The Human Development Index (HDI) was developed in 1990 to measure a country's development. It combines measures of life expectancy, education, and income indicators. Specifically, it considers life expectancy, mean years of schooling, expected years of schooling, and GNI per capita. The HDI is used in the UN's annual Human Development Report and provides a standardized means to compare development across nations.

1. Human Development Index
(HDI)
PRESENTED BY: MR.MILAN REGMI
NATIONAL COLLEGE CENTER FOR
DEVELOPMENT STUDIES
BALUWATAR, KATHMANDU

2. Introduction
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 The index was developed in 1990 by Pakistani economist
Mahbub ul Haq, Sir Richard Jolly, with help from Gustav Ranis
of Yale University and Lord Meghnad Desai of the London
School of Economics.
 It has been used since then by UNDP in its annual Human
Development Report.
REGMI MILAN _FOREIGN_AID_01 3/16/2013

3. What is HDI ???
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 The HDI combines normalized measures of life
expectancy, literacy, educational attainment, and GDP per
capita for countries worldwide.
 It is claimed as a standard means of measuring human
development—a concept that, according to the United
Nations Development Program (UNDP), refers to the
process of widening the options of persons, giving them
greater opportunities for education, health
care, income, employment, etc.
 The basic use of HDI is to measure a country's
development.
REGMI MILAN _FOREIGN_AID_01 3/16/2013

4. The HDI combines three basic dimensions
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 Life expectancy at birth, as an index of population health
and longevity.
 Knowledge and education, as measured by the adult
literacy rate (with two-thirds weighting) and the combined
primary, secondary, and tertiary gross enrollment ratio
(with one-third weighting).
 Standard of living, as measured by the natural logarithm
of gross domestic product (GDP) per capita at purchasing
power parity (PPP) in United States dollars.
REGMI MILAN _FOREIGN_AID_01 3/16/2013

5. 5
OECD Central and eastern Europe, and the CIS
Latin America and the Caribbean Sub-Saharan Africa
East Asia Arab States South Asia
REGMI MILAN _FOREIGN_AID_01 3/16/2013

6. Dimensions Of HDI
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EI
HDI
HI GDP
REGMI MILAN _FOREIGN_AID_01 3/16/2013

7. FORMULAE
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 In general, to transform a raw variable, say x, into a unit-
free index between 0 and 1 (which allows different indices
to be added together), the following formula is used:
x-index =
where and are the lowest and highest values the
variable x can attain, respectively.
REGMI MILAN _FOREIGN_AID_01 3/16/2013

8. CALCULATION
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 The Human Development Index (HDI) then represents
the average of the following three general indices:
Life Expectancy Index =
Education Index =
Adult Literacy Index (ALI) =
REGMI MILAN _FOREIGN_AID_01 3/16/2013

9. 9
 Gross Enrollment Index (GEI) =
GDP Index =
REGMI MILAN _FOREIGN_AID_01 3/16/2013

10. Thank you for your Patience !
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REGMI MILAN _FOREIGN_AID_01 3/16/2013