Kosovo Human Development Report 2010 - UNDP Kosovo - United ...

Kosovo Human Development Report 2010 - UNDP Kosovo - United ... Kosovo Human Development Report 2010 - UNDP Kosovo - United ...

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income is necessary to ensure survival: USD 163 is the lowest value attained by any country in recorded history (in Zimbabwe in 2008) and corresponds to less than 45 cents a day, just over a third of the World Bank’s USD 1.25 a day poverty line. Having defined the minimum and maximum values, the subindices are calculated as follows: Dimension index = actual value – minimum value maximum value – minimum value For education, equation 1 is applied to each of the two subcomponents, then a geometric mean of the resulting indices is created and finally, equation 1 is reapplied to the geometric mean of the indices, using 0 as the minimum and the highest geometric mean of the resulting indices for the time period under consideration as the maximum. This is equivalent to applying equation 1 directly to the geometric mean of the two subcomponents. Because each dimension index is a proxy for capabilities in the corresponding dimension, the transformation function from income to capabilities is likely to be concave (Anand and Sen 2000c). Thus, for income the natural logarithm of the actual minimum and maximum values is used. Aggregating the subindices to produce the Human Development Index The HDI is the geometric mean of the three dimension indices: 1/3 (I . IEducation Life 1/3 . IIncome 1/3 ) (2) Expression 2 embodies imperfect substitutability across all HDI dimensions. It thus addresses one of the most se- 106 | KOSOVO HUMAN DEVELOPMENT REPORT 2010 (1) rious criticisms of the linear aggregation formula, which allowed for perfect substitution across dimensions. Some substitutability is inherent in the definition of any index that increases with the values of its components. Example: China Life expectancy at birth (years) 73.5 Mean years of schooling (years) 7.5 Expected years of schooling (years) 11.4 GNI per capita (PPP US$) Note: Values are rounded. 7,263 73.5 – 20 Life expectancy index = = 0.847 83.2 – 20 7.5 – 0 Mean years of schooling index = = 0.568 13.2 – 0 Expected years of schooling index = Education index = 0.568 . 0.553 – 0 0.951 – 0 Income index = ln(7,263) – ln(163) ln(108,211) – ln(163) 11.4 – 0 = 0.553 20.6 – 0 = 0.589 = 0.584 Human Development Index = 3 0.847 . 0.589 . 0.584 = 0.663 Overall effects of the Human Development Index methodological improvements The methodological improvements in the HDI, using new indicators and the new functional form, result in substantial changes. Adopting the geometric mean produces lower index values, with the largest changes occurring in countries with uneven development across dimensions. The geometric mean has only a moderate impact on HDI ranks. Setting the upper bounds at actual maximum values has less impact on overall index values and has little further impact on ranks.

Introduction 1 Preparing for a future international and EU presence in Kosovo, European Union, available at http://www.euptkosovo.eu/new/home/docs/EU_booklet%20ENG_Jan%202008.pdf, page 6. 2 Council Regulation (EC) No 2666/2000 of 5 December 2000 on assistance for Albania, Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and the Former Yugoslav Republic of Macedonia, repealing Regulation (EC) No 1628/96 and amending Regulations (EEC) No 3906/89 and (EEC) No 1360/90 and Decisions 97/256/EC and 1999/311/EC (See amending acts). 3 Communication from the Commission to the Council and the European Parliament. Instrument for Pre-Accession Assistance (IPA) Multiannual Indicative Financial Framework for 2008–2010, European Commission, 2006. 4 IMF Predicts Sustained GDP Growth for Kosovo, Lawrence Marzouk, http://www.balkaninsight.com/en/main/ news/29787. 5 Poverty Assessment, World Bank Kosovo, Kosovo 2007. 6 Statistical Office of Kosovo, Labour Force Survey 2008, 2009. 7 Second MDGs Report for Kosovo UNDP 2007. 8 Kosovo (under UNSCR 1244/99) 2008 Progress Report accompanying the communication from the Commission to the European Parliament and the Council Enlargement Strategy and Main Challenges 2008-2009,Commission of the European Communities. 9 Social Exclusion and the EU’s Social Inclusion Agenda, 2007. 10 Joint Report on Social Inclusion, EC’s 2004. 11 See Kosovo Constitution: http://www.kushtetutakosoves.info/repository/docs/Constitution.of.the.Republic. of.Kosovo.pdf 12 Kosovo (under UNSCR 1244/99) 2008 Progress Report accompanying the communication from the Commission to the European Parliament and the Council Enlargement Strategy and Main Challenges 2008-2009, Commission of the European Communities, p.39. Chapter 1 NOTES 13 Discussion of this chapter was informed in particular by the following publications: European Commission, Directorate-General for Employment, Social Affairs and Equal Opportunities, Report on Social Inclusion 2005, An analysis of the National Action Plans on Social Inclusion (2004-2006) submitted by the 10 new Member States, 2005 and Burchardt T. , J. Le Grand and D Piachaud, “Degrees of Exclusion: Developing a Dynamic, Multidimensional Measure” in Hills et al, Understanding Social Exclusion, 2002. 14 Stewart et al, 2005. 15 DFID Social Exclusion Review, ’Beall, J. and Piron, L-H. (2004). London: LSE/ODI. 16 The economy of society (3rd ed.)Luhmann, N. (1999). Die Wirtschaft der Gesellschaft Frankfurt am Main, Germany: Suhrkamp. 17 A synthesis of National Family Policies 1994, Byrne, (1999) Social Exclusion, Buckingham: Open University Press Ditch, J. et al (1996) York: European Observatory on National Family Policies, University of York. 18 For a comprehensive review see Ruth Lister (2004), Poverty, Cambridge: Blackwell/Polity Press. 19 See Poverty in the United Kingdom, Townsend, P. Harmondsworth: Penguin Books, 1979. 20 March 2000, Lisbon, European Council. 21 European Commission, Eurostat. Directorate E: Social Statistics. Unit E-2: Living Conditions ‘Laeken’ Indicators: Detailed Calculation Methodology. 22 Young, 2001. 23 For more on culture and human development, see UNDP, Human Development Report, Cultural liberty in Today’s Diverse World, 2004. 24 According to the Global Human Development Report the short definition of Human Development is the expansion of People’s freedoms to live long, healthy and creative lives, to advance other goals they have reason to value and to engage actively in shaping development equitably and sustainably on a shared planet. People are both the beneficiaries and drivers of human development as individuals and in groups. See GHDR 2010: http://hdr.undp. org/en/media/HDR_2010_EN_Chapter1_reprint.pdf. 25 MEST 2009/ 2010 and SOK Vital Statistics Reports 2002-2008. 26 SOK 2002-2008. Notes | 107

Introduction<br />

1 Preparing for a future international and EU presence in <strong>Kosovo</strong>, European Union, available at http://www.euptkosovo.eu/new/home/docs/EU_booklet%20ENG_Jan%202008.pdf,<br />

page 6.<br />

2 Council Regulation (EC) No 2666/2000 of 5 December 2000 on assistance for Albania, Bosnia and Herzegovina,<br />

Croatia, the Federal Republic of Yugoslavia and the Former Yugoslav Republic of Macedonia, repealing Regulation<br />

(EC) No 1628/96 and amending Regulations (EEC) No 3906/89 and (EEC) No 1360/90 and Decisions 97/256/EC<br />

and 1999/311/EC (See amending acts).<br />

3 Communication from the Commission to the Council and the European Parliament. Instrument for Pre-Accession<br />

Assistance (IPA) Multiannual Indicative Financial Framework for 2008–<strong>2010</strong>, European Commission, 2006.<br />

4 IMF Predicts Sustained GDP Growth for <strong>Kosovo</strong>, Lawrence Marzouk, http://www.balkaninsight.com/en/main/<br />

news/29787.<br />

5 Poverty Assessment, World Bank <strong>Kosovo</strong>, <strong>Kosovo</strong> 2007.<br />

6 Statistical Office of <strong>Kosovo</strong>, Labour Force Survey 2008, 2009.<br />

7 Second MDGs <strong>Report</strong> for <strong>Kosovo</strong> <strong>UNDP</strong> 2007.<br />

8 <strong>Kosovo</strong> (under UNSCR 1244/99) 2008 Progress <strong>Report</strong> accompanying the communication from the Commission<br />

to the European Parliament and the Council Enlargement Strategy and Main Challenges 2008-2009,Commission<br />

of the European Communities.<br />

9 Social Exclusion and the EU’s Social Inclusion Agenda, 2007.<br />

10 Joint <strong>Report</strong> on Social Inclusion, EC’s 2004.<br />

11 See <strong>Kosovo</strong> Constitution: http://www.kushtetutakosoves.info/repository/docs/Constitution.of.the.Republic.<br />

of.<strong>Kosovo</strong>.pdf<br />

12 <strong>Kosovo</strong> (under UNSCR 1244/99) 2008 Progress <strong>Report</strong> accompanying the communication from the Commission<br />

to the European Parliament and the Council Enlargement Strategy and Main Challenges 2008-2009, Commission<br />

of the European Communities, p.39.<br />

Chapter 1<br />

NOTES<br />

13 Discussion of this chapter was informed in particular by the following publications: European Commission, Directorate-General<br />

for Employment, Social Affairs and Equal Opportunities, <strong>Report</strong> on Social Inclusion 2005, An analysis<br />

of the National Action Plans on Social Inclusion (2004-2006) submitted by the 10 new Member States, 2005<br />

and Burchardt T. , J. Le Grand and D Piachaud, “Degrees of Exclusion: Developing a Dynamic, Multidimensional<br />

Measure” in Hills et al, Understanding Social Exclusion, 2002.<br />

14 Stewart et al, 2005.<br />

15 DFID Social Exclusion Review, ’Beall, J. and Piron, L-H. (2004). London: LSE/ODI.<br />

16 The economy of society (3rd ed.)Luhmann, N. (1999). Die Wirtschaft der Gesellschaft Frankfurt am Main, Germany:<br />

Suhrkamp.<br />

17 A synthesis of National Family Policies 1994, Byrne, (1999) Social Exclusion, Buckingham: Open University Press<br />

Ditch, J. et al (1996) York: European Observatory on National Family Policies, University of York.<br />

18 For a comprehensive review see Ruth Lister (2004), Poverty, Cambridge: Blackwell/Polity Press.<br />

19 See Poverty in the <strong>United</strong> Kingdom, Townsend, P. Harmondsworth: Penguin Books, 1979.<br />

20 March 2000, Lisbon, European Council.<br />

21 European Commission, Eurostat. Directorate E: Social Statistics. Unit E-2: Living Conditions ‘Laeken’ Indicators: Detailed<br />

Calculation Methodology.<br />

22 Young, 2001.<br />

23 For more on culture and human development, see <strong>UNDP</strong>, <strong>Human</strong> <strong>Development</strong> <strong>Report</strong>, Cultural liberty in Today’s<br />

Diverse World, 2004.<br />

24 According to the Global <strong>Human</strong> <strong>Development</strong> <strong>Report</strong> the short definition of <strong>Human</strong> <strong>Development</strong> is the expansion<br />

of People’s freedoms to live long, healthy and creative lives, to advance other goals they have reason to value<br />

and to engage actively in shaping development equitably and sustainably on a shared planet. People are both the<br />

beneficiaries and drivers of human development as individuals and in groups. See GHDR <strong>2010</strong>: http://hdr.undp.<br />

org/en/media/HDR_<strong>2010</strong>_EN_Chapter1_reprint.pdf.<br />

25 MEST 2009/ <strong>2010</strong> and SOK Vital Statistics <strong>Report</strong>s 2002-2008.<br />

26 SOK 2002-2008.<br />

Notes | 107

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