Your September DevelopNet News

DevelopNet News (mailto:dnn@VITA.ORG)
Sat, 31 Aug 1996 19:29:17 EDT

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Date:         Sat, 31 Aug 1996 19:29:17 EDT
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       September 1996                             Volume 6, No. 9

IN THIS ISSUE

YOUR POLICY TOOLKIT

A Way to Measure Development

LITERATURE REVIEWS

Measuring Slum Improvement

Eliminating "River Blindness"

Investing in The Environment

ORGANIZATION

Newly Independent States

VITA PROJECTS

VITA Manages E-Conferences

ANNOUNCEMENTS

Health Care

Cities At Risk of Disaster

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DevelopNet News is published monthly by Volunteers in Technical Assistance (VITA) in Arlington, Virginia, USA. For additional information, please see the end of this newsletter.

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Y o u r P o l i c y T o o l k i t

A WAY TO MEASURE DEVELOPMENT

People say that one country is "developing;" another is "developed." Or that development in a country or region should be faster or slower. Or that the transfer of technology speeds development. How do we measure development so that we can evaluate such statements or use them in policy making?

The process of development is often equated with an improved standard of living and has been measured in many ways. Measures have included life expectancy at birth, adult literacy rate, unemployment rate, annual rate of inflation, and even the number of TV sets per 100 people. Gross Domestic Product is the amount of income a country generates within its borders that can be used by its residents. And GDP per capita may be the most widely used index of development; it primarily describes economic development. GDP per capita does not directly measure the standard of living, but for centuries it has been believed that economic growth is the path to improved human development and delivering more goods and services is the best way to improve people's standard of living.

Looking at other measures of development is not meant to downgrade the importance of economic growth. There is no doubt that in low-income countries economic growth is not merely an option; it is imperative. But when the economy grows (as indicated, usually, by a rise in the GDP per capita) who benefits and who pays? The UN Development Programme, whose new report we review here, proposes that development programs be people oriented. As one result of a six-year staff study, it has proposed a Human Development Index, which comes closer to meeting the requirements of policy making than any other measure now in general use. The HDI is nothing more than the average of three numbers which, in turn, are readily computed using ordinary arithmetic. (Please see the report for details.) The numbers are: a life expectancy index, an educational attainment index that includes adult literacy and total educational enrollment, and an adjusted GDP per capita. Thus, the HDI includes economic growth; indeed, the report reminds us: "More economic growth, not less, will generally be needed as the world enters the 21st cen- tury." But the HDI also takes into account the development and use of human capital, as expressed by life expectancy and educational attainment.

In particular, the benefits of development programs should be equitably distributed (not increasing the gap between rich and poor) and environ- mentally and socially sustainable. "Human development and economic growth should move together, strongly linked." UNDP's commissioner, James Gustave Speth, emphasizes that links between economic growth and human development are not automatic; they must be forged through policy making and determination.

Calculating the HDI

The three indexes are calculated in part by comparing raw data for a particular country with the extreme values as seen throughout the world. Thus, the extreme values used for life expectancy are 25 years and 85 years, for adult literacy 0% and 100%, for combined enrollment ratio 0% and 100%, and for real GDP per capita $100 and $40,000; the index based on real GDP per capita requires a further adjustment explained in the report.

To illustrate the construction of the HDI, consider Gabon, a developing country, and Greece, an industrial country. For Gabon, the life expec- tancy is 53.7 years, adult literacy 60.3%, combined (primary, secondary, and tertiary-level) enrollment ratio 47%, and real GDP per capita $3,861. For Greece, the four figures are 77.7 years, 93.8%, 78%, and $8,950. The next step is to compute the three required indexes by the methods given in the report; for Gabon, the life expectancy index is 0.478, educational attainment index is 0.558, and adjusted GDP index is 0.663. The HDI, the average of the three figures for Gabon, is 0.557. A similar calculation for Greece gives an HDI of 0.909.

The main advantages of the HDI are its inclusion of information beyond payments for goods and services, the simplicity of its theoretical basis, and its ease of computation from data that are available for many countries. It falls short of perfection because it does not directly measure many critical aspects of human development; for example, devel- opment of the family and of social life, and the way individuals take pride in their work and are flexible. Like other measures, it is no more accurate and reliable than the basic data from which it is derived.

How do countries compare on the HDI scale? The five top HDIs are for Canada, the United States, Japan, Netherlands, and Norway. Starting at the bottom, the lowest five are Niger, Sierra Leone, Somalia, Mali, and Burkina Faso. We note that by GDP alone, Sierra Leone would be listed 20 positions higher in the global list of nations. Thus, policy analysts relying on GDP alone would overlook Sierra Leone's life expectancy of only 39.2 years and other revealing numbers.

Beyond the Numbers

Looking at long-term development, UNDP finds that "the developing coun- tries have in 30 years achieved progress in human development that took industrial countries more than 100 years. Living standards for hundreds of millions have risen. Basic education and literacy have spread signif- icantly, along with mass communication. Mortality rates for infants, children and women have fallen. Access to safe water and sanitation has greatly increased. And the gender gap in basic human capabilities has narrowed considerably, even though significant gaps in opportunities remain."

As for economic growth, the global growth in income has been spread very unequally among rich and poor -- and the inequality is increasing. "The imbalances in economic growth, if allowed to continue, will produce a world gargantuan in its excesses and grotesque in its human and economic inequalities." More attention must go to the structure and quality of that growth, say the authors, to ensure that it is directed to suppor- ting human development.

The report "is principally addressed to what countries can do for them- selves." The well written text is supplemented with clear tables and interesting supplements in boxes and sidebars. The tables include an enormous amount of development information for all countries, compiled from recent sources. An excellent glossary of technical terms is provi- ded. Persons interested in international development should own or have ready access to the report.

Source: UN Development Programme, 1996. Human Development Report 1996. New York: Oxford University Press.

L i t e r a t u r e R e v i e w s

MEASURING SLUM IMPROVEMENT

Peter Abelson, 1996. "Evaluation of Slum Improvements; Case Study in Visakhapatnam, India." Cities, volume 13, no. 2, pages 97 - 108.

Donor institutions have invested in many slum improvement efforts. Peter Abelson (Macquarie University, Sydney, Australia) says that evaluations of these projects tend to "resemble laundry lists in which objectives are ticked off as they are (more or less) achieved." In fact, economic rates of return are rarely estimated for poverty-based projects. Why is this true? The benefits are hard to quantify; in addition, they are hard to measure using the "willingness to pay" approach favored by many econ- omists. But some way to measure benefits is demanded, if only to help donors decide the levels of subsidy for poor communities.

Abelson studied Visakhapatnam, a port city on the east coast of India. It is a major naval base and manufacturing center where the 200 offi- cially designated slum areas have an average annual household income of Rs. 13,000 ($414 equivalent) and include 200,000 of the city's one mil- lion inhabitants. In 1988 the Municipal Corporation started a major slum improvement program with support from the U.K. Overseas Development Administration. The program covered civil infrastructure, health, and socioeconomic projects -- mainly education. Subsidized housing loans were also provided. ODA funded costs totalling Rs. 300 million for the first four years.

A variety of economic surveys generally showed improved living and work- ing conditions and education. But health conditions did not improve. Abelson criticizes conventional methods of evaluation (often used by ODA and the World Bank) which measure increased land values or rents without looking at access to health care or water. Land valuation is often imprecise or unreliable. And when asked what they would be willing to pay for particular benefits (for example, public toilets) slum dwellers' replies often lacked validity or reliability. For the four-year period, the better available estimates showed costs and benefits to be about equal. The cost of annual maintenance of the program is estimated at Rs. 10 million.

ELIMINATING "RIVER BLINDNESS"

Pierre Ngoumou, Rene Owona Essomba, and Christine Godin, 1996. "Ivermectin-Based Onchocerciasis Control in Cameroon." World Health Forum, volume 17, No. 1, pages 25-28.

"River blindness," onchocerciasis, has been described as a major obsta- cle to socioeconomic development as well as a cause of great disability and suffering that threatens 120 million people in Sub-Saharan Africa. The Onchocerciasis Control Project in West Africa is a major, interna- tional public health program now in its 21st year.

The safe and effective drug ivermectin has been made available at no cost to affected countries by Merck and Co., Inc. Members of populations at risk need just one annual dose for prevention. But there are unsolved problems of distributing it. The Cameroon government decided in 1991 to integrate its distribution into the primary health system, which was to be updated to make the drug accessible to the entire population. But functional health districts are absent where needed and there is no national mechanism for distributing any drug. So, according to Ngoumou and colleagues (Ministry of Public Health, Yaounde), "only a limited number of people could be expected to have access . . . if distribution . . . were integrated into the primary health system in its present state."

How much would distribution cost? With a lack of trained professionals, should volunteers distribute the drug? How can a program of public edu- cation on onchocerciasis and its control be designed and launched? Cameroon's Health Ministry currently relies on donor support for dis- tribution costs, which are coordinated by a group of international development organizations. Capital equipment and training are still in the planning stages. The onchocerciasis effort vividly illustrates that material resources, although necessary, are not always sufficient to solve an urgent development problem.

INVESTING IN THE ENVIRONMENT

World Bank; Global Environment Coordination Division, 1996. Facing the Global Environmental Challenge: A Progress Report on World Bank Global Environmental Operations, September 1995 - January 1996. Washington: The World Bank.

The Global Environmental Facility is an investment portfolio implemented by the World Bank, the UN Development Programme, and the UN Environment Programme. It provides financial assistance to developing countries to protect the global environment, under the headings of climate change, biodiversity loss, international waters pollution, and ozone layer depletion.

One investment example is related to an international agreement (Montreal, Canada, 1987) to eliminate the production and consumption of ozone-depleting chemicals by 1996, with a ten-year grace period for developing countries. In 1990 the 100 countries participating in the agreement set up a fund to help developing countries meet the costs of phasing out ozone-depleting substances. Its objectives are expected to be achieved this year in Eastern Europe, excluding Russia; the produc- tion sector in Russia will need a lot of extra financial help in closing out the use and production of chlorofluorocarbons in spite of the high cost-effectiveness of its procedures.

The report contains tables describing all the projects in the portfolio.

O r g a n i z a t i o n

NEWLY INDEPENDENT STATES

The Center for Citizen Initiatives is a San Francisco-based nonprofit organization dedicated to helping Russian citizens take an active role in aiding their country's transition to a market economy. CCI works through regional offices and citizen networks and regional offices in Dubna, Ekaterinburg, Rostov-on-Don, St. Petersburg, Volgograd, and Voronezh. Among CCI's programs is an agricultural initiative, which aims to assist citizens of Russia and other Newly Independent States, especi- ally the needy, to produce more of their own food on a small-scale basis; provide comprehensive support to privatized farmers through extension services; and promote the development of sustainable and organic agriculture in Russia. Other program initiatives include a pro- ductivity enhancement program that provides intensive U.S.-based manage- ment training for Russian and Ukrainian producers; an economic develop- ment program aimed at encouraging small-scale entrepreneurship for job creation; a nonprofit management training program; and a program that supports grassroots environmental movements in the NIS.

Information: Center for Citizen Initiatives, 3268 Sacramento Street, San Francisco, CA 94115; tel. +1 (415) 346-1875; fax +1 (415) 346-3731; e- mail <mailto:cciusa@igc.apc.org>; URL <http://www.igc.apc.org/cci/>.

V I T A P r o j e c t s

VITA MANAGES E-CONFERENCES

Starting 9 September and continuing for 30 days, the World Bank and the Carnegie Corporation (New York) with VITA's assistance will be sponsor- ing an electronic conference on "Philanthropic Foundations." Its purpose is to analyze the means to strengthen relationships in science and tech- nology and to improve the effectiveness of donors in building scientific and technological capacity in development.

Ron Epstein, VITA's Director of Marketing, says, "The conference is an activity of the World Bank's Technology Network -- TechNet -- an initia- tive designed to encourage understanding and promote the use of science, technology and information in development. VITA's participation in its management was a given. After all, for 37 years VITA has strived to find innovative ways to disseminate information and transfer technology to the developing world."

This is the third of nine conferences managed by VITA and cosponsored by the Bank, all of which are dedicated to facilitating general and topical discussions related to technology and technology transfer. The first two conferences, held from May to July 1996, focused on the subjects of Learning Nations and Community Communication Centers and attracted about 1,000 participants from around the world.

"Subjects for the conferences are selected by Bank staff and further defined by a TechNet Conference committee" Epstein says. "A moderator is then selected by the Bank and some twenty to thirty expert panelists are drawn from the Bank, governments, academia, nongovernmental organiza- tions, and other institutions. The panelists are asked to discuss ques- tions posed by the moderator. The general public is invited to subscribe and receive the comments of the panelists and submit reactions or ques- tions. Each conference lasts four to six weeks."

As manager, VITA handles the requests of the general public to partici- pate, refers inquiries to the appropriate responders, and ensures the day-to-day exchange of communications. VITA also archives the contribu- ted comments, bibliographic material, and listing of experts and institutions.

"The conferences are accessible through both the World Bank and VITA Web pages. In addition, participants may join the conference by subscribing through e-mail" continues Epstein."The next conference, scheduled to begin in late September, will focus on Long-Distance Learning."

Information: Richard Muffley <mailto:rmuffley@vita.org> or Ron Epstein mailto:<repstein@vita.org>.

A n n o u n c e m e n t s

HEALTH CARE

The Sixth International Conference on System Sciences in Health Care will be held in Barcelona, Spain from 16 to 20 September 1996. The over- all theme of the Conference is the international comparison of health care systems at different stages of development. It will review the results of reforms to date, to apply the lessons learned to health systems still debating the broad direction in which they should move, and to provide a forum for methodological debate and the comparison of international health systems.

Major topics will include reforms in coverage and financing of health systems, challenges faced by Central and Eastern European countries, reforms related to health care delivery and management, the role of international agencies and consultancy in developed and developing health systems, and the role and scope of state intervention in an increasingly global pharmaceutical market.

Information: Tecnic Viatges, S.A., Congres SSHC'96, c/o Numancia, 98 Placa les Corts, 08029 Barcelona, Spain; tel. and fax +34 (3) 419 27 85.

CITIES AT RISK OF DISASTER

The International Decade for Natural Disaster Reduction, a UN program, is hosting an Internet conference focused on solutions for cities at risk of disaster. Are the cities of today and tomorrow waiting for disasters to happen? The conference began 26 August 1996 and will con- tinue through 25 October. It features a different topic each week, with the goal of exchanging practical solutions that city authorities and concerned citizens can adapt to their own local needs. The conference aims to: encourage urban authorities and community leaders to protect cities from disasters; gather "success stories" of urban disaster miti- gation that can be adapted in various cities around the world; identify policies and "lessons learned" that may be adapted to local circumstan- ces; and facilitate networking, partnerships and exchanges among organ- izations interested in making cities safer from disasters.

To register as a participant, send e-mail to mailto:listserv@thecity.sfsu.edu; your message should say: subscribe risk your_first_name your_last_name.

Information: International Decade for Natural Disaster Reduction, UN Department of Humanitarian Affairs, Palais des Nations, 1211 Geneva 10, Switzerland; tel. +41 (22) 798 6894; fax +41 (22) 733 8695; e-mail mailto:<idndr@dha.unicc.org>; URL <http://hoshi.cic.sfu.ca/idndr>.

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HOW TO JOIN VITA'S ELECTRONIC FORUM

VITA's free, public, online discussion forum, DEVEL-L, provides for the exchange of ideas and information on a wide range of issues and topics related to technology transfer in international development; for exam- ple, technologies, communications in development, sustainable agricul- ture, women in development, the environment, small enterprise develop- ment, meetings, and book reviews. Subscribers to DEVEL-L automatically receive this newsletter. To join the forum, send this message:

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Please do not send these messages to VITA or to DEVEL-L.

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DevelopNet News is an electronic newsletter published monthly by Volun- teers in Technical Assistance (VITA), a private, nonprofit, interna- tional development organization located in Arlington, Virginia. The newsletter needs your stories: you are invited to send them to the edi- tor in electronic form. Your redistribution of DevelopNet News is encouraged. Kindly send us a message on the approximate size of your mailing list; it will be helpful in our planning. Back issues can be downloaded gratis from VITA's BBS and gopher addresses.

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VITA specializes in information dissemination and communications tech- nology. It offers services related to sustainable agriculture, food processing, renewable energy applications, water sanitation and supply, small enterprise development, and information management. It has pro- jects in 6 African countries.

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