Pestalozzi 7/2012 International Development Cooperation Development Indicators

Pestalozzi 7/2012 International Development Cooperation

Pestalozzi 7/2012 International Development Cooperation Nilometer Situation to be verified Criteria Determine the optimal tax level The level of water of the Nile determines the yield of crops. The tax level depends largely on the yields Cubits (measure of length, cm; Elle) on the Nilometer indicating the water level Between 13 and 16 Water level of Nile Indicator Target Causality (Hypothesis) Average measures over years (benchmarks) Comparison Observation on Nilometer by qayas (officials ) Method Ruler (Pharao, Wesir)Responsability 12 hunger 13 enough; 14 joy; 15 security; 16 abundance 17 floods, disaster 12 hunger 13 enough; 14 joy; 15 security; 16 abundance 17 floods, disaster To determine the tax level according to crop yield Use for steering (decision-making)

Pestalozzi 7/2012 International Development Cooperation Introduction to Indicators An indicator is a variable that allows the verification of changes in the development intervention or shows results relative to what was planned (DAC/OECD) Indicators should provide - key information to guide implementation - Signals of change that show the extent of progress

Pestalozzi 7/2012 International Development Cooperation Why are indicators important? To improve performance  feedback mechanism with indicators allows to make appropriate management decisions to improve performance To enhance external accountability –indicators should provide the basis for transparent communication with external stakeholders – to whom the development intervention is more or less accountable To improve wider learning –with managed exchange within and between organisations reduce costs and increase effectiveness of development actions

Pestalozzi 7/2012 International Development Cooperation How to measure development? Initially, the level of “development” of one country was measured through its average income, so called “gross domestic product” (GDP). Financial means alone cannot cover all aspects of “development” Around 1990, a new index was created 6

Pestalozzi 7/2012 International Development Cooperation Human Development Index (HDI) 7

Pestalozzi 7/2012 International Development Cooperation 5 groups Countries* with Very high level of development High level of development Medium level of development Low level of development Countries not included, due to lack of data 8

Pestalozzi 7/2012 International Development Cooperation What does the HDI tell us? The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. The HDI can also be used to question national policy choices, asking how two countries with the same level of income per capita can end up with such different human development outcomes. An example The Bahamas and New Zealand have similar levels of income per person, but life expectancy and expected years of schooling differ greatly between the two countries, resulting in New Zealand having a much higher HDI value than the Bahamas. These differences can start debate about government policy priorities. 9

Pestalozzi 7/2012 International Development Cooperation The HDI should allow a measurement of the level of development, which is closer to people's needs and takes into account many aspects of development. 10 Development should increase the possibilities of people. Development objectives should include values such as (for example)  better nutrition  health, education  recreation  opportunities for participation of the people

Pestalozzi 7/2012 International Development Cooperation All data are included in the yearly publication of the Human Development Report 11

Pestalozzi 7/2012 International Development Cooperation Lack of legal protection/rule of law and citizen rights Poor health, poor education* Inability to have a regular job, lack of regular income and social security Lack of collateral collateral/access to credits for business or housing Limited or no safety (social, economic) net Tenure insecurity, evictions, loss of small savings invested in housing Inability to afford adequate housing 7 Cumulative Impacts of Poverty Sense of insecurity, isolation, and disempowerment (based on IIED, WB) Lack of infrastructure; un-hygienic living conditions, low quality public services

Pestalozzi 7/2012 International Development Cooperation Protective Capabilities enabling people to withstand: economic shocks natural disasters conflicts Protective Capabilities enabling people to withstand: economic shocks natural disasters conflicts Political Capabilities including: human rights voice political freedom participation Political Capabilities including: human rights voice political freedom participation Socio-cultural Capabilities concerning: dignity valued membership of society social status Socio-cultural Capabilities concerning: dignity valued membership of society social status Human Capabilities, based on: health education membership shelter Human Capabilities, based on: health education membership shelter Economic Capabilities to: earn income consume have assets Economic Capabilities to: earn income consume have assets (based on OECD 2001) Core Dimensions of Poverty and Wellbeing 8

Pestalozzi 7/2012 International Development Cooperation Another culture – another procedure Bhutan Gross national happiness an attempt to define an indicator that measures quality of life or social progress in more holistic and psychological terms than only the economic indicator of gross domestic product (GDP). 14

Pestalozzi 7/2012 International Development Cooperation Assessment of socioeconomic development by tracking seven development areas (1) Economic Wellness: Indicated via direct survey and statistical measurement of economic metrics such as consumer debt, average income to consumer price index ratio and income distribution (2) Environmental Wellness: Indicated via direct survey and statistical measurement of environmental metrics such as pollution, noise and traffic (3) Physical Wellness: Indicated via statistical measurement of physical health metrics such as severe illnesses (4) Mental Wellness: Indicated via direct survey and statistical measurement of mental health metrics such as usage of antidepressants and rise or decline of psychotherapy patients (5) Workplace Wellness: Indicated via direct survey and statistical measurement of labor metrics such as jobless claims, job change, workplace complaints and lawsuits (6) Social Wellness: Indicated via direct survey and statistical measurement of social metrics such as discrimination, safety, divorce rates, complaints of domestic conflicts and family lawsuits, public lawsuits, crime rates (7) Political Wellness: Indicated via direct survey and statistical measurement of political metrics such as the quality of local democracy, individual freedom, and foreign conflicts. 15

Pestalozzi 7/2012 International Development Cooperation 16 Sample size: 76 countries, IDA-eligible

Pestalozzi 7/2012 International Development Cooperation Multidimensional Poverty Index (MPI) database: household surveys in 104 countries 17 deprived if: no household member has completed five year of schooling any school-aged child is not attending school in years 1 to 8 any adult or child for whom there is nutritional information is malnourished sanitation facility not improved or improved but shared ……

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