Other parameters for measuring National Income :GNH,GREEN GDP,Human Development Index(HDI),GENDER DEVELOPMENT INDEX

 

Other parameters for measuring INCOME :

GNH: Concept

Gross National Happiness is a term coined by His Majesty the Fourth King of Bhutan, Jigme Singye Wangchuck in the 1970s. 

The concept implies that sustainable development should take a holistic approach towards notions of progress and give equal importance to non-economic aspects of wellbeing. The concept of GNH has often been explained by its four pillars:

1. Good Governance
2. Sustainable Socio-Economic Development,
3. Cultural Preservation, and 
4. Environmental conservation.

GREEN GDP—

• It is an index of economic growth with the environmental consequences of that growth factored into a country's conventional GDP. 
• Green GDP monetizes the biodiversity loss  and take into account the monetary losses incurred on account of climate change.
• Green GDP is calculated by subtracting the monetized values of net natural capital consumption, including resource depletion, environmental degradation from traditional GDP. 
• All these environmental things appears  to be hidden and of non monetary nature but their effect is observed on the people in the form of various manifestations.
• MOSPI  compiled  environmental accounting under Natural Capital Accounting and Valuation of Ecosystem Services (NCAVES).
• UK is the 1st state in India to measure Gross Environment Product. 
• Though  India does not officially measure Green GDP, but RBI paper in October 2022 suggest an estimation of around Rs 167 trillion in 2019 which was  a 10% reduction from the conventional GDP of Rs 185.8 trillion for the same year.
• World Economic Forum analysis warns that climate-intensified natural disasters may lead to $12.5 trillion in economic losses and over two billion healthy life years lost by 2050.

The Physical Quality of Life Index (PQLI) : 

Developed by Overseas Development Council, in the mid-1970s by Morris David Morris, it was an attempt to measure the  well-being of a country in terms of quality of life. The value is the average of three statistics: 

• Basic literacy rate
• Infant mortality, and 
• Life expectancy at age one.

HDI was a better index to measure the quality of life in comparison to PQLI.

Human Development Index (HDI)---

Developed by Mahbub Ul Haq and Amartya Sen in 1990, it is published by UNDP .

HDI was created to emphasize human development as a new understanding of well-being and  an alternative to GDP per capita as criteria for assessing the development of a country, not economic growth alone.

HDI is a summary measure of average achievement in key dimensions of human development:

•  Long and healthy life, 
• Being knowledgeable and 
• Have a decent standard of living. 

The HDI is the geometric mean of normalized indices for each of the three dimensions. The health dimension is assessed by life expectancy at birth, the education dimension is measured by mean of years of schooling for adults aged 25 years and more and expected years of schooling for children of school entering age. The standard of living dimension is measured by gross national income per capita. The HDI uses the logarithm of income, to reflect the diminishing importance of income with increasing GNI. The scores for the three HDI dimension indices are then aggregated into a composite index using geometric mean.

GENDER DEVELOPMENT INDEX: The Gender Development Index (GDI) is an index to measure gender based gaps in the development .GDI alongwith Gender Empowerment Measure (GEM) were introduced in 1995 in the HDR report .The aim of these measurements was to add a gender-sensitive dimension to HDR. The GDI measure gender gaps in the three components of the HDI ,while GEM measures empowerment in terms of economy and socio-political aspects .