Details about Human Development Index (HDI) And Gross Domestic Product (GDP).And what is the basic difference between both GDP and HDI

1. Human
Development Index
Vs. GDP

2. Introduction of HDI and GDP
• The Human Development Index (HDI) is a statistical tool used to
measure a country's overall achievement in its social and economic
dimensions. The social and economic dimensions of a country are
based on the health of people, their level of education attainment and
their standard of living.
• Gross Domestic Product (GDP) is the broadest quantitative measure
of a nation's total economic activity. More specifically, GDP
represents the monetary value of all goods and services produced
within a nation's geographic borders over a specified period of time

3. Details About GDP
• The Department of Commerce releases GDP data for the U.S. economy on a quarterly basis at
8:30 am EST on the last business day of the next quarter.
The equation used to calculate GDP is as follows:
GDP = Consumption + Government Expenditures + Investment + Exports - Imports
The components used to calculate GDP include:
• Consumption:
-- Durable goods (items expected to last more than three years)
-- Nondurable goods (food and clothing)
-- Services

4. DETAILS OF GDP
• Government Expenditures:
-- Defense
-- Roads
-- Schools
• Investment Spending:
-- Nonresidential (spending on plants and equipment), Residential
(single-family and multi-family homes)
-- Business inventories

5. GDP NET EXPORT
NET EXPORT
• Exports are added to GDP
-- Imports are deducted from GDP
• The GDP report also includes information regarding inflation:
-- The implicit price deflator measures changes in prices and spending patterns.
-- The fixed-weight price deflator measures price changes for a fixed basket of over 5,000 goods and
services
• GDP is calculated both in current dollars and in constant dollars. Current Dollar GDP involves calculating
economic activity in present-day dollars. This, however, makes time period comparisons difficult due to the
effects of inflation. By comparison, Constant Dollar GDP factors out the impact of inflation and allows for
easy comparisons by converting the value of the dollar in other time periods to present-day dollars.

6. Human Development of Index
• Pakistani economist Mahbub ul Haq created HDI in 1990 which was further used to
measure the country's development by the United Nations Development Program
(UNDP). Calculation of the index combines four major indicators: life expectancy
for health, expected years of schooling, mean of years of schooling for education
and Gross National Income per capita for standard of living.
• Every year UNDP ranks countries based on the HDI report released in their annual
report. HDI is one of the best tools to keep track of the level of development of a
country, as it combines all major social and economic indicators that are responsible
for economic development.
Nobel Laureate Amartya Sen and other economist was working in 1990

7. About Human Development
• In 1990the first human Development Report new approach for
advancing human wellbeing. Human Development – or the Human
Development approach – is about expanding the richness of Human
life. Rather than simply the richness of the economy in which human
beings live. Is an approach that is focused on people their
opportunities and choice

8. Dimensions of Human Development

9. HDI
• The Human Development Index HDI is a composition statistic of life
Expectancy , Education and Per capita income indicators, which are
used to rank countries Human development. A country scores higher
HDI when the lifespan is higher, the education level is higher , and the
GDP per capita is higher

10. Three Indicators of HDI
• The 2010 Human Development Report revised
the HDI formula using data and methodologies
that were not available in most countries when the
first HDI was published in the 1990 Human
Development Report. The HDI was calculated in
2010 using the following indicators:
• Health - Life expectancy at birth
• Education - expected years schooling for school-
age children and average years of schooling in the
adult population
• Income - measured by Gross National Income
(GNI) per capita (PPP US$)
Life
expected
Education Per capita
income

11. Calculation of Method
• Older versions (1990-2009) of the HDI were calculated using the following indicators :
• Health - Life expectancy at birth
• Education - measured by adult literacy and the combined primary, secondary and tertiary
enrolment ratio
• Income - measured by GDP per capita (PPP US$)
• The indicators of the three dimensions are calibrated and combined to generate an HDI
score between zero and one. Countries are grouped into four human development
categories or quartiles: very high, high, medium and low. A country is in the very high
group if its HDI is in the top quartile, in the high group if its HDI is in percentiles 51–
75, in the medium group if its HDI is in percentiles 26–50, and in the low group if its
HDI is in the bottom quartile.

12. Calculation new Method
New Method ; -(2010 Index onwards)
The 2010 Human Development Index (HDI) combines three
dimensions
1. Life expectancy
2. Education
3. Standard of living

13. Calculation new Method
1. Life expectancy Index (LEI ) = LE − 20/85- 20
LEI 1 when life expectancy at birth is 85 and 0 when life expectancy at birth is 20
2. EDUCATION Index EI = MYSI +EYSI/ 2
Mean years of schooling Index (MYSI) = MYS/25
average number of years of education received by people age 25 and older,
Converted from education attainment levels using official duration of each level.
Expected Years of schooling Index EYSI = EYS/18
NUMBER OF YEARS OF SCHOOLING THAT A CHILD OF SCHOOL ENTRANCE AGE CAN EXPECTED TO RECIVE IF
PROVAILING PATTERNS OF AGE- SPECIFIC ENROLMENT RATES PERSIST THROUGHOUT THE CHILD LIFE

14. Calculation new Method
3. Income Index II = In (GNIpc) – In(100)/ In(75,000) – In(100)
INCOME INDEX IS 1 WHEN GNI PER CAPITA IS $ 75,000 AND 0 WHEN GNI PER CAPITA IS $
100
HDI is the geometric mean of the pervious three normalized indices
HDI =
𝟑
𝑳𝑬𝑰 ∗ 𝑬𝑰 ∗ 𝑰𝑰

15. INTERNATIONAL COMPARISONS

16. Ranking of Globally Countries
LEVEL OF HDI SCORE OF HDI NUMBER OF COUNTRY
VERY HIGH ABOVE 0.808 49
HIGH BETWEEN 0.700 UP TO 8.807 52
MEDIUM BETWEEN 0.556 UP TO 0.699 42
LOW BELOW 0.555 43

17. GLOBAL HDI RANKING
TOP TEN
RANK COUNTRY HDI OF 2016
1 Norway 0.949
2 Australia 0.939
3 Switzerland 0.939
4 Germany 0.926
5 Denmark 0.925
6 Singapore 0.925
7 Netherlands 0.924
8 Ireland 0.923
9 Iceland 0.921
10 Canada 0.920

18. LOWEST FIVE GLOBAL HDI
COUNTRY
RANKING COUNTRY HDI OF 2016
1 Central African Republic 0.352
2 Niger 0.353
3 Chad 0.396
4 Burkina Faso 0.402
5 Burundi 0.420

19. HDI ASPECTS OF INDIA
2016
• India Rank :-131
• HDI :- 0.624
• Gain 0.009 HDI from previous year
• Come under medium human development countries
• INDICATORS
Life expectancy at birth (by UN).
Overall:- 68.3
 Education Index :- 11.7
Mean years of schooling
GNI (Gross National income ) per capita (2011PPP $) :-5,663

20. NAME :- SATISH KUMAR
GDMC :- 3B