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What is the HDI?

HDI stands for Human Development Index and it measures a countrys GDP along with other factors that reflect the general quality of life in a country. HDI was created by the United Nations (UN) as a better alternative to GDP Per Capita Countries are ranked in HDI (the lower the number, the better overall quality of life) (ex) #1 would have a great quality of life, #125 not so much

The HDI Measures More Than Just Wealth

It used GDP and GDP Per Capita (what we have studied before)

Why? Because part of the HDI measures wealth as a factor of quality of life, so GDP and GDP per capita are used to calculate that.

HDI is a 3 part formula

1. Measures GDP and GDP per capita

This measures wealth GDP total value of all goods and services produced in a country that year GDP per capita the total GDP divided by the number of people in that country. This is the fist measure of the HDI

2. Life Expectancy
The second factor the HDI measures is life expectancy. It is the average measure of how long people live in a country. Higher life expectancy means a better country to live in. Length of lifehow long you live Infant mortality ratenumber of infants that die in the first year of life General healthoverall health conditions.

2. Knowledge
Knowledge (education) is the 3rd factor measured. How can we measure it?? literacy rate Percent of people who graduate high school Percent of people who graduate college

How Is the HDI Calculated?

The UN adds all 3 sections together (GDP Per Capita, life expectancy, and education) Each section is given a grade of 0-1 (1 is the best and 0 is the worst). For example, if a country had a life expectancy in the 30s, they may get a number like 0 or 0.1
HDI= life expectancy+knowledge+GDP per capita 3 The resulting number is the countrys HDI number

GDP Per Capita (2012)

HDI Rankings (2012)