The HDI in its present form has to be general enough to be applicable to all countries. While
this is understandable, nevertheless, it limits the operational capability of the index for an
individual country. At the country level it would be unreasonable to preserve the generality of
the HDI at the cost of neglecting the specific characteristics and policy concerns of the country.
In this respect the UNDP initiative of encouraging the publication of country HDI reports is an
initial step in bringing the general concept a step closer to being included in the policy making
process at the country level.
One possible way of making the underlying concept of HDI within a specific country more
policy oriented is through the regional policy framework. Regional disparities within most
developing countries have been increasing at an alarming pace. The traditional economic
planning with economic growth as its ultimate target tends to overlook the problem of
distribution to a considerable extent if not totally. We still know very little about the dynamics
of growth and distribution (Ward 1999). One of the main reasons for such a neglect, amongst
others, is the difficulty of implementing distributional policies. However, policies aiming at the
reduction of disparities amongst regions are steps in the right direction.
Regions within a country may be behind other regions in terms of income arising from
economic activities. When this is combined with social income poverty due to less access to
goods and services provided by the public sector it results in the region being seriously left
behind the rest of the country.8 Inevitably there is the perpetual effect of the latter on the former
type of poverty.
Iran is no exception to this process. Regional disparities in Iran have been growing at an
alarming rate leading to serious problems including migration with its associated problems from
backward provinces to the more affluent ones. The recent Human Development Report for Iran
reflects such disparities and reiterates that one of the major human development policies in the
country’s Third Plan is to “pay attention to the spatial planning as a long-term framework for
social justice and regional balance” (Plan and Budget Organisation and United Nations and
United Nation (1999), p 141). With the intention of making the HDI more policy oriented this
article proposes a model for the systematic reduction of regional disparities in Iran.