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1.INTRODUCTION The UnitedNationDevelopment Program (UNDP) brought peopleto the centre of development by emphasizing human development as “a process of enlarging peo choices! People are both agents and beneficiaries of change! This n dethroned "NP ma#imization and reliance on per capita income as the only yards measuring development! Thus "NP ma#imization becomes a necessary but not suffi element for human development! %uman Development &nde# (%D&) ' %D& as introduced in UNDP to measur development for *+ developed and developing countries! &t focuses on , critic to human development- longevity, knowledge and a decent standard of living ! This inde# is no idely used in the analysis of socioeconomic development! .lthough the u composite inde#es has been criticized %D& does simplify a comple# re important policy insights! "ender /related Development inde# ("D&) ' 0omen represent half or more of the of any given country! %o do they fare in human development1 &n 223 UNDP intr second measure of human development that ta$es into account differences in ach bet een men and omen!"D& comprises the same , %D& variables ad4uste differences! &n no country5 industrial or developing5 do omen en4oy the same as men! .ccording to 0orld 6an$5 investing in oman is the most beneficial investment country can underta$e! "ender e7uality is recognized as a highly desirable dev goal! &n the developing orld5 oman lags behind men in every aspect of economi 0omen’s lo er shares in education5 labour force and income define th inflecting high opportunity costs on their economies in terms of for development! The report constructed a gender' related development inde# for ,8 countries spurred efforts to construct a similar inde# for &ndian states9Prabhu et al5 2 22=>these attempts5 ho ever5 must be considered preliminary in vie problems associated ith (a)the "D& as a measure of gender disparities and (b) &ne7uality bet een man and oman can be of various $inds! .s far as economic as considered5 biases in life e#pectancy5 education5 4urisdiction and professiona the suspect that might deserve closer investigation! %o ever5 in every general necessary to clarify that ine7uality in itself does not necessarily need to be considered as negative! Nonetheless5 it may not be forgotten that gender ine7u ell be considered bad and re7uired political counteraction5 regardless of the lin$ ith economic gro th! Page 1

INCOME EFFECT ON HDI AND GDI

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Over the last decade the functional relationship between income and gender development has become one of the most debated issues in policy making areas and in the social sciences. International agencies such as the International Labour Organization (ILO), the United Nations (UN) and the World Bank are attempting to better understand the growth impact on alternative gender development strategies. A crucial concern of this effort is to gain proper knowledge about economic growth impact on gender inequalities.1) In this paper we focus on the link between a country’s degree of gender disparity in different dimension and its income level. Gender development gap may have adverse impacts on a number of valuable development goals.2) This paper envisages analyzing the validity of existing literatures on gender equality and the objective is to establish a casual relationship between the income component of the index to the gender related development and how far income level of the country can influence the existing gender gap of the country.

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1. INTRODUCTION The United Nation Development Program (UNDP) brought people to the centre of development by emphasizing human development as a process of enlarging peoples choices. People are both agents and beneficiaries of change. This notion has totally dethroned GNP maximization and reliance on per capita income as the only yardstick for measuring development. Thus GNP maximization becomes a necessary but not sufficient element for human development.Human Development Index (HDI) - HDI was introduced in UNDP to measure human development for 174 developed and developing countries. It focuses on 3 critical dimensions to human development: longevity, knowledge and a decent standard of living. This index is now widely used in the analysis of socioeconomic development. Although the use of composite indexes has been criticized HDI does simplify a complex reality and offers important policy insights.

Gender related Development index (GDI) - Women represent half or more of the population of any given country. How do they fare in human development? In 1995 UNDP introduced a second measure of human development that takes into account differences in achievements between men and women.GDI comprises the same 3 HDI variables adjusted for gender differences. In no country, industrial or developing, do women enjoy the same opportunities as men.

According to World Bank, investing in woman is the most beneficial investment a developing country can undertake. Gender equality is recognized as a highly desirable developmental goal. In the developing world, woman lags behind men in every aspect of economic life. Womens lower shares in education, labour force and income define their low status, inflecting high opportunity costs on their economies in terms of forgone growth and development.

The report constructed a gender- related development index for 130 countries which has spurred efforts to construct a similar index for Indian states[Prabhu et al,1995;Shiva Kumar 1996]these attempts, however, must be considered preliminary in view of the several problems associated with (a)the GDI as a measure of gender disparities and (b)its calculation.

Inequality between man and woman can be of various kinds. As far as economic aspects are considered, biases in life expectancy, education, jurisdiction and professional life are among the suspect that might deserve closer investigation. However, in every general, it seems necessary to clarify that inequality in itself does not necessarily need to be something to be considered as negative. Nonetheless, it may not be forgotten that gender inequality itself can well be considered bad and required political counteraction, regardless of the existence of a link with economic growth. 1.1. Background of studyThe UNDPs Human Development Report for 1995 focused on gender disparities in development. Education is an important component of opportunities and empowerment. A number of empirical studies find that increases in womens education boost their wages and that returns to education for women are frequently larger than the returns to education for men. Empirical evidence also shows that increases in female education improve human development outcomes such as child survival, health and schooling; the impacts on these outcomes are larger for a given increase in womens education than for an equal increase in mens education (World Bank 2001, Schultz 2002, Strauss and Thomas 1995, King and Hill, 1993).

Over the last several decades, gender issues have attained increased prominence in the debates over development policy. There is a growing body of evidence and experience linking gender awareness in policy and projects to equitable, efficient and sustainable outcomes in development. However, these links are still not widely understood nor have these lessons been fully integrated by donors or national policy makers.

Day by day each and every nation is growing. Some of them are growing very fast and some are not. With this growing factor the inequality between man and woman is also changing. This change can be indicated by an indicator, known as Gender Development Index (GDI).

The Gender Development Index (GDI) is a composite indicator that measures the development of states according to the standard of living in a country. Although standard of living mainly reflected by high level of per capita income, but whether the link works strongly or not is a question of debate. 1.2. ObjectivesOver the last decade the functional relationship between income and gender development has become one of the most debated issues in policy making areas and in the social sciences. International agencies such as the International Labour Organization (ILO), the United Nations (UN) and the World Bank are attempting to better understand the growth impact on alternative gender development strategies. A crucial concern of this effort is to gain proper knowledge about economic growth impact on gender inequalities.

1) In this paper we focus on the link between a countrys degree of gender disparity in different dimension and its income level. Gender development gap may have adverse impacts on a number of valuable development goals.

2) This paper envisages analyzing the validity of existing literatures on gender equality and the objective is to establish a casual relationship between the income component of the index to the gender related development and how far income level of the country can influence the existing gender gap of the country.

2. SURVEY OF LITERATURE1) It is a fair generalization to say that the relative status of women is poor in the developing world, compared to developed countries. We treat gender inequality as an endogenous variable and show that it can be explained to a considerable extent by religious preference, regional factors, and civil freedom. For some of these variables, the direction of the effect depends on the particular measure of inequality (POLICY RESEARCH REPORT ON GENDER AND DEVELOPMENT, David Dollar, Roberta Gatti, 1999).2) The opportunity cost of women's time as well as the bargaining power of women to be important determinants of the fertility rate. Greater female education, and particularly lower gender inequality in education, is thus likely to lead to reduced fertility. (POLICY RESEARCH REPORT ON GENDER AND DEVELOPMENT, Stephan Klasen, 1999)

3) From the regressions applied in this paper, the hypothesis that a high per capita income is associated with less gender inequality can be supported Similar to Dollar & Gatti, it was found that inequality in education is strongly and negatively associated with high GNP per capita. However, the factor of inequality in education did not turn out to be the most influential one when predicting per-capita income levels (The Influence of Gender Inequality on Economic Growth, David Gumbel, 2004).4) The effect on growth of increased gender equality of opportunity has received far more attention than either equality of voice or equality under the law. Equality of opportunity in education has received particular attention, for two simple reasons. First, educationand, more broadly human capitalis easily incorporated into two frequently-used econometric models of economic growth: the augmented Solow model and endogenous growth models.28 Second, educational inequalities are both easily measurable and these measures are widely available (Gender Equality, Poverty and Economic Growth, BY: Andrew Morrison, Dhushyanth Raju, Nistha Sinha, The World Bank Gender and Development Group Poverty Reduction and Economic Management Network September 2007)5) Closing the gap between male and female employment rates would boost GDP significantly. Were Italian female employment to rise to the level of male employment, then the level of GDP (assuming everything else equal) would be boosted by 21%. For Spain, GDP would be 19% higher, Japan 16%, the Eurozone 13%, Germany 9%, France 9%, the US 9%, the UK 8%, Denmark 5% and Sweden 3% (Gender Inequality, Growth and Global ageing, Kevin Daly, 2007).6) In recent years gender has become a significant part of the mainstream discourse on economic growth and development. Gender perspective has been adopted by the international organisations such as, World Bank, WTO and IMF in the formulation of Millennium Development Goals, trade policies and macroeconomic structural Programmes (GENDER INEQUALITY, ECONOMIC DEVELOPMENT, AND GLOBALIZATION: A STATE LEVEL ANALYSIS OF INDIA, Rashmi Umesh Arora, 2012) 3. SECTIONTo measure Gender Development Index we need to understand the computation of HDI. We have to collect the basic knowledge about the relationship between HDI and GDI. Gender related HDI is known as GDI. In other words the GDI is the HDI discounted for gender inequality. Gender-related Development Index (GDI), is not only measure the achievement in the same basic capabilities as the HDI does, but takes note of inequality in achievement between men and women. In early days HDI was the main ingredient to measure the income proportion of the economy but it was not clear concept of gender biasness with respect to their income. To measure gender wise contribution of the economy economist introduced a new component called GDI. 3.1. METHODOLOGYIn Gender related development Index we have to calculate three major component i.e. life expectancy, educational attainment, and income. These three component are separately calculated and then combined in an equal-sensitive way.The value of is the size of the penalty for gender inequality. The larger the value, the more heavily a society is penalized for having inequalities. If = 0, gender inequality is not penalized (in this case the GDI would have the same value as the HDI). As increases towards infinity, more and more weight is given to the lesser achieving group. The value 2 is used in calculating the GDI. This value places a moderate penalty on gender inequality in achievement. When = 0, the above formula becomes the arithmetic mean weighted by female and male populations shares, and the resulting index should be equal to the component index for the whole population as used in HDI. When, as in the calculations for the GDI, = 2, the above formula becomes the harmonic mean weighted by the population shares (UNDP 1995: 73)1. Any difference between the female index and the male index regardless of its direction is penalized in the ED Index. This is to say that for all three components the Equally Distributed formula can only impose a penalty, not award a bonus.

We assume , as the parameter of inequality aversion, which is equal to 2. Let N be the total population. NM is the total number of male and NF is the total number of female in the whole population.Equally distributed Life Expectancy index:

[{(NM/N)LEIM}^(1-)+{(NF/N)LEIF}^(1-)]^1/(1-)=A (say)

LEIM = Life Expectancy Index of male

LEIF= Life Expectancy of female

Equally distributed Educational Attainment Index:

[{(NM/N)EAIM}^(1-)+{(NF/N)EAIF}^(1-)]^1/(1-)=B (say)

EAIM=Educational Attainment Index of male

EAIF= Educational Attainment Index of female

Equally distributed proportional income

[{(NM/N)PYM}^(1-)+{(NF/N)PYF}^(1-)]^1/(1-)=K (say)

PYM=Proportional Income of male

PYF= Proportional Income of female

Adjusted real GDP per capita (discounted for gender inequality):

K x Average Real GDP per capita= $KEquality distributed Income Index:

($K-$100)/($5448-$100)=C

$100 is the minimum value and $5448 is the maximum value of adjusted real GDP.

Gender-Related Development Index (GDI):

(A+B+C)/3

GDI is the average of Equally Distributed Life Expectancy Index, Equally Distributed Educational Attainment Index and Equally Distributed Income Index. 3.2. DATA ANALYSISMajor finding

Transition of position in terms of HUMAN and GENDER RELATED INDEX

Diagram 1: Position of countries with respect to their Income Index and HDI in the year 1980

Source: UNDP Report 2014

i) In the beginning of 20th century, India was standing in relatively lower position in comparison with China & Kenya, Kenya has a higher value of income index and HDI than other two. From 1980 to 1990 we get a better picture of India where both income index and HDI values increases but still India is lagging behind the other two, but distances have narrowed down.Diagram 2: Position of countries with respect to their Income Index and HDI in the year 1990

Source: UNDP Report 2014

ii) Interestingly, another feature can be found by analyzing the above diagrams that initially countries all over the world are scattered in a more arbitrary way. But after one decade the scatterness among the countries has been reduced to a larger extent that signifies that countries are started to converge in terms of HDI.

iii) In the year 2000, it can be seen from the diagram below that India has progressed in account of HDI and surpassed Kenya. Kenya is almost in a static position and its value of income index is almost stagnant since 1980s while China registered a significant improvement in HDI.Diagram 3: Position of countries with respect to their Income Index and HDI in the year 2000

Source: UNDP Report 2014

iv) In 2010, India and China both improved in HDI as well as in terms of income index but China moves faster in the race of human development than India which translated into higher gap between India and China position. 0ne point should be noted that Kenya has shown a marginal increment in the value of HDI, but income index remains more or less same. That means Kenya is lagging behind than other two due to less improvement in income sphere.Diagram 4: Position of countries with respect to their Income Index and HDI in the year 2010

Source: UNDP Report 2014

Diagram 5: Position of countries with respect to their Income Index and HDI in the year 2013

Source: UNDP Report 2014

v) From the early years, it can be viewed that countries are coming closer to each other i.e. the arbitrariness of the scatter plot has been reduced significantly. Positive concern for human development all over the world is depicting in this above diagrams. Almost every country has shown positive change in terms of human development. vi) Another natural causal relationship is evident from the diagrams that increase in per capita income of a country i.e. rise in income index and increase in HDI value of that country has a clear positive relation.

vii) In the recent year, India has improved its position but Chinas progress towards human development is praiseworthy whereas Kenya is far lagged behind than other two due to almost stagnant income index. In spite of the fact that in the beginning Kenya was the 1st rank holder among these three countries. After discussing about human development, a decent picture of improvement can be found. Now, lets shift the focus towards gender development. Does income play such significant role in GDI as in HDI? Does human development necessarily translated into gender development? The answer is not that satisfactory

Diagram 6: Position of countries with respect to their income Index and GDI in the year 2013

Source: UNDP Report 2014

viii) In the above diagram, it is evident that countries all over the world have extreme difference in terms of gender development. Arbitrariness in scatter plot is quite high than that of initial state of HDI calculation. Here, Kenya having much lesser value of income index has done well in GDI compared to India. China is in win-win state both in terms of HDI & GDI. Some countries with high value of income index have higher value of GDI. Although it cannot be generalized that income index and GDI share a direct relationship as in the case of HDI. So now I want to investigate whether there lies any positive relation between a countrys level of national income and its value of GDI. The diagram below depicts relationship between GNI per capita in PPP (Constant 2011 International $) .i.e. Aggregate income of an economy generated by its production and its ownership of factors of production, less the incomes paid for the use of factors of production owned by the rest of the world, converted to international dollars using PPP rates, divided by midyear population.

Diagram 7: Position of countries with respect to their GNI per capita and GDI in the year 2013

Source: UNDP Report 2014

ix) Above figure shows no such direct relation between level of NI and GDI value as in the case of HDI that conclude the very fact that higher per capita do not reflect in GDI value . There must be some added efforts instead of growth that would implicate better gender development. Moreover, India has to go a long way to achieve high GDI value; in spite of having a decent growth rate its performance towards gender development is not satisfactory at all.

Diagram8: Position of countries with respect to their GNI per capita and HDI in the year 2013

Source: UNDP Report 2014

Here, relation between level of national income and HDI value have been plotted for the purpose of comparison. Figure shows vivid difference in relation. In case of HDI countries are close or to each other showing a clear positive relation.

From the above discussion it is clear that high level of GNI trigger better performance In HDI, but high value income index do not necessarily translate into better performance in GDI because bad performance in other two indices other than income index may discount the good effect of income index alone, as a result no direct relation between GDI and income level is found. In this sphere we need policy prescription for supplementing income growth that would be more viable in future towards the progress of development in our country. Although many steps are taken in this context, but recent data reveals that much has to be done in future.After analysing the global scenario the paper focus on Gender Inequality and the level of development of the countries. I have chosen China as a representative of developed countries and Kenya as a representative of under developed counterpart of the world. Now India has been taken to compare with these two countries to access the position of India with others. Being a developing country India has surpassed the takeoff stage of growth. Now this growth how influenced the level of Human Development as well as Gender Development that need to be addressed.

Table 1: Human Development Index (HDI) Trends, 1980-2013

YEARCHINAINDIA

KENYA

19800.4230.3690.446

19900.5020.4310.471

20000.5910.4830.455

20050.6450.5270.479

20080.6820.5540.508

20100.7010.5700.522

20110.7100.5810.527

20120.7150.5830.531

20130.7190.5860.535

SOURCE: UNDP Report 2014

According to UNDP report 2014 on the basis of these HDI trends all countries are ranked. China is ranked 91, India is ranked 135 and Kenya is ranked 147.

From the development studies we know there are some ranges of HDI which helps us to make some groups among the countries of the world with respect to their estimated HDI. The countries whose estimated HDI is greater than 0.8 (HDI>0.799) belongs to very high HDI group. The countries whose HDI is in between 0.699 to 0.799 (0.799-0.699) belongs to high HDI group and countries whose HDI is in between 0.699 to 0.549 (0.699-0.549) belongs to medium HDI group and lastly HDI value less than 0.549 are belongs to low GDI group. From the above table we can observe till 2000 China was belong to medium HDI group but after that it took off its situation and came into the high HDI group. Now in case of India till 2000 it was belong to lowest HDI group but there after it developed itself and became medium HDI group. Lastly about Kenya till 2005 it was in lowest HDI group but after the year it took off its HDI position. Diagram 9: Human Development Index (HDI) TrendsAfter analysing the growth rate of these three countries, now the trend of HDI can be analysed. Three countries have done much better since 1980 to the current period. India was the lowest among these three during 1980 but achieved 2nd rank in 2013. It means India has developed much faster than Kenya. Kenyas HDI value almost stagnated at around 0.5. china is obviously done a great job in the course of human development. It has been shown in the figure that China has followed upward rising trend in HDI value and ranked 1st among these three with a high value of HDI around 0.7 in the year 2013.Table 2: GDP growth rate, 1991-2013YEARCHINAINDIAKENYA

19913.841.061.44

19929.185.48-0.80

199314.244.750.35

199413.966.662.63

199513.087.574.41

199610.927.554.15

199710.014.050.47

19989.306.183.29

19997.838.852.31

20007.623.840.60

20018.304.821.00

20029.084.301.10

200310.038.301.50

200410.097.925.10

200511.318.405.80

200611.609.706.40

200713.009.007.00

20089.606.201.60

20099.206.802.60

201010.4010.105.80

20119.206.804.40

20127.703.204.60

20137.703.205.10

SOURCE: Compile from multiple sources

CIA- The world fact bookEuropean commission statisticsTable 3: Average rate of growth (1991-2003)

CHINAINDIA KENYA

average growth rate9.8778260876.2926093.080435

Interestingly if we want to compare these countries in terms of their average rate of growth between 1991-2013.The relative ranking positions of these countries is exactly identical with their ranking position in terms of HDI. The result also provides an important insight that income growth contributes much to hold relatively better position in HDI ranking among the countries of the world.Diagram10: GDP growth rate, 1991-2013

From the above graph diagram we see that India and Kenya share almost the same growth rate in the year 1991 where as China is better off with around 4% of GDP growth rate. After that Kenya and India has an almost similar trend of growth rates till 2010. Although India is doing better that Kenya, While China has experienced high growth rate of 14% in the year 1993 followed by decrease in growth rate till 2000. After that China recovers herself and follows moderate growth rate at around 10% on an average. In the year 2010, India and China experience a slump till 2012. In the current year China has the highest growth rate around 8% followed by Kenya around 5% and India around 3%. Table 4: Comparison between Human Development Index (HDI) and Gender development index (GDI)

Country HDI RankGDI Rank

China9149

India135132

Kenya147107

SOURCE: UNDP Report 2014From the above table we can see the position of these three countries according to their ranking with respect to HDI & GDI in the basis of world rank. Here is an interesting situation can be observed i.e. India is above Kenya according to HDI rank but in case of GDI Kenya is better than India. At the same time China is better in the both cases.

After talking about the cross country study, the paper wants to address the global scenario regarding the relationship of income level and HDI, GDI ranking among the countries i.e. whether higher level of income really play a vital role for attaining higher value in HDI & GDI or not. For this purpose Karl Pearsons Correlation index has been constructed. For that data has been collected for countries are about their Gross National Product (GNI) per capita at PPP$(2011) and HDI, GDI values. The following table shows the value of correlation between HDI, GDI index and GNI per capita income. These figures vividly represent the significant differential effect of income on HDI and GDI values which is earlier proved in cross country comparison. The findings are suggesting that a country with higher per capita income is more likely to hold a better position in HDI ranking but in case of GDI the chance of that particular country to hold a higher index value is relatively lower as the value of correlation is quite low. The outcome is very useful in case of policy implication. Table 5: CorrelationKarl Pearson's correlation index

GNI P.C.I

HDI0.725

GDI 0.449

In this table a glance of job segregation is provided.

Table 6: Gender segregation in field of study: In most countries, women dominate health and education studies and men dominate engineering and sciences.

Fraction of countries where

Number of

the field of study is countries

Field of studyFemale dominated %Male dominated %Neutral %Number of countries

Agriculture3742289

Education8461097

Engineering, manufacturing and construction0100097

Health and welfare8241397

Arts and humanities5563996

Science13682096

Services21592187

Social sciences; business and law23166197

SOURCE: WDR 2012 team estimates based on data from UNESCO Institute for statiscs.

Diagram 11: Gender segregation

Although this paper is primarily meant to search the differential impact of income component on HDI and GDI. But as this difference is already shown and it is also backed up by statistical measure in the above sections, some possible reasons for this underlying difference are cited:

In GDI the method used to estimate female and male earned incomes ignores the existence of self-employment; biases in women and mens access to full-time paid work; and the complex nature of intrahousehold distribution of money, goods, and labour. (Stanton 2007) which is not posses any problem in case of HDI as per capita income of the countries is quite accessible. A general critique of GDIs data availability and reliability has been provided by Bardhan and Klasen (1999).The data used by the UNDP to estimate gender-specific incomes are not in fact available for many countries. HDR 2005 (UNDP 2005: 346) This types of criticisms are not provided for HDI. As a result this could be a possible explanation for the differential impact of income. Unlike the other components in GDI, gendered income is a rough estimate. Several critiques have questioned the appropriateness of using non-agricultural wages together with labour force participation as gender weights for GDP per capita.2All these reasons reflect the same idea that unlike HDI in the case of GDI income component does not serve as an appropriate measure to take into account women and mens standard of living. As a result income component is having lesser command over GDI as in case of HDI. 4. ConclusionFrom the above analysis, we can conclude that although the countries have progressed in terms of human development till they need to go long in the way of gender development. As we find that income sensitivity of GDI is lower than that of HDI. So income growth alone cannot play a significant role to improve the situation of existing gender disparity.

Moreover, from the last figure we can easily remark that women are skewed in some economic activities and their proportion in comparison to male counterpart is negligible mainly in case of engineering and manufacturing. Thus there are segregation of work i.e. some are womens job and mens job.

When we compare the three countries which is India, China and Kenya an interesting point to be noted that Kenya and India both started from a similar level of development but Kenya in recent times lagged behind the other two. China has secured praise worthy position both in context of HDI and GDI.

Whereas India is the least performing country among there three in terms GDI. So it is a matter of grave concern that India should emphasised on human participation in economic activity and empowerment so as to move forward in the path of gender development. China can be a good example to follow. India has taken some steps to reduce the gender gap. The calculation of correlation index and large difference in their values statistically established the fact that income component has greater contribution towards HDI than GDI. Higher level of per capita income leads a country towards higher rank in HDI with much larger probability than that of in case of GDI.

Therefore here arises crucial need of policy prescription to promote gender parity and development.4.1. Policy PrescriptionThe Human Development Index (HDI) introduced by UNDP in 1990 is a simple average of three dimension indices that measure average achievements in a country with regard to A long and healthy life. But Gender gaps are pervasive in all walks of economic life. The goals of human development cannot be achieved without the development and empowerment of women. However, the reality that woman faces disparities in access to and control over resources. Thus there is need to include gender sensitive measures of human development. Therefore, in 1995, the UNDP introduced a Gender-related Development Index (GDI). The Gender-related Development Index adjusts the average achievements in the same three dimensions that are captured in the HDI, to account for the inequalities between men and women. The construction of index is not enough to create proper environment for gender development unless some policies are framed by the central authorities of the countries.

The paper finding reveals that a nation does not have to be affluent to treat women and men equally. Thus promoting more women to leadership roles and creating environments more conducive to womens input makes good sense from the perspective of business, politics and ethics. Many nation are following some important guidelines (such as MDG)3 to narrow down the gender gap. An OECD country focuses on how to close these gender gaps under four broad headings: 1) Gender equality, social norms and public policies; and gender equality in 2) education; 3) employment and 4) entrepreneurship. In USA some positive action has been taken in the same line by raising child care support, minimum wage, breaking occupational segregation etc.

India also started to walk in the path of gender equality but the efforts are not creating good results rather the gap is widening and all the indicators have been deteriorating over a period of time [Swarna S. Vepa(2007)]. Thus gender discrimination continues to be an enormous problem within Indian society. Women receive little schooling, strong "son preference" and suffer from unfair and biased inheritance and divorce laws. These laws prevent women from accumulating substantial financial assets, making it difficult for women to establish their own security and autonomy.

To reduce the existing gender gap by 2015 as an objective of MDG, the task force has identified seven strategic policies to be followed by nations of the world.

1. Strengthen opportunities for post-primary education for girls while simultaneously meeting commitments to universal primary education.

2. Guarantee sexual and reproductive health and rights.

3. Invest in infrastructure to reduce womens and girls time burdens.

4. Guarantee womens and girls property and inheritance rights.

5. Eliminate gender inequality in employment by decreasing womens reliance on informal employment, closing gender gaps in earnings, and reducing occupational segregation.

6. Increase womens share of seats in national parliaments and local governmental bodies.

7. Combat violence against girls and women.

These guidelines need to translate into development policy and practice at the scale required to bring about fundamental transformation in the distribution of power, opportunity, and outcomes for both women and men. The policy recommendations made in the above can pave the way toward an equal world.

4.2. LimitationThe paper mainly indicated towards the fact that income level or its growth has differential treatment on HDI and GDI. The states of relationships are presented by the value of correlation index. Many researches [Dollar, Gatti et al,] have pointed out that growth and HDI has close and significant relation by applying regression analysis. Although the paper has not applied regression but the relationship is also evident from correlation index.The paper only concentrated on single component of HDI and GDI. But other factors like education have also a lot of say in determining HDI and GDI which is not checked in this paper. The role of other determinants of development is not stated properly.

Moreover in case of cross country comparison the countries have been chosen a bit arbitrarily for the sake of convenience and for fulfilling the objective of the paper.

In spite of having afforded said limitations; the paper searched out the impact income component on HDI and GDI and its preferential effect on each index which is the ultimate objective of this paper. The limitations can be avoided in future. 5. REFERENCES:1) A critical analysis of World Bank policy prescription of Gender mainstreaming. 28 June 2008.

Peter Wall Institute for Advanced Studies at the University of British Columbia, Vancouver,

Canada

2) A.P.Thirlwall, Economics of development 9th edition, page- 52.

3) Andrew Morrison, Dhushyanth raju, Nistha Sinha, The World Bank Gender and Development Group Poverty Reduction and Economic Management Network September 2007, Gender Equality, Poverty and Economic Growth.

4) D. Hosni, M.Sandberg and A. Chanmala, Inequality among women and its impact on economic growth: The case of MENA.5) David dollar, Roberta gatti, 1999, page 20, Policy research report on gender and development.

6) David Gumbel, 2004 The Influence of Gender Inequality on Economic Growth.7) Kevin Daly, 2007 , Gender Inequality, Growth and Global Ageing. 8) Michael P. Todaro , Stethen C. Smith, Economic development 10th edition, page- 49-50 .9) N.G.DAS, combined Edition (volume I & II), Statistical Methods, page- 304-308. 10) Nancy Forsythe, Roberto Patricio Korzeniewicz, Nomaan Majid, Gwyndolyn weathers, Valeria Durrant,2003,Gender inequalities and economic growth and economic reform: A preliminary longitudinal evalution11) Rashmi Umesh Arora, 2012 , Gender inequality, economic development, and globalization: a state level analysis of India,12) Stephan Kalsen, 1999, page 9 Policy research report on gender and development.13) Swarna S.Vapa, 2007, Gender Equality and Human Development.

14) World Development report 2012 on Gender equality and Development15) hdr.undp.org/ TIME: 11:45a.m DATE: 22.12.201416) mecometer.com/ TIME: 8:30p.m DATE: 8.1.201517)Engendering Human Development:

A Critique of the UNDPs Gender-Related

Development Index

Elizabeth A. Stanton

March 2007

POLITICAL ECONOMY RESEARCH INSTITUTE 6. APPENDIXList of tables Page No.1) Human Development Index (HDI) Trends, 1980-2013 122) GDP growth rate 143) Average rate of growth (1991-2003) 144) Comparison between Human Development Index (HDI)

and Gender development index (GDI) 15

5) Correlation 166) Gender segregation 16List of diagrams Page No.

1) Position of countries with respect to their Income index and HDI in the year 1980 62) Position of countries with respect to their Income Index and HDI in the year 1990 73) Position of countries with respect to

their Income index and HDI in the year 2000 84) Position of countries with respect to

their Income Index and HDI in the year 2010 85) Position of countries with respect to

their Income Index and HDI in the year 2013 96) Position of countries with respect to

their Income Index and GDI in the year 2013 107) Position of countries with respect to

their GNI per capita and GDI in the year 2013 118) Position of countries with respect to

their GNI per capita and HDI in the year 2013 119) Human Development Index (HDI) Trends 13

10) GDP growth rate,1991-2013 15

11) Gender segregation 17

1 A harmonic mean is equal to n/(1/x1 + 1/x2 ++ 1/xn), where n is the number of terms.

3TheMillennium Development Goalsare a UN initiative. TheMillennium Development Goals(MDGs) are eight international development goals that were established following the Millennium Summit of the United Nations in 2000

2 Bardhan and Klasen (1999, 2000)

(2000); Klasen (2006); and Prabhu et al. (1996).

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199413.966.662.63

199513.087.574.41

199610.927.554.15

199710.014.050.47

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Agriculture37422

Education84610

Engineering, manufacturing and construction01000

Health and welfare82413

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Field of studyFemale dominated %Male dominated %Neutral %

Agriculture37422

Education84610

Engineering, manufacturing and construction01000

Health and welfare82413

Arts and humanities55639

Science136820

Services215921

Social sciences; business and law231661