PRESENTED BY: MR.MILAN REGMINATIONAL COLLEGE CENTER FOR

DEVELOPMENT STUDIESBALUWATAR, KATHMANDU

Human Development Index (HDI)

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Introduction

The index was developed in 1990 by Pakistani economist Mahbub ul Haq, Sir Richard Jolly, with help from Gustav Ranis of Yale University and Lord Meghnad Desai of the London School of Economics.

It has been used since then by UNDP in its annual Human Development Report.

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What is HDI ???

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The HDI combines normalized measures of life expectancy, literacy, educational attainment, and GDP per capita for countries worldwide.

It is claimed as a standard means of measuring human development—a concept that, according to the United Nations Development Program (UNDP), refers to the process of widening the options of persons, giving them greater opportunities for education, health care, income, employment, etc.

The basic use of HDI is to measure a country's development.

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The HDI combines three basic dimensions

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Life expectancy at birth, as an index of population health and longevity.

Knowledge and education, as measured by the adult literacy rate (with two-thirds weighting) and the combined primary, secondary, and tertiary gross enrollment ratio (with one-third weighting).

Standard of living, as measured by the natural logarithm of gross domestic product (GDP) per capita at purchasing power parity (PPP) in United States dollars.

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HDI trends between 1975 and 2004

OECD Central and eastern Europe, and the CIS

Latin America and the Caribbean

     Arab States South Asia

Sub-Saharan Africa

East Asia

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Dimensions Of HDI

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HDI EI

GDP

HI

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FORMULAE

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In general, to transform a raw variable, say x, into a unit-free index between 0 and 1 (which allows different indices to be added together), the following formula is used:

x-index =

where and are the lowest and highest values the variable x can attain, respectively.

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CALCULATION

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The Human Development Index (HDI) then represents the average of the following three general indices:

Life Expectancy Index =

Education Index =

Adult Literacy Index (ALI) =

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Gross Enrollment Index (GEI) =

GDP Index =

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Thank you for your Patience !

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