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Introduction to Entrepreneurship, SERDEF

CHAPTER ONE: HUMAN DEVELOPMENT & ENTREPRENEURSHIP



Everyone in the world lived different lives. They differ in many ways and most of all, in our view
in the economy, we all have different social and economic circumstances. Some lived in
comfortable homes, have enough to eat, well dressed, well educated and financially secure;
while others find themselves in inadequate shelters, little or no food, illiterate, unemployed
and poor health. This shows us an overview of the socio-economic status of our country.

The UNDP (United Nations Development Program) uses a range of socio-economic data to
compare and rank countries all over the world.
Examples of indicators are known as HDI (Human Development Indicators):
Average Life Expectancy
Literacy Rate
Average gross domestic product per capita
Many others

We can check below the TOP 10 countries that has high HDI since 2012. This usually means that
the people in this country have longer life expectancies, healthier, well educated than the
others.

HDI
Rank
Country HDI % (2012) Health Education Income
1 Norway 95.50% 97% 100% 91%
2 Australia 93.80% 98% 99% 86%
3 U.S.A. 93.70% 93% 99% 90%
4 Netherlands 92.10% 96% 93% 87%
5 Germany 92.00% 96% 95% 87%
6 New Zealand 91.90% 96% 100% 81%
7 Ireland 91.60% 96% 96% 84%
8 Sweden 91.60% 97% 91% 87%
9 Switzerland 91.30% 99% 87% 89%
10 Japan 91.20% 100% 89% 85%

The countries that are ranked in the bottom are usually countries short life expectancies,
poorer health, illiterate, has little or no income at all and living in dangerous or poor homes.
Many of them have little or nothing to eat.







Introduction to Entrepreneurship, SERDEF
HDI
Rank
Country HDI % (2012) Health Education Income
1 Congo 30.40% 45% 36% 17%
2 Niger 30.40% 55% 17% 29%
3 Chad 34.00% 47% 22% 37%
4 Burkina Faso 34.30% 57% 20% 37%
5 Mali 35.10% 50% 26% 32%
6 Erithea 35.10% 66% 27% 25%
7 C.A.R 35.20% 46% 33% 29%
8 Burundi 35.50% 49% 37% 25%
9 Guinea 35.50% 44% 33% 32%
10 Sierra Leone 35.90% 55% 25% 33%
Most of those with lower ranks are from Africa and Asia. In fact, the Philippines is ranked 104
from over 174 countries on record.

HDI
Rank
Country HDI % (2012) Health Education Income
104 Philippines 65.40% 77% 68% 54%

The sources came from: http://countryeconomy.com/hdi

Many factors affect a countrys development. They are all linked to the countrys social, political
and cultural life both locally and internationally. However, studies shows that the countrys age,
history, natural resources, climate, population size, intellectual capacity, religion, race and skin
color do not appear to be significant whether a country is rich or poor.

Egypt and India are among the oldest countries in the world but they are among the lowers in
rank while Australia and New Zealand who are among the youngest happen to be on the top
ranks. Japan has limited resources yet they still strive among the top, Singapore with a very
small area is still among the top (rank 19). Philippines has one of the most bountiful
agricultural, marine, forest and mining resources yet we rank 104 and so does Indonesia that
possess abundant mineral resources but has low GDP and ranks 111 (since 2002).

The Meaning of Development and its Core Values

According to our economics studies, development is measured in terms of the national
economys capacity to generate and sustain an annual increase in its GNP (Gross National
Product) but now we call it GNI (Gross National Income) at rates of more than 5%.

The GNI is like the income of the country for one year. It shows the overall economic well-being
of the population, how much goods and services are available for consumption and investment
for the average citizen.

Introduction to Entrepreneurship, SERDEF
In developing countries even with achieving the prescribed GNI, it still has a great population of
poor citizens. This mostly means that there is something wrong or lacking in using the GNI as
using the measure of development.

We can see below the GNI of Indonesia, Malaysia and the Philippines aired by the World Bank,
updated May 7, 2014.



According to Michael Todaro; a development economist, defined development as A multi-
dimensional process involving major changes in social structures, population, attitudes, and
national institutions as well as acceleration of economic growth, the reduction of inequality
and the eradication of absolute poverty.

Development must be able to elevate an entire society and its social system towards a better
and more humane life.

According to a Harvard Professor, Dennis Goulet the three core values in the development are:
1. Life Sustenance the ability of the economy to provide basic needs. The economy must
be able to provide to as many people as people to overcome helplessness, misery and
even crime because of lack of food, shelter, health and protection.
Introduction to Entrepreneurship, SERDEF
2. Self-Esteem the extent of one to be a person. The sense of self worth and self respect
or not being used as a tool for others for their own selfish needs. Everyone seeks self-
esteem, which is known as authenticity, identity, dignity, respect, honor and recognition.
The nature of self esteem varies from each society and culture.
3. Freedom from Servitude extent where the person is free to make decisions and
choices in emancipating oneself from alienating material conditions of life and from
social servitude to nature, ignorance, dogmatic beliefs and to other people. Freedom
involves the expanded range of choices for societies and their members together with
fewer constraints in the pursuit of social goals that is known as development.

The UN (United Nations) has adopted these core values of development. In the first Human
Development Report in 1990, As Mahbub Ul Haq wrote:

The purpose of development is to enlarge peoples choices. In principle, these choices can be
infinite and can change over time. People often value achievements that do not show up in
income growth or growth figures: greater access to knowledge, better nutrition, health services,
more secure livelihood, security against crime and physical violence, satisfying leisure hours,
political and cultural freedom, and sense of participation in community activities. The objective
of development is to create an enabling environment for people to enjoy long, healthy and
creative lives.

Entrepreneurship and Human Development

Many from the poorer countries tried to alleviate themselves to propel to the league of rich
countries, especially sending citizens to work in those developed countries. On other hand the
MSMEs (Micro, small and medium enterprises) has an agreement with the government to
enable them to function so that poorer countries can likely attain a higher level of human
development.

ASSIGNMENT:

1. Does the HDI reflect the reality of the countrys development? Explain why.
2. In terms of the three core values of development, what do you comment in the case of
our country.
3. Do you think entrepreneurship development can help the country to boost it to
economic and human development? Explain why.