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Quality of Life and Development
Indicators and Measurement Indices
Presented By: Ms. Nishu Kanwar
Bhati, Ph.D
Quality of life refers to the level
of well-being of the society and
the degree of satisfaction of a
number of human needs.
«A concept involving a relative
assessment of human well-being in terms
of the overall standards of living of society
and the degree of excellence of an
individual’s life style»
QUALITY OF LIFE IN THE CONTEXT OF NATIONAL
DEVELOPMENT
The Idea of Development The development of a nation or
community is now seen to be concerned with two
elements –
 general resource development and
human resource development.
General resource development
Human resource development
• Human resource development, however, is
more directly concerned with upgrading
human qualities, mainly through education
and training, to enable individuals to develop
to their maximum potential.
• Measured in terms of Human Development
Index(HDI)
Knowledge
Living Standard
Longevity
Dimensions of HDI
Indicators for Quality of Life Development
Economic
Subjective
Social
Objective
Social
•GDP
•GNP
•health/nutrition
•education/learning
•housing and physical
environment
•working life social
security personal
safety and
•justice leisure and
use of time social
participation human
freedom
•individuals’
reactions and
perceptions about
quality of life.
Perceived levels of happiness and life
satisfaction in regard to work income health
leisure time family life housing environment
government and others ESCAP points out an
interesting lack of correlation between the
three categories of indicators. While income
levels can go up people surveyed can claim
that they are less happy and so on.
Professor Yassin, also stresses, that these elements cannot be
made operational and that quality of life development cannot be
sustained unless the adult population has a set of values which
will foster and promote their development. These values are as
follows:
• Diligence and Industriousness:
• Discipline and Respect for Knowledge:
• Integrity and moral ethics:
• Tolerance:
• Loyalty:
The need for measurement beyond
GDP
• GDP is an aggregate measure and as such
cannot inform us about wealth distribution
amongst the population
• GDP and other economic measures need to be
complemented with indicators covering other
important domains in order to measure well-
being
8+1 dimensions of quality of life
The ‘Beyond GDP’ conference (2007),
the Stiglitz/Sen/Fitoussi (SSF) Commission (2009),
the Eurostat Feasibility study for Well-Being
Indicators (2008) and the European Commission
‘GDP and beyond’ communication (2009). The
European Statistical System Committee (ESSC) set up
a Sponsorship Group (SpG) on Measuring Progress,
Well-being and Sustainable Development
• Material living conditions (income,
consumption and material conditions)
• Productive or main activity
• Health
• Education
• Leisure and social interactions
• Economic and physical safety
• Governance and basic rights
• Natural and living environment
• Overall experience of life
 Three sub-dimensions:
income,
consumption and
material conditions (deprivation and housing)
Productive or main activity
 Indicators measuring both the quantity and the
quality of jobs available (working hours, balancing
work and non-working life, safety and ethics of
employment)
Health
 measured using objective health outcome
indicators such as life expectancy, infant
mortality, the number of healthy life years, but
also more subjective indicators, such as
access to healthcare and self-evaluation of
one’s health.
Education
 population’s educational attainment,
 the number of early school leavers,
 self-assessed and assessed skills and
 participation in life-long learning.
 measured in terms of how often citizens
spend time with people at sporting or
cultural events or if they volunteer for
different types of organisations.
 Safety is measured in terms of physical safety
(e.g. the number of homicides per country)
and economic safety. Safety is measured in
terms of physical safety (e.g. the number of
homicides per country) and economic safety.
 The ability to face unexpected expenses and
having or not having arrears are therefore
used as proxy variables
Natural and living environment
 Both subjective (individuals’ own perceptions) and
objective (the amount of pollutants present in the air)
indicators are included.
Overall experience of life
 life satisfaction (cognitive
appreciation),
 affect (a person’s feelings or
emotional states, both positive and
negative, typically measured with
reference to a particular point in time)
and
 eudaemonics (a sense of having
meaning and purpose in one’s life, or
good psychological functioning.).
Measurement Indices
World Happiness Report
• Developed by the United Nations and published
recently along with the HDI, this report combines
both objective and subjective measures to rank
countries by happiness, which is deemed as the
ultimate outcome of a high quality of life.
• It uses surveys from real GDP per capita, healthy
life expectancy, having someone to count on,
perceived freedom to make life choices, freedom
from corruption, and generosity to derive the
final score.
Physical Quality of Life Index (PQLI)
• Developed by sociologist Morris David Morris
in the 1970s, based on basic literacy, infant
mortality, and life expectancy
Happy Planet Index
 Uses each country'secological footprint as
an indicator
 The 2012 list is instead topped by Costa
Rica,Vietnam and Colombia.[9]
Livability
• Economist Intelligence Unit's
• Where-to-be-born Index and
• Mercer's Quality of Living Reports.
Legatum Prosperity Index
 An annual ranking, developed by the Legatum
Institute, of 142 countries.
 Factors including wealth, economic growth,
education, health, personal well-being, and quality of
life.
 In the 2014 rankings, Norway tops the list followed
by Switzerland and New Zealand.
The 8 sub-indexes are:
 Economy
 Entrepreneurship & Opportunity
 Governance
 Education
 Health
 Safety & Security
 Personal Freedom
 Social Capital
The Were-to-be-born
 Material well-being as measured by GDP per capita (in $, at 2006
constant PPPS)
 Life expectancy at birth
 The quality of family life based primarily on divorce rates
 The state of political freedoms
 Job security (measured by the unemployment rate)
 Climate (measured by two variables: the average deviation of
minimum and maximum monthly temperatures from 14 degrees
Celsius; and the number of months in the year with less than 30mm
rainfall)
 Personal physical security ratings (based primarily on
recorded homicide rates and ratings for risk from crime and
terrorism)
 Quality of community life (based on membership in social
organisations)
 Governance (measured by ratings for corruption)
 Gender equality (measured by the share of seats in parliament held
by women)
OECD Better Life Index
• Housing: housing conditions and spendings (e.g. real
estate pricing)
• Income: household income and financial wealth
• Jobs: earnings, job security and unemployment
• Community: quality of social support network
• Education: education and what you get out of it
• Environment: quality of environment
(e.g. environmental health)
• Governance: involvement in democracy
• Health
• Life Satisfaction: level of happiness
• Safety: murder and assault rates
• Work-life balance
What is Development?
• Though the term development usually refers to
economic progress, it can apply to political,
social, and technological progress as well.
Economic Development
Social Development
Measuring Economic Development
Gross Domestic Product
GDP – total value of goods and services produced in a
country
Gross National Product
GNP – Including income from investments abroad
Purchasing Power Parity
PPP – Takes into account local cost of living and is usually
expressed per capita
GDP/GNP per capita
Total value divided by the total population
Problems of using economic indicators
such as GDP/GNP/PPP to measure
development
Currency fluctuations
Prices of goods and services (PPP)
Distribution of Wealth
Dependency on one industry (skills, location, fluctuations)
Tax and govt spending on public goods
Informal economy and unpaid work eg child care and
subsistence farming, bartering
Monetary value of goods traded can fluctuate, especially
agriculture
Accurate info difficult to obtain, high informal sector, rural
economy, ineffective governance
% of public and private sector
Remittances from migrant workers are not included
Problems of using economic indicators such as
GDP/GNP/PPP to measure development
Negative externalities of economic growth are not included (eg pollution,
environmental damage)
Environmental services such as the benefits derived from standing forest
are not included.
Basically it is only a measure of the economic value of what is
produced and paid for. Does not take into account what was
produced, the environmental and social costs, how the wealth
is distributed, who spends it and what it is spent on.
Social indices
Demographic statistics on mortality and
fertility can be used to measure
development.
Infant mortality
Life expectancy
Fertility rate
Other social indices
There are a whole range of indicators which give us some idea about
people’s quality of life. These can be broadly described as social indices
although they could be linked to the economy, environment and politics.
Access to safe water Crime levels
Access to broadband internet connection Subjective life satisfaction
Male and female literacy rates Obesity
Number of people per car Corruption perception index
Pop per doc Number in higher education
Food consumption Energy
consumption
Mortality rates for diseases Pollution levels air/water
Relative / absolute poverty
The two different Human Poverty Indices reflect there are
different definitions of poverty.
Absolute Poverty – Those living in absolute poverty are unable to
satisfy their basic needs for survival; water, clothing, food,
shelter and basic medicine. World Bank figure of $1.25 per day.
Relative Poverty – A level of poverty relative to the rest of the
population of the country. For example below 50% of average
earning.
Multiple component indices
(composite indicators)
All the indices so far have been single component indices. There are also
multiple component indices. These combine a number of single
component indices to give a combined score.
Human Development Index (0-1)
HDI – PPP, life expectancy, adult literacy, average number of years schooling
Human Poverty Index 1 (for developing countries)
HPI-1 - % of pop with life expectancy of <40, % of adult illiteracy, % without safe
water, % without access to health services, % of under fives who are underweight
Human Poverty Index 2 (for developed countries)
HPI-2 - % of pop with life expectancy of <60, % of adult illiteracy, % of people
below the poverty line (50% of medium income), rate of long term employment
>12 months
Other multiple component indices
(composite indicators)
Gender Empowerment Measure (GEM) and Gender-
related Development Index (GDI) measure gender
inequality.
Other quality of life indicators could measure a variety
of social/economic/political and environmental
indicators.
Seminar 2

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Seminar 2

  • 1. Quality of Life and Development Indicators and Measurement Indices Presented By: Ms. Nishu Kanwar Bhati, Ph.D
  • 2. Quality of life refers to the level of well-being of the society and the degree of satisfaction of a number of human needs.
  • 3. «A concept involving a relative assessment of human well-being in terms of the overall standards of living of society and the degree of excellence of an individual’s life style»
  • 4. QUALITY OF LIFE IN THE CONTEXT OF NATIONAL DEVELOPMENT The Idea of Development The development of a nation or community is now seen to be concerned with two elements –  general resource development and human resource development.
  • 6. Human resource development • Human resource development, however, is more directly concerned with upgrading human qualities, mainly through education and training, to enable individuals to develop to their maximum potential. • Measured in terms of Human Development Index(HDI)
  • 8.
  • 9. Indicators for Quality of Life Development Economic Subjective Social Objective Social
  • 10. •GDP •GNP •health/nutrition •education/learning •housing and physical environment •working life social security personal safety and •justice leisure and use of time social participation human freedom •individuals’ reactions and perceptions about quality of life.
  • 11. Perceived levels of happiness and life satisfaction in regard to work income health leisure time family life housing environment government and others ESCAP points out an interesting lack of correlation between the three categories of indicators. While income levels can go up people surveyed can claim that they are less happy and so on.
  • 12. Professor Yassin, also stresses, that these elements cannot be made operational and that quality of life development cannot be sustained unless the adult population has a set of values which will foster and promote their development. These values are as follows: • Diligence and Industriousness: • Discipline and Respect for Knowledge: • Integrity and moral ethics: • Tolerance: • Loyalty:
  • 13. The need for measurement beyond GDP • GDP is an aggregate measure and as such cannot inform us about wealth distribution amongst the population • GDP and other economic measures need to be complemented with indicators covering other important domains in order to measure well- being
  • 14. 8+1 dimensions of quality of life The ‘Beyond GDP’ conference (2007), the Stiglitz/Sen/Fitoussi (SSF) Commission (2009), the Eurostat Feasibility study for Well-Being Indicators (2008) and the European Commission ‘GDP and beyond’ communication (2009). The European Statistical System Committee (ESSC) set up a Sponsorship Group (SpG) on Measuring Progress, Well-being and Sustainable Development
  • 15. • Material living conditions (income, consumption and material conditions) • Productive or main activity • Health • Education • Leisure and social interactions • Economic and physical safety • Governance and basic rights • Natural and living environment • Overall experience of life
  • 16.  Three sub-dimensions: income, consumption and material conditions (deprivation and housing)
  • 17. Productive or main activity  Indicators measuring both the quantity and the quality of jobs available (working hours, balancing work and non-working life, safety and ethics of employment)
  • 18. Health  measured using objective health outcome indicators such as life expectancy, infant mortality, the number of healthy life years, but also more subjective indicators, such as access to healthcare and self-evaluation of one’s health.
  • 19. Education  population’s educational attainment,  the number of early school leavers,  self-assessed and assessed skills and  participation in life-long learning.
  • 20.  measured in terms of how often citizens spend time with people at sporting or cultural events or if they volunteer for different types of organisations.
  • 21.  Safety is measured in terms of physical safety (e.g. the number of homicides per country) and economic safety. Safety is measured in terms of physical safety (e.g. the number of homicides per country) and economic safety.  The ability to face unexpected expenses and having or not having arrears are therefore used as proxy variables
  • 22. Natural and living environment  Both subjective (individuals’ own perceptions) and objective (the amount of pollutants present in the air) indicators are included.
  • 23. Overall experience of life  life satisfaction (cognitive appreciation),  affect (a person’s feelings or emotional states, both positive and negative, typically measured with reference to a particular point in time) and  eudaemonics (a sense of having meaning and purpose in one’s life, or good psychological functioning.).
  • 25. World Happiness Report • Developed by the United Nations and published recently along with the HDI, this report combines both objective and subjective measures to rank countries by happiness, which is deemed as the ultimate outcome of a high quality of life. • It uses surveys from real GDP per capita, healthy life expectancy, having someone to count on, perceived freedom to make life choices, freedom from corruption, and generosity to derive the final score.
  • 26. Physical Quality of Life Index (PQLI) • Developed by sociologist Morris David Morris in the 1970s, based on basic literacy, infant mortality, and life expectancy
  • 27. Happy Planet Index  Uses each country'secological footprint as an indicator  The 2012 list is instead topped by Costa Rica,Vietnam and Colombia.[9]
  • 28. Livability • Economist Intelligence Unit's • Where-to-be-born Index and • Mercer's Quality of Living Reports.
  • 29. Legatum Prosperity Index  An annual ranking, developed by the Legatum Institute, of 142 countries.  Factors including wealth, economic growth, education, health, personal well-being, and quality of life.  In the 2014 rankings, Norway tops the list followed by Switzerland and New Zealand.
  • 30. The 8 sub-indexes are:  Economy  Entrepreneurship & Opportunity  Governance  Education  Health  Safety & Security  Personal Freedom  Social Capital
  • 31. The Were-to-be-born  Material well-being as measured by GDP per capita (in $, at 2006 constant PPPS)  Life expectancy at birth  The quality of family life based primarily on divorce rates  The state of political freedoms  Job security (measured by the unemployment rate)  Climate (measured by two variables: the average deviation of minimum and maximum monthly temperatures from 14 degrees Celsius; and the number of months in the year with less than 30mm rainfall)  Personal physical security ratings (based primarily on recorded homicide rates and ratings for risk from crime and terrorism)  Quality of community life (based on membership in social organisations)  Governance (measured by ratings for corruption)  Gender equality (measured by the share of seats in parliament held by women)
  • 32. OECD Better Life Index • Housing: housing conditions and spendings (e.g. real estate pricing) • Income: household income and financial wealth • Jobs: earnings, job security and unemployment • Community: quality of social support network • Education: education and what you get out of it • Environment: quality of environment (e.g. environmental health) • Governance: involvement in democracy • Health • Life Satisfaction: level of happiness • Safety: murder and assault rates • Work-life balance
  • 33. What is Development? • Though the term development usually refers to economic progress, it can apply to political, social, and technological progress as well. Economic Development Social Development
  • 34. Measuring Economic Development Gross Domestic Product GDP – total value of goods and services produced in a country Gross National Product GNP – Including income from investments abroad Purchasing Power Parity PPP – Takes into account local cost of living and is usually expressed per capita GDP/GNP per capita Total value divided by the total population
  • 35. Problems of using economic indicators such as GDP/GNP/PPP to measure development Currency fluctuations Prices of goods and services (PPP) Distribution of Wealth Dependency on one industry (skills, location, fluctuations) Tax and govt spending on public goods Informal economy and unpaid work eg child care and subsistence farming, bartering Monetary value of goods traded can fluctuate, especially agriculture Accurate info difficult to obtain, high informal sector, rural economy, ineffective governance % of public and private sector Remittances from migrant workers are not included
  • 36. Problems of using economic indicators such as GDP/GNP/PPP to measure development Negative externalities of economic growth are not included (eg pollution, environmental damage) Environmental services such as the benefits derived from standing forest are not included. Basically it is only a measure of the economic value of what is produced and paid for. Does not take into account what was produced, the environmental and social costs, how the wealth is distributed, who spends it and what it is spent on.
  • 37. Social indices Demographic statistics on mortality and fertility can be used to measure development. Infant mortality Life expectancy Fertility rate
  • 38. Other social indices There are a whole range of indicators which give us some idea about people’s quality of life. These can be broadly described as social indices although they could be linked to the economy, environment and politics. Access to safe water Crime levels Access to broadband internet connection Subjective life satisfaction Male and female literacy rates Obesity Number of people per car Corruption perception index Pop per doc Number in higher education Food consumption Energy consumption Mortality rates for diseases Pollution levels air/water
  • 39. Relative / absolute poverty The two different Human Poverty Indices reflect there are different definitions of poverty. Absolute Poverty – Those living in absolute poverty are unable to satisfy their basic needs for survival; water, clothing, food, shelter and basic medicine. World Bank figure of $1.25 per day. Relative Poverty – A level of poverty relative to the rest of the population of the country. For example below 50% of average earning.
  • 40. Multiple component indices (composite indicators) All the indices so far have been single component indices. There are also multiple component indices. These combine a number of single component indices to give a combined score. Human Development Index (0-1) HDI – PPP, life expectancy, adult literacy, average number of years schooling Human Poverty Index 1 (for developing countries) HPI-1 - % of pop with life expectancy of <40, % of adult illiteracy, % without safe water, % without access to health services, % of under fives who are underweight Human Poverty Index 2 (for developed countries) HPI-2 - % of pop with life expectancy of <60, % of adult illiteracy, % of people below the poverty line (50% of medium income), rate of long term employment >12 months
  • 41. Other multiple component indices (composite indicators) Gender Empowerment Measure (GEM) and Gender- related Development Index (GDI) measure gender inequality. Other quality of life indicators could measure a variety of social/economic/political and environmental indicators.