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The Human Development Index (HDI) is a statistical tool that measures a country's social and economic development through health, knowledge, and standards of living. Introduced by the UNDP in 1990, it aims to provide a holistic view of development and guide policy by focusing on people-centric measures rather than just economic indicators. HDI values range from 0 to 1, categorizing countries into very high, high, and medium human development based on their scores.

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15 views10 pages

Presentation

The Human Development Index (HDI) is a statistical tool that measures a country's social and economic development through health, knowledge, and standards of living. Introduced by the UNDP in 1990, it aims to provide a holistic view of development and guide policy by focusing on people-centric measures rather than just economic indicators. HDI values range from 0 to 1, categorizing countries into very high, high, and medium human development based on their scores.

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1483 Jannat Akhtar
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INDEXING AND SCALING

OF HUMAN
DEVELOPMENT
Introduction to Human Development
Index

Definition of HDI

• Statistical tool to measure the social and economic


development of a country.
• Composite measure of country’s average achievement in
three basic aspects of Human Development :-
1. Health
2. Knowledge
3. Standards of living
Purpose and Importance of
HDI

1. Holistic view of development-Focus on both economic and social


choices ( GDP per capita-economic indicator , life expectancy and
educational attainment –social indicator )
2. Simplified index-(limited number of variables)
3. Public awareness
4. Comparative analysis
5. Policy Guidance
6. Measure to enlarge people’s choice
History and
evolution
• HDI was introduced in the first
Human Development Report
published by United Nation
Development Programme
(UNDP) in 1990.
• Pakistani economist Mahbub ul
Haq and Indian Nobel Laureate
Amartya Sen played key role in
its development.
• Designed to shift the focus from
national income accounting to
people centric policies
Components of Human
Development Index
COMPONENTS OF HDI

• Life Expectancy Index- Reflects the


average lifespan of country’s population.

• Education Index-Measured by Mean


years of schooling and expected years of
schooling .

• Income Index- Based on GNI per


CONSTRUCTI
ON OF HDI
• Earlier Arithmetic Mean is used in Computing HDI.
• Since 2010, HDI is being used in HDR as the
geometric mean of normalized indices measuring
achievement in each dimension
Steps involved:
Step 1 :- Normalize the indicators:-
• Each indicator is normalized to a scale from 0
to 1 using minimum and maximum value
( goalpost).
• Formula for normalization is:-
• Index= actual value – minimum value/
Step 2 :- Calculating dimension
Index
INTERPRETATION:-

HDI value range from 0 to 1 where :-


• 0 indicates the lowest possible level of human
development.
• 1 indicates the highest possible value of Human
Development.
HDI CATEGORIES

Very high Human Development – HDI of 0.800 and


above
High Human Development – HDI of 0.7000- 0.799
Medium Human Development – HDI of 0.500 – 0.699

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