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The dangerous illusion cast by development rankings

13 Mar 2025
2 min

Rethinking Development Models Beyond GDP and HDI

The recent catastrophic wildfires in California, causing economic damages of approximately $250 billion, highlight the unsustainable development models pursued by affluent nations like the United States and the European Union. These models lead to excessive resource consumption and environmental degradation.

Critique of the Human Development Index (HDI)

  • The HDI, widely used to measure national progress, focuses on life expectancy, education, and income but neglects environmental impact.
  • Countries like Ireland, Norway, and Switzerland, which top HDI rankings, are also major resource consumers and carbon emitters.
  • The model fails to consider the ecological costs of development, promoting an unsustainable path.

Introduction of the Planetary Pressures-adjusted HDI (PHDI)

  • In 2020, the UN introduced the PHDI to adjust for environmental impacts, but it still ranks countries relative to each other, not against ecological limits.
  • High HDI rankings for Nordic countries illustrate that their consumption levels are unsustainable on a global scale.

Alternative Development Models

  • Costa Rica: Achieves high life expectancy, universal healthcare, and literacy with a sustainable resource footprint.
  • Sri Lanka: Despite an HDI of 0.78, it faces challenges such as inflation, protests, and ethnic tensions.

The Path Forward for India

India, with its large population, must explore alternate paths to development that respect ecological boundaries and promote social justice. Emulating Costa Rica or Sri Lanka's sustainable models could be beneficial.

Conclusion

True progress for India and other developing nations should transcend mere GDP growth or higher HDI scores. It should focus on ensuring dignity and ecological safety for all citizens, which is essential for long-term survival and equity.

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