Life Expectancy at Birth

Education
 This indicator measures the average number of years a newborn is
Index
expected to live, assuming current mortality rates remain constant.
It reflects the overall health and quality of life in a country. The education index measures a country's
educational attainment using two sub-
 It reflects a country's healthcare, nutrition, and living conditions, components:
influencing its HDI score.
 Mean Years of Schooling: The average
 As of 2024, Monaco has the highest life expectancy (86.50 years), number of years of education received by
followed by San Marino (85.82 years). Hong Kong, Japan, and people aged 25 and older.
South Korea rank 3rd to 5th  Expected Years of Schooling: The
number of years a child entering school is
 Globally, 57 countries/regions have a life expectancy above 80
expected to receive if current trends
years, 67 between 75-80 years, and 49 between 70-75 years. Six
continue.
countries fall below 60 years, with Nigeria lowest at 54.64 years.
The 14 lowest-ranked nations are in Africa.  Higher education levels improve
economic productivity and social
Gross National Income (GNI) Per Capita (PPP Adjusted) mobility.
 Countries with strong educational
This indicator measures the average income of a country's
systems tend to have sustainable
citizens, adjusted for purchasing power parity, which
Top 5 economic growth.
accounts for differences in living costs across countries.
Norway-$108,790
Why It Matters? Top 5 countries in education
Switzerland-$90,080 Above 0.9: Exceptional education systems
 1. Iceland - 0.960
Higher income levels generally lead to better
Luxembourg-$98,490 0.8–0.9: Very good performance
healthcare, improved living standards, and access to 2. Germany - 0.957
education. Ireland-$98,650 0.7–0.8: Good educational development
3. Norway - 0.937
 United states-$82,190 0.5–0.7: Moderate development
It indicates economic opportunities, employment 4. United Kingdom - 0.936
rates, and overall prosperity. Below 0.5: Significant education challenges
5. Denmark - 0.933
 Correlation Between HDI and Economic Stability Countries with High GDP but Low HDI (Resource
Curse Economies)
High HDI Countries Experience Stability
 Strong healthcare, education, and income levels reduce poverty
Some resource-rich nations generate high GDP from oil, gas,
and boost economic resilience.
and minerals, but their HDI remains low due to:
Economic Stability Supports HDI Growth
 Enables investment in education, healthcare, and infrastructure.  Wealth concentration in the hands of a few.
 Ensures steady GDP growth, reducing income volatility and
 Lack of investment in healthcare and education.
improving GNI per capita.
Economic Instability Hampers HDI  Economic dependence on resources, leading to instability
 Crises, conflicts, and inflation reverse progress. when prices fluctuate.
 Recession and debt cuts social spending, affecting healthcare
and education.
 Job losses lower income, impacting GNI per capita. 📌 Examples:
 Equatorial Guinea: High GDP due to oil exports, but
Can GDP Growth Alone Improve HDI? poor healthcare and education lead to low HDI.

GDP growth alone does not guarantee improvements in HDI because:  Saudi Arabia (earlier years): High oil revenue, but
lower HDI due to restrictions on education and gender
 Economic growth often benefits the wealthy, leaving large sections of the
inequality.
population without access to better healthcare, education, or higher incomes.
Indicator India China
 High GDP does not always mean investments in public services like
HDI Value 0.644 0.788
hospitals, schools, and social security.
Life Expectancy at Birth
 Rapid industrialization may increase GDP but can lead to environmental 70.82 78.6
(years)
degradation, which negatively impacts human well-being.
Mean Years of Schooling 6.5 8.1
📌 Example: Expected Years of Schooling 12.2 14.0
 United States vs. Norway: The U.S. has a higher GDP, but Norway has a Gross National Income (GNI)
$6,681 $16,057
higher HDI due to better healthcare, education, and lower income per Capita (PPP USD)
inequality.
 Ignores Income Inequality Doesn’t Account for

Limitations of HDI in Macroeconomic Analysis

 HDI does not account for carbon  HDI does not consider political stability,
emissions, resource depletion, or climate human rights, or social freedoms, which
change. impact development.
 High HDI countries may achieve  Countries with similar HDI scores may
development at the cost of environmental have vastly different governance and
damage. quality of life.
 Solution: The Planetary Pressures-Adjusted  Example: Some high-HDI nations may
HDI (PHDI) incorporates sustainability face political unrest or lack of democratic
factors. rights.
No Focus on Environmental Limited Reflection of
Sustainability Political and Social Factors