Enhancement of Human Development Assessment Model: An Insight from Bagmati Province, Nepal

Abstract

Background: Human development is a pivotal issue with Human Development Index (HDI) serving as a key indicator.

Objective: The study was conducted to enhance measurement of HDI by adding social governance and technological adaptation along with the existing dimensions, namely income, education and longevity.

Materials and Methods: Unequal weights were assigned to the components objectively through Principal Component Analysis and HDI was estimated as a weighted geometric mean. A sample household survey conducted in 2023 used three-stage stratified random sampling which covered 17 municipalities with 569 households of Bagmati Province, Nepal in order to construct the HDI dimensions.

Results: The estimated dimensions of income, education, health, social governance and technological adaptation were 0.341 (95% CI: 0.337, 0.345), 0.650 (95% CI: 0.645-0.655), 0.807

(95% CI: 0.80656-0.80664), 0.678 (95% CI: 0.674, 0.681), and 0.462 (95% CI: 0.454, 0.469),

respectively. The estimated weights were maximum for income (0.248), followed by technological adaptation (0.247), education (0.241), social governance (0.168) and health (0.096). Finally, the estimated HDI for Bagmati province was 0.524 (95% CI: 0.519, 0.528) which is notably lower than the corresponding UNDP computed HDI (0.661).

Conclusion: The study demonstrates that UNDP adopted HDI is overestimated for Bagmati Province, Nepal.