Introduction to Human Development Index.


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Introduction to Human Development Index.

INTRODUCTIO N TO HUMAN DEVELOPMEN T INDEX What Is the Human Development Index (HDI)? The Human Development Index (HDI) is a statistic developed and compiled by the United Nations to measure and various countries' levels of social and economic development. Source: www.investopedia.com Origin The origins of the HDI are found in the annual Human Development Reports produced by the Human Development Report Office of the United Nations Development Programme (UNDP). Source: Wikipedia Understanding the Human Development Index (HDI) The Human Development Index (HDI) was established to place emphasis on individuals, more precisely on their opportunities to realize satisfying work and lives. Source: www.investopedia.com Dimensions • Life Expectancy Index (LEI) • Education Index (EI) • Income Index Source: Wikipedia How Is the HDI Measured? The HDI is a summary measurement of basic achievement levels in human development. The computed HDI of a country is an average of indexes of each of the life aspects that are examined: knowledge and understanding, a long and healthy life, and an acceptable standard of living. Source: www.investopedia.com Limitations of the Index The HDI is a simplification and an admittedly limited evaluation of human development. The HDI does not specifically reflect quality-of-life factors, such as empowerment movements or overall feelings of security. Source: www.investopedia.com THE COMPONENTS OF THE HDI Health The first component of the HDI is a long and healthy life – is measured by life expectancy. Long-run estimates of life expectancy across the world have taken into account. Source: ourworldindata.org Education The second component – access to education – is measured by expected years of schooling of children at school- entry age and mean years of schooling of the adult population. Education has been one of the most integral drivers and outcomes of global development. Source: ourworldindata.org Standard of living The architects of the HDI have decided to add a third dimension a decent standard of living and to measure it by Gross National Income per capita. Source: ourworldindata.org