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Human Development Index
- 3. The Human DevelopmentIndex (HDI) is an indicator created by the United Nations Development Program (UNDP) in order to determine the level of development of the countries of the world. It was designed with the objective of knowing, not only the economic income of people in a country, but also to assess whether the country provides its citizens with an environment where they can develop their project and living conditions better or worse.
- 4. The dimension ofhealth is evaluated according to life expectancy at birth, and that of education is measured by the average years of schooling of adults of 25 years or more and by the expected years of schooling of children of school age. The standard of living is measured according to the GNI per capita.
- 5. 1 - Health:measured according to life expectancy at birth. 2 - Education: measured by the adult literacy rate and the combined gross enrollment ratio in primary, secondary and higher education, as well as the years of compulsory education. 3 - Wealth: measured by GDP per capita PPP in international dollars.
- 6. The IDH indexprovides values between 0 and 1, with 0 the lowest rating and 1 the highest. In this regard, UNDP classifies countries into three major groups: Countries with High Human Development ("High Human Development"). They have an HDI greater than 0.80. Countries with Medium Human Development ("Medium Human Development"). They have an HDI between 0.50 and 0.80. Countries with Low Human Development ("Low Human Development"). They have an HDI less than 0.50
- 7. The Gini coefficientis a measure of the inequality devised by the Italian statistician Corrado Gini. It is usually used to measure income inequality, within a country, but can be used to measure any form of unequal distribution. The Gini coefficient is a number between 0 and 1, where 0 corresponds to perfect equality (all have the same income) and where the value 1 corresponds to the perfect inequality (one person has all the income and the others none).
- 8. The Gini indexis the Gini coefficient expressed in reference to 100 as a maximum, instead of 1, and is equal to the Gini coefficient multiplied by 100. A variation of two hundredths of the Gini coefficient (or two units of the index) equals to a distribution of 7% of wealth from the poorest sector of the population (below the median) to the richest (above the median)
- 9. The Gini coefficientis calculated as a proportion of the areas in the Lorenz curve diagram. If the area between the line of perfect equality and the Lorenz curve is a, and the area below the Lorenz curve is b, then the Gini coefficient is a / (a + b).
- 10. This proportion isexpressed as a percentage or numerical equivalent of that percentage, which is always a number between 0 and 1. The Gini coefficient is often calculated with the Brown Formula, which is more practical Where: G: Gini coefficient X: Cumulative proportion of the population variable Y: Accumulated proportion of the variable income
- 11. In summary, theLorenz Curve is a graph of cumulative concentration of the distribution of wealth superimposed on the curve of the frequency distribution of the individuals who possess it, and its expression in percentages is the Gini index.
- 12. It captures theHuman Development Index (HDI) of the average person in a society, which is less than the HDI added when there is inequality in the distribution of health, education and income. In perfect equality, the IDH and IDHD are the same; the greater the difference between the two, the greater the inequality. "In that sense," the IDHD is the real level of human development (taking into account inequality), while the HDI can be seen as the potential index of human development that could be reach of not having inequality.
- 13. The IDHD capturesthe losses in human development given the inequality in health, education and income. The losses in the three dimensions vary by countries, varying from 2.9% (Hong Kong) to 52% (Chad) in life expectancy, 1.3% (Czech Republic) to 49.7% (Yemen) in education and 4.5% (Azerbaijan) to 68.3% (Namibia) in income. The overall loss in the three dimensions ranges from 5% (Czech Republic) to 43.5% (Namibia). UNDP developed the index of 144 countries.
- 14. In 2015, thehuman development index (HDI) in Mexico was 0.762 points, which is an improvement over 2014, which stood at 0.758. The HDI is an important indicator of human development that is elaborated every year by the United Nations. It is an indicator that, unlike those previously used that measured the economic development of a country, analyzes health, education and income.
- 15. Mexico ranks 77thin the Human Development Index, which does not even reach the Top 30 of the list made by the United Nations that considers 188 countries. From Latin America, Chile appears in position 38 of the ranking, while Norway is the first place. Of the nations of Latin America considered in the list, Chile ranks 38th with a score of 0.84. Together with Argentina, in position 45 and a score of 0.827, they are the only ones in the region that achieved a very high Human Development Index.
- 16. The HDI isan important indicator of human development that is elaborated every year by the United Nations. It is an indicator that, unlike those previously used that measured the economic development of a country, analyzes health, education and income. The HDI takes into account three variables: long and healthy life, knowledge and a decent standard of living. Therefore, the fact that the life expectancy in Mexico is in 76,93 years, its mortality rate in the 4,82 ‰ and its per capita income is of 8,711 € euros influence among others.
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