Context: The United Nations Development Programme (UNDP) recently released its 2023-24 Human Development Report (HDI) on 13th March 2024, providing a comprehensive assessment of global progress in key dimensions of human well-being. 

• The report offers valuable insights into development trends in India and around the world. 

• The report reveals that while rich countries attained record human development, half of the poorest remain below their pre-crisis level of progress.

Understanding the Human Development Index (HDI)

• The Human Development Index (HDI) is a composite measure used to assess a country’s overall development. It considers three key dimensions: life expectancy, education (measured by mean years of schooling and expected years of schooling for children), and gross national income (GNI) per capita based on purchasing power parity (PPP). 

• The HDI ranges from 0 to 1, with higher values indicating better human development outcomes.

HDI Trends

• As per the latest report 2023/24 Human Development Report (HDR) titled, “Breaking the Gridlock: Reimagining Cooperation in a Polarized World,” in 2022, India’s HDI value stood at 0.644, which now places India in the medium human development category with a ranking 134 out of 193 countries and territories.

• The 2023-24 Human Development Report shows Switzerland, Norway and Iceland leading the human development index, while Central African Republic, South Sudan and Somalia lagged the furthest behind.

• The Democratic People’s Republic of Korea (commonly known as North Korea) and Monaco were not ranked in the list of countries and economies by UNDP.

• India’s loss in HDI due to inequality is 31.1%. South Asia’s loss in the HDI due to inequality is among the highest in the world (after sub-Saharan Africa), followed by the Pacific.

Democracy paradox on Rise

• The 2023-24 Human Development Report also shows a “democracy paradox,” rise, where support for democratic principles remains high, but trust in democratic institutions is eroding. This trend, alongwith rising inequality, has fueled political polarization around world and hindered collective action on pressing global issues.

The Rise of Far-Right Populism

• The latest report 2023/24 Human Development Report (HDR) points to the rise of far-right populism, which poses a threat to inclusive development in many countries around the world. Populist leaders are seen exploiting economic anxieties and social divisions, promoting their exclusionary policies that undermine social cohesion and blocks progress on key development goals.

India’s Performance in the 2023 Human Development Report

• The latest report 2023/24 Human Development Report (HDR) places India’s HDI value to 0.644 placing India in the medium human development category, ranking 134 out of 191 countries and territories.

• As per the latest report, In 2022, India saw improvements across all HDI indicators which includes life expectancy, education, and Gross National Income (GNI) per capita.

• Life expectancy rose from 67.2 to 67.7 years

• expected years of schooling reached 12.6

• mean years of schooling increased to 6.57

• GNI per capita saw an increase from $6,542 to $6,951.

• Between 1990 and 2022, India saw its HDI value increase by 48.4%, from 0.434 in 1990 to 0.644 in 2022.

• India has progressed in reducing gender inequality and now ranks 108 out of 166 countries in the GII 2022. The Gender Inequality Index (GII) calculates the gender inequalities in three key dimensions – reproductive health, empowerment, and the labour market.

• India’s GII value of 0.437 is better than the global average of 0.462 and the South Asian average of 0.478.

• Reoprt also points India’s performance in reproductive health is better than other countries in the medium human development group or South Asia.

• India’s adolescent birth rate in 2022 was 16.3 (births per 1,000 women ages 15-19), an improvement from 17.1 in 2021.

• 2023/24 Human Development Report also shows that India has one of the largest gender gaps in the labour force participation rate, a 47.8% difference between women (28.3%) and men (76.1%).

Global inequality on the rise

• The 2023/24 Human Development Report points toward the rising inequality across the world. It is rising again after 20 years of convergence, the difference between the richest and poorest nations has started to widen from year 2020.

• These global inequalities are compounded by the huge economic concentration. Report shows, almost 40 percent of global trade in goods is concentrated in three or fewer nations.

• The market capitalization of the three largest tech companies in 2021, surpassed the Gross Domestic Product (GDP) of more than 90 percent of countries that year.

Long-term Development Goals

• Looking ahead, the 2023/24 Human Development Report highlights the need to address the “uncertainty complex” identified in the 2021/22 HDR, that is shaping the future of human development. This includes the interlinked challenges of technological disruption, climate change, and rising inequality.

The report highlights four key strategies to overcome current challenges and promote a collective future

• Planetary Public Goods: Addressing climate change challenges in the Anthropocene era.

• Digital Global Public Goods: Using new technologies to ensure equitable human development.

• Financial Mechanisms: Introducing innovative financial strategies alongside traditional aid to support low-income countries.

• Reducing Political Polarization: Implementing new governance methods to amplify public discourse and combat misinformation.

Final Thoughts

• The 2023-24 Human Development Report shows that Global HDI is projected to reach record highs in 2023. However, this progress is uneven around the world.

• Rich countries are experiencing record levels of human development, while half of the world’s poorest countries remains below their pre-crisis level. This uneven progress is leaving the poorest behind, increasing the inequality, and political polarization on a global scale. This result in a dangerous gridlock as the name of the report alos highlights, that must be urgently tackled through collective action.