Human Development Index

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HUMAN

DEVELOPMENT
INDEX

History of the Human


Development Concept
Re-discovered and presented in the first Global
Human Development Report in 1990 by
distinguished economist Mahbub ul Haq
And expanded and widely used since then in
particular with many inputs over the years from
Nobel Prize-winning economist Amartya Sen

What is HDI
The Human Development Index (HDI) is a
composite measure of health, education and
income that was introduced in the first Human
Development Report in 1990 as an alternative to
purely economic assessments of national
progress, such as GDP growth

The dimensions and


indicators of the HDI
The HDI sets a minimum and a maximum for each
dimension, called goalposts, and then shows where
each country stands in relation to these goalposts,
expressed as a value between 0 and 1.
HDI has three dimensions, measured by one or two
indicators each:
Leading a long and healthy life
o Life expectancy at birth

Education
o Adult literacy rate
o Gross primary, secondary and tertiary enrolment

A decent standard of living


o GDP per capita (PPP US$)

Calculating the HDI


Dimensions:

A long and
healthy life

Being
Knowledgeable

A decent
standard
of living

Indicators:

Life
Expectancy

MYS &
EYS

GNI
per capita

Dimension
index

Life
Expectancy
Index

Education
Index

GNI
Index

The HDI

Goalposts for calculating the


HDI
Indicator

Minimum value

Maximum value

Life expectancy

20 years

83.2 years

Mean years of
schooling

13.2

Expected years
of schooling

20.6

GNI per capita

163 (PPP US$)

108211 (PPP US$)

Life expectancy at birth: Number of years a newborn infant could


expect to live if prevailing patterns of age-specific mortality rates at
the time of birth stay the same throughout the infants life.
Mean years of schooling: Average number of years of education
received by people ages 25 and older.
Expected years of schooling: Number of years of schooling that
a child of school entrance age can expect to receive if prevailing
patterns of age-specific enrolment rates persist throughout the
childs life.

Calculating the HDI

Calculating the HDI


Dimension index = actual value minimum
value
maximum
value minimum value

Calculating the HDI

interpretation
The HDI simplifies the comparison among
countries by combining the achievement on the
number of different variables into a single number.
The value of the HDI index can vary between 0
and 1, with the HDI score close to zero indicating
greater distance from the maximum to be
achieved on the aggregate of the factors entering
the HDI.
With the HDI score close to one indicating greater
achievement relative to the maximum attainable
on the aggregate of the factors entering the HDI.

Gender Inequality Index


TheGender Inequality Index(GII) reflects
womens disadvantage in three dimensions
reproductive health, empowerment and the labor
market
The index shows the loss in human development
due to inequality between female and male
achievements in these dimensions.
It ranges from 0, which indicates that women and
men fare equally, to 1, which indicates that
women fare as poorly as possible in all measured
dimensions.

Gender Inequality Index


The health dimension is measured by two indicators:
maternal mortality ratio and the adolescent fertility rate.
The empowerment dimension is also measured by two
indicators: the share of parliamentary seats held by each
sex and by secondary and higher education attainment
levels.
The labor dimension is measured by womens
participation in the work force.
The Gender Inequality Index is designed to reveal the
extent to which national achievements in these aspects
of human development are eroded by gender inequality,
and to provide empirical foundations for policy analysis
and advocacy efforts.

Multidimensional Poverty
Index
TheMultidimensional Poverty Index(MPI)
identifies multiple deprivations at the individual
level in health, education and standard of living.
It uses micro data from household surveys, and
unlike the Inequality-adjusted Human
Development Indexall the indicators needed to
construct the measure must come from the same
survey. Each person in a given household is
classified as poor or non-poor depending on the
number of deprivations his or her household
experiences. This data are then aggregated into
the national measure of poverty

Multidimensional Poverty
Index
The MPI reflects both the prevalence of multidimensional
deprivation, and its intensityhow many deprivations people
experience at the same time.
It can be used to create a comprehensive picture of people living in
poverty, and permits comparisons both across countries, regions and
the world and within countries by ethnic group, urban or rural
location, as well as other key household and community
characteristics.
The MPI builds on recent advances in theory and data to present the
first global measure of its kind, and offers a valuable complement to
income-based poverty measures.
The 2013 Human Development Report (HDR) presents estimates for
104 countries with a combined population of 5.4 billion (76% of the
world total). About 1.6 billion people in the countries covered30%
of their entire populationlived in multidimensional poverty
between 2002 and 2011.

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