Mozambique National <strong>Human</strong> <strong>Development</strong> Report 2007tribution keys, proportional allocation of the national sums wasmade for each field of activity and by provinces/regions. Arisingfrom the difficulties of obtaining indicators for sharing out customsduties and SIFIM by provinces, the national values of theseoperations were allocated proportionately to the Gross ValueAdded of each province. This adjustment made it possible toreach the concept of the Gross Domestic Product of theprovince or region.The precision and quality of the estimates presented heredepend on the type of methodology applied, but above all on thequality of the data, a factor which is beyond our control, andnecessarily involves improving the provincial statistical information.Even so, based on the available data and the criteria wehave defined, it has been possible to present an estimate that webelieve reflects what is really happening in the Mozambicaneconomy.Technical Note IICalculating the <strong>Human</strong> <strong>Development</strong> Index (HDI)The HDI is based on three indicators: longevity, as measured bylife expectancy at birth; educational attainment, as measured bya combination of adult literacy (two-thirds weight) and thecombined gross primary, secondary, and tertiary enrolment rate(one third weight); and standard of living, as measured by realper capita GDP (in PPP $).To calculate the HDI, the parameters used are derivedstrictly from the methodology of the Global <strong>Human</strong><strong>Development</strong> <strong>Reports</strong>, which fix for each of the indicators of theHDI, the following minimum and maximum values:• Life expectancy at birth: 25 years and 85 years;• Adult literacy: 0% and 100%;• Combined gross enrolment rate: 0% and 100%;• Real per capita GDP (PPP $): $100 and $40,000.Thus, the results obtained are comparable with the indicatorsof other countries and to the figures published in theGHDRs, diverging only in the sources of the data used. However,since it makes no sense to use a per capita GDP in PPP dollarsto compare the level of human development between regionswithin Mozambique, the minimum and maximum values of theGHDRs were converted into Meticais based on the PPP dollarcon<strong>version</strong> rate, and then applying a deflator allowing comparisonsbetween years along a series under analysis.Based on these fixed minimum and maximum values, theindices for life expectancy and educational attainments werecalculated according to the following general formula:Index =Actual x i value – minimum x iMaximum x i value – minimum x ivaluevalueTaking as an example Mozambique’s life expectancy at birth(43.3 years), the adult literacy rate (43.3) and the combinedgross primary, secondary and tertiary enrolment rate (31.6), allfor the year 2000, then the life expectancy index (I LE ) and theeducational attainment index (I EA ) for this year would be:43.3 31.62* +44.3 – 25 100 100ILE = = 0.322 IEA = = 0.39485 – 25Constructing the income index (Iy) is a little more complex,and it is not the aim of this technical note to present the detailsof how it is built. But we can summarise the construction of theincome index by using the following formula:Log (y actual) – Log (y minimum)Iy =Log (y maximum) – Log (y minimum)Taking as an example the real per capita GDP in PPC dollarsof 2000 (996.3), we can calculate the corresponding index inthe following way:Log (996.3) – Log (100)Iy = = 0.384Log (40000) – Log (100)Once the indices for life expectancy, educational attainmentand income have been obtained, the HDI is calculated as a simpleaverage of the three indices.0.322 + 0.394 + 0.384HDI = = 0.3663Technical Note IIICalculating the Gender-adjusted<strong>Development</strong> Index (GDI)Calculating the GDI is based on the same variables as the HDI,with the difference that the GDI adjusts the average achievementin life expectancy, educational attainment and income in accordancewith the disparity in achievement between women andmen. In other words, the GDI is the HDI adjusted to takeaccount of sexual inequality.In this study the weighting formula was set at ?=2, takenfrom UNDP (2004) which expresses a moderate a<strong>version</strong> toinequality. 2 As in the HDI, in constructing the GDI the following70
Technical Notesmaximum and minimum values were established, taken from When data on the wage ratio are not available, as is the casethe GHDRs:in Mozambique, the same document suggests an estimate ofLife expectancy at birth: Maximum 82.5 e 87.5 years for 75%, the weighted average of the wage ratios for countries withmen and women respectively: Minimum 22.5 and 27.5 years for wage data out of the series of countries included in the study, ofmen and women respectively. The difference reflects the fact which Mozambique was part. This value means that, on average,that women tend to live longer than men, given the same care the wages of women are 25% lower than those of men.(medical care, nutrition etc.)The same maximum and minimum values as used in calculatingthe HDI were maintained for the Adult Literacy Rate, the try (Y) is divided between men and women in accordance withIt is then assumed that the total GDP (PPP US$) of a coun-Combined Gross Enrolment Rate, and real per capita GDP, as the female share of earned income. Formally,well as the formula for calculating the individual indices.However, to allow comparability of the administrative regions Total GDP (PPP US$) going to women = S f x (Total GDPwithin Mozambique, the minimum and maximum values were PPP$ of the country)converted into nominal meticais, based on the PPC con<strong>version</strong>rate, and then applying a deflator that allows comparability Total GDP (PPP US$) going to men = Total GDP PPP$ of thebetween years along a series under analysis.country x (1 – S f )The equally distributed life expectancy index is given The per capita GDP (in PPP US$) of (y f ) and of men (y m ) isby:obtained by division by the female and male population of thecountry.{Female population share x (Female life expectancy index) (1-?) +male population share x (Male life expectancy index) (1-?) } (1-?) The adjusted income both for women W (y f ) and for men W(y m ) is dealt with in the same way as in the construction of theLikewise, the equally distributed educational index is HDI:given by:Log (y f ) – Log (y minimum){Female population share x (educational attainment index) (1-?) + W(y f ) =male population share x (educational attainment index) (1-?) } (1-?)Log (y maximum ) – Log (y minimum)&Income CalculationLog (y m ) – Log (y minimum)Values of real per capita GDP (PPP US$) for women and for W(y m ) =men, in an ideal situation, are calculated, following UNDPLog (y maximum ) – Log (y minimum)(2004:264) recommendations, from the female share (S f ) andmale share of earned income, using the ration between female The equally distributed income index is given by:non-agricultural wages (W f) and male non-agricultural wages(w m ) and the percentage shares of women (ea f ) and men (ea m ) {Female population share x [W (y f )] (1-?) + Male populationin the economically active population. Formally:share x [W (y m) ] (1-_) } (1-_)(W f / W m )* ea fFemale share of the wage bill =(W f / W m )* ea f + ea mAssuming that the female share of earned income is exactlyequal to the female share of the wage bill:(W f / W m )* ea fS f =(W f / W m)* ea f + ea m2 Expresses a moderate degree of inequality a<strong>version</strong> and is calculated as a constant average of the male and female values.71