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Human Development Index (HDI)

The document discusses the Human Development Index (HDI), which is a composite statistic used to rank countries based on their level of social and economic development. It measures development across three dimensions: health, education, and standard of living. The HDI was created by Pakistani economist Mahbub-Ul-Haq and published by the UNDP to assess countries' overall achievements beyond just economic growth. While it provides a useful comparison, the HDI has limitations and does not capture all factors that contribute to economic welfare.

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John Lobo
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131 views

Human Development Index (HDI)

The document discusses the Human Development Index (HDI), which is a composite statistic used to rank countries based on their level of social and economic development. It measures development across three dimensions: health, education, and standard of living. The HDI was created by Pakistani economist Mahbub-Ul-Haq and published by the UNDP to assess countries' overall achievements beyond just economic growth. While it provides a useful comparison, the HDI has limitations and does not capture all factors that contribute to economic welfare.

Uploaded by

John Lobo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Human Development Index

HDI
John Charles Lobo
MBA Jan 2021 Batch
PV-2
Agenda
1. Terminologies

2. Pillars of Human Development Index

3. What is Human Development Index ?

4. Origin of HDI

5. Factors considered for HDI

6. Measuring Human Development

7. International Comparisons

8. Conclusion

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Terminologies
GROWTH
• Quantitative and value neutral change .
• Positive or a negative sign.

DEVELOPMENT
• Qualitative change which is always value positive.
• Development occurs when positive growth takes place.

• For example, if the population of a city v/s Amenities

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Four Pillars of Human Development

Equity

Sustainability

Productivity

Empowerment
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What is Human Development Index(HDI)?

• It is a tool used to measure a country's overall achievement in its social and


economic dimensions.

• Definition:
The human development index (HDI) is a composite statistic of life expectancy,
education, and per capita income indicators, which is used to rank countries
into four tiers of human development.

• The human development index is a measure of economic development and


economic welfare

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ORIGIN OF HDI
• Devised and launched by Pakistani economist Mahbub-Ul- Haq in 1990.

• Amartya Sen and Mahbub –Ul- Haq worked upon the capabilities and
functioning which provided conceptual framework.

• Published by United Nations Development Programme (UNDP).

Amartya Sen Mahbub-Ul- Haq


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Measuring Human Development
• The human development index (HDI) ranks the countries based on their
performance in the key areas of health, education and access to resources.

Health :The indicator chosen to assess health is the life expectancy at birth.

Education : The adult literacy rate and the gross enrolment ratio represent
access to knowledge.

Access to resources is measured in terms of purchasing power (in U.S.


Dollars).

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Factors considered for HDI

Dimensions Long & Healthy Life Knowledge A decent standard of living

Indicators Life expectancy at birth Expected years Mean years of GNI per capita (PPP $)
of Schooling Schooling

Dimension Life expectancy Index Education Index GNI Index


Index

Human Development Index(HDI)


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CALCULATION OF HDI
 
1. Life Expectancy Index =

2. Educational Index= EI

3. Income Index= II =

HDI =

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HDI Rankings | 2020
Score in
Level of Human Number of
Development Development Countries
Index
Very High > 0.808 49
High 0.700-0.807 53
Medium 0.556-0.699 42
Low <0.555 43

4 1

2
3
4

131

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INTERNATIONAL COMPARISONS
• Often smaller countries have done better than larger ones in human
development.

• Similarly, relatively poorer nations have been ranked higher than richer
neighbors in terms of human development.

• For example, Sri Lanka, Trinidad and Tobago have a higher rank than India in
the human development index despite having smaller economies.

• Similarly, within India, Kerala performs much better than Punjab and Gujarat
in human development despite having lower per capita income.

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IMPORTANCE OF HDI
• The HDI gives an overall index of economic development.

• It does give a rough ability to make comparisons on issues of economic welfare


– much more than just using GDP statistics show.

• It gives idea regarding areas of development which requires improvement.

• Statistics gives better decision making for areas having wide disparity.

• More focus on social & human development rather than only capital
accumulation and growth.

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LIMITATIONS OF HDI
• Wide divergence within countries.
• Economic welfare depends on several other factors
• GNI does not show how the income is spent by the government.
• When knowledge is measured it only takes into account what children
learn at school not in the family.
• Longevity can also be distorted as the life expectancy of a person does
not consider how healthy the life was led.
• Life expectancy value for a country is the given is an average of the total
population.

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CONCLUSION

• The HDI gives an overall indexof economic development.

• There are certain differences among different states development


conditions so there must be equal opportunities for development for all.

• Some important issues are missing in HDI such as infrastructure and some
economic factors.

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Refrences
1. Human Development Report 2020
2. Slide share Presentation HDI(Human Development Index) by Sarang
Meshram

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Thank You
John Charles Lobo
MBA Jan 2021 Batch
PV-2

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