the agenda of human for human development, was global the 1990s. these countries were beginning
development will have to be implemented to disintegrate. By contrast, Costa Rica
taxation. HDR '94 supported the proposal
both at the national as well as the global invested one-third of its national income
of Nobel Prize-winning economist, James
level. Policies that seek to reduce inequality in the education, health and nutrition of
Tobin, to impose a levy on international
within nations must be matched by efforts currency transactions. A mere 0.5 per its
cent
people and nothing in the army. which
had been abolished in 1948. Costa Rica's
at reducing them between nations. Towards levy on such transactions, it was estimated,
this end the HDRs have proposed several would yield an annual revenue of US human
$ development profile is under-
1.5 trillion. This is more than adequate
initiatives, but Haq never tired of reminding to
standably superior to that of the other three,
the developed industrial economies that finance the entire global human develop- and of most other developing economies.
they had failed to honour theircommitment ment agenda. HDR '94 suggested a 3 per cent annual
to the UN to devote a mere 0.7 per cent reduction in global military spending, with
HUMAN SECURITY AND HUMAN
of their GNP to aid. 20 per cent of the savings by rich nations
DEVELOPMENT
Going beyond the specific issues of ODA and 10 per cent of those by poor nations
and debt rescheduling, Haq used HDR '92The 1990s, a period in which the Human earmarked for global human security.
to consider in some detail the inequities
Development Reports have taken shape, Equally the value of greater transparency
in the global economic order and called
began with the end of the cold war. From in military spending and arms purchases,
for a reform of international institutions the very first report, the HDRs have greatly on the part of all governments and
aimed at addressing the problem of globalemphasised the immense potential of companies, has been repeatedly stressed.
inequality. The HDRs have consistentlyfunding the global human development
TRENDS IN HUMAN DEVELOPMENT
spoken in favour of a reform and streng-agenda by capturing the 'peace dividend'
thening of the UN system. Apart fromthat the end of the cold war was expec- Haq did not want the HDR to be only
recommending the strengthening of theted to create. Equally, the HDRs have a message of hope but also saw it as an
UN's peace-keeping operations, the HDRs urged other countries which have high early warning system. The analysis of
have suggested creation of a 22-memberdefence budgets to consider diverting inter-temporal and inter-regional trends
UN Development Security Council, withresources from military uses to peaceful shows significant improvement in human
11 permanent members and I I rotating purposes. development indicators across all

Economic and Political Weekly August 29, 1998 2277

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countries. It also shows wide disparities of the progress in life expectancy reflects there has been a slippage on the education
in levels of human development between improvement in the longevity of women. front also in eastern Europe and the C
nations and within countries. Between 1970 and 1990 women's life countries. In the 1990s, primary and secon
While Nordic countries come out on expectancy increased by nine years, 20 enrolment rates fell by 4 per cent
dary
top, with the best human development per cent more than the increase for 6men.
per cent in Russia and Bulgaria. Whi
indicators, sub-Saharan Africa and south However, in eastern Europe and the CIS
enrolment rates have been high in industria
Asia find themselves at the bottom of the countries, some of them worry abou
countries one of the most striking symp-
heap. The countries which have experi- toms of social and economic upheavaldeclining
is standards and reduced number
enced significant improvement in human a fall in life expectancy. In industrial
in applied and natural sciences.
development indicators within a lifetime countries life expectancy has continuedAdmittedly,
to there are several short-
include the 'miracle' economies of east increase, with an average of above 75
comings with any shorthand measure o
Asia, including Malaysia, Thailand and years. While rising life expectancy development
is a and the HDI has received it
China, and some countries in the west major human development achievement.share of criticism. HDR '95 in particular
Asia like Tunisia, Turkey, Syria and Iran. and other HDRs have addressed each of
it also brings with it two attendant problems
The two countries which moved up from of financing the health care of the theseaged criticisms. The criticism has ranged
'low' human development status to 'high'and generating enough revenue from from
thedissatisfaction with the choice of
human development status between 1960working population to finance the social variables and the paucity of data to
and 1992 were the Republic of Korea andsecurity of the elderly. disagreement with the weights allotted to
Portugal, with Malaysia and Thailand Health: Health standards have also each variable and the measurement of
closely behind them (HDR '94). Other imnproved in developing countries,income
though (see chapter 6, HDR '95). Some
high performers include Botswana andthe unfinished agenda remains enormous.
commentators wrongly charged the HDR
Costa Rica. Progress has been made in under-five
with promoting an 'ant'-growth' bias in
Between 1960 and 1993, the overall development policy while others worry
mortality, which in developing countries
about
HDI for the developing countries increasedfell from 243 deaths per thousand the non-inclusion of political and
live
from 0.260 to 0.563, and even the least environmental criteria in the evaluation of
births to less than 100 during 1960-94,
developed countries made a clear progress,though in sub-Saharan Africa thehuman
rate isdevelopment.
However, as economist Paul Streeten,
registering an average HDI value of 0.331still 174. Broader access to health services,
in 1992. HDR '96 reported an average safe water and sanitation and the Haq's academic mentor, observes in a
HDI value of 0.379 for sub-Saharan Africa, nlobilisation of private services,foreword
such as to Haq's book: "Such indexes
0.444 for south Asia, 0.633 for Arab states for immunisation, have made the are useful in focusing attention and simpli-
and east Asia (including China and 0.877 difference. Public spending on healthfying
in problems. They are eyecatching.
excluding China), 0.646 for south-eastdeveloping countries increased from a mere
They have considerable political appeal.
Asia and Pacific. 0.824 for Latin America They have a stronger impact on the mind
0.9 per cent of GDP in 1960 to 2 per cent
and the Caribbean, 0.773 toreastern Europeof GDP in 1993. and draw public attention more powerfully
and CIS and 0.909 for industrial econo- Alongside such progress there has than
beena long list of indicators combined
mies. The world average was 0.746 for much deprivation - both across social and
with a qualitative discussion. The strongest
HDI and 0.600 for GDI. income groups and between countries. argument in their favour is that they show
The developing countries have in Deprivation
30 in health is on the rise in inadequacies of other indexes, such
up the
years achieved progress in human develop- eastern Europe and the CIS countries and
GNP, contributing to an intellectual muscle
ment that took industrial countries more limited progress has been made intherapy
sub- that helps us to avoid analytical
than 100 years. Living standards for Saharan Africa and south Asia. The worst
cramps. They can serve as mental finger
hundreds of millions have risen. Basic affected remain young children and
exercises. They redirect our attention from
education and literacy have spread signi- women. HIV/AIDS has become one of the one set of items to others - in the case
ficantly, along with mass communication. world's leading public health problems,of the HDI, to the social sectors: nutrition,
Mortality rates for infants, childrenalong and with persistent diseases like education and health. But again, it should
women have fallen. Access to safe water tuberculosis and malaria. be remembered that human development
and sanitation has greatly increased. And Educational attainment: Investment in is a much richer concept than can be caught
the gender gap in basic human capabilities social services in developing countries in any index, whether GNP, the HDI or
has narrowed considerably, even though any other."3
shows up in higher literacy rates and greater
significant gaps in opportunities remain. numbers of children enrolled in school.
DISAGGREGATING THE HDI
But, as HDR '96 observed, the record Between 1960 and 1993, the literacy rate
of human development over the past 30 in the 15 years and above age group in No other indicator of development has
years is a mixed picture of unprecedented developing countries increased from 43 attracted as much public attention in recent
human progress and unspeakable human per cent to 61 per cent. Latin America has years as the HDI. Not surprisingly, the
misery - of human advances on several an average rate of 86 per cent, while sub- HDI has been critically analysed, both
fronts and retreats on several others. HDR Saharan Africa and south Asia have 55 per conceptually and empirically, and its
'96 has prepared regional balance sheets cent and 49 per cent respectively. creators have refined the index on both
of progress on human development: School enrolment rates have also counts. The HDI published in the 1996
Life expectancy: The analysis showsimproved, with the net enrolment report rate in is a more evolved index than the
that between 1960 and 1993, life expect-developing countries going up during original series published in the 1990 report.
ancy in developing countries increased by 1960-91 from 48 per cent to 77 per There
centhave been definitional changes,
for cent
at the primary level and from 35 per
more than a third, from 46 to 62 years and instance the statistical indicators of
30 developing countries now have life all three
to 47 per cent at the secondary level. In components of HDI, namely,
longevity, knowledge and income, have
expectancies of 70 years or more. Much keeping with trends in other social sectors,

2278 Economic and Political Weekly August 29, 1998

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been refined and expanded. Further, the research and data collection in UN member was slipping behind sub-Saharan Africa
HDI has been disaggregated to capture countries to enable more countries to con- in terms of human development indicators.
income. regional and other disparities. struct disaggregated HDI at the sub- Haq hoped to use the South Asian Associ-
HDR '90 recognised that any average national level. In India, region-specific ation for Regional Cooperation (SAARC)
measure conceals wide differentials and HDIs have been used to encourage back- as a platform for a regional agenda for
it underscored the value of disaggregated ward regions to draw policy lessons from peace and development. Death came pre-
HDI. Subsequent HDRs have deconst- the developed ones in such areas as in- maturely to a man still full of action and
ructed the HDI to reveal the impact vesting
of in the girl child, women's education an unfinished agenda.
income, gender and other inequalities. and health and so on. Haq's work is now
[This tribute draws liberally on the author's
Indeed, the disaggregated HDI has become being carried forward by many state monograph 'Humnan Development Report: A
an even more powerful tool of policy governments in India. Synthesis' written for the Human Development
advocacy, helping to focus attention on Having set the HDR in motion and Report Office, UNDP, New York, June 1997.]
distributional inequalities in growth and having made sure that economists, policy-
Notes
development and guide public policy on makers and the media took adequate notice
provisioning of health, education and other of the reports' contents, Haq returned home
I Mahbub ul Haq, Reflections on Human
social and economic infrastructural ser- to set up the Human Development Centre Development. Oxford University Press. 1995.
vices. Beginning with HDR '93, which
in Islamabad. There he was busy develop- 2 The summary of various HDRs offered here
dramatically focused attention on ing
thenew concepts, like the Human Depriv- is extracted from Sanjaya Baru, 'Human
ation
backwardness of the state of Chiapas in Measure (HDM), and refining old Development Reports: A Synthesis', a mono-
Mexico - a year ahead of the political ones.
up- His wife and intellectual companion, graph prepared for the Human Development
Report Office, United Nations Develop-
heaval there - the disaggregation of Khadija
the (Bani) Haq had already started
ment Programme, New York, June 1997
HDI has increased the political relevance
taking charge of the work at HDC. Haq (unpublished).
of the HDR even more. was preparing for a larger political role 3 Paul Streeten in Foreword to Haq (1995),
Disaggregating the HDI has also en- in south Asia. Haq worried that south Asia pp xi-xii.
couraged countries where relevant data is
Just Released
unavailable at such levels of disaggregation
to collect and publish the necessary infor-
mation. The overall HDI reflects national SAMEEKSHA TRUST BOOKS
income, but in many countries, particularly
in the developing world, the distribution Selections from Economic and Political Weekly
is badly skewed. This makes it important
to discount the income component of the
HDI to reflect maldistribution of income.
Money and Finance
To account for the income disparity Issues, Institutions, Policies
factor, the share of income of the bottom 20
per cent of the population is divided by Edited by
the share of the top 20 percent. Multiplying
Deena Khatkhate
this ratio by the country's overall HDI
gives the income-distribution adjusted Financial Liberalisation: A Revisionist View Deena Khatkhate.
HDI. HDR'94 computed this indicator for
and Monetary Policy in Less Developed Countries Warren L
55 countries. Since no country has a perfect Jrand Deena Khatkhate- Financial Liberalisation: Issues and Evidence
income distribution, adjusting the HDI for
Yoon Je Cho and Deena Khatkhate * Government Balances as a
income distribution reduces the HDI score
for all. Some countries improve their HDI Monetary Policy Instrument in the Less Developed Countries
ranking relative to others, having done Chandavarkar ? Fiscal-Monetary Dynamic Nexus Narendra Ja
better in distributing incomes. Thus, while and Balwant Singho On the Inflationary Impact of Budget Deficit M
the HDI rank of Brazil slips by seven places Rakshit * Bank Deposits in the Indian Economy V G Pendhar
because of sharp inequalities, with the ratio * Interest-Price Nexus D M Nachane * Informal Credit Markets and
between the income share of the bottom
Black Money Shankar Acharya and. Srinivasa Madhur * Interlinka
20 per cent of the population and that of of Formal and Informal Credit Markets in India Pradeep Srivast
the top 20 percent being 1:32, that of China
* Behaviour of Trade Credit: Its Relevance to Monetary Policy L
improves by six places. Among industrial Bhole * Performance of Commercial Banks since Nationalisation
countries, Belgium improves its ranking
by nine places while Australia slips by
SL Shetty * Monetary Policy for Independent Monetary Autho
V M Dandekaro Financial Rehabilitation of Public Sector BanksSuman
eight.
These adjustments in overall HDI are K Bery.
particularly useful for international com-
parisons of disparities among countries. 348 pages Rs 350
Forcomparisons within countries, HDR'94
felt a more useful approach would be to Available from
calculate separate HDIs for different groups ORIENT LONGMAN LIMITED
-by region, gender, race and so on. Various
HDRs have reported specific country Calcutta Chennai Mumbai New Delhi Bangalore Bhubanesh
studies and the UNDP has supported Emakulam Guwahati Hyderabad Jaipur Lucknow Patna

Economic and Political Weekly August 29, 1998 2279

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