HUMAN DEVELOPMENT

& ENTREPRENEURSHIP

by:
Geraldine L. Mahinay
Reynosa Jane A. Paday
April 27, 2019
 CONTENTS

01 The difference between developed and developing

countries

02 Key Indicators of Human Development

03 The meaning of development and its core values

04 Entrepreneurship and human development

 The difference between
01 developed and
developing countries
01 Economic Inequality

When you walk

around almost any city
or town, you can see
different sized houses,
different types of cars,
and different activities
occurring.
These differences
can be indicators of
economic inequality,
which is the difference
between individuals or
populations in terms of
their wealth, assets, or
income.
01 Difference between developed and developing
countries

Add your words here,according to

your need to draw the text box size
01 Difference between developed and developing
countries

Developed Countries are

the countries which are
developed in terms of
economy and
DEVELOPED industrialization. The
Developed countries are
COUNTRIES
also known as Advanced
countries or the first
world countries, as they
are self-sufficient nations.
01 Developed Countries
01 Difference between developed and developing
countries

The countries who are

going through the initial
levels of industrial
development along with
low per capita income are
DEVELOPING known as Developing
COUNTRIES Countries. These countries
come under the category
of third world countries.
They are also known as
lower developed countries.
01 Developing Countries
01 Comparison of Developed and Developing Countries

BASIS FOR COMPARISON DEVELOPED COUNTRIES DEVELOPING COUNTRIES

Meaning A country having an effective rate of Developing Country is a country

industrialization and individual which has a low rate of
income is known as Developed industrialization and low per capita
Country. income.

Unemployment and Poverty Low High

Rates Infant mortality rate, death rate and High infant mortality rate, death rate
birth rate is low while the life and birth rate, along with low life
expectancy rate is high. expectancy rate.

Living conditions Good Moderate

Generates more revenue from Industrial sector Service sector

Growth High industrial growth. They rely on the developed

countries for their growth.

Standard of living High Low

Distribution of Income Equal Unequal

Factors of Production Effectively utilized Ineffectively utilized

02 Key Indicators of Human
Development
02 Key Indicators of Human Development

• Human Development Index (HDI)

• Inequality-adjusted Human Development Index (HDI)
• Gender Development Index (GDI)
• Gender Inequality Index (GII).
• Multidimensional Poverty Index (MPI)
02 Human Development Index

The HDI was developed by Pakistani economist Mahbub

ul Haq, for the United Nations Development Programme
(UNDP). HDI is a summary measure for assessing long-term
progress in three basic dimensions of human development:
a long and healthy life, access to knowledge and a decent
standard of living.
02 Human Development Index
02 Human Development Index

Philippines’ HDI trends based on consistent time series

data and new goalposts
02 Human Development Index Computation

Dimension Indicator Minimum Maximum

Health Life expectancy at birth 20 85
Education Expected years of schooling (Years) 0 18
Mean years of schooling (years) 0 15
Living GNI per capita (PPP) 100 75,000
Standards
02 Human Development Index Computation

Philippines component indicators for 2017

Indicators Values
Life expectancy at birth (Years) 69.2
Expected years of schooling (Years) 12.6
Mean years of schooling (years) 9.3
GNI per capita (PPP) $9,154
02 Human Development Index Computation

Health Index = LE – 20
85 – 20

Health Index = 69.2 – 20

= 0.76
85 – 20
02 Human Development Index Computation

Expected years of schooling index (EYSI)

12.6 – 0
= = 0.7
18 – 0
Mean years of schooling index (MYSI)
9.3 – 0
= = 0.62
18 – 0
Education Index = MYSI + EYSI
2
Education Index = 0.62 + 0.7 = 0.66
2
02 Human Development Index Computation

Income Index = ln(GNIpc) – ln(100)

In(75,000) – In(100)

Income Index = In(9,154) – In(100)

= 0.68
In(75,000) – In(100)
02 Human Development Index Computation

Human Development Index =

Human Development Index =

Human Development Index = 0.699

02 Limitation of Human Development Index

• Wide divergence within countries.

• HDI reflect long-term changes (e.g. life expectancy)
and may not respond to recent short-term changes.
• Higher national wealth does not indicate welfare.
• Also, higher GNI per capita may hide widespread
inequality within a country.
02 Inequality-adjusted Human Development Index (IHDI)

IHDI takes these inequalities into account and shows the

loss to human development due to inequality. The IHDI
measures inequality using the same elements measured in
the HDI. For instance, countries with a handful of rich
citizen and millions in poverty will show a high level of
inequality in the income index
02 Inequality-adjusted Human Development Index (IHDI)
02 Gender Development Index(GDI)

The GDI measures gender inequalities in achievement in

three basic dimensions of human development: 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).
02 Gender Development Index(GDI)
02 Gender Inequality Index (GII)

GII 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.
02 Gender Inequality Index (GII)
02 Multidimensional Poverty Index

MPI is an international measure of acute poverty

covering over 100 developing countries. It complements
traditional income-based poverty measures by capturing
the severe deprivations that each person faces at the same
time with respect to education, health and living standards.
The MPI assesses poverty at the individual level.
02 Multidimensional Poverty Index
 The meaning of
03 development and its core
values
03 Traditional Definition

In the past, Instead of GDP or GNP,

development was about
GDP per capita or GNP
the capacity of a
national economy to per capita is used for
generate and sustain on comparison across time.
annual increase in its
gross national product
(GNP) or gross domestic
product (GDP).
Add your words here,according to
your need to draw the text box size
03 New Definition

 Dudley Seers (1969) suggested that development is when

a country experiences a reduction or elimination of
poverty, inequality and unemployment.

 Edgar Owens (1987) suggested that development is when

there is development of people (human development)
and not development of things.

 Gandhi used the term 'development' in a very broad

sense to mean the total development of society that
include mental, spiritual, and material needs.

 According to the World Development Report

"The challenge of development… is to improve the
quality of life…better education, higher standards of health
and nutrition, less poverty, a cleaner environment, more
equality of opportunity, greater individual freedom, and a
richer cultural life."
03 3 Core Values of Development

Sustainance Self-Esteem Freedom from

Servitude
The ability to meet To be a Person. That
basic needs- food is to have a sense of To be able to make
shelter, health, and worth and self- political and
protection. respect, of not economic choice that
being used as tool does not infringe on
for others' end. the others' rights.
 Arthur Lewis says:
"Advantage of economic
growth is not that wealth
increases happiness, but
that it increases the range
of human choice".
03 3 Objective of Economic Development

To increase food, To expand the

To raise levels of
shelter, health care range of economic
living.
and protection and social choices
(security). available to
individuals.
04 Entrepreneurship and
Human Development
The Millennium Development Goals
2015
Measures of Developing Countries for
Human Development
0 Global Entrepreneurial Index

 Why does entrepreneurship matter?

 How do entrepreneurs contribute?

 Entrepreneurs improve economies and

people's lives by creating jobs, developing
new solutions to problems, creating
technology that improves efficiency, and
exchanging ideas globally. Many of the
conditions that help entrepreneurs also
help the economy as a whole, providing
even broader gains from supporting
entrepreneurship.
04 Global Entrepreneurial Index

 The Global Entrepreneurship Index is a

composite indicator of the health of the
entrepreneurship ecosystem in a given
country. The GEI measures both the
quality of entrepreneurship and the
extent and depth of the supporting
entrepreneurial ecosystem.
2018 GEI Results
THANK YOU