In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank?

There are certain criteria used by the UNDP and the World Bank to measure the development of any country. In this article, we have described some of the most important criteria that UNDP and World Bank checks for measuring the development level of any country. It is to note that the criteria used by UNDP is a little different from the one used by World Bank.

UNDP: The United Nations Development Programme (UNDP) established in 22 November 1965, is a United Nations agency with goal of helping other countries eliminate poverty and achieve sustainable economic growth and human development. It publishes an annual Human Development Index report.

World Bank: The World Bank is an international financial institution that provides money and financial assistance (in terms of loans and grants) to the governments of low and middle-income countries for the purpose of pursuing capital projects.

1. United Nations Development Programme Criteria

UNDP uses the Human Development Index (HDI) to rank countries by measuring their development. The HDI was created to emphasize that instead of economic growth alone, citizens and their capabilities should as the ultimate criteria for assessing the development of a country.

Indicators of HDI

• Life expectancy at birth
• Expected years of schooling and Mean years of schooling
• Gross National Income(GNI) per capita (PPP $)

The HDI takes into account average achievement in key dimensions of human development. The HDI is calculated as the geometric mean of standardized indices representing each of the three dimensions. It serves as a tool for scrutinizing a nation’s policy decisions, prompting an inquiry into why two countries with identical GNI per capita figures can achieve disparate human development results. However, HDI does not reflect on inequalities, poverty, human security, empowerment, etc.

2. World Bank Development Criteria

World Bank uses per capita income as the base for measuring the economic development of any country.

Factors of world bank criteria

• National income

• Per capita income

• Gross Domestic Product (GDP): It takes into account the quantitative aspect of development and does not give a broader prospective about the notion of development.

Conclusion

While both the UNDP and the World Bank aim to measure development, they have distinct methodologies and priorities. The UNDP focuses more upon comprehensive view of human development, including health and education. World Bank leans toward the economic growth as a primary indicator. Understanding differences in multidimensional indicators can provide a more nuanced perspective on the development of countries and regions.

Criterion used by UNDP and World Bank – FAQs

1. What is the criteria of UNDP and World Bank to measure the development of any country?

The UNDP uses human developement index(HDI) to measure the development of any country while the World Bank uses per capita income to measure the developement.

2. Where is the headquarter of UNDP located?

The headquarter of UNDP is situated in New York City.

3. Who provides funding for the World Bank?

The funding for World Bank is provided by its member countries.

4. Is India a member of World Bank?

Yes, India joined the World Bank on December 27, 1945.