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Human Development Index

The Human Development Index (HDI) is the measure of life expectancy, literacy, education, and standard of living for countries worldwide. It is a standard means of measuring well-being, especially child welfare. It is used to determine and indicate whether a country is a developed, developing, or underdeveloped country and also to measure the impact of economic policies on quality of life.[1] The index was developed in 1990 by Indian Nobel prize winner Amartya Sen, Pakistani economist Mahbub ul Haq, with help from Gustav Ranis of Yale University and Lord Meghnad Desai of the London School of Economics and has been used since then by the United Nations Development Programme in its annual Human Development Report. Described by Sen as a "vulgar measure", because of its limitations, it nonetheless focuses attention on wider aspects of development than the per capita income measure it supplanted, and is a pathway for researchers into the wide variety of more detailed measures contained in the Human Development Reports.

The HDI measures the average achievements in a country in three basic dimensions of human development: Each year, UN member states are listed and ranked according to these measures. Those high on the list often advertise it,[2] as a means of attracting talented immigrants (economically, individual capital) or discouraging emigration.

An alternative measure, focusing on the amount of poverty in a country, is the Human Poverty Index.

Methodology

In general to transform a raw variable, say , into a unit-free index between 0 and 1 (which allows different indices to be added together), the following formula is used: where and are the lowest and highest values the variable can attain, respectively.

The Human Development Index (HDI) then represents the average of the following three general indices: LE: Life expectancy at birth
ALR: Adult literacy rate (ages 15 and older)
CGER: Combined gross enrolment ratio for primary, secondary and tertiary schools
GDPpc: GDP per capita at PPP in USD


UNDP has created a technical note on the definition of the HDI (see links below).

Examples

Calculation examples of the indices.
Index Measure Minimum value Maximum value Formula
LongevityLife expectancy at birth (LE)25 yrs85 yrs
EducationLiteracy rate (LR)0%100%
Combined gross enrolment ratio (CGER)0%100%
GDPGDP per capita (PPP)100 USD
40,000 USD

2006 report

[[Image:HDImap spectrum2006.png|thumb|right|300px|Coloured world map indicating Human Development Index (2006)
     0.950 and over      0.900–0.949      0.850–0.899      0.800–0.849      0.750–0.799      0.700–0.749      0.650–0.699      0.600–0.649      0.550–0.599      0.500–0.549      0.450–0.499      0.400–0.449      0.350–0.399      0.300–0.349      under 0.300      N/A
]] The report for 2006 was launched in Cape Town, South Africa, on November 9, 2006. Its focus was on "power, poverty and the global water crisis." [1] Most of the data used for the report are derived largely from 2004 or earlier, thus indicating an HDI for 2004. Not all UN member states choose to or are able to provide the necessary statistics.

The report showed a stagnation in world HDI, as the continued improvement of developed countries was offset by a general decline of the developing world. Countries in Sub-Saharan Africa and South Asia showed an important decline in HDI, in comparison with last year's report. Other developing regions showed little to no improvement.

A HDI below 0.5 is considered to represent low development. 29 of the 31 countries in that category are located in Africa, with the exceptions of Haiti and Yemen. The bottom ten countries are all in Africa. The highest-scoring Sub-Saharan countries, Equatorial Guinea and South Africa, are ranked 120th and 121st, respectively (with a shared HDI of 0.653).

A HDI of 0.8 or more is considered to represent high development. This includes all developed countries, such as those in North America, Western Europe, Oceania, and Eastern Asia, as well as some developing countries in Eastern Europe, Central and South America, Southeast Asia, the Caribbean, and the oil-rich Arabian Peninsula.

On the following table, green arrows () represent an increase in ranking over the previous study, while red arrows () represent a decrease in ranking. They are followed by the number of spaces they moved. Blue dashes () represent a nation that did not move in the rankings since the previous study.

Top thirty countries (HDI range from 0.965 down to 0.885)

  1.  Norway 0.965 ()
  2.  Iceland 0.960 ()
  3.  Australia 0.957 ()
  4.  Ireland 0.956 ( 4)
  5.  Sweden 0.951 ( 1)
  6.  Canada 0.950 ( 1)
  7.  Japan 0.949 ( 4)
  8.  United States 0.948 ( 2)
  9.  Switzerland 0.947 ( 2)
  10.  Netherlands 0.947 ( 2)


  1.  Finland 0.947 ( 2)
  2.  Luxembourg 0.945 ( 8)
  3.  Belgium 0.945 ( 4)
  4.  Austria 0.944 ( 3)
  5.  Denmark 0.943 ( 1)
  6.  France 0.942 ()
  7.  Italy 0.940 ( 1)
  8.  United Kingdom 0.940 ( 3)
  9.  Spain 0.938 ( 2)
  10.  New Zealand 0.936 ( 1)


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    0.932 ( 1)
  2.  Hong Kong 0.927 ()
  3.  Israel 0.927 ()
  4.  Greece 0.921 ()
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    0.916 ()
  6.  South Korea 0.912 ( 2)
  7.  Slovenia 0.910 ( 1)
  8.  Portugal 0.904 ( 1)
  9.  Cyprus 0.903 ()
  10.  Czech Republic 0.885 ( 1)


Top/bottom three countries by region

Africa
047.
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0.842 ( 4)
063.
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0.800 ( 2)
064.
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0.798 ( 6)
...
175.  Mali 0.338 ( 1)
176.  Sierra Leone 0.335 ()
177.
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0.311 ()
Asia
007.  Japan 0.949 ( 4)
022.  Hong Kong SAR 0.927 ()
023.  Israel 0.927 ()
...
138.
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0.527 ( 2)
142.  Timor-Leste 0.512 ( 2)
150.  Yemen 0.492 ( 1)
Europe
001.  Norway 0.965 ()
002.  Iceland 0.960 ()
004.  Ireland 0.956 ( 4)
...
097.  Georgia 0.743 ( 3)
099.  Azerbaijan 0.736 ( 2)
114.  Moldova 0.694 ( 1)
North/Central America
006.  Canada 0.950 ( 1)
008.  United States 0.948 ( 2)
031.
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0.879 ( 1)
...
117.
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0.683 ( 1)
118.
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0.673 ( 1)
154.
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0.482 ( 1)
Oceania
003.  Australia 0.957 ()
020.  New Zealand 0.936 ( 1)
055.
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0.815 ( 1)
...
119.
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0.670 ( 1)
128.
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0.592 ()
139.  Papua New Guinea 0.523 ( 2)
South America
036.  Argentina 0.863 ()
038.
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0.859 ( 1)
043.  Uruguay 0.851 ( 3)
...
091.
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0.757 ( 3)
103.  Guyana 0.725 ( 4)
115.  Bolivia 0.692 ( 2)

Countries not included

The following countries or territories are not ranked in the 2006 Human Development Index, for being unable or unwilling to provide the necessary data, or for not being recognized as states by the United Nations at the time of publication.

Africa

Americas

Asia



Europe
Oceania

Past top countries

The number one ranked country in each year of the index. Canada is the highest ranking country, staying at the top ten times, and is followed by Norway, which stayed at the top six times.

References

1. ^ Davies, A. and G. Quinlivan (2006), A Panel Data Analysis of the Impact of Trade on Human Development, Journal of Socioeconomics
2. ^ Speech by Prime Minister Jean Chrétien to the National Forum.
3. ^ See list of countries by HDI.

4. ^ See list of countries by HDI.

See also

External links

Homo.
Upper Paleolithic 33 At age 15: 39 (to age 54)[3][4]
Neolithic 20  
Bronze Age 18[5]  
Classical Greece 25-45  
Classical Rome 25-45  
Medieval Britain 20-30  
..... Click the link for more information.
literacy is considered to be the ability to read and write, or the ability to use language to read, write, listen, and speak. In modern contexts, the word refers to reading and writing at a level adequate for communication, or at a level that lets one understand and communicate
..... Click the link for more information.
Education encompasses teaching and learning specific skills, and also something less tangible but more profound: the imparting of knowledge, positive judgment and well-developed wisdom.
..... Click the link for more information.
The standard of living refers to the quality and quantity of goods and services available to people, and the way these goods and services are distributed within a population. It is generally measured by standards such as income inequality, poverty rate, real (i.e.
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Quality of Life is a 2004 drama film, telling the fictional story of two graffiti writers in the Mission District of San Francisco.
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Welfare economics is a branch of economics that uses microeconomic techniques to simultaneously determine allocative efficiency within an economy and the income distribution associated with it.
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developed country, or advanced country, is used to categorize countries with developed economies in which the tertiary and quaternary sectors of industry dominate.
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developing country has a relatively low standard of living, an undeveloped industrial base, and a moderate to low Human Development Index (HDI) score. In developing countries, there is low per capita income, widespread poverty, and low capital formation.
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Amartya Sen

Born November 3 1933 (1933--) (age 74)
Santiniketan, India
Residence U.S.
..... Click the link for more information.
Motto
اتحاد، تنظيم، يقين محکم
Ittehad, Tanzim, Yaqeen-e-Muhkam   (Urdu)
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Economics is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Greek for oikos (house) and nomos (custom or law), hence "rules of the house(hold).
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Mahbub ul Haq (February 22, 1934 - July 16, 1998) was an influential and world renowned Pakistani economist. One of the founders of human development theory (and a personal friend of Amartya Sen, whom he met while studying at Cambridge), together with Amartya Sen he created the
..... Click the link for more information.
Meghnad Jagdishchandra Desai, Baron Desai (born 10 July 1940) is a British economist, writer and Labour politician.

Born in Vadodara, Desai grew up with his four siblings — two brothers and two sisters.
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United Nations Development Programme
Org type: Programme
Acronyms: UNDP
Head: Kemal Derviş
Status: Active
Established: 1965
Website: www.undp.org
Parent org: ECOSOC[1]
Wikimedia
Commons:
Portal: The
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The Human Development Report (HDR) is an annual milestone publication by the United Nations Development Programme (UNDP).

The report was first launched in 1990. Its simple goal was to place people at the centre of the development process in terms of economic debate, policy
..... Click the link for more information.
Homo.
Upper Paleolithic 33 At age 15: 39 (to age 54)[3][4]
Neolithic 20  
Bronze Age 18[5]  
Classical Greece 25-45  
Classical Rome 25-45  
Medieval Britain 20-30  
..... Click the link for more information.
literacy is considered to be the ability to read and write, or the ability to use language to read, write, listen, and speak. In modern contexts, the word refers to reading and writing at a level adequate for communication, or at a level that lets one understand and communicate
..... Click the link for more information.
The gross enrolment ratio (GER) or gross enrolment index (GEI) is a statistical measure used in the education sector and by the UN. The GER gives a rough indication of the level of education from kindergarten to postgraduate education – known in the UK
..... Click the link for more information.
gross domestic product, or GDP, is one of the ways for measuring the size of its economy. The GDP of a country is defined as the total market value of all final goods and services produced within a country in a given period of time (usually a calendar year).
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The purchasing power parity (PPP) theory was developed by Gustav Cassel in 1920. It is the method of using the long-run equilibrium exchange rate of two currencies to equalize the currencies' purchasing power.
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United States dollar
dólar estadounidense (Spanish)
dólar amerikanu (Tetum)
dólar americano

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list of countries by Human Development Index as included in the United Nations Development Programme's Human Development Report 2006, compiled on the basis of 2004 data.
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Individual capital comprises inalienable or personal traits of persons, tied to their bodies and available only through their own free will, such as skill, creativity, enterprise, courage, capacity for moral example, non-communicable wisdom, invention or empathy, non-transferable
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The Human Poverty Index is an indication of the standard of living in a country, developed by the United Nations (UN). For highly developed countries, the UN considers that it can better reflect the extent of deprivation compared to the Human Development Index. [1] .
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variable (IPA pronunciation: [ˈvæɹiəbl]) (sometimes called a pronumeral) is a symbolic representation denoting a quantity or expression.
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This article is about index in an economics and finance sense. For other uses, see Index.


In economics and finance, an index is a single number calculated from an array of prices or of quantities.
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formula (plural: formulae, formulæ or formulas) is a concise way of expressing information symbolically (as in a mathematical or chemical formula), or a general relationship between quantities.
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maxima and minima, known collectively as extrema, are the largest value (maximum) or smallest value (minimum), that a function takes in a point either within a given neighbourhood (local extremum) or on the function domain in its entirety (global
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The gross enrolment ratio (GER) or gross enrolment index (GEI) is a statistical measure used in the education sector and by the UN. The GER gives a rough indication of the level of education from kindergarten to postgraduate education – known in the UK
..... Click the link for more information.
The purchasing power parity (PPP) theory was developed by Gustav Cassel in 1920. It is the method of using the long-run equilibrium exchange rate of two currencies to equalize the currencies' purchasing power.
..... Click the link for more information.


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