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Human Development Index, Concept, Indicators, Role

The document discusses the human development index (HDI), its indicators, and role. The HDI was introduced by the UNDP in 1990 to measure human development beyond just income. It is a composite index from 0-1 based on three indicators: longevity/life expectancy, educational attainment including adult literacy and enrollment rates, and per capita income. The HDI is calculated for 188 countries, with Norway ranked first and Niger ranked last. It is an important indicator of a nation's level of economic development.

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219 views2 pages

Human Development Index, Concept, Indicators, Role

The document discusses the human development index (HDI), its indicators, and role. The HDI was introduced by the UNDP in 1990 to measure human development beyond just income. It is a composite index from 0-1 based on three indicators: longevity/life expectancy, educational attainment including adult literacy and enrollment rates, and per capita income. The HDI is calculated for 188 countries, with Norway ranked first and Niger ranked last. It is an important indicator of a nation's level of economic development.

Uploaded by

Srikant
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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HUMAN DEVELOPMENT INDEX, CONCEPT,

INDICATORS, ROLE
Economic development of any nation needs physical resources,
financial resources as well as human resources. Human capital or resource
refers to the stock of skill and expertise of a nation at a point of time.
Human capital formation is the process of adding to stock of human capital
through creation of skilled, trained, and efficient labour force by providing
better education and health facilities.

HUMAN DEVELOPMENT INDEX: The concept of human


development index was introduced by the United Nations Development
programme in its first human development report in 1990. Before
discussing the concept of human development index, it is better to first to
understand the meaning of human development. According to Human
development Report 1977, “Human Development is a process of widening
people’s choices as well as raising level of well-being achieved”.
Traditionally speaking, Human development only implies the expansion of
only one aspect i.e Income. But the concept of Human Development has
gone far beyond the income to cover all human aspects-economic, social,
political and cultural. There are many other aspects such as education,
literacy, health, physical environment, political freedom like freedom of
speech and expression, political and economic participation in decision
making e.t.c.

INDICATORS OF HUMAN DEVELOPMENT INDEX. Human


Development Index is a composite index prepared by United Nations
Development Programme on a scale of 0-1 measured on the basis of
following 3 indicators.

a) Longeivity(Life expectancy): It implies the average no. of years a


person expects to live at the time birth. It is universally accepted fact that
people want enjoy longer life. Shorter longevity implies less development
and longer longevity implies more development. It indicates people enjoy
good health, get nutritious food, get good medical facilities.

b) Educational attainment: It implies the status of education of the


people. It includes,

I) Adult Literacy rate: It refers to the percentage of people above 15


years of age who can read and write.
II) Gross or combined Enrollment rate: It refers to the ratio between
total no. of students enrolled for education and total no. of children in the
same age group. No. of students enrolled for different levels of education
(primary,secondary and higher education) is estimated. Primary level refers
to education up to class V. Secondary education level refers to education
from VI to X. Higher education refers to college and university level of
education.

GER= Total no. of students enrolled for education/Total no. of


children in the same age group. Higher GER indicates that more children
are getting education in a country. If gross enrollment ratio in an economy
is increasing, it indicates that the youth is giving due importance to
education which indicates improvement in quality of human resources.

III) Per capita income or per capita Real Domestic product: This
implies purchasing power of the people or their capacity to buy goods and
services. It is measured in terms of per capita real gross domestic product.

Per capita Real GDP= Gross Domestic product at constant


prices/Total Population

HDI is constructed by United Nations Development programme for


various countries and so far 188 countries have been covered. Accordingly,
India ranks 130th position in HDI. Norway ranks 1st with HDI value of 0.944
and Niger ranks 188th with HDI value of 0.348.

Human Development Index is an important indicator of the level of


economic development. Higher is the value, greater is the value of
economic development. With the help of this index, one comes to know
about important elements of economic welfare like life expectancy, level of
educational attainment and real per capita income.

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