Globalisation: CARICOM and human developement trends Guyana and the wider world
by Dr Clive Thomas
Stabroek News
August 12, 2001

Indicators

Since the first publication of the Human Development Report (HDR) in 1990, the United Nations Development Programme (UNDP) has faced the constant tension of seeking to generate an annual series that is comparable over time, while at the same time seeking to adapt its indicators of human development to changing information and improved analytical techniques.

The three core indicators used in the preparation of the Human Development Index (HDI) still remain the average achievements in a country in three areas, namely a long and healthy life, knowledge, and the standard-of-living. Over the years the methods used in preparing these indicators have had to be adjusted. In doing so the UNDP ran the risk of losing the advantage of having a continuous comparable series of worldwide indexes of human development.

Coverage

Another goal that the UNDP has sought to pursue has been to increase the number of countries covered in these reports until all United Nations (UN) member countries are included. Regrettably, however, for the HDR 2001 the number of countries reported on is 162. This is 12 less than in HDR 2000. This now brings the number of UN countries not included in the report, due to a lack of data to 29.

Removal of OECS states

Strikingly, of the 12 countries dropped from last year's report, seven are from the Caribbean. These are Cuba and the six independent Organisation of Eastern Caribbean States (OECS): Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines.

It is remarkable that the Caribbean, and in particular the OECS, which so far have performed remarkably well for a developing region, now finds itself in this unhappy situation.

Ironically, in last year's HDR (2000), Antigua and Barbuda was ranked 37 out of 174 countries and was classed at the high-level of human development. The other five OECS states were classed at the medium-level development. Cuba was ranked 56, also at the medium- level of human development.

Around the world, CARICOM countries are often touted as examples of small states coping with the challenges of globalisation and are seen as having attained enviable levels of human development. This removal of the OECS from the HDR due to lack of data is a serious blow to the region's reputation for social progress.

Performance

What does the report reveal about the performance of the other CARICOM states for which data were available? As would be expected from past performance, Barbados still holds the premier position with an HDI of 0.864, which ranks it at 31 worldwide. Along with the Bahamas (index 0.820 and rank 42), these two countries are classed at high levels of human development. They are also placed above several European, Latin American, and Mediterranean states in the list of 49 countries worldwide, classed as having achieved a high level of human development.

HDI and per capita GDP

Prior to the publication of the UNDP's HDI, GDP per capita was the stock measure of the level of development. Over the years the UNDP has compared GDP per capita with the HDI. This is done by subtracting the ranking obtained by a country in the HDI from its GDP per capita rank. If the resulting figure is positive, it suggests that a country has been able to attain a higher level of human development than its per capita income would indicate. In the case of Barbados the number is positive (5), indicating therefore, that its HDI rank was five places higher than its per capita income ranking would indicate.

In the case of the Bahamas the difference is negative (minus 8). This indicates that its level of human development was eight places lower than that indicated by its GDP per capita. As a result, with a lower per capita income, Barbados was able to achieve a higher level of human development than the Bahamas.

Not far away from these two countries, is Trinidad and Tobago with an index of 0.798 and a rank of 49. Indeed, Trinidad and Tobago had the highest rank within the medium level of human development category. The difference between its per capita GDP rank and its HDI rank was like Barbados, also positive.

The report shows that similar to Barbados, all the CARICOM states except Guyana (where the difference was zero), had a positive difference. For some of these, the differences were exceptionally large. In the case of Belize and Suriname the difference was as great as 21 and 23 respectively. What this means is that these countries have been able to achieve levels of human development twenty or more places above what their level of per capita income indicates. In the case of Jamaica the difference was 13.

Guyana

Among the CARICOM states, Guyana is the lowest achiever in terms of human development. Its HDI index is 0.704 and ranking 93. When the components of its index are examined, it is found to be noticeably deficient in terms of the dimension of "living a long and healthly life." Guyana's life expectancy at birth is only 63.3 years. This is considerably below that of all the CARICOM countries where the next lowest rate is 69.2 (Bahamas) and the highest Barbados (76.6).

For the record, it should be noted that life expectancy at birth in Barbados was almost the same as that of the United States (76.8 years).

Trends

For a few CARICOM countries it is possible to make comparisons of HDI performances over time. The data show that with the exception of Guyana, there has been consistent improvement. Thus in the case of Belize, the index rose from 0.710 to 0.775 between 1980 and 1999. For Jamaica the similar increase was from 0.672 to 0.738 and Trinidad and Tobago from 0.719 to 0.798. These increases were continuous for the intervening five-year intervals.

In the case of Guyana, while the increase was from 0.681 to 0.704 between 1980 and 1999, the index declined between 1985 and 1990. This was in keeping with the sharp economic reverses that preceded the introduction of former President Hoyte's, Economic Recovery Programme.

Overall therefore, Caricom as a group of small developing states, does not appear to have suffered major reverses in the age of globalisation. We continue, nevertheless, to speak of the region's vulnerabilities to global change. Is this misguided? These and other related issues will be taken up later, after we conclude our exploration of the HDR 2001.