COMCEC Poverty Outlook 2016:

Human Development in OIC

ANNEXES

Annex 1: The Widely Used Non-Monetary Poverty Indices

Human Development Index

Human development approach relies on a view that poverty is a multidimensional

phenomenon. This perspective is inspired by Amartya Sen’s

notion of well-being and

poverty. Within the context of human development in order to investigate development by

assuming that it is something beyond income and economic growth rates of countries the

UNDP calculates a Human Development Index (HDI).

The HDI defines people as "the real

wealth of a nation"

and posits

health

knowledge

and

income

as three basic aspects of human

measures for development, and calculates a country's average achievements in these areas. In

conclusion, the HDI sees poverty in terms of human poverty and defines it as a lack of income,

education and health.

The HDI utilizes four indicators, namely GNI per capita, mean years of schooling, expected

years of schooling and life expectancy at birth, under three dimensions

(Figure 25)

. When

being calculated the index, minimum and maximum values are set in order to transform the

indicators into indices between 0 and 1. The HDI is calculated by taking the geometric mean of

the three dimension indices.

Figure 25: Dimensions of the HDI

DIMENSIONS

Long and healthy life Knowledge

A decent standard of living

INDICATORS

Life expectancy at birth

Mean years of

schooling

Expected years

of schooling

GNI per capita (PPP US$)

DIMENSION

INDEX

Life expectancy index

Education index

GNI index

Human Development Index

(HDI)

Source: The UNDP, 2015.

Multidimensional Poverty Index

Within the context of human development thinking, in addition to HDI, the UNDP have started

to calculate MPI, in order to measure poverty in a much broader context, since 2010. The MPI

considers multiple deprivations of the population and their overlap by utilizing the dimensions

of health, education and standard of living

(Figure 26)

. While the health and education

dimensions are similar to the dimensions of HDI, but use different indicators, the standard of

Sen 1987 quoted in Haughton and Khandker 2009, p.2.

Klugmanet.al.

2011, p.250; Sagar and Najam 1998, p.251

The UNDP 1990, p.9.

The UNDP 1990, p.63.