HUMAN DEVELOPMENT INDEX

GROUP NO 08

• The Human Development Index

• (HDI) is a composite statistic used to rank countries by level of "human development" and separate developed(high development) , developing (middle development) and under developed (low development) countries.

SUB INDICES

»Life expectancy»Literacy»Per-capita GDP(Standard of living)

Origins of the HDI

• The origins of the HDI are to be found in the United Nations Development Programme's (UNDP) Human Development Reports (HDRs).

• These were devised and launched by a group of economists in 1990 and had the explicit purpose: ‘‘to shift the focus of development economics from national income accounting to people centered policies’’.

• In here they discussed that human development was needed in order to convince the public, academics, and policy-makers that they can and should evaluate development not only by economic advances but also improvements in human well-being.

Methodology of Calculating HDI

• The formula defining the HDI is promulgated by the United Nations Development Programme.

• In general, to transform a raw variable, say x, into a unit-free index between 0 and 1.

• There are 2 methods of calculating HDI,old & new.

• Where and are the lowest and highest values the variable x can attain, respectively.

• The Human Development Index (HDI) then represents the uniformly weighted sum with ⅓ contributed by each of the following factor indices:

The New Method• In its 2010 Human Development Report the UNDP

began using a new method of calculating the HDI. The following three indices are used:

• Life Expectancy Index (LEI) =LE-20/(83.2-20)• Income Index (EI)= {In(GNIpc)- In(163)} /{In(108,211)-In(163)}

• Education Index

• Mean Years of Schooling Index (MYSI)= MYS-0/13.2-0 • Expected Years of Schooling Index (EYSI) = EYS-0/20.6-0

0951.0

. OMYSIEYSI

• HDI is the geometric mean of the previous three normalized indices.

HDI= 3 .. IIEILEI

SriLankan Past Records Of HDIYEAR HDI SCORE RANK

1990 0.649

1995 0.696

2000 0.729

2004 0.746 96

2005 0.751 93

2006 0.755 102

2007 0.759

2009 0.759 102

2010 0.659 91

HDI in SriLanka

0.64

0.66

0.68

0.7

0.72

0.74

0.76

0.78

1980 1990 2000 2010 2020

YEAR

SC

OR

E

Series1

World’s HDI

SL with Other Countries………

Country HDI Rank

SriLanka 0.659 91

India 0.519 119

Pakistan 0.490 125

USA 0.902 4

Japan 0.884 11

Zimbabwe 0.140 169

References

• Central Bank reports of SriLanka• 2010 Human Development Index 2010• Human Development Complete Report

http://hdr.undp.org/en/media/HDR_2009_EN_Complete.pdf

• Human Development Report 2009[ (p. 171, 204)

Thank You….