HUMAN DEVELOPMENT INDEX (HDI)

What is the human development index (HDI)?

The HDIhuman development indexis a summary composite index that measures a
country's average achievements in three basic aspects of human development: longevity,
knoledge, and a decent standard of living! "ongevity is measured by life expectancy at
birth# knoledge is measured by a combination of the adult literacy rate and the
combined primary, secondary, and tertiary gross enrolment ratio# and standard of living
by $D% per capita &%%% '()*! +or details on ho to calculate the HDI, see pages ,-./0
Technical 1ote 0!
What is the gender-related development index (GDI)?
The $DIgender2related development indexis a composite indicator that measures the
average achievement of a population in the same dimensions as the HDI hile ad3usting
for gender ine4ualities in the level of achievement in the three basic aspects of human
development! It uses the same variables as the HDI, disaggregated by gender! +or details
on ho to calculate the $DI see pages ,-., ,-,2,-- and ,-5 Technical 1ote 0!
What is the gender empowerment measure (GEM)?
The $67 gender empoerment measureis a composite indicator that captures
gender ine4uality in three key areas:
8 political participation and decision2making, as measured by omen9s
and men9s percentage shares of parliamentary seats#
8 economic participation and decision2making poer, as measured by to
indicatorsomen9s and men9s percentage shares of positions as
legislators, senior officials and managers and omen9s and men9s
percentage shares of professional and technical positions#
8 poer over economic resources, as measured by omen9s and men9s
estimated earned income &%%% '()*!
+or details on ho to calculate the $67 see pages ,-., and ,-:/5
Technical 1ote 0!
How are the GDI and the GEM used?
To dra attention to gender issues! The $DI ad3usts the HDI for ine4ualities in the
achievement of men and omen! ; comparison of a country9s ranking on the HDI and its
ranking on the $DI can indicate the existence of gender discrepancy! To illustrate that
gender empoerment does not depend on income, it is useful to compare relative
rankings on the $67 and the relative level of national income! +or example,
8 %oland ranks <:th in the $67, ahead of =apan, in --th place, yet income
per person in %oland is about one third that of =apan's &>,-:. %%% '() vs!
<:,0,. %%% '() for <..0*!
8 The '? and +inland have very similar income per person &<-,05. %%%
'() and <-,-,. %%% '() for <..0* yet in the $67 +inland ranks :th, the
'? 0@th!
Aoth indicators can be disaggregated to highlight gender ine4uality ithin
countries, hich can vary idely across regions!
What is the human poverty index (HI-! and HI-")?
%overty has traditionally been measured as a lack of incomebut this is far too narro a
definition! Human poverty is a concept that captures the many dimensions of poverty that
exist in both poor and rich countriesit is the denial of choices and opportunities for
living a life one has reason to value! The H%I20human poverty index for developing
countriesmeasures human deprivations in the same three aspects of human
development as the HDI &longevity, knoledge and a decent standard of living*! H%I2<
human poverty index for selected high2income B6CD countriesincludes, in addition to
the three dimensions in H%I20, social exclusion!
+or H%I20 &developing countries*: deprivations in longevity are measured by the
probability at birth of not surviving to age -.# deprivations in knoledge are measured by
the percentage of adults ho are illiterate# deprivations in a decent standard of living are
measured by to variables: the percentage of people not having sustainable access to an
improved ater source and the percentage of children belo the age of five ho are
undereight!
+or H%I2< &selected high2income B6CD countries*: deprivations in longevity are
measured by the probability at birth of not surviving to age 5.# deprivations in knoledge
are measured by the percentage of adults lacking functional literacy skills# deprivations in
a decent standard of living are measured by the percentage of people living belo the
income poverty line, set at :.D of the ad3usted median household disposable income# and
social exclusion is measured by the rate of long2term &0< months or more* unemployment
of the labor force! +or details on ho to calculate the H%I20 and H%I2< see pages ,-. and
,-< Technical 1ote 0!
How is the HI used?
8 To focus attention on the most deprived people and deprivations in basic human
capabilities in a country, not on average national achievement! The human poverty
indices focus directly on the number of people living in deprivationpresenting a very
different picture from average national achievement! It also moves the focus of poverty
debates aay from concern about income poverty alone!
8 To highlight the presence of human poverty in both the rich and poor countries! High
income per person is no guarantee of a poverty2free country! 6ven among the richest
countries, there is human poverty! The H%I2< for selected high2income B6CD countries
&H%I2<* shos that out of 0@ 6uropean and 1orth ;merican countries, the '!(! has the
second highest level of income per person, but also the highest rate of human poverty!
8 To guide national planning for poverty alleviation! 7any National Human Development
Reports no break don the H%I by region or other socioeconomic groups to identify the
areas or social groups ithin the country most deprived in terms of human poverty! The
results can be dramatic, creating national debate and helping to reshape policies!