hdi

1. Human Development Index (HDI)
GNP as a measure of economic development
is being replaced by HDI. Thus, HDI is an
alternative to GNP, to measure economic
development of the country.
The United Nations Development Programme
(UNDP) introduced the HDI in its first
‘Human Development Report’, which was
prepared under the able leadership of
Mahbub-ul-Haq. The Report was published in
1990.

2.  Human development is thus a process of widening
people’s choices as well as raising the level of well-
being achieved. (HDI report, 1990)
 As stated by Mahbub-ul-Haq, the difference between
economic growth and human development (in
definition) is that, economic growth focuses on the
expansion of only one choice – income; while human
development includes the enlargement of all human
choices - economic, social, cultural or political.
 The Human Development Report (1997) states:
“Income clearly is only one option that people would
like to have, though an important one. But it is not the
sum total of their lives. Income is a means, with human
development the end”.

3. Measurement of HDI
 HDI measures the average achievement in three basic dimensions of
human development:
 (i) Longevity, as measured by life expectancy at birth.
 (ii) Educational attainment, Mean years of schooling and
Expected years of schooling.
 (iii) Standard of Living, as measured by real GNI per capita based
on purchasing power parity in terms of dollar.

5. For calculating and measuring HDI, an index
is created for each of the three dimensions
– long and healthy life, knowledge, a decent
standard of living.

6.  Maximum and minimum values are chosen for each
indicator.
 Performance of HDI in each indicator/dimension is expressed as
a value between 0 and 1 by applying the formula (i.e. the
numerical coefficient ranges between 0 and 1).

7.  Dimension Index = (Actual value – Minimum value) / (Maximum
value – Minimum value)
 Old method-

8.  Out of 189 countries, India has ranked 131 on the HDI 2020 (UNDP.)
 With an HDI value of 0.645.
 Illustration:
 Suppose the actual value for adult literacy rate (knowledge) is 90,
maximum value is 100 and minimum value is 0. Now, substitute
these values in the above formula:
 Adult literacy rate index = (90 – 0)/ ( 100 – 0) = 90 /100 = 0.9 (less
than 1).