What is HDI how it is Calculated | Human Development Index

Hi friends, in today’s article we are going to know about What is HDI how it is calculated (Human Development Index). So let’s discuss in details.

What is Human Development Index?

The HDI is a summary measured of human development. It measures the average achievements in a country in three basic dimensions of human development.

How is HDI calculated Class 10

The HDI is based on three indicators i.e. Longivity, educational attainment and standard of living. For the construction of the index, fixed minimum and maximum values have been set for each of these indicators –

• Life expectancy at birth, 25 years and 85 years for calculating the Life expectancy Index.
• Adult literacy, 0% and 100% for calculating the education Index.
• Combined gross enrolment ratio (0% and 100%)
• Real GDP per capita (PPP$): $ 100 and $ 40,000 (PPP US$) for calculating GDP Index.

For any component of the HDI, individual indices can be computed by applying the formula –

(i) Life Expectancy Index – If the life expectancy at birth of a country is 78 years, then the life expectancy index for that country would be

(ii) Education Index – The education Index is the combination of adult literacy index and gross enrolment index. If the adult literacy rate of this country is 92, then its adult literacy index would be

It the combined gross enrolment in its country is 60, then its gross enrolment index would be

Education Index = 2/3 (Adult Literacy Index) + 1/3 (Gross Enrolment Index)

= 2/3 (0.920 + 1/3 (0.600)

= 0.813

(iii) GDP Index – The GDP per capita (PPPUS$) of this country is $8,840, then GDP index would be

(iv) Human Development Index – The HDI is a simple average of the Life Expectancy Index, Education Index and adjusted GDP per capita (PPPS) index. It is derived by dividing the sum of these three indices by 3.

HDI = 1/3 (0.884) + 1/3 (0.813) + 1/3 (0.784)

= 0.295 + 0.271 + 0.249

= 0.815

This country comes under the category of high human development.

Conclusion

So friends, this was the concept of HDI (Human Development Index). Hope you get the full details about it and hope you like this article.

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