Human_development_index

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This article is about the Human Development Index (HDI). For other uses of HDI, see HDI.

World map indicating Human Development Index (2007)

0.950 and over      0.900–0.949      0.850–0.899      0.800–0.849      0.750–0.799

0.700–0.749      0.650–0.699      0.600–0.649      0.550–0.599      0.500–0.549

0.450–0.499      0.400–0.449      0.350–0.399      under 0.350      not available

(Colour-blind compliant map) For red-green color vision problems.

The Human Development Index (HDI) is the normalized measure of life expectancy, literacy, education, standard of living, and GDP per capita for countries worldwide. It is a standard means of measuring well-being, especially child welfare. It is used to determine and indicate whether a country is a developed, developing, or an underdeveloped country. It is also used to measure the impact of economic policies on quality of life.Davies, A. and G. Quinlivan (2006), A Panel Data Analysis of the Impact of Trade on Human Development, Journal of Socioeconomics

     High income      Upper-middle income      Lower-middle income      Low income

The index was developed in 1990 by Indian Nobel prize winner Amartya Sen, Pakistani economist Mahbub ul Haq and Sir Richard Jolly, with help from Gustav Ranis of Yale University and Lord Meghnad Desai of the London School of Economics and has been used since then by the United Nations Development Programme in its annual Human Development Report. Described by Sen as a "vulgar measure", because of its limitations, it nonetheless focuses attention on wider aspects of development than the per capita income measure it supplanted, and is a pathway for researchers into the wide variety of more detailed measures contained in the Human Development Reports.

The HDI measures the average achievements in a country in three basic dimensions of human development:

• A long and healthy life, as measured by life expectancy at birth.
• 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).
• A decent standard of living, as measured by the natural logarithm of gross domestic product (GDP) per capita at purchasing power parity (PPP) in USD.

Each year, UN member states are listed and ranked according to these measures. Those high on the list often advertise it,Speech by Prime Minister Jean Chrétien to the National Forum. as a means of attracting talented immigrants (economically, individual capital) or discouraging emigration.

An alternative measure, focusing on the amount of poverty in a country, is the Human Poverty Index.

Contents 1 Methodology 1.1 Examples 2 2007 report 2.1 Countries not included 3 Past top countries 4 References 5 See also 6 External links

Methodology

HDI trends between 1975 and 2004

OECD      Central and eastern Europe, and the CIS      Latin America and the Caribbean      East Asia

Arab States      South Asia      Sub-Saharan Africa

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 = $\backslash frac\{x\; -\; \backslash min\backslash left(x\backslash right)\}\; \{\backslash max\backslash left(x\backslash right)-\backslash min\backslash left(x\backslash right)\}$

where $\backslash min\backslash left(x\backslash right)$ and $\backslash max\backslash left(x\backslash right)$ are the lowest and highest values the variable $x$ can attain, respectively.

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

• Life Expectancy Index = $\backslash frac\{LE\; -\; 25\}\; \{85-25\}$
• Education Index = $\backslash frac\{2\}\; \{3\}\; \backslash times\; ALR\; +\; \backslash frac\{1\}\; \{3\}\; \backslash times\; ER$
  • Adult Literacy Index (ALI) = $\backslash frac\{ALR\; -\; 0\}\; \{100\; -\; 0\}$
  • Gross Enrolment Index (EI) = $\backslash frac\{ER\; -\; 0\}\; \{100\; -\; 0\}$
• GDP Index = $\backslash frac\{\backslash log\backslash left(GDPpc\backslash right)\; -\; \backslash log\backslash left(100\backslash right)\}\; \{\backslash log\backslash left(40000\backslash right)\; -\; \backslash log\backslash left(100\backslash right)\}$

LE: Life expectancy at birth
ALR: Adult literacy rate (ages 15 and older)
CGER: Combined gross enrollment ratio for primary, secondary and tertiary schools
GDPpc: GDP per capita at PPP in USD

UNDP has created a technical note on the definition of the HDI (see links below).

Examples

Calculation examples of the indices.

Index	Measure	Minimum value	Maximum value	Formula
Longevity	Life expectancy at birth (LE)	25 yrs	85 yrs	$L\; =\; \backslash frac\{\backslash mathrm\{LE\}-25\}\{60\}$
Education	Literacy rate (LR)	0%	100%	$E\; =\; \backslash frac\{2\backslash mathrm\{LR\}\; +\; \backslash mathrm\{CGER\}\}\{3\}$
	Combined gross enrollment ratio (CGER)	0%	100%
GDP	GDP per capita (PPP)	100 USD	40,000 USD	$G\; =\; \backslash frac\{\backslash log\_\{10\}\backslash mathrm\{GDPpc\}-2\}\{2\backslash mathrm\{.\}60206\}$

2007 report

Main article: List of countries by Human Development Index

The report for 2007 was launched in Brasilia, Brazil, on November 27, 2007. Its focus was on "Fighting climate change: Human solidarity in a divided world." [1] Most of the data used for the report are derived largely from 2005 or earlier, thus indicating an HDI for 2005. Not all UN member states choose to or are able to provide the necessary statistics.

The report showed a small increase in world HDI in comparison with last year\'s report. This rise was fueled by a general improvement in the developing world, especially of the least developed countries group. This marked improvement at the bottom was offset with a decrease in HDI of high income countries.

A HDI below 0.5 is considered to represent "low development". All 22 countries in that category are located in Africa. The highest-scoring Sub-Saharan countries, Gabon and South Africa, are ranked 119th and 121st, respectively. Nine countries departed from this category this year and joined the "medium development" group.

A HDI of 0.8 or more is considered to represent "high development". This includes all developed countries, such as those in North America, Western Europe, Oceania, and Eastern Asia, as well as some developing countries in Eastern Europe, Central and South America, Southeast Asia, the Caribbean, and the oil-rich Arabian Peninsula. Seven countries were promoted to this category this year, leaving the "medium development" group: Albania, Belarus, Brazil, Libya, Macedonia, Russia and Saudi Arabia.

On the following table, green arrows (▲) represent an increase in ranking over the previous study, while red arrows (▼) represent a decrease in ranking. They are followed by the number of spaces they moved. Blue dashes (▬) represent a nation that did not move in the rankings since the previous study.

Iceland 0.968 (▲ 1)  Norway 0.968 (▼ 1)  Australia 0.962 (▬)  Canada 0.961 (▲ 2)  Ireland 0.959 (▼ 1)  Sweden 0.956 (▼ 1)  Switzerland 0.955 (▲ 2)  Japan 0.953 (▼ 1)  Netherlands 0.953 (▲ 1)  France 0.952 (▲ 6)

Finland 0.952 (▬)  United States 0.951 (▼ 4)  Spain 0.949 (▲ 6)  Denmark 0.949 (▲ 1)  Austria 0.948 (▼ 1)  United Kingdom 0.946 (▲ 1)  Belgium 0.946 (▼ 4)  Luxembourg 0.944 (▼ 6)  New Zealand 0.943 (▲ 1)  Italy 0.941 (▼ 3)

Hong Kong 0.937 (▲ 1)  Germany 0.935 (▼ 1)  Israel 0.932 (▬)  Greece 0.926 (▬)  Singapore 0.922 (▬)  South Korea 0.921 (▬)  Slovenia 0.917 (▬)  Cyprus 0.903 (▲ 1)  Portugal 0.897 (▼ 1)  Brunei 0.894 (▲ 4)

Countries not included

The following United Nations member states are not ranked in the 2007 Human Development Index, for being unable or unwilling to provide the necessary data at the time of publication. The exception in the list is the Republic of China, which is not a member of the United Nations.

Asia  Iraq  North Korea  Republic of China (has a HDI of 0.925, ranks 25, if ranked.)

Europe  Andorra  Liechtenstein  Monaco  Montenegro  San Marino  Serbia

Oceania  Kiribati  Marshall Islands  FS Micronesia  Nauru  Palau  Tuvalu

Past top countries

The number one ranked country in each year of the index. Canada has been the highest ranked country ten times, followed by Norway, which stayed at the top six times. Japan has been ranked highest twice and Switzerland and Iceland once.

2007 –  Iceland 2006 –  Norway 2005 –  Norway 2004 –  Norway 2003 –  Norway

2002 –  Norway 2001 –  Norway 2000 –  Canada 1999 –  Canada 1998 –  Canada

1997 –  Canada 1996 –  Canada 1995 –  Canada 1994 –  Canada 1993 –  Japan

1992 –  Canada 1991 –  Japan 1990 –  Canada 1985 –  Canada 1980 –  Switzerland

References

See also

v • d • e Economic classification of countries
Developed country · Developing country · Least developed country · High income country · Newly industrialized country · Heavily Indebted Poor Countries
Worlds Theory	First World · Second World · Third World · Fourth World
Lists of countries	GDP per capita List of countries by GDP (nominal), (per capita) · List of countries by GDP (PPP), (per capita), (per hour) Human Development Index List of countries by Human Development Index Human Poverty Index List of countries by percentage of population living in poverty Literacy rate List of countries by literacy rate

Sustainable development Portal

• Freedom House
• Gini coefficient
• Gender-related Development Index
• Gender Empowerment Measure
• Living Planet Index
• Gross national happiness
• Happy Planet Index
• Physical quality-of-life index

External links

• Human Development Report Office
• Human Development Report 2007/2008PDF (12.01 MiB)
• Technical note explaining the definition of the HDIPDF (5.54 MiB)
• List of countries by HDI at NationMaster.com
• Human Development Map
• HDI Forecasting Report
• Philippine Human Development Report

v • d • e Lists of countries with rankings
Geography	Area · Coastline · Highest point · Lowest point · Compactness · Coast/area ratio · Northernmost point · Southernmost point · Continent · Number of neighbouring countries
Demographics	Population (graphical • by density) · Population growth rate · Life expectancy · Infant mortality rate · Fertility rate · Birth rate · Death rate · List of countries by sex ratio · Homicide rate · Human Development Index · Income equality · Literacy rate · HIV/AIDS adult prevalence rate · Unemployment rate · Employment rate · Population living in poverty · Poverty Index · Immigrant population · Suicide rate · Undernourishment rate · Firearm-related death rate · Gun ownership
Economy	FDI by country · Current account balance · Foreign exchange reserves · Imports · Number of Internet users · Number of Mobile phones · Number of telephone lines · Exports (per capita) · Debt (External, Public)  · Consumption (Electricity, Natural gas, Electricity Intensity, Vehicles per capita) · Production (Natural gas production by country, Natural gas proven reserves, Oil proven reserves, Automobile production, Steel production, Aluminium production, Coal production, Iron production, Zinc production) GDP Nominal (per capita) · PPP (per capita • per capita per hour) Past (nominal • PPP) · Future (nominal • PPP • PPP per capita) • GNI per capita (Atlas Method) · Growth (real • per capita) Sector composition · Demographics comparison
Politics Society	Heads of state and government · Political rights and civil liberties · Press freedom · Privacy · Perception of corruption · Bribe paying · Property rights · Economic freedom · Democracy · Globalization · Ease of doing business · Economic competitiveness · Date of formation · Legal drinking age · School leaving age · Abortion law · Homosexuality laws · Death penalty · Quality-of-life · E-readiness · Failed States index · Travel Freedom · Student Performance ·
Military	Military expenditures · Number of active troops · Possession of nuclear weapons · UN peacekeepers currently deployed · Global Peace Index
Environment	Carbon dioxide emissions (per capita) · Greenhouse gas emissions per capita · GDP per emissions · Sustainability · Environmental Performance · Happy Planet Index
Articles that include one or more maps are shown in italics.

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