People's lives are not measured by income alone. That idea is at the
heart of all the Human Development Reports since the first one was produced for the United
Nations Development Programme (UNDP) in 1990. We cannot rely on growth trickling down
automatically. It takes government policy and action to ensure that income helps citizens
to expand their choices and to gain adequate health, education and resources for
themselves and for their children - in other words, to achieve human development.
A NEW LOOK AT POVERTY, BEYOND LACK OF INCOME
Since poverty is often so linked with human development, or lack of
it, the 1996 report took a special look at poverty and concluded that income poverty is
only part of the picture. "Just as human development encompasses aspects of life much
broader than income, so poverty should be seen as having many dimensions," says the
report. As a result, the report introduced a new, multidimensional measure of human
deprivation called the capability poverty measure, (CPM). The CPM focuses on human
capabilities, just as human development index does. Instead of examining the average state
of people's capabilities, it reflects the percentage of people who lack basic, or
minimally essential human capabilities, which are ends in themselves and are needed to
lift one from income poverty and to sustain strong human development.
The CPM considers the lack of three basic capabilities. The first is
the lack of being well nourished and healthy,
represented in this case by the proportion of children under five years who are
underweight. The second is the lack of capability for
healthy
reproduction, shown by the proportion of births unattended by trained personnel. The
third is the lack of capability to be educated and knowledgeable, represented by
female illiteracy. The composite index
emphasizes deprivation of women because, says the report, "It is now well known that
the deprivation of women adversely affects the human development of families and of
society."
Comparing the new capability poverty measure with the income poverty
index, the report found that while 21 per cent of the people in developing countries are
below the income poverty line, 37 per cent face capability poverty. That is, 900 million
people in developing countries are income poor, but 1.6 billion are capability
poor.
Nor does economic growth always help. Pakistan's economy grew at a
startling 6.1 per cent a year between 1980 and 1993. Its poverty level, 34 per cent of the
population, is worse than the developing world average of 21 per cent. But 6.1 per cent of
Pakistan's people are capability poor, suggesting that even its poverty is underestimated
and that without action to improve people's capabilities, progress will be slow and income
poverty will grow.
In South Asia, the contrast is even greater: 29 per cent of the people
are income poor, while more that 62 per cent are capability poor. Only Sri Lanka in that
region shows capability poverty at a lower rate than income poverty. "Clearly, South
Asia needs to concentrate on developing people's basic capabilities," says the
report. In all countries, "poverty cannot be eradicated merely by boosting income. It
will also take a broad expansion of basic human capabilities and the productive use of
those capabilities".
Source: HUMAN DEVELOPMENT REPORT 1996 |