Governments around the world are struggling to figure out how to
truly develop their societies and chart their way in doing so. It is
clear that traditional measures of development such as Gross Domestic
Product (GDP) and Per Capita Income are not adequate to reflect the
quality of life and even development. Hence, KPIs are being defined
to better measure. In this article, I will explore some of these
indicators.
Human Development Index
We start with the Human Development
Index, an indicator published by UNDP and created by Mahboob Al Haq
and Amartya Sen. It was revamped in 2011. Human Development Index is
calculated as the following.
We can see that Human Development Index
is made up of several components, one of which is Life Expectancy,
which is explained in the following section.
Method for calculating Life Expectancy
Life Expectancy is calculated as the
following (http://en.wikipedia.org/wiki/Life_expectancy):
Turns out life expectancy is actually
calculated by looking at actuarial tables from the health department.
I am taking New York State as an example for these posts. Actuarial
tables for New York State are available at
http://www.health.ny.gov/statistics/vital_statistics/2010/table03.htm
as shown below.
Total
Population
|
||||||
|---|---|---|---|---|---|---|
Age1
|
q2
|
l3
|
d4
|
L5
|
T6
|
E7
|
<
1
|
0.00485
|
100,000
|
485
|
99,661
|
8,104,253
|
81.0
|
1-4
|
0.00071
|
99,515
|
71
|
397,918
|
8,004,592
|
80.4
|
5-9
|
0.00044
|
99,444
|
44
|
497,110
|
7,606,674
|
76.5
|
10-14
|
0.00058
|
99,400
|
58
|
496,855
|
7,109,564
|
71.5
|
15-19
|
0.00181
|
99,342
|
180
|
496,260
|
6,612,709
|
66.6
|
20-24
|
0.00328
|
99,162
|
325
|
494,998
|
6,116,449
|
61.7
|
25-29
|
0.00335
|
98,837
|
331
|
493,358
|
5,621,451
|
56.9
|
30-34
|
0.00366
|
98,506
|
360
|
491,630
|
5,128,093
|
52.1
|
35-39
|
0.00495
|
98,146
|
486
|
489,515
|
4,636,463
|
47.2
|
40-44
|
0.00804
|
97,660
|
785
|
486,338
|
4,146,948
|
42.5
|
45-49
|
0.01298
|
96,875
|
1,258
|
481,230
|
3,660,610
|
37.8
|
50-54
|
0.01961
|
95,617
|
1,875
|
473,398
|
3,179,380
|
33.3
|
55-59
|
0.02923
|
93,742
|
2,740
|
461,860
|
2,705,982
|
28.9
|
60-64
|
0.04298
|
91,002
|
3,911
|
445,233
|
2,244,122
|
24.7
|
65-69
|
0.06461
|
87,091
|
5,627
|
421,388
|
1,798,889
|
20.7
|
70-74
|
0.09678
|
81,464
|
7,884
|
387,610
|
1,377,501
|
16.9
|
75-79
|
0.15219
|
73,580
|
11,198
|
339,905
|
989,891
|
13.5
|
80-84
|
0.23704
|
62,382
|
14,787
|
274,943
|
649,986
|
10.4
|
85+
|
1.00000
|
47,595
|
47,595
|
375,043
|
375,043
|
7.9
|
Males
|
||||||
Age1
|
q2
|
l3
|
d4
|
L5
|
T6
|
E7
|
<
1
|
0.00507
|
100,000
|
507
|
99,645
|
7,856,910
|
78.6
|
1-4
|
0.00074
|
99,493
|
74
|
397,824
|
7,757,265
|
78.0
|
5-9
|
0.00048
|
99,419
|
48
|
496,975
|
7,359,441
|
74.0
|
10-14
|
0.00065
|
99,371
|
65
|
496,693
|
6,862,466
|
69.1
|
15-19
|
0.00270
|
99,306
|
268
|
495,860
|
6,365,773
|
64.1
|
20-24
|
0.00488
|
99,038
|
483
|
493,983
|
5,869,913
|
59.3
|
25-29
|
0.00496
|
98,555
|
489
|
491,553
|
5,375,930
|
54.5
|
30-34
|
0.00518
|
98,066
|
508
|
489,060
|
4,884,377
|
49.8
|
35-39
|
0.00637
|
97,558
|
622
|
486,235
|
4,395,317
|
45.1
|
40-44
|
0.01024
|
96,936
|
992
|
482,200
|
3,909,082
|
40.3
|
45-49
|
0.01625
|
95,944
|
1,559
|
475,823
|
3,426,882
|
35.7
|
50-54
|
0.02447
|
94,385
|
2,310
|
466,150
|
2,951,059
|
31.3
|
55-59
|
0.03755
|
92,075
|
3,458
|
451,730
|
2,484,909
|
27.0
|
60-64
|
0.05329
|
88,617
|
4,723
|
431,278
|
2,033,179
|
22.9
|
65-69
|
0.07796
|
83,894
|
6,540
|
403,120
|
1,601,901
|
19.1
|
70-74
|
0.11701
|
77,354
|
9,051
|
364,143
|
1,198,781
|
15.5
|
75-79
|
0.18279
|
68,303
|
12,485
|
310,303
|
834,638
|
12.2
|
80-84
|
0.28237
|
55,818
|
15,761
|
239,688
|
524,335
|
9.4
|
85+
|
1.00000
|
40,057
|
40,057
|
284,647
|
284,647
|
7.1
|
Females
|
||||||
Age1
|
q2
|
l3
|
d4
|
L5
|
T6
|
E7
|
<
1
|
0.00462
|
100,000
|
462
|
99,677
|
8,326,446
|
83.3
|
1-4
|
0.00067
|
99,538
|
67
|
398,018
|
8,226,769
|
82.6
|
5-9
|
0.00040
|
99,471
|
40
|
497,255
|
7,828,751
|
78.7
|
10-14
|
0.00051
|
99,431
|
50
|
497,030
|
7,331,496
|
73.7
|
15-19
|
0.00088
|
99,381
|
87
|
496,688
|
6,834,466
|
68.8
|
20-24
|
0.00164
|
99,294
|
163
|
496,063
|
6,337,778
|
63.8
|
25-29
|
0.00178
|
99,131
|
176
|
495,215
|
5,841,715
|
58.9
|
30-34
|
0.00218
|
98,955
|
215
|
494,238
|
5,346,500
|
54.0
|
35-39
|
0.00358
|
98,740
|
353
|
492,818
|
4,852,262
|
49.1
|
40-44
|
0.00592
|
98,387
|
583
|
490,478
|
4,359,444
|
44.3
|
45-49
|
0.00988
|
97,804
|
966
|
486,605
|
3,868,966
|
39.6
|
50-54
|
0.01501
|
96,838
|
1,454
|
480,555
|
3,382,361
|
34.9
|
55-59
|
0.02153
|
95,384
|
2,054
|
471,785
|
2,901,806
|
30.4
|
60-64
|
0.03376
|
93,330
|
3,151
|
458,773
|
2,430,021
|
26.0
|
65-69
|
0.05330
|
90,179
|
4,806
|
438,880
|
1,971,248
|
21.9
|
70-74
|
0.08057
|
85,373
|
6,878
|
409,670
|
1,532,368
|
17.9
|
75-79
|
0.12926
|
78,495
|
10,146
|
367,110
|
1,122,698
|
14.3
|
80-84
|
0.20735
|
68,349
|
14,172
|
306,315
|
755,588
|
11.1
|
85+
|
1.00000
|
54,177
|
54,177
|
449,273
|
449,273
|
8.3
|
Education Index
The next parameter for measuring Human Development Index is Education Index. This was changed in 2011 to the be the square root of the products of Mean Years of Schooling Index and Expected Years of Schooling Index divided by 0.951.
The Expected Years of Schooling Index is defined as follows:
The statistics data for State of New York is present at its website (http://www.p12.nysed.gov/irs/statistics/public/)
The next parameter in the Human Development Index is Income Index described below.
Income Index
Income Index is defined as following:
where, GNI stands for Gross National Income. Gross National Income consists of: the personal consumption expenditures, the gross private investment, the government consumption expenditures, the net income from assets abroad (net income receipts), and the gross exports of goods and services, after deducting two components: the gross imports of goods and services, and the indirect business taxes. The GNI is similar to the gross national product (GNP), except that in measuring the GNP one does not deduct the indirect business taxes. (Source: http://en.wikipedia.org/wiki/Gross_national_income)
It is calculated using the following formula
Turns out the GDP data for New York State is available at the website for New York State's Economic Development Agency called Empire State Development's data center (http://esd.ny.gov/NYSDataCenter/GrossDomesticProduct.html).
The data is derived from the US Bureau of Economic Analysis's data which is available at its website (http://www.bea.gov/national/index.htm#gdp) as shown in the screenshot below.
This website also contains an Interactive Data tool that provides data for download.
My plan over the next few posts is to cover all the measures of social development.
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