Human Development Index

Presented by
Dr. Anil Chougule
• Mahatma Gandhi once commented that :

• “the difference between what we do and what

we are capable of doing would suffice to solve
most of the world’s problems.”
2006 GLOBAL HUMAN DEVELOPMENT REPORT
• The Global HDR has created and developed four
main composite human development indices to assess
measurable dimensions of human development.

1. Human development index (HDI),

2. The human poverty index (HPI),
3. The gender-related development index (GDI)
and
4. The gender empowerment measure (GEM)
Indicators of economic development
• The global HDR has created and developed four main
composite human development indices to assess
measurable dimensions of human development.

1. Human development index (HDI),

2. The human poverty index (HPI),
3. The gender-related development index (GDI)
and
4. The gender empowerment measure (GEM)
 Human Development Index
• Origin of HDI: The index was developed
in 1990 by Pakistani economist Mahbub
ul Haq ,Indian Amartya Sen and Sir
Richard Jolly.
“The contrast between what great things
human beings can achieve and what limited
lives most women and men end up living is
truly remarkable.” Amartya Sen

“People are the real wealth of nations.”

“The objective of development is to

create an enabling environment for
people to enjoy long, healthy and
creative lives.”

- Mahbub ul Haq
The dimensions and indicators of the HDI

• HDI has three dimensions, measured by one or

two indicators each:
• Leading a long and healthy life
– Life expectancy at birth
• Education
– Adult literacy rate
– Gross primary, secondary and tertiary enrolment
• A decent standard of living
– GDP per capita (PPP US$)
 Calculating the HDI
A long and Being A decent
Dimensions: healthy life Knowledgeable standard
of living

Life Literacy & GDP

Indicators:
Expectancy Enrolment per capita

Education GDP
Life
Dimension Index Index
Expectancy
index
Index

The HDI
 Goalposts for calculating the HDI

Indicator Minimum value Maximum value

Life expectancy 25 years 85 years

Adult literacy 0% 100%

Gross enrolment 0% 100%

GDP per capita 100 (PPP US$) 40,000 (PPP US$)

• Individual indices can be computed according
to the general formula:
• Index = Actual xi value – minimum xi value/
Maximum xi value – minimum xi value
For eg: the life expectancy at birth in a country is
63.7 years the index of life expectancy for the
country would be:
Life expectancy index = 63.7-25/85-25 =
40/60 = 0.645
• HDI = LEI + EDI + GDP PCI
3

High Human Development Index – HDI 0.800 and

above
Medium Human Development Index – HDI 0.500 to
0.799
Low Human Development Index – HDI below 0.500
 Limitations of HDI:
 Not a comprehensive measure of human development. It
only focuses on three dimensions of capabilities.
 The HDI is not designed to assess progress in human
development over a short-term period because two of its
component indicators—adult literacy and life expectancy
at birth—are not responsive to short-term policy changes.
 Like any average country measure, the HDI does not
account for variations in human development within the
country.
 Countries with the same HDI may be very different in
how human development is distributed, either from
region to region, or from social group to social group.
 Highlights of HDR 2010:
• India’s rank is 119th in the United Nation's Human
Development Index due to poor social infrastructure, mainly in
areas of education and healthcare.
• Covered 169 countries and territories, India's position is way
below China (89th spot) and Sri Lanka (91).
• India came in the 10th position as far as improvement in the
income index was concerned but lagged behind neighboring
countries like Bangladesh and Pakistan in education and
healthcare.
• Norway has topped the HDI, with a score of 0.938, in a scale of
zero to one. A score of one indicates a perfect level in the index.
• The world's largest economy US is fourth with a score of 0.902.
•
“I would prize every invention of science made
for the benefit of all.”
—Mahatma Gandhi

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