Question

In: Economics

Develop a new index on the human condition that can be used to measure and compare...

Develop a new index on the human condition that can be used to measure and compare at the country level called the Human Needs Index. Base your index on Maslow’s Hierarchy of Needs.

  • Locate quality of life measurements that match Maslow’s hierarchy from a reliable data sources. (List your measures and sources).

  • Develop a mathematical index using the measurements.

  • Calculate the HNI for as many countries as you can.

  • Write a short description of your index.

Solutions

Expert Solution

Introduction & Description of the Index

Maslow's Need Hierarchy theory is one of the key theories of understanding micro-economic issues that arise at the level of a consumer and how these effect the society at large and translate into overall need satisfaction for any economy.

He used a set of five need fulfillment tabs which can be used to measure the overall satisfaction which an individual tends to have. These needs are placed in such an order in which, the achievement of one set of need, gives rise to the emergence of another one.

Therefore, to evaluate countries on the basis of a development index, what is important is, that these needs be clearly identified after which weightage can be given to each one and countries can be evaluated respectively.

The needs can be categorized as follows:-

Physiological Needs:-

These needs are basic in nature the attainment of which is crucial for a human being to survive. These include basics such as food, water some form of shelter, clothing etc.

While developing a Human Needs Index, therefore it is extremely important that this need is weighed on top. This is to ensure, that the basic bare minimum for any individual can be achieved properly respectively.

For the Calculation to be used in the next section, therefore the total marks attainable in this category are (5). This is because the need is basic to the existence of mankind

Safety & Security Needs:-

The second need in the list is safety and security need. This is second in the list. Post getting food and shelter, a country must ensure that the residents are living in a safe and secure environment for the satisfaction of their needs that arise after the primary ones are clearly established.

For the Calculation of an Index, The Total Marks Attainable in this category are (2) on the basis of priority since this is also an important need which indicates overall health of a society respectively.

Society Needs:-

Once the above needs are satisfied, the next what matters are the norms of the society in which the individual lives. In these terms, the modernity of society, the rules and regulations followed and the customs play an important role in the satisfaction of human needs and wants respectively.

For the Calculation of an Index, the total number of marks attainable in the category are (1)

Self Esteem:-

This indicates pride of the individual and is a relevant index tool. The pride of the individual translates from the amount of respect he holds or the amount of power which he can exercise based on his position respectively.

Again, for the calculation of an index, the total number of marks attainable in the category is (1)

Self-Actualization:-

The next need which arises in the individual and the society as a whole is self-actualization. This need represents an individual’s ability to fully realize his or her talent. This is found rarely in the society.

Also as a measure this calculation can be done on (1)

Mathematical Index

For the purpose of realizing and calculating the index, the Mathematical equation which one can draw is as follows:-

Overall HNI (Max Points 10) =Physiological Needs (Max Marks 5/10) + Safety Needs (Max Marks 2/10) + Social Needs ((Max Marks 1/10) + Self Esteem Needs (Max Marks 1/10) + Self Actualization (Max Marks 1/10)

Therefore Total Marks possible in the HNI=10

Calculation for countries using HNI:-

For the purpose of this research, we take into consideration three countries which are United States, India and North Korea for our Analysis.

1) Physiological Index

For the first index, we consider factors such as poverty rates, to reflect upon the standards of physiological need being fulfilled among the common public of the country.

The United States in this fears good since an estimated 14% of the overall population is considered poor as per statistics of International Organizations in the year 2017. Most people get basic benefits in the country which are also reflected in the social security schemes of the government in the country.

The country therefore fairs pretty well on the index with relative index rating of 4.5

On the other hand, India fairs comparatively lower in this, and even though there have been some improvements in the recent times due to the globalization of the country, most statistics still indicate that in the rural areas about 22% of the overall population survive on mere 2$ a day which is not sufficient to meet all physiological needs. On the other hand there is some certain development as the country has been growing steadily with an average score of 7-10% annual growth since 2005.

Therefore the countries rating on the matrix is 3

Coming to the country of South Korea, the country is worst in terms of the physiological need satisfaction. It is estimated that more than 60% of the population live in extreme poverty with no access to modern day nutrition, sanitation and other facilities which are basic for a human’s survival.

The countries rating on this matrix therefore is 1.5 only.

2) Safety Index:-

Safety is not a problem in the United States the society is built on very strong safety standards and norms, and the army and police of the country are one of the best respectively. Therefore the country can get 1.5/2 in the same respectively.

On the other hand, India is a complicated country which sees very strong safety standards in some regions whereas others still suffer respectively. Rape is a common social issue in the country and the country has seen terrorist attacks which are frequent in the past years. Therefore the country can get only 1/2 in the same respectively.

North Korea is placed extremely low on the index. It is a monarchy and is largely controlled by the king Kim Jong UN and safety standards are extremely poor. Public executions are a normal in the country which is a big problem with no democratic rights compared to the other 2 countries and safety being extremely poor the country can only get 0.5/2 respectively.

3) Social Index:-

The next rating is the social index of each country. In this, the United States fairs well since the society is relatively highly modern and it follows good practices and racism is largely discouraged. Therefore the Country can get a scale of 0.7 out of 1 in the same.

India on the other hand is a built on society norms which are relatively backward though it is progressing slowly. Racism is still a huge problem and not all sections of the society are relatively modern respectively. Therefore the country can get a scale of 0.5 in the same out of 1

North Korea cannot be rated and the country gets a 0 since the society is relatively extremely poor and is built on laws and rules that are unimaginable to live in for most others. The country has no forms of television which is largely government controlled only.

4) Self Esteem Index:-

The self-esteem of those in the United States is extremely high they are one of the most respected communities across the globe and are paid relatively higher even in small jobs. Due to the strict practices against any sort of discrimination the country holds extremely high in self-esteem needs therefore the country can easily fair 0.6/1 in the Index

On the other hand, the self-esteem needs of Indians only gets fulfilled in the cities with most villagers still lacking the same respectively. The country is loosely developing with some areas getting great development while others having very little. The self-esteem is thus reflective of the same also. The country therefore gets 0.4/1 in the index respectively.

North Korea on the other hand, finds it increasingly difficult to have any self-esteem the basic needs of the country are hardly fulfilled the country gets 0/1 in the index respectively

5) Self Actualization:-

Even though, this need is very difficult to fulfill in most cases for any individual or country, the country of United States sees a lot of young tech entrepreneurs such as Steve Jobs, Tesla and others who have been able to realize this dream. Therefore the country can relatively get 0.3/1 on the index also. Considering 20%-30% of its population is capable of realizing this goal also.

On the other hand India scores relatively lower at 0.1/1 since most people do not realize this and its best not to give North Korea any marks in the same.

Conclusion:-

A country wise representation of the total marks attained based on the mathematical index we have developed is as folllow:-

Please feel free to ask your doubts in the comments section.


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