Economics!

Just thought I'd upload a small class presentation which explains some economic indicators! Its very simple to understand and has been prepared in layman terms!

1. Gender Empowerment Measure (GEM): It is an indicator used by the United Nations Development Programme (UNDP) in its annual Human Development Report.

Meaning: According to UNDP, It is a measure of agency. It evaluates progress in advancing women's standing in political and economic forums. It examines the extent to which women and men are able to actively participate in economic and political life and take part in decision-making. While the GDI focuses on expansion of capabilities, the GEM is concerned with the use of those capabilities to take advantage of the opportunities of life.

This index also has three indicators: income, parliamentary participation and economic participation.

Method of Calculation: For each of the above mentioned dimensions, an equally distributed equivalent percentage (EDEP) is calculated, as a population weighted-average according to the following formula:

EDEP = [Female population share (female index to the power minus 1)] + [Male population share (male index to the power minus 1)] to the power minus 1

Each of the above indicators has the EDEP calculated separately and the simple average if the three gives the GEM.

2. Human Poverty Index (HPI): According to UNDP, The Human Development Report 1997 introduced a human poverty index (HPI) in an attempt to bring together a composite index the different features of deprivation in the quality of life to arrive at an aggregate judgment on the extent of poverty in a community. The HPI is derived separately for developing countries (HPI-1) and a group of select high-income Organisation for Economic Co-operation and Development (OECD) countries (HPI-2) to better reflect socio-economic differences and also the widely different measures of deprivation in the two groups.

There are 3 types of deprivation: survival, knowledge and decent standard of living.

Method of calculation: For the HPI-1, it is measured by the unweighted average of the percentage of the population without access to safe water and the percentage of underweight children for their age. For the HPI-2, the third dimension is measured by the percentage of the population below the income poverty line (50% of median household disposable income).

3. EDUCATION: The education index is given by the HDI ranking of a country according to UNDP. Iceland tops the list with 0.978, with India at 128 (0.620) and Sierra Leone as the last (at 177 with 0.38). The education index comprises adult literacy and gross enrolment index.

• Adult literacy: It is the proportion of the adult population aged 15 years and over which is literate. The list has Georgia on top with 100%. India stands at 65.2% with the 118th rank out of 147 countries. To calculate, Actual value – minimum value over maximum value – minimum value. For ex: Turkey, in 2005, had an adult literacy rate of 87.4%. Therefore the index is 87.4 – 0 over 100 – 0 = 0.874
• Gross enrolment index/ratio: It is the statistical measure used in the education sector. The GER gives a rough indication of the level of education from kindergarten to post graduation. In Asian countries, it can be the indication of combined primary, secondary and tertiary gross enrolment ratio. Australia leads this table with 114.2%. India stands at 134th rank with 61%. For ex: Using the same formula, Turkey’s GEI is calculated to be 0.687
• Hence the EDUCATION INDEX = 2/3 (adult literacy index) + 1/3 (GEI) = 2/3 (0.874) + 1/3 (0.687) = 0.812
• Other indicators of education include adult illiteracy rate, ratio of female to male ratio in adult literacy, adult literacy rate, female and male respectively

4. HEALTH: According to WHOSIS, the WHO Statistical Information System, the health section has more than 100 indicators. However, the most important are life expectancy index, life expectancy at birth, fertility rate and mortality rates. The following indicators are dealt with in-depth:
• Life expectancy at birth: This measures the relative achievement of a country in life expectancy at birth. The same formula as mentioned earlier is used. For ex: Turkey, with a life expectancy of 71.4 years in 2005, the index is 0.773. As per 2005, Iceland tops the list with 81.5 years. India stands at the 128th position with 63.7 years. India’s life expectancy index is 0.645
• Fertility rate: It is the ratio of live births in an area to the population of that area; expressed per 1000 population per year. India has 3.1 births per woman, with Iceland topping the list again with 2 births

A look at India’s standings in various indicators/indexes:
1. Life expectancy at birth: 63.7
2. Life expectancy index: 0.645
3. Fertility rate: 3.1
4. Under-five mortality rate (per 1000 live births): 74