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HDI: Dimensions &Methodology

Presented by:

Varun Abhiram 002Aditya DNV 011

Pratap Kollampadical 028Soumyadut Nag 039Shalini Joshi 119Saanya Nangia 112Apurva Srivastava 154Sravan Kumar 156

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Introduction: What is HDI?

A composite statistic used to rank

countries by level of human

development and separate developed

(high development), developing (middle

development), and underdeveloped (low

development) countries.

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Origins of HDI

To shift the focus of development from simpleeconomic advancement to human well-being.

Devised and launched by Pakistani economistMahboob ul Haque in 1990.

Amartya Sens work on capabilities andfunctioning provided conceptual framework.

The HDI has been used since 1990 by theUnited Nations Development Programme forits annual Human Development Reports.

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Human Development Index

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Calculating HDI: DimensionIndices

Performance in each dimension is

expressed as a value between 0 and 1

by applying the following general

formula:

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Index Calculation: Example

Calculation of life expectancy index:

This index measures the relative

achievement of a country in life expectancy

at birth.

For Turkey, with a life

expectancy of 71.4 years in

2005, the life expectancyindex is 0.7773.

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Aggregating the sub-indices to produce the Human

Development Index:

Adopting the geometric mean produces lower index

values, with the largest changes occurring in countries

with uneven development across dimensions.

Calculating HDI

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The 2009 HDI report combined three dimensions:

Life expectancy at birth: Index of population health and

longevity.

Knowledge and Education:

Index of adult literacy rate (with two-thirds weighting).

Index of combined primary, secondary, and tertiary gross

enrollment ratio (with one-third weighting).

Standard of Living:

Index of gross domestic product per capita at purchasing

power parity.

2009 Indices

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HDI 2010: New & OldMethodologies

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IHDI

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Computing the Inequality-adjustedHDI

Step 1: Measuring inequality in underlying

distributions

Step 2: Adjusting the dimension indices for inequality

Step 3: Computing the Inequality-adjusted Human

Development Index

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Computing IHDI (Contd.)

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Human Development Report2010

Focus: Review human

development

achievements/challenge

s at global and national

levels

Measurement

innovation

Inequality-adjusted HDI Gender Inequality Index

Multidimensional Poverty

Index

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Human Development Report2009

Focus: Impact of policiestowards human mobilityon Human Development

Human Mobility can

raise a persons income,health and educationprospects

The poorest have the

most to gain frommoving, but they moveless

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Human Development Report2008 and 2007

Focus: Fightingclimate change, whichis a massive threat tohuman development

Most difficult policychallenges relate todistribution of costsamong poor and richcountries

Strategies for climatechange mitigation

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Human Development Report2006

Focus: Safe water and

sanitation is

fundamental to human

development. Tackling poverty,

inequality and

government failures to

resolve the globalwater crisis

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HDI Trends (1975-2004)

Source: Evoluci de l'IDH.png by Artista, released under PD-self.

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Criticisms of HDI

Failure to include any ecological considerations.

Considers only material amenities that lead to humandevelopment. Moral amenities should also be considered.

HDI indices are bound between 0 and 1. Rich countries cantherefore not improve their score in certain categories, eventhough there may be scope for growth.

Inappropriate treatment of income, lacking year-to-yearcomparability, and assessing development differently indifferent groups of countries.

Difficult to compare a country's progress or regression since theHDI for a country in a given year depends on the levels of, say,life expectancy or GDP per capita of other countries in that year.

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Indices which can be associatedwith HDI

Democracy Index.

Global Peace Index.

Physical quality of life Index.

Child Development Index.

Satisfaction with Life Index.

Happy Planet Index.

Living Planet Index.

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THANK YOU

Questions?