Meaning and Measurement of Development
MEASURING ECONOMIC DEVELOPMENT
PRIMER ON THE HUMAN DEVELOPMENT INDEX
What It Measures
The HDI is a composite of three basic components of human development: longevity, knowledge and standard of living. Longevity is measured by life expectancy. Knowledge is measured by a combination of adult literacy (two-thirds weight) and mean years of schooling (one-third weight). Standard of living is measured by purchasing power, based on real GDP per capita adjusted for the local cost of living (purchasing power parity, or PPP).
How to Combine Indicators
The breakthrough for HDI was to find a "measuring rod" for socio-economic achievement recorded in different units. The HDI sets aminimum and a maximum for each dimension and then shows where each country (or region) stands in relation to these scales - expressed a a value between 0 and 1. The scores for the three dimensions are the averaged in an overall index. Overall averages conceal much. The best solution would be to create separate HDIs for the most significant groups: by genger, for example, or by income group, geographial region, race or ethnic group. Separate HDIs would reveal a more detailed profile of human deprivation in each country (or region). The HDI enables people and their governments to evaluate progress over time - and to determine priorities for policy intervantion. It also permints instructive comparisons of experiences in different countries (or regions).
(Adapted from Human Development Report, 1994 p.91) Fixed Maximums and Minimums for HDI Values
Maximum Minimum
Life Expectancy (years) 25 85 Adult Literacy (%) 0 100 Mean Years of Schooling 0 15 Income (real GDP per capita in PPP$) 200 40,000
Note on Calculating the Human Development Index:
The UNDP Approach - for NIGERIA 1993
The HDI is a composite of three basic components of human development: longevity, knowledge and
PRIMER ON THE HUMAN DEVELOPMENT INDEX
What It Measures
The HDI is a composite of three basic components of human development: longevity, knowledge and standard of living. Longevity is measured by life expectancy. Knowledge is measured by a combination of adult literacy (two-thirds weight) and mean years of schooling (one-third weight). Standard of living is measured by purchasing power, based on real GDP per capita adjusted for the local cost of living (purchasing power parity, or PPP).
How to Combine Indicators
The breakthrough for HDI was to find a "measuring rod" for socio-economic achievement recorded in different units. The HDI sets aminimum and a maximum for each dimension and then shows where each country (or region) stands in relation to these scales - expressed a a value between 0 and 1. The scores for the three dimensions are the averaged in an overall index. Overall averages conceal much. The best solution would be to create separate HDIs for the most significant groups: by genger, for example, or by income group, geographial region, race or ethnic group. Separate HDIs would reveal a more detailed profile of human deprivation in each country (or region). The HDI enables people and their governments to evaluate progress over time - and to determine priorities for policy intervantion. It also permints instructive comparisons of experiences in different countries (or regions).
(Adapted from Human Development Report, 1994 p.91) Fixed Maximums and Minimums for HDI Values
Maximum Minimum
Life Expectancy (years) 25 85 Adult Literacy (%) 0 100 Mean Years of Schooling 0 15 Income (real GDP per capita in PPP$) 200 40,000
Note on Calculating the Human Development Index:
The UNDP Approach - for NIGERIA 1993
The HDI is a composite of three basic components of human development: longevity, knowledge and