HDI ignores environmental costs and sustainability issues

Source: The post HDI ignores environmental costs and sustainability issues has been created, based on the article “The dangerous illusion cast by development rankings” published in “The Hindu” on 13th March 2025

UPSC Syllabus Topic: GS Paper2- Governance-Issues relating to development and management of Social Sector/Services relating to Human Resources.

Context: The article criticizes the Human Development Index (HDI) for ignoring environmental costs. It argues that rich countries consume too many resources, making their development unsustainable. Instead, middle-income countries like Costa Rica offer better models. India must adopt an eco-friendly, just development path.

For detailed information on The wide disparities in human development read this article here

Why are wildfires in California a warning about unsustainable development?

The recent California wildfires caused damage estimated at $250 billion, similar to Greece’s GDP in 2023. These disasters highlight the environmental cost of high-consumption economies like the U.S. and Europe. If all countries consumed resources at their level, multiple Earths would be needed.

What are the flaws in the Human Development Index (HDI)?

1. Ignores Environmental Impact: The HDI overlooks the environmental damage caused by high-resource consumption in developed countries. For example, countries like Ireland and Norway, which score high on HDI, also have large carbon footprints and resource use per capita.
2. Misleading Sustainability Indicator: Even the Planetary Pressures-adjusted HDI (PHDI), introduced to account for environmental impacts, falls short. It only compares countries relative to each other rather than against absolute ecological thresholds, allowing high-consuming nations to still rank well.
3. Promotes Unsustainable Models: The HDI champions development patterns of rich nations, which if globally adopted, would require multiple Earths’ worth of resources, far exceeding planetary limits.

Which countries offer a more sustainable development model?

Middle-income countries like Costa Rica and Sri Lanka balance human development with environmental sustainability.

• Costa Rica has universal healthcare, high literacy, and low resource use. It invests in renewable energy and forest conservation.
• Sri Lanka has an HDI of 0.78, high literacy, and life expectancy. However, its 2022 economic crisis and political instability show that sustainability also needs social justice and stability.

Why should India avoid copying high-income countries?

1. India’s 1.4 billion people cannot follow the consumption patterns of the West. The Nordic model is unsustainable at a global level.
2. Instead, India must create its own path, focusing on ecological limits, social justice, and sustainable progress.

How should we redefine progress?

GDP growth and HDI rankings alone do not mean true progress. Development should ensure dignity for all while staying within ecological limits. This is not just an ideal but a survival strategy for the 21st century.

Question for practice:

Examine the flaws in the Human Development Index (HDI) and its limitations in measuring sustainable development.