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HUMAN DEVELOPMENT INDEX (HDI)

The Human Development Index (HDI) is a composite index measuring achievement in key dimensions of human development:
1. A long and healthy life,
2. Being knowledgeable and
3. Have a decent standard of living.

These dimensions are assessed by the following indicators for calculating the HDI of a community
1. The health dimension is assessed by life expectancy at birth,
2. The education dimension is measured by mean of years of schooling for adults aged 25 years and more and expected years of schooling for children of school entering age.
3. The ‘standard of living’ dimension is measured by gross national income per capita (GNI)

The HDI is the geometric mean of normalized indices for each of the three dimensions.

There are two steps for calculating the HDI
Step1: Creating the “dimension index” for each of the above three indicators.
Fix the minimum and maximum values (goal posts) for each indicator.
Transform the indicators into a score between 0 and 1 depending upon where it lies between the goal posts
Maximum goal post is the highest observed value of the indicator during 1980 – 2011
Minimum goal post is the subsistence values
HDI goal posts

The dimension index is then calculated for each of the three dimensions
calculation of dimension index

For education dimension,
The above equation is applied to EACH of the two sub-components
The geometric mean is calculated for the resulting two indices, thus yielding a single figure
The above equation is re-applied to the single figure to finally arrive at the Dimension index for education

Step 2: of calculation HDI:
Once the three Dimension indices are calculated, their geometric mean is derived

This geometric mean is the value of the HDI for the country

An example:
Construction of HDI of India for the year 2010:

1. LE index (L)

2. Education index (E)
Mean schooling yrs. Index

Expected yrs. of schooling index

Finally the Education index =

3. Income index (I)

HDI India 2010

In 2012, the quartiles of HDI were created for 187 countries. Countries were listed as
1.Very high
2. High
3. Medium and
4. Low
Norway, Australia and USA are at the top of HDI ranking
D.R. of Congo and Niger are at the bottom
India falls in the MEDIUM category of HDI

references:
Human development reports: UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP) Website. Available at: http://hdr.undp.org/en/content/human-development-index-hdi retrieved on 23rd Feb 2017 at 12: 32 PM
Park’s Textbook of Preventive & Social Medicine; ed. 23rd

HALE (Health – Adjusted Life Expectancy): http://www.ihatepsm.com/blog/hale-health-%E2%80%93-adjusted-life-expectancy

Sullivan’s index’ or ‘Disability Free Life Expectancy’ or “Active Life Expectancy” http://www.ihatepsm.com/blog/%E2%80%98sullivan%E2%80%99s-index%E2%80%99-...

QALY (Quality – adjusted life years): http://www.ihatepsm.com/blog/qualy-quality-%E2%80%93-adjusted-life-years

DALY (Disability Adjusted Life Years): http://www.ihatepsm.com/blog/disability-adjusted-life-years-daly

Differences between QUALY and DALY: http://www.ihatepsm.com/blog/differences-between-qualy-and-daly

PQLI (Physical Quality of Life Index): http://www.ihatepsm.com/blog/physical-quality-life-index-pqli

HDI (Human Development Index): http://www.ihatepsm.com/blog/human-development-index-hdi