Human Development is process of enlarging people’s choices.

The most critical ones are

lead to a long and healthy life, to be educated and to enjoy a decent standard of living.
Additional choices include political freedom, guaranteed human rights, and self respect.

In Adam Smith’s language, the ability to mix with others without being “ashamed to
appear in public”

HDI?
The human development index (HDI) is a composite statistic of life expectancy, education,
and per capita income indicators, which is used to rank countries into three tiers of human
development.

The UNDP classifies each country into one of three development groups:

 Low human development for HDI scores between 0.0 and 0.5, e.g.
Nigeria
 Medium human development for HDI scores between 0.5 and 0.8.
e.g. Romania, India
 High human development for HDI scores between 0.8 and 1.0. e.g.
Australia, US, Canada

FOUR PILLARS OF HDI

Just as any building is supported by pillars, the idea of human development is supported by
the concepts of equity, sustainability, productivity and empowerment.
• Equity refers to making equal access to opportunities available to everybody.
• Sustainability means continuity in the availability of opportunities.
• Productivity here means human labour productivity or productivity in terms of human
work.
• Empowerment means to have the power to make choices.

FACTORS CONSIDERED FOR HDI

COMPONENTS of HDI:
Each component of the HDI is measured in the following way:
• Health Measured by life expectancy at birth.
A higher expectancy of life means people have a greater chance of living longer and
healthier lifes.
• Education Measured as a combination of adult literacy (with two thirds weight) and gross
enrollment (with one-third weight).
• Wealth Measured by GDP per capita.

 Greater HDI Rating attracts Foreign Investment.

If there is a greater rating of education index in any country or religion, there is a greater
chance for the place to get foreign investments because business needs skilled people to
operate the businesses.

If an individual attain greater education, their probability of employment raises

Greater Education also increases worker’s ability to command higher wages
For every 1% increase in the growth rate of the portion of a state’s population with at least a
bachelor degree, the state’s real GDP increases by 0.08%.

If GNI/GDP per capita increases (you earn more), you are able to pay/spend more for
domestic help, thus improving the standard of living.
1. Investment/Literacy like Karela
2.