HUMAN

DEVELOPMENT INDEX
GROUP NO 08
• The Human Development Index

• (HDI) is a composite statistic used to

rank countries by level of "human
development" and separate
developed(high development) ,
developing (middle development)
and under developed (low
development) countries.
SUB INDICES
»Life expectancy
»Literacy
»Per-capita GDP(Standard
of living)
 Origins of the HDI
• The origins of the HDI are to be found in the
United Nations Development Programme's
(UNDP) Human Development Reports (HDRs).
• These were devised and launched by a group
of economists in 1990 and had the explicit
purpose: ‘‘to shift the focus of development
economics from national income accounting
to people centered policies’’.
• In here they discussed that human
development was needed in order to convince
the public, academics, and policy-makers that
they can and should evaluate development
not only by economic advances but also
improvements in human well-being.
 Methodology of
Calculating HDI
• The formula defining the HDI is
promulgated by the United Nations
Development Programme.
• In general, to transform a raw variable,
say x, into a unit-free index between 0
and 1.
• There are 2 methods of calculating
HDI,old & new.
• Where and are the lowest and highest values
the variable x can attain, respectively.
• The Human Development Index (HDI) then
represents the uniformly weighted sum with ⅓
contributed by each of the following factor
indices:
 The New Method
• In its 2010 Human Development Report the
UNDP began using a new method of
calculating the HDI. The following three
indices are used:
• Life Expectancy Index (LEI) =LE-20/(83.2-20)
• Income Index (EI)=
{In(GNIpc)- In(163)} /{In(108,211)-In(163)}
 EYSI .MYSI −O
• Education Index =∫
0.951 −0

• Mean Years of Schooling Index (MYSI)=

MYS-0/13.2-0
• Expected Years of Schooling Index (EYSI) =
EYS-0/20.6-0
• HDI is the geometric mean of the previous
three normalized indices.

3
HDI= LEI .EI .II
SriLankan Past Records Of HDI
YEAR HDI SCORE RANK
1990 0.649
1995 0.696
2000 0.729
2004 0.746 96
2005 0.751 93
2006 0.755 102
2007 0.759
2009 0.759 102
2010 0.659 91
 HDI in SriLanka

0.78
0.76
0.74
SCORE

0.72
Series1
0.7
0.68
0.66
0.64
1980 1990 2000 2010 2020
YEAR
World’s HDI
SL with Other Countries………

Country HDI Rank

SriLanka 0.659 91

India 0.519 119

Pakistan 0.490 125

USA 0.902 4

Japan 0.884 11

Zimbabwe 0.140 169

 References
• Central Bank reports of SriLanka
• 2010 Human Development Index 2010
• Human Development Complete Report
http://hdr.undp.org/en/media/HDR_2009_EN
_Complete.pdf
• Human Development Report 2009[ (p. 171,
204)
Thank You….