HDI

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Human Development Index, Basic concepts of Human development Index,
Calculations , formulae

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HDI

  1. 1. Human Development Index (HDI) PRESENTED BY: MR.MILAN REGMI NATIONAL COLLEGE CENTER FOR DEVELOPMENT STUDIES BALUWATAR, KATHMANDU
  2. 2. Introduction 2 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.REGMI MILAN _FOREIGN_AID_01 3/16/2013
  3. 3. What is HDI ??? 3 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 countrys development.REGMI MILAN _FOREIGN_AID_01 3/16/2013
  4. 4. The HDI combines three basic dimensions 4 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.REGMI MILAN _FOREIGN_AID_01 3/16/2013
  5. 5. 5 OECD Central and eastern Europe, and the CIS Latin America and the Caribbean Sub-Saharan Africa East Asia Arab States South AsiaREGMI MILAN _FOREIGN_AID_01 3/16/2013
  6. 6. Dimensions Of HDI 6 EI HDI HI GDPREGMI MILAN _FOREIGN_AID_01 3/16/2013
  7. 7. FORMULAE 7 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.REGMI MILAN _FOREIGN_AID_01 3/16/2013
  8. 8. CALCULATION 8 The Human Development Index (HDI) then represents the average of the following three general indices: Life Expectancy Index = Education Index = Adult Literacy Index (ALI) =REGMI MILAN _FOREIGN_AID_01 3/16/2013
  9. 9. 9 Gross Enrollment Index (GEI) = GDP Index =REGMI MILAN _FOREIGN_AID_01 3/16/2013
  10. 10. Thank you for your Patience ! 10REGMI MILAN _FOREIGN_AID_01 3/16/2013

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