Hungary in the decline? Human Development Report provides shocking revelations

Is Hungary really in shambles? The recently published Human Development Report for 2023/2024, spanning 324 pages, offers an exhaustive analysis of human development across 193 countries. The report delves into crucial indicators such as the Human Development Index (HDI) and its environmentally adjusted counterpart (PHDI).

The Human Development Index derives from life expectancy, expected years of schooling and average years of schooling, while also incorporating per capita carbon dioxide emissions and material use for environmental impact adjustments within the PHDI.

Additionally, the report examines gender economic disparities, the multi-factor poverty index, and HDI calculations. An article by Növekedés.hu focuses on analysing the rankings and trends of these indices, particularly focusing on the V4 countries and Austria.

The study highlights a steady improvement in global HDI from 1999 to 2019, followed by a decline from 2019 to 2021, with subsequent recovery between 2022 and 2023, albeit not to the same extent.

The improvement in living standards began earlier and was more significant in developed nations compared to less developed ones. An intriguing revelation from surveys indicates that a majority, 51%, feel they lack control over their lives, while an even larger percentage, 68%, believe they have no influence on their government’s decisions.

Furthermore, there has been a rise in distrust among individuals, with a higher proportion expressing scepticism towards others’ trustworthiness and a declining belief in individuals’ reliability.

What about Hungary?

In 2022, Switzerland, Norway, Iceland, Hong Kong and Denmark topped the HDI rankings, closely followed by Austria, with a larger gap separating them from the Visegrád Group (V4) countries. The highest possible value is 1, and as the data indicates, Hungary experienced a negative change from 2021 to 2022 at -1, while Denmark showed the most significant improvement, climbing three places in the rankings.

Notably, Austria occupies the 22nd position, significantly trailing behind the top 5 countries and displaying a considerable gap compared to the V4 nations. Nonetheless, Hungary stands out among the V4 countries, narrowly trailing Slovakia. Within the V4, three countries have slipped in position, while Slovakia’s rank remains unchanged.

Hungary’s HDI improvement from 1990 to 2022 was lower than that of the Czech Republic and Poland, with no alteration in ranking between 2015 and 2022, according to the study. However, Hungary’s lower HDI is partly attributed to having the lowest life expectancy among the Visegrád Group (V4) countries. Interestingly, when environmental factors such as per capita carbon dioxide emissions and material use are taken into account, Hungary ascends 8 places in the HDI ranking, showcasing improvements alongside other V4 nations.

The study underscores a significant percentage difference of 48.6% between the HDI and its environmentally adjusted version, PHDI. The analysis raises questions about how effectively HDI measures human development, considering its limited factors and the fact that GDP serves more as a growth indicator than a developmental one.

The PHDI indicator endeavours to capture the environmental impact of GDP growth in each nation. Despite these intricacies, the data from the study furnish valuable insights for comparisons and further economic policy considerations.

Read also:

• FM Szijjártó: Cooperation with Singapore benefits Hungary and the EU – HERE
• Hungarian Socialists call for wage hikes in higher education – HERE

Featured image: depositphotos.com