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2008 Update

HDI 2008

Human Development Indices: A statistical update 2008 was released on 18 December 2008.

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2008 Statistical Update

Peru

The Human Development Index - going beyond income

Each year since 1990 the Human Development Report Office has published the human development index (HDI) which looks beyond GDP to a broader definition of well-being. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and enrolment at the primary, secondary and tertiary level) and having a decent standard of living (measured by purchasing power parity, PPP, income). The index is not in any sense a comprehensive measure of human development. It does not, for example, include important indicators such as gender or income inequality and more difficult to measure indicators like respect for human rights and political freedoms. What it does provide is a broadened prism for viewing human progress and the complex relationship between income and well-being.

The HDI for Peru is 0.788, which gives the country a rank of 79th out of 179 countries with data (Table 1).

Table 1: Peru's human development index 2006 and underlying indicators in comparison with selected countries.
HDI value
2006
Life expectancy at birth
(years)
2006
Adult literacy rate
(% ages 15 and above)
2006
Combined primary, secondary and tertiary gross enrolment ratio
(%)
2006
GDP per capita
(PPP US$)
2006
1. Iceland (0.968) 1. Japan (82.4) 1. Georgia (100.0) 1. Australia (114.2) 1. Luxembourg (77,089)
77. Dominica (0.797) 94. Saint Kitts and Nevis (71.2) 70. Brazil (89.6) 34. Portugal (88.8) 83. Grenada (7,217)
78. Lebanon (0.796) 95. Samoa (71.1) 71. Dominican Republic (88.8) 35. Argentina (88.6) 84. Ecuador (7,145)
79. Peru (0.788) 96. Peru (71.0) 72. Peru (88.7) 36. Peru (88.1) 85. Peru (7,088)
80. Colombia (0.787) 97. Egypt (71.0) 73. Bahrain (88.3) 37. Germany (88.1) 86. Saint Vincent and the Grenadines (7,057)
81. Thailand (0.786) 98. Georgia (70.8) 74. Turkey (88.1) 38. Poland (87.7) 87. Tunisia (6,958)
179. Sierra Leone (0.329) 179. Swaziland (40.2) 147. Mali (22.9) 179. Djibouti (25.5) 178. Congo (Democratic Republic of the) (281)

NB Changes in HDI values and ranks between two reports result from revisions to data for each of the HDI’s three components (4 indicators) as well as real changes in the level of human development in different countries. The data revisions this year – especially of the GDP per capita (PPP US$) series – have resulted in more substantial apparent movements in the HDI than is normally the case between successive publications. For these reasons, HDI values and rankings are not comparable across different publications.

Human poverty in Peru: focusing on the most deprived in multiple dimensions of poverty

The HDI measures the average progress of a country in human development. The Human Poverty Index for developing countries (HPI-1), focuses on the proportion of people below a threshold level in the same dimensions of human development as the human development index - living a long and healthy life, having access to education, and a decent standard of living. By looking beyond income deprivation, the HPI-1 represents a multi-dimensional alternative to the $1.25 a day (PPP US$) poverty measure.

The HPI-1 value of 11.0 % for Peru, ranks 49th among 135 developing countries for which the index has been calculated.

The HPI-1 measures severe deprivation in health by the proportion of people who are not expected to survive age 40. Education is measured by the adult illiteracy rate. And a decent standard of living is measured by the unweighted average of people without access to an improved water source and the proportion of children under age 5 who are underweight for their age. Table 2 shows the values for these variables for Peru and compares them to other countries.


Table 2: Selected indicators of human poverty for Peru
Human Poverty Index
(HPI-1)
2006
Probability of not surviving past age 40
(%)
2005
Adult illiteracy rate
(%ages 15 and older)
2006
People without access to an improved water source
(%)
2006
Children underweight for age
(% ages 0-5)
2006
1. Czech Republic (1.7) 1. Singapore (1.8) 1. Cuba (0.2) 1. Bosnia and Herzegovina (1) 1. Croatia (1)
47. Jamaica (10.8) 59. El Salvador (9.6) 51. Brazil (10.4) 59. Honduras (16) 48. Albania (8)
48. Paraguay (10.8) 60. Paraguay (9.7) 52. Dominican Republic (11.2) 60. El Salvador (16) 49. Iraq (8)
49. Peru (11.0) 61. Peru (9.7) 53. Peru (11.3) 61. Peru (16) 50. Peru (8)
50. Azerbaijan (11.8) 62. Suriname (9.8) 54. Bahrain (11.7) 62. Morocco (17) 51. Fiji (8)
51. Iran (Islamic Republic of) (12.0) 63. Dominican Republic (10.5) 55. Turkey (11.9) 63. Maldives (17) 52. Malaysia (8)
135. Afghanistan (60.2) 135. Zimbabwe (57.4) 127. Mali (77.1) 123. Afghanistan (78) 135. Bangladesh (48)

Building the capabilities of women

The HDI measures average achievements in a country, but it does not incorporate the degree of gender imbalance in these achievements. The gender-related development index (GDI), introduced in Human Development Report 1995, measures achievements in the same dimensions using the same indicators as the HDI but captures inequalities in achievement between women and men. It is simply the HDI adjusted downward for gender inequality. The greater the gender disparity in basic human development, the lower is a country's GDI relative to its HDI.

To measure the impact of gender inequalities on human development achievement, Peru's GDI value, 0.784 can be compared to its HDI value of 0.788. Its GDI value is 99.5% of its HDI value. Out of the 157 countries with both HDI and GDI values, 38 countries have a better ratio than Peru's.

Table 3 shows how Peru’s ratio of GDI to HDI compares to other countries, and also shows its values for selected underlying indicators in the calculation of the GDI.

Table 3: The GDI compared to the HDI – a measure of gender disparity
GDI as % of HDI Life expectancy at birth
(years)
2006
Adult literacy rate
(% ages 15 and older)
2006
Combined primary, secondary and tertiary gross enrolment ratio
2006

Female as % male Female as % male Female as % male
1. Sweden (99.9%) 1. Russian Federation (123.1%) 1. Lesotho (122.5%) 1. United Arab Emirates (120.2%)
37. Uruguay (99.6%) 58. Barbados (107.6%) 81. Bolivia (89.1%) 52. Myanmar (104.3%)
38. Argentina (99.6%) 59. Austria (107.4%) 82. Lebanon (89.1%) 53. France (104.2%)
39. Peru (99.6%) 60. Peru (107.4%) 83. Peru (88.6%) 54. Peru (104.1%)
40. Rwanda (99.6%) 61. Hong Kong, China (SAR) (107.3%) 84. Congo (88.1%) 55. Venezuela (Bolivarian Republic of) (104.0%)
41. Uzbekistan (99.6%) 62. Germany (107.3%) 85. Sao Tome and Principe (87.8%) 56. Costa Rica (104.0%)
157. Occupied Palestinian Territories (92.8%) 157. Niger (96.9%) 135. Chad (31.3%) 157. Chad (60.4%)

The gender empowerment measure (GEM) reveals whether women take an active part in economic and political life. It tracks the share of seats in parliament held by women; of female legislators, senior officials and managers; and of female professional and technical workers- and the gender disparity in earned income, reflecting economic independence. Differing from the GDI, the GEM exposes inequality in opportunities in selected areas.

Peru ranks 36th out of 108 countries in the GEM, with a value of 0.627.