Comments on „Gap between GDP and HDI: Are the Rich Country Experiences Different from the Poor?“ by surajit Deb Discussant: Albert Braakmann - Session 1 – Paper 3 – IARIW-OECD Special Conferencee: „W(h)iter the SNA?“ Paris, France, April 16-17, 2015 © Statistisches Bundesamt, Albert Braakmann

Country rank GDP = Country rank HDI ? Research goal Country rank GDP = Country rank HDI ? © Statistisches Bundesamt, Albert Braakmann 23.11.2018

Basics I GDP = Sum of value added of resident producers in a given period (e.g. output ./. intermediate consumption) criticism: - no human capital - no environment + natural ressources - no domestic work - no distribution © Statistisches Bundesamt, Albert Braakmann 23.11.2018

Basics II HDI = 𝟑 𝒍𝒊𝒇𝒆 𝒆𝒙𝒑𝒆𝒄𝒕𝒂𝒏𝒄𝒚 𝒊𝒏𝒅𝒆𝒙 ∙𝒆𝒅𝒖𝒄𝒂𝒕𝒊𝒐𝒏 𝒊𝒏𝒅𝒆𝒙∙𝑮𝑵𝑰 𝒊𝒏𝒅𝒆𝒙 criticism: - closely correlated with GDP (redundant) © Statistisches Bundesamt, Albert Braakmann 23.11.2018

Empirical examination How big are the differences between HDI and GDP country ranks? HDI scores from Human Development Reports GDP per capita (current USD) from UN-database - Four points in time 1990 2000 triennium ending in 2010 triennium ending in 2013 140 countries in total 3 country sub-samples (Worldbank classification for each period) 57 low income countries (in 2013) 33 middle income countries (in 2013) 50 high income countries (in 2013) © Statistisches Bundesamt, Albert Braakmann 23.11.2018

Results: © Statistisches Bundesamt, Albert Braakmann 23.11.2018

Results II Correlation (R2) between rank of HDI and GDP per capita 1990 2000 2010 2013 All countries 0,86 0,88 0,92 0,93 High income countries 0,41 0,46 0,55 0,60 Middle income countries 0,01 0,20 0,38 0,25 Low income countries 0,62 0,64 0,76 Author‘s conclusion: „These results suggest that there is marked similiarities between the HDI and GDP ranking for in the full sample of all countries in each time periods, but significant differences in rank orders exist for the sub-samples of various income groups.“ (5.2) © Statistisches Bundesamt, Albert Braakmann 23.11.2018

General comments - Which factors precisely do explain the difference between HDI and GDP rank? Are these the same for all country groups? - How much would the result differ if the inequality adjusted HDI is used? - What are the implications of this study for a future SNA? © Statistisches Bundesamt, Albert Braakmann 11/23/2018

Thank‘s a lot for Your attention albert.braakmann@destatis.de