Human Development Index
What is HDI?
HDI (Human Development index) is a way of measuring development by combining indicators of life expectancy, educational attainment and income. The breakthrough for the HDI was the creation of a single statistic which was to serve as a frame of reference for both social and economic development. The HDI sets a minimum and a maximum for each dimension, called goalposts, and then shows where each country stands in relation to these goalposts, expressed as a value between 0 and 1.
It is also used to distinguish to a large extent, whether the country is a developed, a developing or an underdeveloped country, and also to measure the impact of economic policies on quality of life.
NEED FOR HDI
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The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. The HDI can also be used to question national policy choices, asking how two countries with the same level of GNI per capita can end up with such different human development outcomes. For example, the Bahamas and New Zealand have similar levels of income per person, but life expectancy and expected years of schooling differ greatly between the two countries, resulting in New Zealand having a much higher HDI value than the Bahamas. These striking contrasts can stimulate debate about government policy priorities.
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CALCULATION OF HDI
1) Life expectancy index (LEI) = (LE-20)/(83.4-20)
2) Education index (EI) = √(MYSI*EYSI)/ 0.951
3) Income Index (II) [Log (GNIpc)-log(100)]/ [Log (107721) - log (100)] LE: Life expectancy at birth
MYS: Mean years of schooling (Years that a 25-year-old person or older has spent in schools)
EYS: Expected years of schooling (Years that a 5-year-old child will spend with his education in his
HDI (Human Development index) is a way of measuring development by combining indicators of life expectancy, educational attainment and income. The breakthrough for the HDI was the creation of a single statistic which was to serve as a frame of reference for both social and economic development. The HDI sets a minimum and a maximum for each dimension, called goalposts, and then shows where each country stands in relation to these goalposts, expressed as a value between 0 and 1.
It is also used to distinguish to a large extent, whether the country is a developed, a developing or an underdeveloped country, and also to measure the impact of economic policies on quality of life.
NEED FOR HDI
-------------------------------------------------
The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. The HDI can also be used to question national policy choices, asking how two countries with the same level of GNI per capita can end up with such different human development outcomes. For example, the Bahamas and New Zealand have similar levels of income per person, but life expectancy and expected years of schooling differ greatly between the two countries, resulting in New Zealand having a much higher HDI value than the Bahamas. These striking contrasts can stimulate debate about government policy priorities.
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CALCULATION OF HDI
1) Life expectancy index (LEI) = (LE-20)/(83.4-20)
2) Education index (EI) = √(MYSI*EYSI)/ 0.951
3) Income Index (II) [Log (GNIpc)-log(100)]/ [Log (107721) - log (100)] LE: Life expectancy at birth
MYS: Mean years of schooling (Years that a 25-year-old person or older has spent in schools)
EYS: Expected years of schooling (Years that a 5-year-old child will spend with his education in his