Human Development Index

Group 1 (BSA-3A)
Baterina, Jericho
Galang, Kersie
Guzman, John Christian
Infante, Raymond Rhine
 Definition of Human Development Index

• A set of statistics that rank countries by their

development based on life expectancy, education,
and Gross National Income (GNI) per capita.

• First developed by Pakistani economist Mahbub ul Haq

and Indian economist Amartya Sen

• An index published by the UN Development

Program (1990)
Definition of Human Development Index

• The HDI was created to emphasize that people

and their capabilities should be the ultimate
criteria for assessing the development of a
country, not economic growth alone.
• The HDI can also be used to question national
policy choices, asking how two countries with
the same level of GNI per capita can end up with
different human development outcomes.
 Advantages of Human Development
Index
• Does not solely concentrate on economic
development, and takes into consideration that
there are other, more social, ways to measure
human development.

• The HDI can also be used to question national

policy choices (political competitiveness)
 HDI vs. GNP
• HDI compared to GNP, GNP is not really accurate
and reliable in computing whether the people are
happy living their life. GNP is just based only on the
output, not considering other factors such as: life
expectancy, quality education system, quality
medical system, environmental health, and etc. But
HDI, on the other hand, is not also a measure with
perfect accuracy. It is just better than GNP since
HDI includes other factors that GNP doesn’t.
Limitations of Human Development
Index
• The HDI simplifies and captures only part of
what human development entails. It does not
reflect on inequalities, poverty, human security,
empowerment, environmental issues etc.
• PPP (purchasing power parity) values change
very quickly and are likely to be inaccurate or
misleading.
• Still very little sense of income distribution with
this measure. (Uneven distribution will lead to
inaccurate measure)
Limitations of Human Development
Index
• Quality of life does not seem to be that closely
linked with it and we don’t get to taken into
account things like war or political oppression.
• Human development altogether is difficult to
measure and is based on normative economics.
Other measures such as access to internet might
be more important.
HUMAN DEVELOPMENT INDEX
LONG AND HEALTHY LIFE

• Healthcare Measures
▫ Infant mortality rates
▫ Number of doctors per 1000 of
population
▫ Life expectancy
KNOWLEDGE
• Education Measures
▫ Literacy rates
 Percentage of population who can read
and write
▫ Average number of years of school
education
A DECENT STANDARD OF LIVING
• Gross national income (GNI) per capita
▫ Aggregate income of an economy
generated by its production and its
ownership of factors of production, less
the incomes paid for the use of factors
of production owned by the rest of the
world, converted to international
dollars using purchasing power parity
(PPP) rates, divided by midyear
population.
Inequality-adjusted HDI (IHDI)
• In 2010, the Inequality-adjusted HDI (IHDI) was
introduced. The IHDI is the HDI adjusted for
inequalities in the distribution of achievements in
each of the three dimensions of the HDI (health,
education and income).
• The IHDI will be equal to the HDI value when there
is no inequality, but falls below the HDI value as
inequality rises. The difference between the HDI
and the IHDI represents the ‘loss’ in potential
human development due to inequality and can be
expressed as a percentage. In 2012 the IHDI was
calculated for 132 countries and the results are
telling.
• For example, United States suffers a loss of more
than 12% when its HDI value is adjusted for
inequalities and moves from rank 8 to 13 place
down in rank
 Gender Development Index (GDI)

• The GDI measures differences between male and female

achievements in three basic dimensions of human development:
health, measured by female and male life expectancy at birth;
education, measured by female and male expected years of schooling
for children and female and male mean years of schooling for adults
ages 25 and older; and equitable command over economic resources,
measured by female and male estimated earned income.
GNI per capita rank minus HDI rank
• Difference in rankings by GNI per capita and by
the HDI.
• A negative value means that the country is better
ranked by GNI than by the HDI.
• A positive value means that the country is better
ranked by HDI than by the GNI.
TOP 5
Country Human Life Expected years Mean years of Gross national
Development expectancy at of schooling schooling income (GNI)
Index (HDI) birth per capita

Norway 0.944 81.6 17.5 12.6 64,992

Australia 0.935 82.4 20.2 13.0 42,261

Switzerland 0.930 83.0 15.8 12.8 56,431

Denmark 0.923 80.2 18.7 12.7 44,025

Netherlands 0.922 81.6 17.9 11.9 45,435

Norway health care service
• All hospitals are funded by the government.
• Medical treatment is free of charge for any
person younger than the age of sixteen.
• All public hospitals in Norway are run by four
Regional Health Authorities.
• In terms of emergency room admission, all
immediate healthcare costs are covered.
Education in Norway
• The Norwegian educational system aims to be
among the best in the world.
• Education for all is a basic precept of Norwegian
educational policy.
• All public education in Norway is free of charge.
• Norway receive support from the State
Educational Loan fund.
Education in Norway
• The Municipalities are responsible for providing
and running municipal kindergartens.
• The County Governors are responsible for
supervision and dealing with complaints.
• Tertiary vocational education is excellent.
• The state is responsible for universities and
university colleges.
• Education for adults are important principles in
Norwegian education policy.
 CHART OF EDUCATIONAL PATH
OF NORWAY

PRIMARY AND
UPPER
LOWER
KINDERGARTEN SECONDARY
SECONDARY
EDUCATION
EDUCATION
 CHART OF EDUCATIONAL PATH
OF NORWAY

VOCATIONAL TERTIARY
Ph.d. (3 Years)
EDUCATION EDUCATION
National income of Norway

• Overall principles of Norway’s management of its

petroleum resources.
• Development and production must result in
maximum value creation for society.
• Resources belong to society as a whole.
Switzerland Health Care Service
• Swiss Federal Law on Health Insurance.
• Swiss are required to purchase basic health
insurance
• The insurance premium for the basic plan up to
8% of their personal income.
BOTTOM 5
Country Human Life Expected years Mean years of Gross national
Development expectancy at of schooling schooling income (GNI)
Index (HDI) birth per capita

Niger 0.348 61.4 5.4 1.5 908

Central
African 0.350 50.7 7.2 4.2 581
Republic

Eritrea 0.391 63.7 4.1 3.9 1,130

Chad 0.392 51.6 7.4 1.9 2,085

Burundi 0.400 56.7 10.1 2.7 758

Niger (HEALTH)
• HAVE THE HIGHEST FERTILITY RATE IN
THE WORLD RESULTING TO OVER
POPULATION WITHOUT BIRTH CONTROL.
• POOR HEALTH CARE
Niger (EDUCATION)
• POOR ACCESS TO SCHOOLS.
• ALTOUGH EDUCATION IS COMPULSARY
BETWEEN THE AGES 7 & 15, STILL, NIGER IS
ONE OF THE CONTRIES HAVING LOWEST
LITERACY RATES.
• POOR EDUCATION
Niger (INCOME)
• UNDER- RESOUCED AND SUBJECT TO
EXECUTIVE PRESSURES AND CORRUPTION
• LACK OF INFRASTRUCTURES
• ENVIRONMENTAL DEGRADATION
• ONE OF THE HOTTEST COUNTRY IN THE
WORLD
• 4/5 OF NIGER WAS DESERT AND MOST OF
THE NORTHWEST IS UNINHABITABLE
• SLAVERY, HUMAN TRAFFICKING AND
POVERTY OF PEOPLE
 Frequently Asked
Questions (FAQs) about
HDI
WHAT DOES HDI TELLS US?
• The Human Development Index (HDI) was
created to emphasize that expanding human
choices should be the ultimate criteria for
assessing development results. Economic growth
is a mean to that process, but is not an end by
itself.
• The HDI can also be used to question national
policy choices, asking how two countries with
the same level of GNI per capita can end up with
different human development outcomes..
• For example, Malaysia has GNI per capita higher
than Chile, but in Malaysia, life expectancy at
birth is about 7 years shorter and expected years
of schooling is 2.5 years shorter than Chile,
resulting in Chile having a much higher HDI
value than Malaysia. These striking contrasts
can stimulate debate about government policy
priorities
RANKING OF PHILIPPINES IN HDI
Rank 115 – Philippines
HDI =0.668
Life expectancy at birth = 68.2
Expected years of schooling= 11.3
Mean years of schooling= 8.9
Gross national income (GNI) per capita=7,915
WHERE DO DATA FOR HDI
COMPUTATION COME FROM?
• Life expectancy at birth is provided by the
UN Population Division in the UN Department
of Economic and Social Affairs (UNDESA)
• Mean years of schooling are based on
UNESCO Institute for Statistics (UIS)
educational attainment data
• Expected years of schooling is provided by
UIS
• GNI per capita (in 2011 $PPP) by the World
Bank and the International Monetary Fund.