COMPARISON OF THE HUMAN DEVELOPMENT BETWEEN OIC COUNTRIES AND THE OTHER COUNTRIES OF THE WORLD

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1 COMPARISON OF THE HUMAN DEVELOPMENT BETWEEN OIC COUNTRIES AND THE OTHER COUNTRIES OF THE WORLD Ali Changi Ashtiani (M. A.) achashtian hoo.com Hadi Ghaffari (PhD)

3 COMPARISON OF THE HUMAN DEVELOPMENT BETWEEN OIC COUNTRIES AND THE OTHER COUNTRIES OF THE WORLD Ali Changi Ashtiani (M. A.)* Hadi Ghaffari (PhD)** Abstract: Good education and health have intrinsic value for people's well-being. And the two are closely linked: education helps health improvement, and good health contributes to better education. Moreover, education contributes to economic growth and raises poor people's incomes. Improvements in health also generate significant economic returns. On the other hand, economic growth provides more resources to invest in education and health. Accordingly human development and economic growth have two-way link and in fact studying the human development is simultaneously examination of the economic growth. In this research paper, we want to compare the human development between Oie countries and the other countries of the world, using life expectancy, education and GDP indices (These indices are components of human development index.) The most important findings of this paper show that the human development index in ore countries is lower than the same in the other countries of the world, since average of this index in ore countries is and in the other countries of the world is The average of human development index in Oie countries even is lower than the countries with medium human development (0.681). Key words: Human development, Human development index, ore countries. 1. Introduction Human development is about people, about expanding their choices to live full, creative lives with freedom and dignity. Economic growth, increased * Payame Noor University, Ashtian, Iran. ** Payame Noor University, Arak, Iran. Lusfada. International Journal of Engineering and Industrial Management, n. 0 1 (2009) 61

4 Ali Changi Ashtiani e Hadi Ghaffari trade and investment, technological advance - all are very important. But they are means, not ends. Fundamental to expanding human choices is building human capabilities: the range of things that people can be. The most basic capabilities for human development are living a long and healthy life, being educated, having a decent standard of living and enjoying political and civil freedoms to participate in the life of one's community. In this research paper, the first three of these are incorporated in human development index (HDI), so the components of human development index are life expectancy, education and GDP 1 indices. This index developed by Amartya Sen, Mahbub-UL Hag, Gustav Ranis and Desai in 1990 and from now on UNDP 2 use it to classify the countries of the world. This index points to more extensive aspects, instead of use only per capita income. HDI not only is a standard for measurement of welfare but also measure the effect of economic policies on quality of life. UNDP classifies the countries of the world in three groups: High human development countries Medium human development countries Low human development countries Human development index (HDI) in countries with high human development is between , in countries with medium human development is between and in countries with low human development is between This research paper has seven major sections. Section 1 presents the method of measuring the human development index (HDI). Section 2 compares the HDI between OIC countries and the other countries of the world. Section 3 compares the components of HDI between OIC countries and the other countries of the world. Section 4 compares the OIC countries with high human development and the other countries of the world with high human development. Section 5 compares the OIC countries with medium human development and the other countries of the world with medium human development. Section 6 compares the OIC countries with low human development and the other countries of the world with low human development. Section 7 explains the results. It is necessary to mention that in this research paper we use statistics of "Human Development Report (2007/2008)" published by UNDP. 1 Gross Domestic Production. 2 United Nations Development Programme. 62 Lusfada. International Journal of Engineering and Industrial Management, n. 0 1 (2009)

5 Comparison of the human dev. between OIC countries and the other coun. of the world, pp Method of measuring the human development index (HDI) The HDI is a concies measure of human development. It measures the average achievements in a country in three basic dimensions of human development: A long and healthy life, as measured by life expectancy at birth. Knowledge, as measured by the adult literacy rate (with two-thirds weight) and the combined primary, secondary and tertiary gross enrolment ratio (with one-third weight). A decent standard of living, as measured by GDP per capita (PPP US$). Before the HDI itself is calculated, an index needs to be created for each of these dimensions. To calculate these dimension indices - the life expectancy, education and GDP indices -minimum and maximum values (goalposts) are chosen for each underlying indicator. Performance in each dimension is expressed as a value between 0 and 1 by applying the following general formula: actual value - minimum value Dimension index =.. maximum value- mznzmum value 2.1. Calculating the life expectancy index The life expectancy index measures the relative achievement of a country in life expectancy at birth. The general formula for life expectancy index is:.. actual life expectancy - minimum life expectancy Life expectancy zndex =. l ifi.. l ifi maxzmum z e expectancy - mznzmum z e expectancy 2.2. Calculating the education index The education index measures a country's relative achievement in both adult literacy and combined primary, secondary and tertiary gross enrolment. First, an index for adult literacy and one for combined gross enrolment are calculated. Then these two indices are combined to create the education index, with two-thirds weight given to adult literacy and one-third weight to combined gross enrolment. The general formula for education index is:.. actual adult literacy - minimum adult literacy Adult lzteracy zndex =. d l 1... d l 1. maxzmum a u t zteracy - mznzmum a u t zteracy Lusfada. International Journal of Engineering and Industrial Management, n. 0 1 (2009) 63

6 Ali Changi Ashtiani e Hadi Ghaffari actual gross enrolment -minimum gross enrolment Gross enrolment index =... maxzmum gross enrolment - mmzmum gross enrolment Education index= 2/3 (adult literacy index)+ 1/3 (gross enrolment index) 2.3. Calculating the GDP index The GDP index is calculated using adjusted GDP per capita (PPP US$). In the HDI income serves as a surrogate for all the dimensions of human development not reflected in a long and healthy life and in knowledge. Income is adjusted because achieving a respectable level of human development does not require unlimited income. Accordingly, the logarithm of income is used. The general formula for GDP index is: GDP. d actual GDP- minimum GDP m ex= maximum GDP- minimum GDP 2.4. Calculating the HDI Once the dimension indices have been calculated, determining the HDI is straightforward. It is a simple average of the three dimension indices. HDI = 1/3 (life expectancy index)+ 1/3 (education index)+ 1/3 (GDP index) 3. Comparison of the HDI between OIC countries and the other countries of the world Comparison of the HDI between OIC countries and the other countries of the world shows tha't this index in OIC countries is lower than the same in the other countries of the world, since average of this index in OIC countries is and in the other countries of the world is (Table 1) Comparison of the human development between OIC countries and the other countries of the world shows that from 53 OIC countries, 19 percent classifed in high human development countries, 58 percent classifed in medium human development countries and 19 percent classifed in low human development countries, but from 124 other countries, 48 percent classifed in high human development countries, 44 percent classifed in medium human development countries and 8 percent classifed in low human development countries. (Figure 1) 64 Lusfada. International Journal of Engineering and Industrial Management, n. 0 1 (2009)

7 Comparison of the human dev. between OIC countries and the other coun. of the world, pp Tablel - Human development index OIC countries HDI Life Hot rank Education GDP expectancy In the Index Index Index w orld Brunei Oarussalam ;; Kuwait :r Oatar :z: c United Arab Emirates Bahrain " Ubyan Arab Jamahl~ ya [ Oman Saudi Arabia Malaysia !l Albania Total Kazakhstan Turkey Sun name Jordan Lebanon Tunisia Iran Guyana Azerbaljan Maldii.IBS Algeria : Indonesia ll 2' Syrian Arab Republic Turkmenlstan :z: c Egypt Uzbeklstan ::0 Kyrgyzstan [ Gabon Tajikls1an , 3 Morocco !! Cornoros Pakistan Mauritania Bangladesh Cameroon Sudan Ojibouti Togo Yemen Uganda \ Gambia '\ Total ' Senegal Nigeria $ b Guinea :le Benln :z: c OOe d'm>ire Chad " i' 0... Mozambique $ !!. Mall Niger Guinea-Bissau a Burkina Faso Sierra Leone Total Total OIC countrlee Oilier-m& Lusfada. International Journal of Engineering and Industrial Management, n. 0 1 (2009) 65

Ali Changi Ashtiani e Hadi Ghaffari High Human Development Medium Human Development 0 Low Human Development 60 50 40 t l 30 20 10 0 '-----J"" OIC countries Other countries Fig.

8 Ali Changi Ashtiani e Hadi Ghaffari High Human Development Medium Human Development 0 Low Human Development t l '-----J"" OIC countries Other countries Fig. 1 - Percentage of countries with high, medium and low human development 4. Comparison of the components of HDI between OIC countries and the other countries of the world Consideration the components of HDI shows us a real comparison. Life expectancy in OIC countries is much less than the other countries of the world, since life expectancy index doesn't reach to 0.9 in OIC countries and this index in some OIC countries is lower than 0.4 (Table 1). The average of life expectancy index in OIC countries is and in the other countries of the world is (Figure 2) One of the most important factors that has relation with life expectancy is infant mortality rate. There are 11 OIC countries (75 percent) between 15 countries that infant mortality rate (deaths/1000 live birth) is more than 100 and also there are only 5 OIC countries (9 percent) between 55 countries that infant mortality rate (deaths/1000 live birth) is lower than 10. In spite of the fact that the gap between OIC countries and the other countries of the world in life expectancy index is lower than two other indices, but infant mortality rate ( deaths/1000 live birth) doesn't show this. The second component of HDI is education index. The average of this index in OIC countries is and in the other countries of the world is (Figure 2). The gap between OIC countries and the other countries of the world in education index is more than two other indices. Increase in this index 66 Lusfada. International Journal of Engineering and Industrial Management, n. 0 1 (2009)

9 Comparison of the human dev. between OIC countries and the other coun. of the world, pp depends on investment of governmental sector in education, so a few amounts of this index shows that the decision makers and the policy makers of OIC countries don't have enough attention to improving education. Education affects all types of human development outcomes. More than just a source of knowledge, education promotes better hygiene and increases the use of health services. By reducing diseases, they improve children's nutritional status and increase their learning abilities. Together such interventions contribute to a health transition. The health transition hastens the demographic transition from high to low birth and death rates. In addition, higher education levels are associated with better family planning. So, over time, lower infant and child mortality plays a major role in falling fertility rates. This notion of synergies among social investments is central to reducing hunger, malnutrition, disease and illiteracy- and to advancing human capabilities. The third component of HDI is GDP index. The average of this index in OIC countries is 0.6 and in the other countries of the world is (Figure 2) III OIC countries other countries HOI Life expectancy Index Education Index GDP Index Fig. 2 - Components of HDI 5. Comparison between OIC countries with high human development and the other countries of the world with high human development The average of HDI in OIC countries with high human development (there are only 10 OIC countries in this group) is and in the other countries of the Lusfada. International Journal of Engineering and Industrial Management, n. 0 1 (2009) 67

Ali Changi Ashtiani e Hadi Ghaffari world with high human development is 0.889.

10 Ali Changi Ashtiani e Hadi Ghaffari world with high human development is Comparison of the components of HDI shows us life expectancy, education and GDP indices in OIC countries with high human development are 0.838, and 0.854, but these indices in the other countries of the world with high human development are 0.858, and The gap between OIC countries with high human development and the other countries of the world with high human development in education index is more than two other indices and in GDP index is lower than two other indices (Figure 3). It is necessary to mention that a large amount of GDP in 9 OIC countries with high human development depend on oil incomes OIC countries Other countries HDI Life expectancy index Education index GDPindex Fig. 3 - Components of HDI in high human development countries 6. Comparison between OIC countries with medium human development and the other countries of the world with medium human development The average of HDI in OIC countries with medium human development (there are 31 OIC countries in this group) is 0.66 and in the other countries of the world with medium human development is Comparison of the components of HDI shows us life expectancy, education and GDP indices in OIC countries with medium human development are 0.664, and 0.589, but these indices in the other countries of the world with medium human development are 0.663, and (Figure 4) 68 Lusfada. International Journal of Engineering and Industrial Management, n. 0 1 (2009)

11 Comparison of the human dev. between OIC countries and the other coun. of the world, pp The gap between OIC countries with medium human development and the other countries of the world with medium human development in HDI is lower than the first group (high human development countries), as average of life expectancy index between OIC countries and the other countries of the world in this group is almost equal together D OIC countries Other countries HOI Life expectancy Index Education Index GDPindex Fig. 4 -Components of HDI in medium human development countries 7. Comparison between OIC countries with low human development and the other countries of the world with low human development The average of HDI in OIC countries with low human development (there are 12 OIC countries in this group) is and in the other countries of the world with low human development is Comparison of the components of HDI shows us life expectancy, education and GDP indices in OIC countries with low human development are 0.427, and 0.417, but these indices in the other countries of the world with low human development are 0.369, and (Figure 5) Lusfada. International Journal of Engineering and Industrial Management, n. 0 1 (2009) 69

Ali Changi Ashtiani e Hadi Ghaffari 0.60... " '" '-.~..... OIC countries Other countries 0,55 0.50 0.45 - -- 0.40 0.35 0.30 0.25 HDI Life expectancy Index Educatlon Index GDP Index Fig.

12 Ali Changi Ashtiani e Hadi Ghaffari " '" '-.~..... OIC countries Other countries 0, HDI Life expectancy Index Educatlon Index GDP Index Fig. 5 - Components of HDI in low human development countries 8. Results The most important results of this research paper are: Comparison of the HDI between OIC countries and the other countries of the world shows that this index in OIC countries is lower than the same in the other countries of the world, since average of this index in OIC countries is and in the other countries of the world is The average of life expectancy index in OIC countries is and in the other countries of the world is In spite of the fact that the gap between OIC countries and the other countries of the world in life expectancy index is lower than two other indices, but infant mortality rate (deaths/1000 live birth) doesn't show this. The average of education index in OIC countries is and in the other countries of the world is The average of GDP index in OIC countries is 0.6 and in the other countries of the world is The average of HDI in OIC countries with high human development (there are only 10 OIC countries in this group) is and in the other countries of the world with high human development is Lusiada. International Journal of Engineering and Industrial Management, n. 0 1 (2009)

13 Comparison of the human dev. between OIC countries and the other coun. of the world, pp The average of HDI in OIC countries with medium human development (there are 31 OIC countries in this group) is 0.66 and in the other countries of the world with medium human development is The average of HDI in OIC countries with low human development (there are 12 OIC countries in this group) is and in the other countries of the world with low human development is References UNDP (United Nations Development Programme) "Human Development Report Millennium Development Goals: A compact among nations to end human poverty". UNDP (United Nations Development Programme) "Human Development Report 2007/ Fighting climate change: Human solidarity in a divided world". Lusfada. International Journal of Engineering and Industrial Management, n. 0 1 (2009) 71

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