Human Development Index

HID mainly involves 4 parts; “life expectancy at birth”, “mean years of schooling”, “adult literacy ate” and “Gross National Income per capita” But in 2010, HID was started to be calculated using another method. Therefore, in order to make comparison between years, we will combine mean years of schooling and adult literacy rate under subhead of Education index. So 3 main points will be compared. Life expectancy index, Education index, and Income index Now let’s start with HID index Itself.

We will compare Azerbaijan with another CICS country, Astrakhan, to see if the performance of our country was well In comparison of other translator countries. In 1997, Azerbaijan was ranked as 33rd place among 174 countries, whereas Astrakhan occupied the 76th place. In 1997 Azerbaijan HID was 0. 695 and it increased to 0. 729 and 0. 734 in 2003 and 2012 respectively. However, if we look at the trend of Astrakhan, we see that its HID index in 2012 had negative trend.

So by comparing them we see that Azerbaijan improved its HID index better than one of the biggest transition countries Now let’s look at each component of HID individually. Starting with life expectancy index, we see that life expectancy index was not fully increasing. In 1997, life expectancy at birth was 69. 5, and life expectancy Index was 0. 742. This Index decreased to 0. In 2003, and then Increased sharply by 1 percent. The decrease during the years between 1997 and 2003 can be explained by low quality of life, lack of established health service.

But then OLL boom happened In the country also increased the living standards of the country and also healthcare Coming to the education index: It is calculated by school enrolment ratio. Simply, we divide the number of students enrolled in all levels of schooling by the total population in that age limits. So for example, they choose the children aged between 7 and 18. They divide the number of children who are in this age range and enrolled n class, and divide it by total population in this age range.

Here we see that, this index improved from 1997 to 2003, but in 2012 there was an unexpected decrease in education index. But please note that, in 2010 there was a new method of calculating indexes were introduced. Since the way that they calculated the education indexes for 1997 and 2003 is different from 2012, it is quite hard to make any further assumption about this issue. Coming to the last part of HID, which is income index, we see that there has been positive trend for all years in income index. This positive rend is obviously caused by oil boom which increase the GAP, also GNP over the years.

So this increase also make income index show positive trend over the years. Income index is actually the main contributor of HID calculation, therefore increasing income index is the main reason why our HID increased over the years. The GIN index in Azerbaijan was reported at 33. 71 in 2008, according to the World Bank. Gin index measures the extent to which the distribution of income among individuals or households within an economy deviates from a perfectly equal distribution. Gin index of O represents perfect equality, while an index of 100 implies reflect inequality.

This page includes a historical data chart, news and forecasts for GIN index in Azerbaijan. For the three years which is shown on table ,the Gin coefficients of consumption expenditures were in the range of 16;18 percent. These were among the lowest Gin coefficients ever observed in any country. These are extremely low even with the standard of countries generally considered as most equal in the world such as Denmark, where the Gin coefficient was about 25 percent in 2004. Poverty: In terms of poverty reduction, the government has also shown some progress in this field.

In 2000 Azerbaijan government signed Millennium Development Goals, designed by United Nations, and afterward prepared essential decrees and policies in order to achieve poverty reduction which was one of the main goals of MEG Looking at the graph, we see that starting from 2000, in which MEG was signed, significant reduction in poverty level has been achieved. For this chart the poverty line has been calculated as 24 CAN per person per months. We see that in 2000 around 60% of the population was earning 24 CAN or less per month, but this number decreased to 45 % in 2002, and father decreased to around 12 % in 2009.