This slide is about measures of rural development HDI. It is also shown how to calculate Human Development Index. HDI is one of the measure of rural development.

1. Human Development
Index
[HDI]

2. What is HDI?
Definition:
 The Human Development Index (HDI) is a composite statistic of Life
expectamcy, education and per capital income indicators, which are
used to rank countries into four tiers of Human development.
According to the UNDP, Human development is define as a process of
Enlarging people choice.
Lifespan is Higher
Education level is higher
GDP per capital is higher
Fertility rate is lower
Inflation rate is lower
A country’s HDI scores
higher

3. Origin of HDI….
1)Devised and launched by Pakistani economist Mahbub ul haq in 1990.
2)Amartya Sen and Mahbub ul haq worked upon the capabilities and functioning which provided conceptual framework.
3)Published by United Nations Development pograme (UNDP).

4. Factors considered for HDI:
Create an overall score between 0 and 1. Where “1”(One) indicate a high level
of economic development and “0” (Zero) a very low level.

5. 
Measuring Human Development:
1)Health:
The indicator chosen to assess health is the life expectancy at birth.
A higher life expectancy means that people have a greater chance of living longer and healthier lives.
2)Education:
The adult literacy rate and the gross enrolment ratio represent access to knowledge.
3)Access to resources:
Access to resources is measured in terms of purchasing power ( in U.S. Dollars).

6. Calculation of HDI:
1.Life Expectancy Index (LEI) =
Let us explain this formula by assuming Bangladesh’s life expectancy at birth in
2014 as 71.6 years.We will compute life expectancy index by applying the formula
as under.
Life expectancy of Bangladesh =
= (71.6 – 58.4) ÷ (81.6 – 58.4)
= 0.56

7. Comparison of Life expectancy among few developing and developed
countries with Bangladesh:
Country Year 1960 1970 1980 1990 2000 2010 2014
Bangladesh 45.83 47.53 53.49 58.42 65.35 70.08 71.63
India 41.17 47.73 53.87 57.94 62.63 66.51 68.14
Pakistan 45.29 52.88 57.04 60.11 62.77 65.16 66.18
Srilanka 59.75 64.28 68.31 69.68 71.11 74.33 74.79
Europ 67.03 69.01 70.2 72.07 73.02 75.84 76.89
45.83 47.53 53.49 58.42 65.35 70.08 71.63
41.17 47.73
53.87 57.94 62.63 66.51 68.1445.29
52.88
57.04
60.11
62.77 65.16 66.18
59.75
64.28
68.31
69.68
71.11
74.33 74.79
67.03
69.01
70.2
72.07
73.02
75.84 76.89
Bangladesh India Pakistan Srilanka Europ
Figure: Comparison of Life expectancy among few developing and developed countries with Bangladesh.

8. 2. Educational Index (EI) =
•Expectd years of schooling Index =
• Mean years of schooling Index =
By using this equation we can calculate Educational index.
3. Income Index =
We also measure this Income Index by using this equation.

9. Comparison of National Income among few developing and
developed countries with Bangladesh
Cou
ntry
Year 1974 1984 1994 2004 2014
Bangladesh 2.96 3.85 4.13 7.83 4.82
India 1.48 2.1 8.32 7.02 7.11
Pakistan 3.57 4.42 3.74 5.77 6.74
Srilanka 0.43 14.88 3.34 2.75 11.22
Europ 0.92 2.6 1.66 3.7 1.69
Income Index
Europ
Srilanka
Pakistan
India
Bangladesh
Figure & Graphical presentation: Comparison of National Income among developing
and developed countries with Bangladesh.

10. We know that,Human Development Index dependes on Qubic Root Multiplication
of Life Expectancy Index(LEI), Educational Index(EI) and Income Index(II).
If we express it equitionaly ,
HDI aspects of Bangladesh:
●
Bangladesh ranks (2014)- 142
●
HDI- 0.57
●
Gain of 0.01 HDI from previous year
●
Indicatore:
Life expectancy at birth (by UN)
●
Overall – 71.6
● Educational index: 10
● Mean years of schooling: 5.1
● Gross national income per capital at ppp §: 3191.5
●
Inequlity –djusted (IHDI) – 0.403

11. Comparison HDI among other south asian countries with Bangladesh:
HDI Ranking
Bangladesh 0.56 142
India 0.609 130
Nepal 0.548 145
Srilanka 0.757 73
Pakistan 0.538 147
Global HDI ranking top ten countries :
Ranks Countries HDI
1 Norway 0.944
2 Australia 0.933
3 Switzerland 0.917
4 Netherlands 0.915
5 U. S. 0.914
6 Germany 0.911
7 New Zeland 0.910
8 Canada 0.902
9 Singapure 0.910
Lowest ten countries in HDL:
Rank Countries HDI
178 Mozambique 0.393
179 Guinea 0.392
180 Burundi 0.389
181 Burkina Faso 0.388
182 Eriteria 0.381
183 Sierra leone 0.374
184 Chad 0.372
186 Congo 0.338
187 Niger 0.337

12. ● Importance of HDI:
● The HDI gives an overall index of economic development.
● To highlit disparities with in countries and it healps countries set
target for improvement.
● It gives idea regarding areas of development which requires
improvement.
● Statistics gives better decision making for areas having wide
disparity.
● More focus on social and human development rather than only
capital accumulation and growth.

13. Limitations of HDI:
Economic welfare depends on several other factors, such as – threat of war ,
levels of pollution, access to clean drinking water etc.
Longevity can also be distired as the life expectancy of a person does not
consider how healthy the life was led.
Life expectancy value for a country is the given is an average of the total
population. There are many communities in the country that will not all have
access to good healthcare services and so there will be variations of life
expectancy values.
HDI fails to take account of qualitative factors, such as cultural identity and
political freedoms ( human secqurity, gender opportunity and respect for human
right for example)