Human

Development Index

The Human Development Index ((HDI

HDI)) is a statistic composite index of life expectancy,
expectancy, education
(mean years of schooling completed and expected years of schooling upon entering the
education system), and per capita income indicators, which are used to rank countries into four
tiers of human development.
development. A country scores a higher level of HDI when the lifespan is higher,
the education level is higher, and the gross national income GNI (PPP) per capita is higher. It was
developed by Pakistani economist Mahbub ul Haq and was further used to measure a country's
development by the United Nations Development Programme (UNDP)'s Human Development
Report Office.[1][2][3]
World map representing Human Development Index categories (based on 2019 data, published in 2020).

   Very high (≥ 0.800)    Low (≤ 0.549)

   High (0.700–0.799)    Data unavailable
   Medium (0.550–0.699)

World map of countries by Human Development Index categories in increments of 0.050 (based on 2019 data, published
in 2020).

   ≥ 0.900    0.650–0.699    0.400–0.449

   0.850–0.899    0.600–0.649    ≤ 0.399
   0.800–0.849    0.550–0.599    Data unavailable
   0.750–0.799    0.500–0.549
   0.700–0.749    0.450–0.499

The 2010 Human Development Report introduced an Inequality-adjusted Human Development

Index (IHDI). While the simple HDI remains useful, it stated that "the IHDI is the actual level of
human development (accounting for inequality), while the HDI can be viewed as an index of
'potential' human development (or the maximum level of HDI) that could be achieved if there
were no inequality."[4]

The index is based on the human development approach, developed by Mahbub ul Haq,
anchored in Amartya Sen's work on human capabilities, often framed in terms of whether people
are able to "be" and "do" desirable things in life. Examples include – being: well fed, sheltered,
healthy; doing: work, education, voting, participating in community life. The freedom of choice is
central – someone choosing to be hungry (e.g. when fasting for religious reasons) is quite
different from someone who is hungry because they cannot afford to buy food, or because the
country is in a famine.[5]

The index does not take into account several factors, such as the net wealth per capita or the
relative quality of goods in a country. This situation tends to lower the ranking for some of the
most advanced countries, such as the G7 members and others.[6]

Origins

The origins of the HDI are found in the annual Human Development Reports produced by the
Human Development Report Office of the United Nations Development Programme (UNDP).
These were devised and launched by Pakistani economist Mahbub ul Haq in 1990, and had the
explicit purpose "to shift the focus of development economics from national income accounting
to people-centered policies". Haq believed that a simple composite measure of human
development was needed to convince the public, academics, and politicians that they can and
should evaluate development not only by economic advances but also improvements in human
well-being.

The underlying principles behind the Human Development Index.[5]

Dimensions and calculation

New method (2010 HDI onwards)

Published on 4 November 2010 (and updated on 10 June 2011), the 2010 Human Development
Report calculated the HDI combining three dimensions:[7][8]

A long and healthy life: Life expectancy at birth

Education: Mean years of schooling and expected years of schooling

A decent standard of living: GNI per capita (PPP international dollars)

In its 2010 Human Development Report, the UNDP began using a new method of calculating the
HDI. The following three indices are used:

1. Life Expectancy Index (LEI)

LEI is equal to 1 when life expectancy at birth is 85 years, and 0 when life expectancy at
birth is 20 years.

2. Education Index (EI) [9]

2.1 Mean Years of Schooling Index (MYSI) [10]

Fifteen is the projected maximum of this indicator for 2025.

[11]
2.2 Expected Years of Schooling Index (EYSI)

Eighteen is equivalent to achieving a master's degree in most countries.

3. Income Index (II)

II is 1 when GNI per capita is $75,000 and 0 when GNI per capita is $100.

Finally, the HDI is the geometric mean of the previous three normalized indices:

LE: Life expectancy at birth

MYS: Mean years of schooling (i.e. years that a person aged 25 or older has spent in formal
education)

EYS: Expected years of schooling (i.e. total expected years of schooling for children under 18
years of age)

GNIpc: Gross national income at purchasing power parity per capita

Old method (HDI before 2010)

The HDI combined three dimensions last used in its 2009 report:

Life expectancy at birth, as an index of population health and longevity to HDI

Knowledge and education, as measured by the adult literacy rate (with two-thirds weighting)
and the combined primary, secondary, and tertiary gross enrollment ratio (with one-third
weighting).

Standard of living, as indicated by the natural logarithm of gross domestic product per capita
at purchasing power parity.

HDI trends between 1975 and 2004

   OECD    Arab League

   Europe (not in the OECD), and CIS    South Asia
   Latin America and the Caribbean    Sub-Saharan Africa
   East Asia

This methodology was used by the UNDP until their 2011 report.
The formula defining the HDI is promulgated by the United Nations Development Programme
(UNDP).[12] In general, to transform a raw variable, say , into a unit-free index between 0 and 1
(which allows different indices to be added together), the following formula is used:

where and are the lowest and highest values the variable can attain, respectively.

The Human Development Index (HDI) then represents the uniformly weighted sum with 1⁄3
contributed by each of the following factor indices:

Life Expectancy Index =

Education Index =

Adult Literacy Index (ALI) =

Gross Enrollment Index (GEI) =

GDP =

2019 Human Development Index (2020 report)

The Human Development Report 2020 by the United Nations Development Programme was
released on 15 December 2020, and calculates HDI values based on data collected in 2019.[13]
The list comprises countries and territories with very high human development:

= increase.

= steady.

= decrease.
 Rank HDI

Average
Change annual
2019 data 2019 data
over 5 Country or Territory HDI
(2020 (2020
years growth
report)​[14] report)​[14]
(2014)​[15] (2010-
2019)​[15]

Very high human development

1  Norway 0.957 0.20%

2 (7)  Ireland 0.955 0.65%

2   Switzerland 0.955 0.16%

4 (7)  Hong Kong 0.949 0.54%

4 (4)  Iceland 0.949 0.62%

6 (3)  Germany 0.947 0.24%

7 (3)  Sweden 0.945 0.41%

8 (2)  Australia 0.944 0.17%

8 (1)  Netherlands 0.944 0.32%

10 (6)  Denmark 0.940 0.28%

11 (2)  Finland 0.938 0.26%

11  Singapore 0.938 0.35%

13  United Kingdom 0.932 0.24%

14 (1)  Belgium 0.931 0.25%

14 (3)  New Zealand 0.931 0.30%

16 (1)  Canada 0.929 0.34%

17 (3)  United States 0.926 0.12%

18  Austria 0.922 0.22%

19 (1)  Israel 0.919 0.29%

19 (2)  Japan 0.919 0.39%

19  Liechtenstein 0.919 0.18%

22 (2)  Slovenia 0.917 0.35%

23 (1)  South Korea 0.916 0.33%

23  Luxembourg 0.916 0.22%

25 (1)  Spain 0.904 0.40%

26 (1)  France 0.901 0.28%

27 (1)  Czech Republic 0.900 0.38%

28 (2)  Malta 0.895 0.54%

29 (2)  Estonia 0.892 0.51%

29 (1)  Italy 0.892 0.16%

31 (6)  United Arab Emirates 0.890 0.91%

32 (3)  Greece 0.888 0.29%

 Rank HDI

Average
Change annual
2019 data 2019 data
over 5 Country or Territory HDI
(2020 (2020
years growth
report)​[14] report)​[14]
(2014)​[15] (2010-
2019)​[15]

33  Cyprus 0.887 0.40%

34  Lithuania 0.882 0.66%

35  Poland 0.880 0.52%

36 (4)  Andorra 0.868 0.40%

37 (3)  Latvia 0.866 0.55%

38 (1)  Portugal 0.864 0.46%

39 (2)  Slovakia 0.860 0.38%

40 (1)  Hungary 0.854 0.30%

40 (4)  Saudi Arabia 0.854 0.60%

42 (6)  Bahrain 0.852 0.70%

43  Chile 0.851 0.65%

43 (2)  Croatia 0.851 0.48%

45  Qatar 0.848 0.19%

46 (2)  Argentina 0.845 0.21%

47 (6)  Brunei 0.838 0.15%

48 (2)  Montenegro 0.829 0.37%

49 (2)  Romania 0.828 0.31%

50 (3)  Palau 0.826 0.55%

51 (7)  Kazakhstan 0.825 0.86%

52 (1)  Russia 0.824 0.60%

53 (4)  Belarus 0.823 0.39%

54 (5)  Turkey 0.820 1.16%

 55 (1)  Uruguay 0.817 0.49%

56 (2)  Bulgaria 0.816 0.39%

57 (5)  Panama 0.815 0.58%

58 (3)  Bahamas 0.814 0.12%

58 (6)  Barbados 0.814 0.23%

60 (3)  Oman 0.813 0.43%

61 (7)  Georgia 0.812 0.87%

62 (3)  Costa Rica 0.810 0.64%

62 (1)  Malaysia 0.810 0.54%

64 (5)  Kuwait 0.806 0.25%

64 (3)  Serbia 0.806 0.57%

66 (2)  Mauritius 0.804 0.76%

Inequality-adjusted HDI (2020 report)

The Inequality-adjusted Human Development Index (IHDI) "can be interpreted as the level of
human development when inequality is accounted for. The relative difference between IHDI and
HDI values is the loss due to inequality in distribution of the HDI within the country."[16] The list
comprises countries and territories with very high and high human development:
 2019 estimates (2020 report)[16][17][18]
Rank Country Overall Growth
IHDI HDI
loss (%) since 2010

Very high human development

1  Norway 0.899 0.957 6.1 0.021

2  Iceland 0.894 0.949 5.8 0.055

3   Switzerland 0.889 0.955 6.9 0.015

4  Finland 0.888 0.938 5.3 0.040

5  Ireland 0.885 0.955 7.3 0.066

6  Denmark 0.883 0.940 6.1 0.025

7  Sweden 0.882 0.945 6.7 0.033

8  Netherlands 0.878 0.944 7.0 0.036

9  Slovenia 0.875 0.917 4.6 0.047

10  Germany 0.869 0.947 8.2 0.016

11  Australia 0.867 0.944 8.2 0.011

12  Czech Republic 0.860 0.900 4.4 0.042

13  Belgium 0.859 0.931 7.7 0.026

14  New Zealand 0.859 0.931 7.7 NA

15  Austria 0.857 0.922 7.0 0.021

16  United Kingdom 0.856 0.932 8.2 0.032

17  Canada 0.848 0.929 8.7 0.025

18  Japan 0.843 0.919 8.3 0.053[a]

19  Estonia 0.829 0.882 7.1 0.051

20  Luxembourg 0.826 0.916 9.8 0.009

21  Hong Kong 0.824 0.949 13.2 NA

22  Malta 0.823 0.895 8.0 0.033[b]

23  France 0.820 0.901 9.0 0.022

24  South Korea 0.815 0.916 11.0 0.074

25  Israel 0.814 0.919 11.4 0.031

26  Singapore 0.813 0.938 13.3 NA

 2019 estimates (2020 report)[16][17][18]
Rank Country Overall Growth
IHDI HDI
loss (%) since 2010

27  Poland 0.813 0.880 7.6 0.063

28  United States 0.808 0.926 12.7 0.004

29  Slovakia 0.807 0.860 6.2 0.032

30  Cyprus 0.805 0.887 9.2 0.048

High human development

31  Hungary 0.791 0.854 7.4 0.032

31  Lithuania 0.791 0.882 10.3 0.055

31  Greece 0.791 0.888 10.9 0.014

34  Italy 0.783 0.892 12.2 0.010

34  Latvia 0.783 0.866 9.6 0.050

34  Croatia 0.783 0.851 8.0 0.092

34  Spain 0.783 0.904 13.4 0.004

38  Belarus 0.771 0.823 6.3 0.050

39  Kazakhstan 0.766 0.825 7.2 0.105

40  Portugal 0.761 0.864 11.9 0.031

41  Montenegro 0.749 0.829 9.7 0.026

42  Russia 0.740 0.824 10.2 0.049

43  Romania 0.730 0.828 11.8 0.022

44  Argentina 0.729 0.845 13.7 0.063

45  Ukraine 0.728 0.779 6.4 0.035

46  Bulgaria 0.721 0.816 11.6 0.022

47  Georgia 0.716 0.812 11.8 0.093

48  Uruguay 0.712 0.817 12.7 0.055

49  Chile 0.709 0.851 16.7 0.058

50  Albania 0.708 0.795 10.9 0.058

 51  Oman 0.706 0.813 13.2 NA

52  Serbia 0.705 0.806 12.5 0.021

Past top countries

The list below displays the top-ranked country from each year of the Human Development Index.
Norway has been ranked the highest sixteen times, Canada eight times, and Japan and Iceland
twice.

In each original HDI

The year represents the time period from which the statistics for the index were derived. In
parentheses is the year when the report was published.

2019 (2020):  Norway

2018 (2019):  Norway

2017 (2018):  Norway

2015 (2016):  Norway

2014 (2015):  Norway

2013 (2014):  Norway

2012 (2013):  Norway

2011 (2011):  Norway

2010 (2010):  Norway

2007 (2009):  Norway

2006 (2008):  Iceland

2005 (2007):  Iceland

2004 (2006):  Norway

2003 (2005):  Norway

2002 (2004):  Norway

 2001 (2003):  Norway

2000 (2002):  Norway

1999 (2001):  Norway

1998 (2000):  Canada

1997 (1999):  Canada

1995 (1998):  Canada

1994 (1997):  Canada

1993 (1996):  Canada

1992 (1995):  Canada

???? (1994):  Canada

???? (1993):  Japan

1990 (1992):  Canada

1990 (1991):  Japan

Geographical coverage

The HDI has extended its geographical coverage: David Hastings, of the United Nations
Economic and Social Commission for Asia and the Pacific, published a report geographically
extending the HDI to 230+ economies, whereas the UNDP HDI for 2009 enumerates 182
economies and coverage for the 2010 HDI dropped to 169 countries.[19][20]

Country/region specific HDI lists

African countries

Argentinean provinces

Australian states

Austrian states

Baltic Regions
Belgian provinces

Bolivian departments

Brazilian states

Canadian provinces and territories

Chilean regions

Chinese administrative divisions

Colombian departments

Danish regions

Dutch provinces

Ethiopian regions

European countries

French regions

German states

Greek regions

Indian states

Tamil Nadu districts

Indonesian provinces

Iranian provinces

Iraqi governorates

Italian regions

Japanese prefectures

Latin American countries

Malaysian states

Mexican states

New Zealand regions

Nigerian states
 Pakistani administrative units

Philippine provinces

Palestinian regions

Polish voivodeships

Russian federal subjects

South African provinces

Spanish communities

Swedish regions

Swiss regions

UK countries and regions of England

U.S. states (American Human Development Report (AHDR))

Venezuelan states

Vietnamese regions

Criticism

HDI vs. ecological footprint

The Human Development Index has been criticized on a number of grounds, including alleged
lack of consideration of technological development or contributions to the human civilization,
focusing exclusively on national performance and ranking, lack of attention to development from
a global perspective, measurement error of the underlying statistics, and on the UNDP's changes
in formula which can lead to severe misclassification in the categorisation of "low", "medium",
"high" or "very high" human development countries.[21]

Sources of data error

Economists Hendrik Wolff, Howard Chong and Maximilian Auffhammer discuss the HDI from the
perspective of data error in the underlying health, education and income statistics used to
construct the HDI. They identified three sources of data error which are due to (i) data updating,
(ii) formula revisions and (iii) thresholds to classify a country's development status and conclude
that 11%, 21% and 34% of all countries can be interpreted as currently misclassified in the
development bins due to the three sources of data error, respectively. The authors suggest that
the United Nations should discontinue the practice of classifying countries into development
bins because: the cut-off values seem arbitrary, can provide incentives for strategic behavior in
reporting official statistics, and have the potential to misguide politicians, investors, charity
donors and the public who use the HDI at large.[21]

In 2010, the UNDP reacted to the criticism and updated the thresholds to classify nations as low,
medium, and high human development countries. In a comment to The Economist in early
January 2011, the Human Development Report Office responded[22] to a 6 January 2011 article
in the magazine[23] which discusses the Wolff et al. paper. The Human Development Report
Office states that they undertook a systematic revision of the methods used for the calculation
of the HDI, and that the new methodology directly addresses the critique by Wolff et al. in that it
generates a system for continuously updating the human-development categories whenever
formula or data revisions take place.

In 2013, Salvatore Monni and Alessandro Spaventa emphasized that in the debate of GDP versus
HDI, it is often forgotten that these are both external indicators that prioritize different
benchmarks upon which the quantification of societal welfare can be predicated. The larger
question is whether it is possible to shift the focus of policy from a battle between competing
paradigms to a mechanism for eliciting information on well-being directly from the
population.[24]

See also

Indices
 Bhutan GNH Index Human Poverty Index

Broad measures of economic progress Inequality-adjusted Human Development

Corruption Perceptions Index
Democracy Index
Fragile States Index
Gender Inequality Index
Gender-related Development Index
Genuine Progress Indicator (GPI)
Global Peace Index (GPI)
Green gross domestic product (Green GDP)
Green national product
Gross domestic product
Gross National Well-being (GNW)
Happy Planet Index (HPI)
Index (IHDI)
Legatum Prosperity Index
List of countries by Human Development
Index
Living planet index
Multidimensional Poverty Index
OECD Better Life Index (BLI)
Planetary pressures–adjusted Human
Development Index (PHDI)
Rule of Law Index
Social Progress Index
Where-to-be-born Index
World Happiness Report

Other

Developing country International development

Economic development List of countries by percentage of population

living in poverty
Ethics of care
List of countries by share of income of the
Happiness economics
richest one percent
Human Development and Capability
Right to an adequate standard of living
Association
Subjective life satisfaction
Humanistic economics
Sustainable Development Goals (SDGs)

Notes

a. Since 2013

b. Since 2012
References

1. A. Stanton, Elizabeth (February 2007). "The Human Development Index: A History" (https://web.archive.o
rg/web/20190228191918/https://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1101&context=
peri_workingpapers) . PERI Working Papers: 14–15. Archived from the original (https://scholarworks.u
mass.edu/cgi/viewcontent.cgi?article=1101&context=peri_workingpapers) on 28 February 2019.
Retrieved 28 February 2019.

2. "Human Development Index" (https://economictimes.indiatimes.com/definition/human-development-i

ndex) . Economic Times. Archived (https://web.archive.org/web/20171201030929/https://economicti
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3. "The Human Development concept" (https://web.archive.org/web/20120415134936/http://hdr.undp.or

g/en/humandev/) . UNDP. 2010. Archived from the original (http://hdr.undp.org/en/humandev/) on
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4. Human Development Index, "Composite indices — HDI and beyond" (http://hdr.undp.org/en/statistics/un

derstanding/indices) , Retrieved 16 January 2021.

5. "What is Human Development" (http://hdr.undp.org/en/content/what-human-development) . UNDP.

2017. Archived (https://web.archive.org/web/20171027132851/http://hdr.undp.org/en/content/what-hu
man-development) from the original on 27 October 2017. Retrieved 27 October 2017. "... human
development approach, developed by the economist Mahbub Ul Haq ...'"

6. The Courier (https://books.google.com/books?id=R2D0AAAAMAAJ) . Commission of the European

Communities. 1994.

7. "Human Development Report 2010" (http://hdr.undp.org/en/content/human-development-report-

2010) . UNDP. 4 November 2010. Archived (https://web.archive.org/web/20151222145515/http://hdr.u
ndp.org/en/content/human-development-report-2010) from the original on 22 December 2015.
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8. "Technical notes" (http://hdr.undp.org/sites/default/files/hdr_2013_en_technotes.pdf) (PDF). UNDP.

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sources/141517-New-method-of-calculation-of-Human-Development-Index-HDI.aspx) . India Study
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10. Mean years of schooling (of adults) (years) is a calculation of the average number of years of education
received by people ages 25 and older in their lifetime based on education attainment levels of the
population converted into years of schooling based on theoretical duration of each level of education
attended. Source: Barro, R. J.; Lee, J.-W. (2010). "A New Data Set of Educational Attainment in the World,
1950–2010" (http://www.nber.org/papers/w15902) . NBER Working Paper No. 15902.
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110807191234/http://www.nber.org/papers/w15902) from the original on 7 August 2011. Retrieved
29 July 2011.

11. (ESYI is a calculation of the number of years a child is expected to attend school, or university, including
the years spent on repetition. It is the sum of the age-specific enrollment ratios for primary, secondary,
post-secondary non-tertiary and tertiary education and is calculated assuming the prevailing patterns of
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9?story_id=17849159) . 6 January 2011. Archived (https://web.archive.org/web/20110113063006/htt
p://www.economist.com/node/17849159?story_id=17849159) from the original on 13 January 2011.
Retrieved 12 January 2011.

24. Monni, Salvatore; Spaventa, Alessandro (2013). "Beyond Gdp and HDI: Shifting the focus from
Paradigms to Politics". Development. 56 (2): 227–231. doi:10.1057/dev.2013.30 (https://doi.org/10.105
7%2Fdev.2013.30) . S2CID 84722678 (https://api.semanticscholar.org/CorpusID:84722678) .

External links

Wikimedia Commons has media related to Human Development Index.

Human Development Index (http://hdr.undp.org/en/content/human-development-index-hdi)

Human Development Tools and Rankings (http://hdr.undp.org/en/statistics/)

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