Re: Human Development Index 2004

2004-07-23 Thread Chris Doss
--- Paul [EMAIL PROTECTED] wrote:

Is there any common
cause
with any of today's 3rd world economic\political elite
(Malaysians?
Brazilians? Koreans? Russians? Vietnamese?)?

---

Russia is not a 3rd world country.






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Re: Human Development Index 2004

2004-07-23 Thread Daniel Davies
nor is Malaysia

-Original Message-
From: PEN-L list [mailto:[EMAIL PROTECTED] Behalf Of Chris Doss
Sent: 23 July 2004 14:40
To: [EMAIL PROTECTED]
Subject: Re: Human Development Index 2004


--- Paul [EMAIL PROTECTED] wrote:

Is there any common
cause
with any of today's 3rd world economic\political elite
(Malaysians?
Brazilians? Koreans? Russians? Vietnamese?)?

---

Russia is not a 3rd world country.






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Re: Human Development Index 2004

2004-07-23 Thread Ulhas Joglekar
Daniel Davies wrote:

 nor is Malaysia

 Behalf Of Chris Doss

 Russia is not a 3rd world country.

Third World is not a useful category.

Ulhas


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Re: Human Development Index 2004

2004-07-23 Thread Louis Proyect
Cuba needs to be compared with other nations that have a similar history
and resource endowment, like Jamaica or the Dominican Republic. Cuba
ranks 52, while Jamaica is at 79 and The Dominican Republic ranks 98th.
Imagine if Jamaica and The Dominican Republic were subjected to
unremitting economic warfare and had lost their major economic
benefactor, then you can see how impressive Cuba's gains are. I am quite
sure that if the USSR had wound up with a leadership more in line with
the Cuban CP, world history would have taken an entirely different path.
Daniel Davies wrote:
nor is Malaysia
-Original Message-
From: PEN-L list [mailto:[EMAIL PROTECTED] Behalf Of Chris Doss
Sent: 23 July 2004 14:40
To: [EMAIL PROTECTED]
Subject: Re: Human Development Index 2004
--- Paul [EMAIL PROTECTED] wrote:
Is there any common
cause
with any of today's 3rd world economic\political elite
(Malaysians?
Brazilians? Koreans? Russians? Vietnamese?)?
---
Russia is not a 3rd world country.


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.

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Re: Human Development Index 2004

2004-07-23 Thread Chris Doss
Third World is not a useful category.

Ulhas
---
Thank you! That is so true. It seems to be a synonym
for poorer than the West. (Except that Saudi Arabia
is usually called a third-world country, even though
the average Saudi private residence is five times the
size of one in Western Europe).

If Russia is a third-world country, then it is one
that exports high-tech weapons, has builds cruise
missiles, sends people regularly into space (the only
country to be doing so at present), and in which half
of the population owns a mobile telephone. And about
half own their own apartments.



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Re: Human Development Index 2004

2004-07-23 Thread Daniel Davies
Also worth noting (although to be honest I'm not anything like informed
enough to be a booster or otherwise of the Cuban economy) that unlike
Jamaica and Dom. Rep., Cuba's economy is not a material exporter of cannabis
or cocaine, although it is perfectly well set up to be.  This has to be
considered something of an undeserved present from the Cuban economy to the
USA.

dd

-Original Message-
From: PEN-L list [mailto:[EMAIL PROTECTED] Behalf Of Louis
Proyect
Sent: 23 July 2004 15:12
To: [EMAIL PROTECTED]
Subject: Re: Human Development Index 2004


Cuba needs to be compared with other nations that have a similar history
and resource endowment, like Jamaica or the Dominican Republic. Cuba
ranks 52, while Jamaica is at 79 and The Dominican Republic ranks 98th.
Imagine if Jamaica and The Dominican Republic were subjected to
unremitting economic warfare and had lost their major economic
benefactor, then you can see how impressive Cuba's gains are. I am quite
sure that if the USSR had wound up with a leadership more in line with
the Cuban CP, world history would have taken an entirely different path.


Human Development Index 2004

2004-07-22 Thread Paul
Thanks to Louis and to Ulhas for pointing out the recently released Human
Development Index 2004 and Doug for his comments.  I want to make a
somewhat different point about indexes themselves - caution about their use.
Social, economic and political indexes have become a popular tool among
think tanks, NGOs and in official governmental organizations - for some of
the most important uses (such as allocating aid funds or assessing
policies) they now often replace the use of the underlying data
itself.  Constructing mathematical indexes to present disparate data in a
consolidated manner parallels the long-standing trend in Economics of
presenting extensive mathematical or econometric models - and it falls into
several similar traps. These newly emerging socio-economic indexes often
use extraordinary arithmetical measures whose methods are not available to
99% percent of those who read the reports.  I find three problems often appear:
   1) Indexes (which inherently combine 'apples and oranges') often do so in
arbitrary and misleading ways that are not accessible to 99% of the users.
While at first glance there are enough similarities to the original data to
make the index seem plausible, the flaws show up as the data gets put to
use in important judgements (such as whether there is relative progress
over time, or the value of particular controversial policies).  Frequently
these flaws show up with a bias.
   For example at
http://hdr.undp.org/reports/global/2004/pdf/hdr04_backmatter_2.pdf you will
see how the Human Development Index (HDI) is constructed.  It merges data
from 3 fields (health, education and GDP), so first it creates an index
(normalizing) of each one.  The health proxy is the least problematic:
life expectancy of 85 years is = 100; 25 years = 0.  But now we are not
measuring years of life but numbers on the index and this can (and does)
affect the final conclusions in unforeseeable ways.  I will come back to
the indexes on Education and GDP.
   The three indexes numbers are then merged into one index number: decided
as 1/3 for each factor.  (I am not making this up!) So one assumes that an
index number of say 10 points in education equals an index number of 10
points in health or GDP and that they can be merged even though these index
numbers themselves are arbitrarily chosen, correspond to nothing in the
real world and can not be logically added together.
   2)  Some index numbers have other indexes or artificial constructs nested
inside them, making them an arbitrary index of arbitrary indexes.
   For example in the HDI (per the website above), the education index
contains an (arbitrary) literacy index and an (arbitrary) enrollment index
mixed in (arbitrary) 2/3rds to 1/3 proportion.
   The most problematic is the GDP per capita element which is not, in
itself, a human development indicator at all.  In fact this index uses the
PPP version of GDP - a vast recalculation of the GDP that has an enormous
amount of arbitrary (and biased!) assumptions that create an as if world
rooted in neo-classical trade theory [too much to elaborate in this
post].  The PPP numbers produce numbers that narrow the gap between most
developing and developed countries AND continue to show that gap narrowing
over time (mostly because PPP assumes a world AS IF 3rd world labor could
freely trade in the developed world market).  PPP also shows the US
significantly richer than Europe (mostly because it assumes a US based
market basket AS IF Europeans strived to live an American style life).  For
no intrinsic reason (these are apples and oranges) the disparities in
income numbers are larger than the numbers produced for health and
education, so it is the natural logarithm of the PPP version of GDP/p.c.
that is used (?!).
   3)  All of these index calculations create proxies of proxies.  However
inaccurate or biased they are (or are not), one is no longer debating the
real problems of real people.  Rather, one debates the meaning or the
construction of indexes.  The focus shifts from mass movements to policy
analysts and negotiators.  There are clear allies (and de facto opponents)
of an effort to end unnecessary child deaths in the 3rd world or to provide
functional literacy for every adult.  But debates among NGOs, academics,
and development officials about raising the human development index is
not process that necessarily leads to mobilization of those allies in a
common movement.
   In short, the indexes can sometimes take one away from a focus on the
practical reality or actual people and lead away from the social processes
that produce change.
   It is not that I am against all indexes for all uses (and the HDI is among
the most benign).  But as analytical and as mobilizing tools they have to
be treated at arms length - above all one has to look 'under the hood'.
Paul


Re: Human Development Index 2004

2004-07-22 Thread Doug Henwood
Paul wrote:
 It is not that I am against all indexes for all uses (and the HDI is among
the most benign).
I should have added that part of the impulse behind the development
of the HDI was to reduce pressure for redistribution - to shift the
focus from economic to social indicators. Of course, there are
virtues to foregrounding social over economic indicators, and lots of
people use the HDI complex for those purposes, but at the higher
levels, the more sinister spin applied.
My source on this is a former long-time UN press officer, and it was
subsequently confirmed by someone very close to Mahbub ul-Haq, the
Pakistani economist who guided the development of the index.
Doug


Re: Human Development Index 2004

2004-07-22 Thread Louis Proyect
Paul wrote:
Thanks to Louis and to Ulhas for pointing out the recently released Human
Development Index 2004 and Doug for his comments.  I want to make a
somewhat different point about indexes themselves - caution about their
use.
Social, economic and political indexes have become a popular tool among
think tanks, NGOs and in official governmental organizations - for some of
the most important uses (such as allocating aid funds or assessing
policies) they now often replace the use of the underlying data
itself.
I completely agree. Although I don't have the training to back this up,
I suspect that these statistics paint too rosy a picture of 3rd world
melioration. No surprise, since the World Bank is a major supplier of
raw statistical data. That being said, it is remarkable that Cuba has
climbed up into the first tier of nations. Could you imagine if the USA
had a hostile neighbor to the North that was nearly 30 times the size in
population and had about 500 times greater GDP and was bent on
destroying our economy? The USA would fall apart within months, I'm
sure. Cuba has not only not fallen apart, it has made steady
improvement--even according to economic thinktanks hostile to its
existence. That's a good argument for socialism.
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Re: Human Development Index 2004

2004-07-22 Thread Paul
Doug writes:
I should have added that part of the impulse behind the development
of the HDI was to reduce pressure for redistribution - to shift the
focus from economic to social indicators. Of course, there are
virtues to foregrounding social over economic indicators, and lots of
people use the HDI complex for those purposes, but at the higher
levels, the more sinister spin applied.
My source on this is a former long-time UN press officer, and it was
subsequently confirmed by someone very close to Mahbub ul-Haq, the
Pakistani economist who guided the development of the index.
Doug
Very relevatory (pays to have good sources?).
In this specific case the sources (and the individual they cite) may not
accurately reflect what drove events (the HDI and the HD Reports began in
1990 when the pressure for global redistribution from the North to the
South was long gone) but no doubt this accurately reflects what your
sources felt and/or Mahbub said to them.  Above all, the comments DO
highlight an important aspect of global economic politics for decades
before 1990 and that history is relevant today.
In the '60s and '70s, the third world elite was pressing for the New
International Economic Order (North/South redistribution) and SOME people
in this camp (maybe including your sources?) saw the movement for the
poor/basic needs (and the later human rights, gender and environmental
movements) as attempts by Northern 'liberals to avoid allowing the third
world governments to construct autonomous states with their own
elites.  Hence the suspicions and possible confirmations.
Conversely, SOME involved in the human needs movements viewed the 3rd world
elite and their economic crowd as unlikely to be willing to redistribute
the wealth (and the rest) within their country, and likely to 'take the
money and run' if given the chance. These splits were very real and central
at the time.
In retrospect, I think it is fair to say that there WAS some of the worst
in each group and that once the neo-liberal era began this group quickly
left their old ideals and objectives behind.  And this is not news to
readers of this list - ironically, today the worst are mostly close allies.
But new opportunities for 3rd world/progressive 1st world links will emerge
(as they are already).  What lessons should be learned?  But what happened
to the best in each group?  What prevented the best from forging
stronger links as neo-liberalism emerged as a threat?  How does one learn
to better distinguish the worst from the best?  Is there any common cause
with any of today's 3rd world economic\political elite (Malaysians?
Brazilians? Koreans? Russians? Vietnamese?)?
I wonder...where is Doug's source today?
Paul


Re: Human Development Index 2004

2004-07-22 Thread Michael Perelman
This is one of the best threads on the list for a long time.  Valuable information.
No acrimony.  Am I dreaming?
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu