Syllabus
GS Paper 3 – Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
What does this article provide?
The article “The dangerous illusion cast by development rankings” highlights the disconnect between development indices like HDI and environmental sustainability, urging a shift toward evaluating growth within the planet’s ecological boundaries. For UPSC CSE Mains, students should focus on linking development models with environmental challenges and sustainable growth strategies.
Potential Topics for Prelims
Human Development Index, Planetary Pressures-adjusted HDI, Ecological Footprint, Sustainable Development Goals, Carbon Emissions Rankings.
Potential Topics for Mains
Sustainable Development Models, Environmental Costs of Economic Growth, Criticism of Development Indicators, Resource Depletion and Climate Change, Role of International Cooperation in Sustainability.
Source
The Hindu
The dangerous illusion cast by development rankings
Introduction
Development rankings such as the HDI (Human Development Index) and PHDI (Planetary Pressures-Adjusted Human Development Index) project an illusion of progress, often disregarding the finite limits of Earth’s resources. These metrics emphasize economic, educational, and health parameters, yet fail to integrate the critical dimensions of ecological sustainability. Nations with high HDI rankings are often significant resource consumers and carbon polluters, amplifying environmental degradation. Such rankings, while reflective of human progress, ignore the ecological costs and encourage unsustainable development models. This disconnect between development indicators and environmental realities jeopardizes the planet’s future and demands a paradigm shift toward sustainable and inclusive progress.
Challenges Posed by Development Models
- California’s wildfire damages: Recent wildfires inflicted an economic loss of approximately $250 billion, comparable to Greece’s GDP in 2023, emphasizing the concealed costs of current development approaches.
- Climate disasters: Highlight the growing economic and environmental risks tied to unsustainable trajectories.
- Overconsumption trends: If every nation followed the consumption levels of countries like the United States or the European Union, the planet would require several Earths to meet resource demands.
- Resource exhaustion and ecological harm: Excessive consumption directly results in resource depletion and worsens environmental degradation.
- Ecological burden of high-ranking nations: Nations like Ireland, Norway, and Switzerland, which rank high on indices such as HDI, exhibit some of the highest per capita resource consumption and carbon emissions.
- Their development strategies, if replicated worldwide, could lead to global ecological collapse.
Limitations of Conventional Development Indicators
- Disconnect from sustainability:
- The United Nations’ HDI elevates wealthy nations as benchmarks of progress, disregarding their unsustainable ecological footprints.
- This mismatch between economic measures and ecological realities poses significant risks.
- Inadequate parameters:
- The Human Development Index (HDI) evaluates development based on life expectancy, education, and income, while excluding environmental sustainability.
- This narrow focus creates a distorted portrayal of human advancement.
- Breaching planetary thresholds:
- Advanced nations have surpassed global limits in carbon emissions, resource depletion, and environmental pollution.
- The HDI framework prioritizes affluence while overlooking global ecological consequences.
- Limitations of PHDI:
- The Planetary Pressures-adjusted HDI (PHDI), introduced in 2020, considers environmental impacts but merely compares nations with one another.
- It fails to assess performance against absolute ecological thresholds, limiting its effectiveness.
- Misleading relative rankings:
- Nations like those in the Nordic region, consuming resources equivalent to over five Earths per capita, still achieve high rankings.
- This relative scoring masks unsustainable consumption, fostering an illusion of global progress.
Evaluating Middle-Income Nations: Strengths and Challenges
- Costa Rica’s sustainable development:
- Achieved high life expectancy, universal health care, and near-total literacy with minimal exploitation of resources.
- Around 99% of its electricity is generated from renewable sources like hydropower, wind, and solar energy.
- Reforestation initiatives have expanded forest cover by 60% since the 1980s, demonstrating a successful balance between human progress and environmental conservation.
- Serves as an exemplary model for aligning human development with eco-friendly practices.
- Sri Lanka’s human development trajectory:
- With an HDI of 0.78, Sri Lanka outperforms many countries in South Asia due to its early focus on health care and education systems.
- The economic crisis of 2022 unveiled vulnerabilities in financial stability, leading to hyperinflation, widespread protests, and political unrest.
- Ethnic divisions and majoritarian governance have impeded equitable socio-economic progress, highlighting the need for inclusive policies.
Way forward
- Avoiding unsustainable models:
- The resource-intensive consumption habits of Nordic countries are ecologically unviable on a global scale.
- India, with a population of 1.4 billion, must avoid replicating such high-resource models to ensure sustainability.
- Learning from Costa Rica and Sri Lanka:
- Despite challenges, both countries provide valuable insights into achieving sustainable growth.
- Economic expansion must be balanced with social justice and ecological preservation.
- Revisiting development indicators:
- Indices like HDI and PHDI prioritize economic dimensions while neglecting planetary constraints.
- Real progress should emphasize human welfare within the framework of environmental sustainability.
- Shifting beyond GDP-centric growth:
- India must move beyond GDP metrics and global rankings as measures of success.
- Ensuring a dignified standard of living for all, while respecting ecological limits, is essential not just for progress but for long-term survival.
Conclusion
The future requires reimagining development frameworks to integrate sustainability, equity, and resilience as core pillars. India, with its vast resources, diversity, and growing global influence, has the potential to spearhead a transformative model that ensures economic growth while preserving ecological balance. By prioritizing inclusive progress, reducing environmental degradation, and fostering innovation, India can lay the foundation for a development trajectory that aligns with the planet’s limits. This approach would not only elevate the quality of life for its citizens but also position the country as a global leader in sustainable practices—a blueprint for the world to emulate.
Related PYQ
Despite Consistent experience of high growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive. [UPSC CSE – 2019 Mains]
Practice Question
Critically evaluate how the Human Development Index (HDI) disregards environmental costs, leading to an unsustainable model of development. Propose alternative metrics that integrate human progress with ecological constraints. (15 Marks, 250 Words)
Guidelines to Answer
- Introduction: Briefly explain HDI and its core components (life expectancy, education, income). Mention its shortcomings in addressing environmental costs.
- Body – Part 1:
- Critically analyze how HDI ignores ecological sustainability. Highlight how affluent nations rank high despite their unsustainable consumption patterns and high carbon footprints.
- Explain the flawed promotion of development models focused solely on economic growth.
- Body – Part 2:
- Suggest alternative metrics like the Planetary Pressures-adjusted HDI (PHDI), Gross National Happiness (GNH), and the Ecological Footprint Index.
- Describe how these metrics align development with planetary boundaries and sustainable practices.
- Conclusion: Reiterate the need for development frameworks that ensure human well-being within the planet’s finite ecological limits, while balancing economic, social, and environmental dimensions.