The Human Development Index (HDI) is a composite indicator used to rank countries by level of human development. It takes into account measures of health (life expectancy), education (adult literacy and years of schooling), and income (GDP per capita) to provide a broader view of development than income alone. The Gender Development Index (GDI) is a related index that measures development based solely on female indicators to assess gender inequality. Calculating HDI and comparing scores across countries helps set development goals and identify areas for improvement within and between nations.

1. Human
Development Index
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2. What is HDI?
 Human Development Index (HDI) is a composite
indicator of development expressed in the figures
between 0 and 1 calculated on the basis of literacy rate
and schooling years, per capita income and life
expectancy.
 The index used in showing the all-round development of
a nation is HDI.
 Human Development Index is an indicator to represent
the all round development of a nation.
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3. Development Indicators
 Development can be measured and compared. An idea of how far
an area or a country has developed can be found by measuring
different quantities. A simple indicator is the Gross Domestic
Product (GDP), which is the value of all goods and services
produced and provided in a year. This indicates the wealth of a
country, but it does not show how far the people are living healthy,
knowledgeable lives. For this, many other indicators could be
used, such as number of houses with good drinking water,
percentage of population with secondary education, or levels of
employment. Each indicator may be useful for a particular
purpose.
 Study the income level of some selected countries of the world in
the table below. See how high or low a country’s economic level is
when compared to the world average (16,214 US$).
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4. GDP Per Capita Income, (PPP) of 20
Selected Countries
 GDP
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5. Human Development Index (HDI)
 HDI measures an overall development level of a particular
geographical area, community, etc. It is expressed in a
number between 0 and 1 that is calculated on the basis of life
expectancy, adult literacy, school enrolment and per capita
income (that is GBI divided by the total population of the
country). Thus HDI provides a composite measure of three
vital socio-economic aspects of human development listed
below:
1. Health Condition (measured by life expectancy)
2. Educational level (measured by average years of schooling,
etc)
3. Earning status (measured by per capita income)
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6. HDI …
 HDI is measured for the whole population, but women’s
development is often much lower than men’s. So their
development is measured separately. The indicator to measure
the socio-economic development of women only is called the
Gender-related Development Index (GDI).
 The Gender-related Development Index (GDI) is also a
number between 0 and 1. A high GDI value means men and
women have similar development. A small value shows that
women’s development is lagging behind. GDI falls when the
development levels of both women and men in a country go
down or when the inequality between their levels goes up.
Similarly HDI is kept low by poor level of women’s
development because this composite indicator is average for
both men’s and women’s development.
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7. Human Development Index (HDI)
 Human Development Index (HDI) of 20 Selected
Countries
 Life Expectancy of 20 Selected Countries
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8. Purpose of measuring Human Development Index (HDI)
 Every time we need to know what progress our country is
making. We also have to know how we compare to other
countries in terms of development and what changes
there are in our country from year to year. Besides, we all
need goals and a way of seeing if we are going in the right
direction. If we know in time that our developmental
process is faulty, we can make necessary changes for
correction.
 The concept of HDI was introduced and adopted by the
UN since per capita income (PCI) alone could not express
the actual development of a nation (PCI being the
indicator to notify only the economic prosperity that too
the average one!)
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9. Purpose …
 Measurement of HDI is fruitful to improve human
condition by setting goals for developing various
dimensions of a nation. It also helps to compare a
country’s status with that of another and bring out
correction if the development process is faulty. It can be
calculated on a formula as developed by the UN which
was updated slightly in 2010 AD.
 Method of calculating HDI
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10. Importance of HDI
 Click here to see
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11. HDI & GDI
HDI GDI
1. It’s human development Index
and measures development of
both males and female population
1. It’s gender-related development
index and measures the
development of female
population only.
2. It is influenced by the
development activities of both
males and females equally.
2. It has no effect of males as it’s
specific to women development.
3. In most countries of the world
HDI is often much higher than
GDI.
3. In very few countries only such
as Sweden GDI is found to be
higher than HDI.
4. HDI is non-sexist. It’s an
average value for both genders.
(sexes)
4. GDI is more specific to female
gender (sex) as it excluded male.
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12. Homework
Analytical Questions: Write the
reasons why Nepal’s Human
Development status is not up to the
mark. Discuss the probable reasons.
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