Human Development Index

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What is HDI?
HDI (Human Development index) is a way of measuring development by combining indicators of life expectancy, educational attainment and income. The breakthrough for the HDI was the creation of a single statistic which was to serve as a frame of reference for both social and economic development. The HDI sets a minimum and a maximum for each dimension, called goalposts, and then shows where each country stands in relation to these goalposts, expressed as a value between 0 and 1. It is also used to distinguish to a large extent, whether the country is a developed, a developing or an underdeveloped country, and also to measure the impact of economic policies on quality of life. NEED FOR HDI

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The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. The HDI can also be used to question national policy choices, asking how two countries with the same level of GNI per capita can end up with such different human development outcomes. For example, the Bahamas and New Zealand have similar levels of income per person, but life expectancy and expected years of schooling differ greatly between the two countries, resulting in New Zealand having a much higher HDI value than the Bahamas. These striking contrasts can stimulate debate about government policy priorities. -------------------------------------------------

CALCULATION OF HDI
1) Life expectancy index (LEI) = (LE-20)/(83.4-20)

2) Education index (EI) = √(MYSI*EYSI)/ 0.951

3) Income Index (II)
[Log (GNIpc)-log(100)]/ [Log (107721) - log (100)]

LE: Life expectancy at birth

MYS: Mean years of schooling (Years that a 25-year-old person or older has spent in schools)

EYS: Expected years of schooling (Years that a 5-year-old child will spend with his education in his whole life)

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GNIpc: Gross national income at purchasing power parity per capita COUNTRY| GDP RANK| HDI RANK| HDI|
India| 4| 134| 0.571|
U.S| 1| 4| 0.910|
U.K| 8| 28| 0.863|
China| 2| 101| 0.687|
Pakistan | 29| 145| 0.50|
Oman| 77| 89| 0.705|

India ranks a low 134 among 187 countries in terms of the human development index (HDI), which assesses long-term progress in health, education and income indicators, said a UN report released on Wednesday. Although placed in the "medium" category, India's standing is way behind scores of economically less developed countries, including war-torn Iraq as well as Philippines.

India’s ranking in 2010 was 119 out of 169 countries
Sri Lanka has been ranked 97, China 101 and the Maldives 109. Bhutan, otherwise respected for its quality of life, has been placed at 141, behind India Pakistan and Bangladesh are ranked 145 and 146 in the list of countries that is headed by Norway and in which the Democratic Republic of Congress is at the bottom. The other two countries in South Asia, Nepal and Afghanistan, occupy ranks 157 and 172. According to the “UN Human Development Report, 2011: Sustainability and Inequality”, India’s HDI is 0.5 compared to 0.3 in 2010.

COMPONENTS OF THE HUMAN DEVELOPMENT INDEX

The education component of the HDI is now measured by mean of years of schooling for adults aged 25 years and expected years of schooling for children of school entering age. Mean years of schooling are estimated based on educational attainment data from censuses and surveys available in the UNESCO Institute for Statistics database and Barro and Lee (2010) methodology). Expected years of schooling estimates are based on enrolment by age at all levels of education and population of official school age for each level of education. Expected years of schooling are capped at 18 years. The indicators are normalized using a minimum value of zero...
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