UNDP Human Development Index (HDI)

What Is the Human Development Index (HDI)?

UNDP Human Development Index (HDI)

The Human Development Index is a composite index that measures the development of a country based on three key dimensions. It was introduced by the United Nations Development Programme (UNDP) in 1990 as a more comprehensive measure of human development than traditional economic indicators such as gross domestic product (GDP) or income per capita.

The HDI takes into account various indicators to assess the overall level of human development. These indicators include life expectancy at birth, expected years of schooling, and gross national income (GNI) per capita. By considering multiple dimensions of development, the HDI by country provides a more holistic picture of progress. 

The HDI (Index) is a summary measure of human development. It measures the average achievements in a country in three basic dimensions of human development: a long and healthy life, access to knowledge and a decent standard of living. The HDI is the geometric mean of normalized indices measuring achievements in each dimension.

For details on how index calculated, see latest UNDP Human Development Report, available from http://hdr.undp.org.

Source: UNDP.

UNDP Human Development Index

The United Nations Development Programme (UNDP) developed an analytical tool known as the Human Development Index to measure and compare countries' levels of social and economic development. This composite index provides a multi-dimensional perspective of human development because it is not merely based on gross national income, but also on other significant aspects such as life expectancy at birth, educational achievement, and standard of living. 

How to read values for the HDI

The numerical HDI value ranges from zero to one: the higher the value, the higher the level of human development. 

A study of various countries by HDI map illustrates an evident disparity in human development levels globally. Countries with high HDI in Europe and other world values typically have strong educational systems, healthier populations, and higher incomes. On the contrary, the lowest-ranked countries mostly grapple with issues of poverty, low education and poor health. Thus, It is an indispensable tool for policymakers worldwide to gauge the progress of nations and to devise strategies designed to assist countries in enhancing their human development indices.

HDI Key Parameters

The HDI is based on three key dimensions - income, education, and health. These dimensions are measured by various indicators that reflect the quality of life and standard of living in a country.

Income is measured by GNI per capita, which reflects the average income of individuals in a country. Education is measured by the mean years of schooling and the expected years of schooling for children of school age. Health is measured by life expectancy at birth, which indicates the average number of years a person is expected to live.

By considering these dimensions, it captures both the economic and social aspects of development, providing a more comprehensive understanding of a country's progress.

Origins of the Human Development Index

The Human Development Index was created in response to the limitations of traditional economic indicators such as GDP or income per capita. These indicators only measure economic growth and do not reflect the overall well-being of the population.

The HDI was developed to provide a more comprehensive measure of development that includes social indicators such as education and health. It was introduced in the UNDP Human Development Report to highlight the importance of human well-being and to shift the focus from economic growth to human development.

Human Development Index (HDI) Importance

By considering indicators such as education and health, the HDI captures the social aspects of development and reflects the overall well-being of the population. It allows policymakers and researchers to assess the progress of countries in terms of human development and to identify areas that need attention.

The HDI rankings provide insights into the level of development across countries and enable comparisons between countries. Countries with a high HDI score have achieved a higher level of human development, while those with a low score indicate a need for improvement in various dimensions of development.

Human Development Index (HDI) Limitations

While the Human Development Index (HDI) is a valuable tool for measuring development, it has some limitations that need to be considered.

Firstly, the HDI is a composite index that combines different indicators into a single score. This aggregation process may overlook variations within each dimension of development and mask inequalities among different population groups. For example, a country with a high HDI score may still have significant disparities in education or healthcare access.

Secondly, it weights each dimension equally, which may not align with individual preferences or societal priorities. Some argue that education or health should be given more weight than income in measuring development.

Lastly, the HDI relies on available data, which may be limited or outdated. In some cases, data may not be comparable across countries, making it challenging to make accurate comparisons. Efforts are being made to improve data collection and ensure the accuracy and comparability of it`s measurements.

Note: In its 2010 Human Development Report the UNDP began using a new method of calculating the HDI. Old and new values are not comparable. In the July 2011 update of the HFA database, all historic values were replaced by values obtained using new methodology.