Measurement of Economic Development

• https://www.youtube.com/watch?v=hUsrRwe9r04
What is Human Development Index

Human Development Index or HDI is a

statistical measure developed by
Mahbub Ul Haq, a Pakistani economist. It
was later adopted by the United Nations
Development Programme (UNDP) for
measuring the development of
countries.
•HDI measures development
of a country based on
certain parameters such as
life expectancy, literacy rate
(education) and per capita
income.
UNDP releases a yearly report by
assessing the countries of the world
on the parameters mentioned
above. It is regarded as one of the
best indicators of the development
of a nation as it consists of all the
important indicators necessary to
determine economic development.
Components of Human Development
Index
The following are the components of
Human Development Index.
1. Health: The first component of HDI
is health and for determining a long
and healthy life, life expectancy is
the most important parameter.
2. Education: The development of a
nation can be indicated by another
important component which is
education. Education can be measured
in two stages, which can be as expected
years of schooling that is based on
entry level schooling age and mean
years of schooling (total schooling age)
for the adult population.
3. Income: The third parameter
that is considered for
determining a good standard of
living is income and it is
determined by the gross national
income per capita.
What is life expectancy?
The term “life expectancy” refers
to the number of years a person can
expect to live. By definition, life
expectancy is based on an estimate
of the average age that members of a
particular population group will be
when they die.
Literacy Rate
Definition: The proportion of the adult
population aged 15 years and over which is
literate, expressed as a percentage of the
corresponding population, total or for a given
sex, in a given country, territory, or geographic
area, at a specific point in time, usually
mid-year. For statistical purposes, a person is
literate who can with understanding both read
and write a short simple statement on his/her
everyday life.
GNI-PC
Gross National Income (GNI) per
capita is the dollar value of a
country’s final income in a year
divided by its population using Atlas
methodology.
• https://data.who.int/countries/608
Importance of Human Development
Index
It is necessary to determine social measures
of development for calculating the overall
development of a nation. Human
Development Index measures the socio
economic factors and therefore, is
considered very effective in measuring
the performance of a country in terms
of these factors.
HDI acts as a tool in
evaluating the
socio-economic status of
nations around the world
every year and as such acts
as a reliable indicator of the
development of the nations.
List of Countries by HDI
https://en.wikipedia.org/wiki/List_of_countries_by_Human_Developm
ent_Index