Human Development

Index

Human Development Index

(HDI)
Human Development Index (HDI): A
composite index measuring average
achievement

in

three

basic

dimensions of human development

a long and healthy life, knowledge
and a decent standard of living.

Components of HDI
Life expectancy at birth: Number of years a newborn infant
could expect to live if prevailing patterns of age-specific
mortality rates at the time of birth stay the same throughout the
infants life.
Mean years of schooling: Average number of years of
education received by people ages 25 and older, converted from
education attainment levels using official durations of each
level.
Expected years of schooling: Number of years of schooling
that a child of school entrance age can expect to receive if
prevailing patterns of age-specific enrolment rates persist
throughout the childs life.

Contd..
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.

Contd..
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.
Non- income HDI: Value of the HDI computed from

the life expectancy and education indicators only.

Human Development Index (HDI): A composite

index measuring average achievement in three basic

dimensions of human developmenta long and healthy
life, knowledge and a decent standard of living.

Calculating Human Development Index

The Human Development Index (HDI) is a

summary measure of human development.

It measures the average achievements in a

country in three basic dimensions of human

development: a long and healthy life, access to
knowledge and a decent standard of living.
The HDI is the geometric mean of normalized

indices

measuring

dimension.

achievements

in

each

Steps to estimate the Human Development

Index

Step 1. Creating the dimension indices

Minimum and maximum values (goalposts)
are set in order to transform the indicators
into indices between 0 and 1.
These goalposts act as the natural zeroes
and aspirational goals, respectively, from
which

component

standardized

indicators

are

Goal Posts

Goal Posts Contd..

The justification for placing the natural zero for life
expectancy at 20 years is based on historical evidence
that no country had life expectancy of less than 20.
Societies

can

subsist

without

formal

education,

justifying the education minimum of 0 years.

The maximum for mean years of schooling, 15, is the
projected maximum of this indicator for 2025.
The maximum for expected years of schooling, 18, is
equivalent to achieving a masters degree in most
countries.

Goal Posts Contd..

The low minimum value for gross national income
(GNI)

per

capita,

$100,

is

justified

by

the

considerable amount of unmeasured subsistence

and nonmarket production in economies close to the
minimum, which is not captured in the official data.
The maximum is set at $75,000 per capita.
Kahneman and Deaton (2010) have shown that
there is a virtually no gain in human development
and well-being from annual income beyond $75,000.

Dimension Index Calculation

the sub indices are calculated as
follows:

Contd..
For education, equation 1 is applied to each of the two
subcomponents, then a arithmetic mean of the resulting
indices is created and finally, equation 1 is reapplied to the
arithmetic mean of the indices using 0 as the minimum and
the highest arithmetic mean of the resulting indices for the
time period under consideration as the maximum.
This is equivalent to applying equation 1 directly to the
arithmetic mean of the two subcomponents.
For income the natural logarithm of the actual minimum
and maximum values is used.

Step 2: Aggregating the sub-indices to

produce the Human Development Index

The HDI is the geometric mean of the

three dimension indices:

Example: Cyprus

Purchasing Power Parity

(PPP) $
Official PPP conversion rates are produced

by the International Comparison Program,

whose

surveys

periodically

collect

thousands of prices of matched goods and

services in many countries.
The last round of this exercise refers to

2011 and covered 180 countries.

Methodology used to express income

The World Banks 2015 World Development Indicators database
contains estimates of GNI per capita in 2011 purchasing power parity
(PPP) terms for many countries.
For countries missing this indicator, the Human Development Report
Office calculates it by converting GNI from current to constant terms
using two steps.
First, the value of nominal GNI per capita is converted into PPP terms
for the base year (2011).
Second, a time series of GNI per capita in 2011 PPP terms is
constructed by applying the real growth rates to the GNI per capita in
PPP terms for the base year.
The real growth rate is implied by the ratio of the nominal growth of
current GNI per capita in local currency terms to the GDP deflator.

Country Groupings
Group

HDI Value

Very high human development

0.800 and above

High human development

0.7000.799

Medium human development

0.5500.699

Low human development

Below 0.550

HDI MPI Spreadsheet

Multidimensional Poverty Index

The Multidimensional Poverty Index
(MPI) identifies multiple deprivations
at the household level in education,
health and standard of living.
It uses micro data from household
surveys

Components
Education:
School attainment: no household member has completed at least

six years of schooling.

School attendance: a school-age child (up to grade 8) is not

attending school
Health:
Nutrition: a household member is malnourished, as measured by

the body mass index for adults and by the height-for-age z score
calculated using World Health Organization standards for children
under age 5.
Child mortality: a child has died in the household within the five

years prior to the survey

Components contd..
Standard of living:
Electricity: not having access to electricity.
Drinking water: not having access to clean drinking water or if the source
of clean drinking water is located more than 30 minutes away by walking.
Sanitation: not having access to improved sanitation.
Cooking fuel: using dirty cooking fuel (dung cake, wood or charcoal).
Having a home with a dirt, sand or dung floor.
Assets: not having at least one asset related to access to information
(radio, TV, telephone) and not having at least one asset related to
mobility (bike, motorbike, car, truck, animal cart, motorboat) or at least
one asset related to livelihood (refrigerator, arable land, livestock).

Methodology
Each person is assigned a deprivation score according
to his or her households deprivations in each of the
10 component indicators.
The maximum deprivation score is 100 percent with
each dimension equally weighted; thus the maximum
deprivation score in each dimension is 33.3 percent.
The education and health dimensions have two
indicators each, so each indicator is worth 33.3 / 2, or
16.7 percent.
The standard of living dimension has six indicators, so
each indicator is worth 33.3 / 6, or 5.6 percent.

Example

HDI MPI Spreadsheet

Assessment of Energy Poverty in

India: A Multidimensional Approach
Energy poverty is widespread in India with large
geographical variation across states.
Energy poverty coincides with social backwardness of
people.
Energy poor are not necessarily income poor in
villages.
Energy poverty is associated with health hazards like
Asthma and Tuberculosis.

Components
Lighting
Whether the household has access to electricity
Cooking
Whether the household has access to LPG
Whether the household uses a traditional chulha without
chimney.
Use of biofuel
Five components under additional measures which include
use of firewood, dung cake, crop residue, kerosene and
coal/charcoal for cooking, lighting and heating purposes.

State wise MEPI

State
Jammu & Kashmir

1
100

2
53.61

3
42.08

4
29.86

5
17.36

6
6.25

7
2.08

8
0.14

9
0.14

10
0.00

Himachal Pradesh

100

75.80

67.25

48.88

30.85

4.00

0.47

0.27

0.14

0.00

Punjab

100

62.71

55.12

44.65

25.06

10.47

2.71

0.94

0.71

0.00

Chandigarh

100

7.06

7.06

4.71

3.53

0.00

0.00

0.00

0.00

0.00

Uttarakhand

100

75.21

66.45

61.11

46.58

22.65

7.26

4.70

2.99

0.00

Haryana

100

82.30

75.31

68.43

43.46

18.49

4.34

2.59

2.42

0.17

Delhi

100

9.71

6.14

4.24

1.79

0.56

0.11

0.11

0.00

0.00

Rajasthan

100

81.31

76.74

71.51

61.42

46.48

33.09

13.91

11.83

6.90

Uttar Pradesh

100

84.97

81.64

76.79

70.18

61.53

50.09

37.21

30.76

13.53

Bihar

100

87.34

83.61

80.52

75.87

69.18

54.69

36.20

35.28

18.49

Sikkim

100

16.04

14.15

11.32

6.60

1.89

0.00

0.00

0.00

0.00

Arunachal Pradesh

100

44.52

41.94

32.90

32.90

1.29

1.29

1.29

0.00

0.00

State wise MEPI

State
Nagaland

1
100

2
18.10

3
9.52

4
0.95

5
0.95

6
0.95

7
0.95

8
0.95

9
0.95

10
0.00

Manipur

100

10.23

5.68

3.41

0.00

0.00

0.00

0.00

0.00

0.00

Mizoram

100

45.33

21.33

14.67

0.00

0.00

0.00

0.00

0.00

0.00

Tripura

100

82.11

70.18

68.81

63.30

12.39

11.93

11.93

11.93

0.00

Meghalaya

100

77.44

76.69

68.42

56.39

6.77

0.75

0.75

0.75

0.00

Assam

100

80.59

55.87

55.06

47.19

31.05

30.44

26.97

24.21

2.15

West Bengal

100

74.05

72.36

68.02

60.50

49.50

32.11

18.31

17.52

8.35

Jharkhand

100

87.29

80.12

74.82

59.88

44.35

25.29

13.06

10.59

2.12

Orissa

100

87.21

85.08

83.28

80.12

50.75

34.66

26.01

24.79

1.94

Chhattisgarh

100

87.21

86.37

83.88

80.70

58.67

18.62

9.54

9.31

0.15

Madhya Pradesh

100

87.60

86.03

83.66

75.34

66.72

33.09

18.39

17.26

4.64

Gujarat

100

64.71

59.83

54.64

45.10

28.83

13.73

3.13

2.60

0.32

State wise MEPI

State
Daman &Diu

1
100

2
76.27

3
49.15

4
38.98

5
18.64

6
3.39

7
0.00

8
0.00

9
0.00

10
0.00

Dadra, Nagar Haveli

100

64.41

49.15

49.15

40.68

5.08

0.00

0.00

0.00

0.00

Maharashtra

100

69.24

59.51

53.64

46.97

32.92

18.71

5.23

4.87

1.98

Andhra Pradesh

100

68.13

50.00

46.16

37.19

6.34

2.36

1.85

1.71

0.00

Karnataka

100

80.83

64.72

61.01

39.85

13.15

6.01

4.04

3.81

0.03

Goa

100

3.72

3.72

1.60

1.60

0.53

0.53

0.53

0.00

0.00

Kerala

100

87.31

47.54

36.20

10.43

2.20

1.04

0.78

0.71

0.00

Tamil Nadu

100

49.90

40.39

36.11

30.11

4.02

2.19

1.98

1.32

0.00

Pondicherry

100

28.04

10.28

10.28

7.48

0.00

0.00

0.00

0.00

0.00

Overall

100

74.48

65.84

60.56

49.68

32.45

19.93

11.94

10.71

3.55

Lakshadweep

Highest MEPI Scores

State wise number of districts with more
than 90% of population having MEPI score of
more than 33.3% are as follows:
19 districts Uttar Pradesh, 17 in Madhya
Pradesh, 13 in Orissa, 11 in Chhattisgarh, 8
in Bihar, 6 in Rajasthan, 5 in West Bengal, 3
in Maharashtra, 1 each in Assam, Jharkhand,
Gujarat, and Karnataka.

Caste/Religion wise MEPI Scores

Caste/Religion

Brahmin

100 53.30

45.87

38.35

27.13

19.01 11.49

5.49 4.43 1.66

Forward caste
excluding Brahmin

100 59.34

48.53

40.42

29.58

17.58

4.52 4.14 1.55

Other Backward
Castes
Dalit

100 76.92

67.94

63.53

52.02

100 82.82

77.06

72.93

62.72

Adivasi

100 88.62

84.33

81.75

73.80

Muslim

100 77.39

67.11

61.93

50.10

Christian, Sikh, Jain

100 56.95

34.71

22.41

9.35

35.22 21.24 12.34 10.6

5
38.87 24.46 14.94 13.5
7
48.57 31.27 20.96 19.6
3
35.51 22.98 14.97 13.9
1
2.44 1.01 0.51 0.25

9.46

10

4.20
5.17
2.63
4.00
0.00

Village- Town Difference in MEPI and

Income
Cumulative Energy Poverty

Average Total Income

Village

Town

Village

Town

100.00%

100.00%

222833.61

241041.10

53.15%

25.48%

157755.92

168427.59

43.94%

17.22%

135834.89

107133.00

38.73%

13.65%

142036.28

99567.61

30.79%

9.05%

83024.53

77755.80

16.95%

4.36%

73215.32

75476.03

9.69%

2.19%

72831.94

66293.50

5.84%

1.51%

40314.43

48290.91

5.47%

1.13%

62987.43

55377.10

10

1.27%

0.07%

54782.87

58750.00

Frequency

MEPI and Illness

Frequency
1
2
3
4
5
6
7
8
9
10

TB

BP

Heart

Cancer

Asthma

Mental
Illness

1.17

22.39

5.52

0.39

3.22

1.10

0.87

22.66

6.35

0.65

4.56

1.58

2.13

22.54

6.07

0.23

5.33

1.39

1.60

17.32

4.58

0.66

4.82

2.04

1.75

9.89

2.66

0.22

4.26

1.39

2.14

7.94

2.59

0.19

4.96

1.74

2.93

7.82

2.42

0.21

6.04

2.21

3.68

5.43

2.14

0.58

5.03

1.75

2.74

5.64

1.14

0.27

4.60

1.70

4.17

3.98

1.93

0.20

7.39

1.86