HUMAN DEVELOPMENT INDEX
Sudindra V R
1. INTRODUCTION
Economic growth alone cannot measure the countries prosperity, the emphasis on people and their capabilities are most essential criteria for assessment of countries development.
Human development index is a summary measure of average achievement in key dimension of human development. The key dimension includes: a long and healthy life, being knowledgeable and have decent standard of living. HDI will be published by UNDP-united nation’s development program on yearly basis for more than 188 countries.
2. DIMENSION OF HDI
3. STEPS TO CALCULATE HDI
Creating the dimension indices: minimum and maximum values are set in order to transform the indicators expressed in different units into indices between 0 and 1. For life expectancy natural zero at 20 years, mean years of schooling and expected year of schooling minimum value is ‘0’ and low minimum value for GNI per capita $100. Maximum for life expectancy would be 85 years, expected year of schooling 18 years, mean year of schooling 15 and standard of living $75000.
Aggregate the dimensional indices to pr
oduce HDI: it is geometric mean of the 3 dimension indices. HDI = (I health * I education* I income) ^ 1/3
oduce HDI: it is geometric mean of the 3 dimension indices. HDI = (I health * I education* I income) ^ 1/3
Dimension index = actual value-min value / max value – min value
4. MEASURING HUMAN DEVELOPMENT INDEX
The HDI score will be between 0 and 1 and based on country scores it can measure the development criteria. Very high human development will have score 0.800 and above, high human development will have score 0.700-0.799, medium development will have score 0.555-0.699 and low human development will have score 0.550.
5. INDIAN HUMAN DEVELOPMENT INDEX:
Indian HDI value for 2014 is 0.609 and it is considered as medium human development index category, positioning it at 130th country out of 188 countries and territories. Overall HDI value increased from 0.362 to 0.609 increase of 68.1% or average annual increase from 2010 to 2014 of 0.59%. It indicates that life expectancy at birth increase from 53.29 to 68.0 from 1980 to 2014 with change of 14.1 years over 34 years. Expected years of schooling from 6.4 years to 11.7 from 1980 to 2014 with change of 5.3 years. Mean years of schooling from 1.9 years to 5.4 years from 1980 to 2014 with change of 3.5 years and GNI per capital( 2011 PPP$) from $ 1255 to $5497 with change of $4242.
Table 1: Table showing HDI value from 1980 to 2014
Life expectancy at birth | Expected years of schooling | Mean years of schooling | GNI per capita (2011 PPP$) | HDI value | |
1980 | 53.9 | 6.4 | 1.9 | 1,255 | 0.362 |
1985 | 55.8 | 7.3 | 2.4 | 1,446 | 0.397 |
1990 | 57.9 | 7.7 | 3.0 | 1,754 | 0.428 |
1995 | 60.4 | 8.3 | 3.5 | 2,046 | 0.462 |
2000 | 62.6 | 8.5 | 4.4 | 2,522 | 0.496 |
2005 | 64.5 | 9.9 | 4.8 | 3,239 | 0.539 |
2010 | 66.5 | 11.1 | 5.4 | 4,499 | 0.586 |
2011 | 66.9 | 11.7 | 5.4 | 4,745 | 0.597 |
2012 | 67.3 | 11.7 | 5.4 | 4,909 | 0.600 |
2013 | 67.6 | 11.7 | 5.4 | 5,180 | 0.604 |
2014 | 68.0 | 11.7 | 5.4 | 5,497 | 0.609 |
Sources: Human Development Report 2015
Chart 1: Trends in India’s HDI component indices 1980-2014
Sources: Human Development Report 2015
6. COMPARISION OF DEVELOPED COUNTRIES HDI TO INDIAN HDI
Table 2: Table showing HDI value of UK, US, Japan, Germany and India from 1990 to 2014
Source: http://hdr.undp.org/en/composite/trends
Inference: Indian HDI need to improve in HDI to reach to the developed country HDI to improve the overall country’s development. United Kingdom ranked 14th, USA ranked 8th, Japan ranked 20th, Germany ranked 6thand India ranked 130th. All the developed countries comes under very high human development, only India is comes under medium human development.
7. Table 3: Table showing HDI value of BRICS countries from 1990 to 2014
Inference:Indian HDI need to improve in HDI to reach on par with BRCS countries to improve the overall country’s development. Brazil ranked 75th, Russia at 50, China 90, South Africa 116 and India ranked 130thplace. Brazil, Russia and China comes under High human development where as India and South Africa medium human development.
8. TOP 10 POPULATED COUNTRIES WITH HDI SCORE
Ranking | Country | Population 2015 | HDI Score |
1 | 1361512535 | 90 | |
2 | 1251695584 | 130 | |
3 | 321368864 | 8 | |
4 | 255993674 | 110 | |
5 | 204259812 | 75 | |
6 | 199085847 | 147 | |
7 | 181562056 | 152 | |
8 | 168957745 | 142 | |
9 | 146267288 | 50 | |
10 | 126919659 | 20 |
9. CONCLUSION
Human development index assess the countries development which takes into consideration three major criteria long and healthy life, knowledgeable and standard of living. Based on three criteria India stands at 130thplace out of 188, compare to developing countries and BRCS countries Indian human development has to improve to achieve inclusive and sustainable development of country.
10. REFERENCES
<http://hdr.undp.org/en/composite/trends>
<www.wikiepedia.com>
<Business Environment, Justin Paul, 3rd Edition, McGraw-Hill Education, 2010>
