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Human Development Index

The Human Development Index (HDI) is a composite measure of life expectancy, education, and income, developed by Mahbub-ul-Haq and Amartya Sen in 1990 and published by the UNDP. As of 2011, India's HDI value was 0.547, ranking it 135th among 187 countries, while also highlighting the impact of environmental degradation on inequalities. The Inequality-adjusted HDI (IHDI) was introduced in 2010 to account for disparities in human development within countries.

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13 views2 pages

Human Development Index

The Human Development Index (HDI) is a composite measure of life expectancy, education, and income, developed by Mahbub-ul-Haq and Amartya Sen in 1990 and published by the UNDP. As of 2011, India's HDI value was 0.547, ranking it 135th among 187 countries, while also highlighting the impact of environmental degradation on inequalities. The Inequality-adjusted HDI (IHDI) was introduced in 2010 to account for disparities in human development within countries.

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Human Development Index?

The Human Development Index (HDI) is a composite statistics of life expectancy, education,
and income indices to rank countries into four tiers of human development. It was created
by economist Mahbub-ul-Haq, followed by economist Amartya Sen in 1990, and published
by the United Nations Development Programme (UNDP).

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

2. Education Index: It includes

a. Mean Years of Schooling Index

b. Expected Years of Schooling Index

3. Income Index

Finally, the HDI is the geometric mean of the above three normalized indices

1. Among 187 countries ranked in the Human Development Report, India comes in at a dismal
135th (2014) in the main composite index.
2. HDR 2011 makes the important point that environmental degradation and climate change will
exacerbate inequalities, a trend already evident.
3. The report said India's Human Development Index (HDI) value for 2011 was 0.547 — positioning
the country in the ‘medium human development category'.
4. Neighbouring Pakistan was ranked at 145 (0.504) and Bangladesh at 146 (0.500).
5. It said between 1980 and 2011, India's HDI value increased from 0.344 to 0.547, an increase of 59
per cent or an average annual increase of about 1.5 per cent.

Computing the HDI:

To construct the Index, fixed minimum and maximum values have been established for
each of the indicators:

i. Life expectancy at birth: 25 years and 85 years.

ii. General literacy rate: 0 per cent and 100 per cent.
iii. Real GDP per capita (PPP$); PPP$ 100 and PPP$ 40,000.

Individual indices are computed first on the basis of a given formula. HDI is a simple
average of these three indices and is derived by dividing the sum of these three indices by
3.

With normalization of the values of the variables that make up the HDI, its value ranges
from 0 to 1. The HDI value for a country or a region shows the distance that it has to travel
to reach the maximum possible value of 1 and also allows inter-country comparisons.

Inequality-adjusted HDI:

The 2010 Human Development Report was the first to calculate an Inequality-adjusted
Human Development Index (IHDI). The HDI represents a national average of human
development achievements in the three basic dimensions making up the HDI: Health,
education and income. Like all averages, it conceals disparities in human development
across the population within the same country. Two countries with different distributions of
achievements can have the same average HDI value. The HDI takes into account not only
the average achievements of a country on health, education and income, but also how
those achievements are distributed among its citizens by “discounting” each dimension’s
average value according to its level of inequality.

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