Human Development Index World map indicating the category of Human Development Index by country (based on 2013 data; published July 24, 2014). The Human Development Index (HDI) is a compos- ite statistic of life expectancy, education, and per capita income indicators, which is used to rank countries into four tiers of human development. It was developed by Pakistani economist Mahbub ul Haq, is anchored in the Nobel laureate Amartya Sen’s work on human capabili- ties, often framed in terms of whether people are able to [1] “be” and “do” desirable things in life, and was published Mahbub ul Haq by the United Nations Development Programme.[2] The 2010 Human Development Report introduced an posed this idea, but he soon went on to help Haq develop Inequality-adjusted Human Development Index (IHDI). the Index in the future. Sen was worried that it was go- While the simple HDI remains useful, it stated that “the ing to be difficult to capture the full complexity of human IHDI is the actual level of human development (account- capabilities in a single index, but Haq persuaded him that ing for inequality),” and “the HDI can be viewed as an in- only a single number would shift the attention of policy- dex of 'potential' human development (or the maximum makers from concentration on economic to human well- IHDI that could be achieved if there were no inequality).” being.[3][4] 1 Origins 2 Dimensions and calculation The origins of the HDI are found in the annual Develop- ment Reports of the United Nations Development Pro- 2.1 New method (2010 Report onwards) gramme (UNDP). These were devised and launched by Pakistani economist Mahbub ul Haq in 1990 and had Published on 4 November 2010 (and updated on 10 June the explicit purpose “to shift the focus of development 2011), starting with the 2010 Human Development Re- [5] economics from national income accounting to people- port the HDI combines three dimensions: centred policies”. To produce the Human Development Reports, Mahbub ul Haq brought together a group of de- • A long and healthy life: Life expectancy at birth velopment economists including Paul Streeten, Frances Stewart, Gustav Ranis, Keith Griffin, Sudhir Anand and • Education index: Mean years of schooling and Ex- Meghnad Desai. Working along with Nobel laureate pected years of schooling Amartya Sen, they worked on capabilities and function- • ings that provided the underlying conceptual framework. A decent standard of living: GNI per capita (PPP Haq was sure that a simple composite measure of human US$) development was needed in order to convince the public, academics, and policy-makers that they can and should In its 2010 Human Development Report, the UNDP be- evaluate development not only by economic advances but gan using a new method of calculating the HDI. The fol- also improvements in human well-being. Sen initially op- lowing three indices are used: 1 2 2 DIMENSIONS AND CALCULATION 2.2 Old method (before 2010 Report) The HDI combined three dimensions last used in its 2009 Report: • Life expectancy at birth, as an index of population health and longevity to HDI • Knowledge and education, as measured by the adult literacy rate (with two-thirds weighting) and the combined primary, secondary, and tertiary gross en- rollment ratio (with one-third weighting). • Standard of living, as indicated by the natural log- arithm of gross domestic product per capita at purchasing power parity. 1.0 0.9 0.8 0.7 0.6 0.5 Amartya Sen 0.4 0.3 − LE 20 0.2 1. Life Expectancy Index (LEI) = 85−20 1975 1980 1985 1990 1995 2000 2004 MYSI+EYSI 2. Education Index (EI) = 2 HDI trends between 1975 and 2004 2.1 Mean Years of Schooling Index (MYSI) = This is the methodology used by the UNDP up until its MYS [6] 15 2011 report. The formula defining the HDI is promulgated by the United Nations Development Programme (UNDP).[8] In 2.2 Expected Years of Schooling Index (EYSI) general, to transform a raw variable, say x , into a unit- EYS [7] = 18 free index between 0 and 1 (which allows different in- dices to be added together), the following formula is used: − ln(GNIpc)−ln(100) • xindex = x min(x) 3. Income Index (II) = ln(75;000)−ln(100) max(x)−min(x) Finally, the HDI is the geometric mean of the previous three normalizedp indices: where min (x) and max (x) are the lowest and highest val- HDI = 3 LEI · EI · II: ues the variable x can attain, respectively. LE: Life expectancy at birth The Human Development Index (HDI) then represents MYS: Mean years of schooling (Years that a 25-year-old person the uniformly weighted sum with ⅓ contributed by each or older has spent in schools) of the following factor indices: EYS: Expected years of schooling (Years that a 5-year-old child will spend with his education in his whole life) • LE−25 Life Expectancy Index = 85−25 GNIpc: Gross national income at purchasing power parity per • 2 × 1 × capita Education Index = 3 ALI + 3 GEI 3.1 Inequality-adjusted HDI 3 • ALR−0 Adult Literacy Index (ALI) = 100−0 7. Sweden 0.840 ( 4) • Gross Enrollment Index (GEI) = CGER−0 100−0 8. Denmark 0.838 ( 1) • log(GDP pc)−log(100) GDP = log(40000)−log(100) 9. Canada 0.833 ( 4) 10. Ireland 0.832 ( 4) Other organizations/companies may include other fac- tors, such as infant mortality, which produces different 11. Finland 0.830 ( ) number of HDI. 12. Slovenia 0.824 ( 2) 13. Austria 0.818 ( 1) 3 2014 report 14. Luxembourg 0.814 ( 3) Main article: List of countries by Human Development 15. Czech Republic 0.813 ( 1) Index 16. United Kingdom 0.812 ( 3) The 2014 Human Development Report by the United 17. Belgium 0.806 ( 2) Nations Development Program was released on July 24, 2014, and calculates HDI values based on estimates for 18. France 0.804 ( ) 2013. Below is the list of the “very high human develop- ment” countries:[9] 19. Japan 0.799 (New) 20. Israel 0.793 ( 1) • = increase. • = steady. 21. Slovakia 0.778 ( 1) • = decrease. 22. Spain 0.775 ( 2) • The number in brackets represents the number of 23. Italy 0.768 ( 1) ranks the country has climbed (up or down) relative to the ranking in 2013 report. 24. Estonia 0.767 ( 1) 25. Greece 0.762 ( 2) 3.1 Inequality-adjusted HDI 26. Malta 0.760 ( 3) Main article: List of countries by inequality-adjusted 27. Hungary 0.757 ( 1) HDI 28. United States 0.755 ( 12) The Inequality-adjusted Human Development Index 29. Poland 0.751 ( 1) (IHDI)[9] is a “measure of the average level of human de- velopment of people in a society once inequality is taken 30. Cyprus 0.752 ( 1) into account.” 31. Lithuania 0.746 ( 2) Note: The green arrows ( ), red arrows ( ), and blue dashes ( ) represent changes in rank. The changes in rank are not 32. Portugal 0.739 ( ) relative to the HDI list above, but are according to the source 33. South Korea 0.736 ( 5) (p. 168) calculated with the exclusion of countries which are missing IHDI data. 34. Latvia 0.725 ( 1) 35. Croatia 0.721 ( 4) 1. Norway 0.891 ( ) 36. Argentina 0.680 ( 7) 2. Australia 0.860 ( ) 37. Chile 0.661 ( 4) 3. Netherlands 0.854 ( 1) Countries in the top quartile of HDI (“very high human 4. Switzerland 0.847 ( 3) development” group) with a missing IHDI: New Zealand, 5. Germany 0.846 ( ) Singapore, Hong Kong, Liechtenstein, Brunei, Qatar, Saudi Arabia, Andorra, United Arab Emirates, Bahrain, 6. Iceland 0.843 ( 2) Cuba, and Kuwait. 4 4 2013 REPORT 3.2 Countries not included 20. France 0.893 ( ) Some countries were not included for various reasons, 21. Finland 0.892 ( 1) mainly the unavailability of certain crucial data. The fol- lowing United Nations Member States were not included 22. Slovenia 0.892 ( 1) in the 2014 report:[9] North Korea, Marshall Islands, Monaco, Nauru, San Marino, Somalia,India, Pakistan, 23. Spain 0.885 ( ) South Sudan, and Tuvalu. 24. Liechtenstein 0.883 ( 16) 4 2013 report 25. Italy 0.881 ( 1) Main article: List of countries by Human Development 26. Luxembourg 0.875 ( 1) Index 27. United Kingdom 0.875 ( 1) The 2013 Human Development Report by the United Na- tions Development Program was released on March 14, 28. Czech Republic 0.873 ( 1) 2013, and calculates HDI values based on estimates for 2012. Below is the list of the “very high human develop- 29. Greece 0.860 ( ) ment” countries:[11] Note: The green arrows ( ), red arrows ( ), and blue dashes 30. Brunei 0.855 ( 1) ( ) represent changes in rank when compared to the new 2012 data HDI for 2011 – published in the 2012 report. 31. Cyprus 0.848 ( 1) 1. Norway 0.955 ( ) 32. Malta 0.847 ( 4) 2. Australia 0.938 ( ) 33. Estonia 0.846 ( ) 3. United States 0.937 ( 1) 34. Andorra 0.846 ( 1) 4. Netherlands 0.921 ( 1) 5. Germany 0.920 ( 4) 35. Slovakia 0.840 ( ) 6. New Zealand 0.919 ( 1) 36. Qatar 0.834 ( 1) 7. Ireland 0.916 ( ) 37. Hungary 0.831 ( 1) 8. Sweden 0.916 ( 3) 38. Barbados 0.825 ( 9) 9. Switzerland 0.913 ( 2) 10. Japan 0.912 ( 2) 39. Poland 0.821 ( ) 11. Canada 0.911 ( 5) 40. Chile 0.819 ( 4) 12. South Korea 0.909 ( 3) 41. Lithuania 0.818 ( 1) 13. Hong Kong 0.906 ( ) 42. United Arab Emirates 0.818 ( 12) 14. Iceland 0.906 ( ) 43. Portugal 0.816 ( 2) 15. Denmark 0.901 ( 1) 44.