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Human Development Index

The Human Development Index (HDI) is a

statistic composite index of life expectancy, education
(mean years of schooling completed and expected
years of schooling upon entering the education
system), and per capita income indicators, which is
used to rank countries into four tiers of human
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 World map representing Human Development Index categories (based
Development Report Office.[1][2][3] on 2019 data, published in 2020).
   Very high (≥ 0.800)    Low (≤ 0.549)
The 2010 Human Development Report introduced an    High (0.700–0.799)    Data unavailable
Inequality-adjusted Human Development Index
   Medium (0.550–0.699)
(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 World map of countries by Human Development Index categories in
(e.g. when fasting for religious reasons) is quite increments of 0.050 (based on 2019 data, published in 2020).
different from someone who is hungry because they    ≥ 0.900    0.650–0.699    0.400–0.449
cannot afford to buy food, or because the country is in
   0.850–0.899    0.600–0.649    ≤ 0.399
a famine.[5]
   0.800–0.849    0.550–0.599    Data unavailable
The index does not take into account several factors,    0.750–0.799    0.500–0.549
such as the net wealth per capita or the relative quality    0.700–0.749    0.450–0.499
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]

Contents
Origins
Dimensions and calculation
New method (2010 HDI onwards)
Old method (HDI before 2010)
2019 Human Development Index (2020 report)
Inequality-adjusted Human Development Index (2020 report)
Past top countries
In each original HDI
Geographical coverage
Country/region specific HDI lists
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Criticism
Sources of data error
See also
Indices
Other
Notes
References
External links

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.

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

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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.

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: HDI trends between 1975 and 2004
   OECD    Arab League
Life Expectancy Index =    Europe (not in the    South Asia
OECD), and CIS    Sub-
Education Index =    Latin America and the Saharan Africa
Caribbean
   East Asia
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.

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= steady.
= decrease.

Rank HDI Rank HDI

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

Very high human development 33  Cyprus 0.887 0.40%

1  Norway 0.957 0.20%
34 0.882 0.66%
 Lithuania
2 (7)  Ireland 0.955 0.65%
35  Poland 0.880 0.52%
2 0.955 0.16%
  Switzerland
36 (4) 0.868 0.40%
 Andorra
 Hong
4 (7) 0.949 0.54%
Kong 37 (3)  Latvia 0.866 0.55%

4 (4)  Iceland 0.949 0.62%

38 (1) 0.864 0.46%
 Portugal
6 (3) 0.947 0.24%
 Germany
39 (2) 0.860 0.38%
 Slovakia
7 (3)  Sweden 0.945 0.41%

8 (2)  Australia 0.944 0.17% 40 (1) 0.854 0.30%

 Hungary

8 (1) 0.944 0.32%  Saudi

 Netherlands 40 (4) 0.854 0.60%
Arabia
10 (6)  Denmark 0.940 0.28%
42 (6) 0.852 0.70%
 Bahrain
11 (2)  Finland 0.938 0.26%
43  Chile 0.851 0.65%
11 0.938 0.35%
 Singapore 43 (2)  Croatia 0.851 0.48%
 United 45  Qatar 0.848 0.19%
13 0.932 0.24%
Kingdom
46 (2) 0.845 0.21%
14 (1)  Belgium 0.931 0.25%  Argentina

 New 47 (6)  Brunei 0.838 0.15%

14 (3) 0.931 0.30%
Zealand
48 (2) 0.829 0.37%
16 (1)  Canada 0.929 0.34%  Montenegro

 United
17 (3) 0.926 0.12% 49 (2) 0.828 0.31%
States  Romania

18  Austria 0.922 0.22% 50 (3)  Palau 0.826 0.55%

19 (1)  Israel 0.919 0.29% 51 (7) 0.825 0.86%

 Kazakhstan
19 (2)  Japan 0.919 0.39%
52 (1)  Russia 0.824 0.60%
19 0.919 0.18% 53 (4)  Belarus 0.823 0.39%
 Liechtenstein
22 (2)  Slovenia 0.917 0.35% 54 (5)  Turkey 0.820 1.16%

 South 55 (1) 0.817 0.49%

23 (1) 0.916 0.33%
Korea  Uruguay

23 0.916 0.22% 56 (2) 0.816 0.39%

 Luxembourg  Bulgaria

25 (1)  Spain 0.904 0.40% 57 (5) 0.815 0.58%

 Panama
26 (1)  France 0.901 0.28%
58 (3) 0.814 0.12%
 Czech  Bahamas
27 (1) 0.900 0.38%
Republic
58 (6) 0.814 0.23%
28 (2)  Malta 0.895 0.54%  Barbados

29 (2)  Estonia 0.892 0.51% 60 (3)  Oman 0.813 0.43%

29 (1)  Italy 0.892 0.16% 61 (7) 0.812 0.87%

 Georgia

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Rank HDI Rank HDI

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

Very high human development  Costa

62 (3) 0.810 0.64%
Rica
 United
31 (6) Arab 0.890 0.91%
Emirates 62 (1) 0.810 0.54%
 Malaysia
32 (3)  Greece 0.888 0.29% 64 (5)  Kuwait 0.806 0.25%

64 (3)  Serbia 0.806 0.57%

66 (2) 0.804 0.76%

 Mauritius

Inequality-adjusted Human Development Index (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] 2019 estimates (2020 report)[16][17][18]

Rank Country Overall Growth Rank Country Overall Growth

IHDI HDI loss since IHDI HDI loss since
(%) 2010 (%) 2010
Very high human development 27  Poland 0.813 0.880 7.6 0.063
1  Norway 0.899 0.957 6.1 0.021  United
28 0.808 0.926 12.7 0.004
States
2  Iceland 0.894 0.949 5.8 0.055
29 0.807 0.860 6.2 0.032
3 0.889 0.955 6.9 0.015  Slovakia
  Switzerland
30  Cyprus 0.805 0.887 9.2 0.048
4  Finland 0.888 0.938 5.3 0.040
High human development
5  Ireland 0.885 0.955 7.3 0.066
31 0.791 0.854 7.4 0.032
 Hungary
6 0.883 0.940 6.1 0.025
 Denmark
31 0.791 0.882 10.3 0.055
7  Sweden 0.882 0.945 6.7 0.033  Lithuania

31  Greece 0.791 0.888 10.9 0.014

8 0.878 0.944 7.0 0.036
 Netherlands
34  Italy 0.783 0.892 12.2 0.010
9 0.875 0.917 4.6 0.047 34  Latvia 0.783 0.866 9.6 0.050
 Slovenia
34  Croatia 0.783 0.851 8.0 0.092
10 0.869 0.947 8.2 0.016
 Germany
34  Spain 0.783 0.904 13.4 0.004
11 0.867 0.944 8.2 0.011 38  Belarus 0.771 0.823 6.3 0.050
 Australia
 Czech 39 0.766 0.825 7.2 0.105
12 0.860 0.900 4.4 0.042  Kazakhstan
Republic

13  Belgium 0.859 0.931 7.7 0.026 40 0.761 0.864 11.9 0.031

 Portugal
 New
14 0.859 0.931 7.7 NA
Zealand 41 0.749 0.829 9.7 0.026
 Montenegro
15  Austria 0.857 0.922 7.0 0.021
42  Russia 0.740 0.824 10.2 0.049
 United
16 0.856 0.932 8.2 0.032
Kingdom

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2019 estimates (2020 report)[16][17][18] 2019 estimates (2020 report)[16][17][18]

Rank Country Overall Growth Rank Country Overall Growth

IHDI HDI loss since IHDI HDI loss since
(%) 2010 (%) 2010
Very high human development
43 0.730 0.828 11.8 0.022
 Romania
17  Canada 0.848 0.929 8.7 0.025

18  Japan 0.843 0.919 8.3 0.053[a] 44 0.729 0.845 13.7 0.063

 Argentina
19  Estonia 0.829 0.892 7.1 0.051
45 0.728 0.779 6.4 0.035
 Ukraine
20 0.826 0.916 9.8 0.009
 Luxembourg
46 0.721 0.816 11.6 0.022
 Hong  Bulgaria
21 0.824 0.949 13.2 NA
Kong
47 0.716 0.812 11.8 0.093
 Georgia
22  Malta 0.823 0.895 8.0 0.033[b]

23  France 0.820 0.901 9.0 0.022 48 0.712 0.817 12.7 0.055

 Uruguay
 South  Chile
24 0.815 0.916 11.0 0.074 49 0.709 0.851 16.7 0.058
Korea
50  Albania 0.708 0.795 10.9 0.058
25  Israel 0.814 0.919 11.4 0.031
51  Oman 0.706 0.813 13.2 NA
26 0.813 0.938 13.3 NA
 Singapore 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 2002 (2004):  Norway

2018 (2019):  Norway 2001 (2003):  Norway
2017 (2018):  Norway 2000 (2002):  Norway
2015 (2016):  Norway 1999 (2001):  Norway
2014 (2015):  Norway 1998 (2000):  Canada
2013 (2014):  Norway 1997 (1999):  Canada
2012 (2013):  Norway 1995 (1998):  Canada
2011 (2011):  Norway 1994 (1997):  Canada
2010 (2010):  Norway 1993 (1996):  Canada
2007 (2009):  Norway 1992 (1995):  Canada
2006 (2008):  Iceland ???? (1994):  Canada
2005 (2007):  Iceland ???? (1993):  Japan
2004 (2006):  Norway 1990 (1992):  Canada
2003 (2005):  Norway 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

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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
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]
HDI vis-à-vis ecological footprint

Sources of data error

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

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

Notes
a. Since 2013
b. Since 2012

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

Economic Times. Archived (https://web.archive.org/web/20171201030929/https://economictimes.indiatimes.com/def
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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 age-specific enrollment rates
were to stay the same throughout the child's life. Expected years of schooling is capped at 18 years. (Source:
UNESCO Institute for Statistics (2010). Correspondence on education indicators. March. Montreal.)
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rg/sites/default/files/hdr2020.pdf) (PDF). United Nations Development Programme. 15 December 2020. pp. 343–
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rg/sites/default/files/hdr2020.pdf) (PDF). United Nations Development Programme. 15 December 2020. pp. 343–
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rg/sites/default/files/hdr2020.pdf) (PDF). United Nations Development Programme. 15 December 2020. pp. 338,
351–355. ISBN 978-92-1-126442-5. Retrieved 17 December 2020.
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15 December 2020.
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External links
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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