Uniwersytetu Ekonomicznego w Katowicach ISSN 2083-8611 Nr 361 · 2018 Ekonomia 15
Eva Kovářová
VŠB – Technical University of Ostrava Faculty of Economics
Department of Public Economics eva.kovarova@vsb.cz
DEEPER INSIGHT INTO THE PROGRESS IN HUMAN DEVELOPMENT IN SUB-SAHARAN AFRICA
Summary: Human development is defined as the development enabling an enlargement of people’s choices to live valuable life. Human Development Index measures progress in this area. It evaluates achievements in three dimensions: long and healthy life, knowledge and decent standard of living. Sub-Saharan Africa is the low-income region with the majority of its population living in extreme poverty. Preconditions for the substantial progress in human development are less favourable there than in other developing regions. Although some achievements have been reached since the beginning of the 21st century, they are less unambiguous if they are compared with other regions. The aim of this paper is to identify and assess the progress in human development in Sub-Saharan Africa in comparison with selected developing regions within the 2000-2015 period. Conclusions of the paper are based on a review of relevant scientific and statistical sources, as well as on own statistical analysis.
Keywords: developing regions, human development, HDI, GDP, Sub-Saharan Africa.
JEL Classification: I30, O15.
Introduction
Humans consider well-being and high quality of life as the final objectives of their lives regardless their origin or place where they live. However, econo- mists have discussed for centuries how to measure progress or improvements in the quality of human life because of its partial subjective nature, and how to sum up individual improvements into society’s ones. Is it possible to measure pro- gress in the quality of life of a society with the growth in gross domestic product per capita (GDP p.c.)? No. Such measure is too narrow. It focuses only on eco- nomic wealth and does not take into account individuals and their well-being.
Eva Kovářová 8
Therefore, economists introduced some alternative measures. Human Develop- ment Index (HDI), introduced by the United Nations Development Programme in 1990, became the most popular one. Based on human development concept, it focuses on the progress in key dimensions that are necessary for people’s possi- bility to live the life they value.
Sub-Saharan Africa is, according to the definition of the United Nations Development Programme (UNDP), a developing region covering 46 countries.
Great differences in human development can be identified if these countries are compared with each other, and if the average achievements of this region are compared with other developing regions. Because of many socio-economic, po- litical and structural problems, we assume that the progress in human develop- ment in Sub-Saharan Africa will be slow and this region will lag behind other developing regions in human development.
The aim of our paper is to identify and assess the progress in human devel- opment in Sub-Saharan Africa in comparison with selected developing regions within the 2000-2015 period. We choose three developing regions to be com- pared with Sub-Saharan Africa (SSA), namely East Asia and Pacific (EAP), South Asia (SA) and Latin America and Caribbean (LAC)1.
1. Theoretical background for the analysis
Traditionally, economic theory as well as practical economic policies un- derstood country’s development as the growth of its aggregate output, measured by the year over year changes in gross domestic (national) product. Therefore, in the 1950s and 1960s, many national and international development strategies formulated their primary goal as the acceleration of the economic growth. In the 1970s, economists started to emphasis wider context of development.
Breakthrough event in the understanding of a development is connected with the introduction of the concept of human development that was presented to the public in the first Human Development Report, issued by UNDP in 1990.
This concept, based on works of M. ul Haq and A. Sen, emphasised that devel- opment had to put people at the centre of its concerns and that the basic purpose of the development was to enlarge people’s choices [ul Haq, 2003]. The same report introduced also new indicator for the measurement of the progress in hu- man development – the Human Development Index (HDI). This index is de-
1 See their definition on the websites of UNDP, available at [www 1].
signed as the composite indicator measuring progress in three dimensions of the human well-being, namely long and healthy life, knowledge and decent standard of living.
HDI became the most popular approach measuring improvements in the quality of life worldwide. Based on objective and hard data, it enabled countries’
rankings differing from those based on GDP p.c. However, several economists presented substantial critical remarks to it. For instance, see papers of Sagar and Najam [1998]; Ranis, Stewart and Samman [2005]; Alkire and Foster [2010];
Hou, Walsh and Zhang [2015]. Some economists also try to extend HDI by in- troducing indexes spanning more dimensions of well-being, see Chaaban, Irani and Khoury [2015]; Sharma and Sharma [2015].
The UNDP has reflected this criticism and exposed HDI to some revisions, for the last time in 2010. Since then, the United Nations Development Pro- gramme calculates HDI as the geometric mean of three dimension indexes de- fined in Table 1.
Table 1. Human Development Index used since 2010
Dimension Long and healthy life Knowledge A decent standard of living Indicator(s) Life expectancy at birth Expected years
of schooling
Mean years of schooling
Gross national income p.c.
(PPP Dollars) Source: United Nations Development Programme [2017].
Before the last revision, HDI was calculated by UNDP as the simple arith- metic mean of three dimension indexes, defined in Table 2.
Table 2. Human Development Index used by 2010
Dimension Long and healthy life Knowledge A decent standard of living
Indicator(s) Life expectancy at birth Adult literacy rate
Combined primary, secondary and tertiary gross enrolment ratio
Gross domestic product p.c.
(PPP Dollars) Source: United Nations Development Programme [2017].
HDI is traditionally defined on a scale 0 to 1, based on normalized values of dimension indicators. Value 1 signalizes maximal level of human development.
Eva Kovářová 10
Introduction of HDI boosted economic discussion on the relation between the progress in human development and the growth in country’s aggregate output expressed by GDP. Generally, the link between them is far from simple. At least because of the fact that an expansion of the aggregate output tells nothing about an expansion of the output’s distribution in the society or improvement of indi- viduals’ lives. Nowadays, economic theory explains that the economic growth is one of the preconditions for the progress in human development, but it is not the sufficient one. “Growth of GDP promotes enhancement of living conditions, its biggest impact comes through the expanded ability to undertake public action to promote human development, and to share of the additional income that is en- joyed by the poor” [Anand and Sen, 2000, p. 2033].
2. Formulation of the research problem
The United Nations classifies all countries into one of three broad catego- ries: developed countries, countries in transition and developing countries. Fur- thermore, with respect to the geographical location, UNDP defines six develop- ing regions – Arab States, East Asia and Pacific, Europe and Central Asia, Latin America and the Caribbean, South Asia and Sub-Saharan Africa. We can identify great economic and social disparities between countries being classified as the developing ones. Generally, Sub-Saharan Africa is defined as the region with the worse living conditions because of the poverty and other social problems, eco- nomic and structural vulnerability, political instability, severe natural conditions etc. However, since 2000, economic, social and political conditions have im- proved partly there and some achievements in human development have been reached. Does Sub-Saharan Africa catch up in human development with other developing regions or do the gaps between them widen?
The aim of our paper is to identify and assess the progress in human devel- opment in Sub-Saharan Africa in comparison with selected developing regions within the 2000-2015 period. We choose three developing regions to be com- pared with Sub-Saharan Africa (SSA), namely East Asia and Pacific (EAP), South Asia (SA) and Latin America and Caribbean (LAC).
In order to meet the aim of our paper, we structure our analysis as follows:
1. We describe the most important achievements of SSA in human development.
Then, we compare average regional values of HDI for SSA with the values concerning three selected regions.
2. We analyse the average regional values of the sub-indicators of HDI dimen- sion indexes in order to identify existing disparities between SSA and se- lected regions. Then, we identify trends in the SSA’s progress in catching-up with them. To do this, we calculate gaps between the values of the HDI sub- indicators for SSA and for selected regions2.
Due to the changes in methodology of HDI and lack of data, we have to di- vide analised period into two shorter periods, namely the 2000-2007 period and the 2010-2015 period. We have to leave out years 2006, 2008 and 2009 in our analysis because the Human Development Reports and thus the average regional HDI values are not available for these years.
3. Solution of the research problem
The United Nations Development Programme considers Sub-Saharan Af- rica (SSA) to be the developing region consisting of 46 countries, which makes it the largest developing region in the world. In long-term, Sub-Saharan Africa has been the low-income and underdeveloped region with the marginal share in the world’s GDP, trade and influence on the international economic order. Its economic, political and social stability has always been fragile and uncertain, therefore various crises, civil wars, ethnic conflicts or coup d’états occur there very often and have affected its progress in human development.
Almost the whole SSA faces serious socio-economic and developmental problems. In 2013, 41% of SSA population live in extreme poverty (i.e. with less than 1,9 USD per day). Possibilities for the acceleration of improvements in liv- ing conditions are limited there because of the lack of resources and capacities.
Therefore, the level of human development is traditionally low there.
3.1. Progress in human development in Sub-Saharan Africa and its comparison with selected regions
In the 1980s, Sub-Saharan Africa’s HDI was 3% higher than that of South Asia. By the year 2011, situation was reversed, and SSA’s HDI was 16% lower.
This reverse was caused especially by the slow progress and reversals in some SSA countries. In the 1990s, further progress was affected by economic stagna-
2 Because we prefer not to work with negative values of these gaps, we calculate them as the dif- ference between EAP, LAC and SA values and those of SSA.
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Table 3. Details about HDI in SSA countries
HDI in SSA countries 2000 2005
New methodology since 2010
2010 2015
Number of evaluated SSA countries* 44 44 45 46
Number of countries with**:
• very high development
• high development
• medium development
• low development
1 0 10 33
2 1 9 32
0 2 4 39
0 2 12 32
HDI of the best SSA country 0,811 0,843 0,744 0,786
HDI of the worst SSA country 0,225 0,336 0,140 0,352
Average HDI of all developing countries 0,654 0,691 N/A 0,668
Number of SSA countries with lower HDI than
the developing countries average 39 41 − 42
Average HDI of LAC (best developing region) 0,720 0,803 0,702 0,751 Average HDI of SA (2nd worst developing region) 0,530 0,611 0,516 0,621
Average HDI of SSA 0,471 0,493 0,389 0,523
Number of SSA countries with lower HDI
than SA average 31 35 37 39
* Data concerning Liberia are not available for the years 2000 and 2005. South Sudan became an independent state in 2011.
** In order to ensure full comparison between selected years, we classify SSA countries with respect to the methodology applied for the countries’ classification by UNDP in the Human Development Report present- ing data for the year 2015. This classification is set as follows:
• countries with very high development – values of HDI higher than 0,800;
• countries with high human development – values of HDI 0,700-0,799;
• countries with medium human development – values of HDI 0,550-0,699;
• countries with low human development – values of HDI 0,550 and lower.
Source: Based on: United Nations Development Programmes [2002, 2007/8, 2010, 2016].
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Eva Kovářová 18
Table 4. Results of the analysis Dimension/
Indicator
Evaluation of SSA
Values of HDI sub-indicators Widening or narrowing of the gaps Long and healthy life
• Life expectancy at birth
The lowest for the period 2000-2015 Gap with other regions: narrowing since 2004
Knowledge
• Adult literacy rate (2000-2007) ,
The 2nd lowest, in 2007 the lowest Gap with SA: widening since 2007 Gaps with EAP, LAC: no significant changes
• Mean years of schooling (2010-2015)
Similar to SA, since 2014 the lowest Gap with SA: widening since 2014 Gaps with EAP and LAC:
no significant changes Decent standard of living
• GDP p.c. (2000-2007),
The lowest for the 2000-2007 period Gaps with EAP and SA: widening in the period 2000-2005, in 2007 narrowing Gap with LAC: widening
• GNI p.c. (2010-2015) The lowest for the period 2010-2015 Gaps with other regions: widening since 2012
If we sum up results of our analysis (Table 4), we can say that within the 2000-2015 period, SSA caught up with selected developing regions only in the first dimension of human development (Long and healthy life). Selected devel- oping regions, namely LAC, EAP and SA, achieved higher levels in other di- mensions of human well-being. Furthermore, disparities between South Asia and Sub-Saharan Africa have been increased.
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ANALIZA POSTĘPÓW W ZAKRESIE ROZWOJU SPOŁECZNEGO W AFRYCE SUBSAHARYJSKIEJ
Streszczenie: Rozwój społeczny definiuje się jako rozwój umożliwiający poszerzenie dostępnych ludziom wyborów pozwalających na przeżycie wartościowego życia.
Wskaźnik Rozwoju Społecznego mierzy postęp w tej dziedzinie, ocenia osiągnięcia w trzech wymiarach: długie i zdrowe życie, wiedza i dostatni standard życia. Afryka Subsaharyjska to region o niskich dochodach, w którym większość ludności żyje w skra- jnym ubóstwie. Warunki wstępne dla istotnego postępu w rozwoju społecznym są tam mniej korzystne niż w innych regionach rozwijających się. Chociaż wiele w tej kwestii zostało osiągnięte od początku XXI wieku, to rezultaty nie są jednoznaczne, zwłaszcza jeśli porównuje się je z innymi regionami. Celem artykułu jest identyfikacja i ocena postępu w rozwoju społecznym w Afryce Subsaharyjskiej w porównaniu z wybranymi regionami rozwijającymi się w latach 2000-2015. Wnioski artykułu są wynikiem prze- glądu odpowiednich źródeł naukowych i statystycznych, a także przeprowadzonej włas- nej analizy statystycznej.
Keywords: rozwój regionów, rozwój społeczny, HDI, PKB, Afryka Subsaharyjska.
