4.3.1 Measures of develeopment

• The three dimensions of the Human Development Index (HDI)

  • Education
  • Life expectancy
  • Standard of living
• Components of HDI


  • Education (mean years of schooling and expected years of schooling)
  • Life expectancy (range of 25 to 85 years)
  • Standard of living (GNI adjusted to PPP per capita)
• HDI measures economic and social welfare of countries over time
• GDP was used instead of GNI, but to account for remittances and foreign aid, GNI is now used, since it reflects average income per person
• The average world HDI rose from 0.48 in 1970 to 0.68 in 2010, mainly due to the growth of East Asia, the Pacific and South Asia
• High HDI value

  Indicative of a high level of economic development
• Low HDI value


  Suggests a low level of development
• Advantages and limitations of using the HDI

  • Allows comparisons between countries based on development
  • Provides a broader comparison than GDP
  • Does not consider political freedoms, human rights, gender equality or cultural identity
  • Does not take the environment into account
  • Does not consider income distribution
• HDI provides information about a country's infrastructure and opportunities, and shows how successful government policies have been
• Other indicators of development

  • Human Poverty Index (HPI)
  • Gender-related Development Index (GDI)
• HPI-1


  Measures poverty in developing countries, considering life expectancy, education and ability to meet basic needs
• HPI-2


  Measures poverty in developed countries, considering probability of not surviving to 60, adult literacy, and poverty below 50% of median income
• GDI


  Measures relative inequality between men and women, combining HDI with gender differences in life expectancy, income and education