Human Development Index (HDI)

Year 1 Macroeconomics

The Human Development Index (HDI)

• HDI focuses on longevity, basic education and minimal income1. Knowledge: First an educational component made up of two

statistics – mean years of schooling and expected years of schooling

2. Long and healthy life: Second a life expectancy component is calculated using a minimum value for life expectancy of 25 years and maximum value of 85 years

3. A decent standard of living: The final element is gross national income (GNI) per capita adjusted to purchasing power parity standard (PPP)

• GNI (Gross National Income is now used because of growing size of remittances sent across countries

• Log of income is used in the HDI calculation because income is instrumental to human development but higher incomes are assumed to have a declining extra contribution to human development

2015 Human Development Index – Highest Rankings

Human Development Index (HDI)

Life expectancy at

birth

Expected years of

schooling Mean years of schooling

Gross national

income (GNI) per capita

GNI per capita rank minus HDI

rank

Country Value (years) (years) (years) (2011 PPP $)2014 2014 2014 2014 2014 2014

Norway 0.944 81.6 17.5 12.6 64,992 5Australia 0.935 82.4 20.2 13.0 42,261 17Switzerland 0.930 83.0 15.8 12.8 56,431 6Denmark 0.923 80.2 18.7 12.7 44,025 11Netherlands 0.922 81.6 17.9 11.9 45,435 9Germany 0.916 80.9 16.5 13.1 43,919 11Ireland 0.916 80.9 18.6 12.2 39,568 16United States 0.915 79.1 16.5 12.9 52,947 3Canada 0.913 82.0 15.9 13.0 42,155 11New Zealand 0.913 81.8 19.2 12.5 32,689 23Singapore 0.912 83.0 15.4 10.6 76,628 -7Hong Kong, China (SAR) 0.910 84.0 15.6 11.2 53,959 -2Liechtenstein 0.908 80.0 15.0 11.8 79,851 -10Sweden 0.907 82.2 15.8 12.1 45,636 -1United Kingdom 0.907 80.7 16.2 13.1 39,267 9Iceland 0.899 82.6 19.0 10.6 35,182 12Korea (Republic of) 0.898 81.9 16.9 11.9 33,890 13

2015 Human Development Index – Lowest Rankings

Human Development Index (HDI)

Life expectancy at birth

Expected years of schooling

Mean years of schooling

Gross national income (GNI)

per capita

GNI per capita rank minus HDI

rank

Country Value (years) (years) (years) (2011 PPP $)

Côte d'Ivoire 0.462 51.5 8.9 4.3 3,171 -24Malawi 0.445 62.8 10.8 4.3 747 13Ethiopia 0.442 64.1 8.5 2.4 1,428 2Gambia 0.441 60.2 8.8 2.8 1,507 -2

DRC 0.433 58.7 9.8 6.0 680 11

Liberia 0.430 60.9 9.5 4.1 805 7Guinea-Bissau 0.420 55.2 9.0 2.8 1,362 -1Mali 0.419 58.0 8.4 2.0 1,583 -8

Mozambique 0.416 55.1 9.3 3.2 1,123 1Sierra Leone 0.413 50.9 8.6 3.1 1,780 -16Guinea 0.411 58.8 8.7 2.4 1,096 0Burkina Faso 0.402 58.7 7.8 1.4 1,591 -13Burundi 0.400 56.7 10.1 2.7 758 1Chad 0.392 51.6 7.4 1.9 2,085 -22Eritrea 0.391 63.7 4.1 3.9 1,130 -6Central African Republic 0.350 50.7 7.2 4.2 581 1Niger 0.348 61.4 5.4 1.5 908 -5

Inequality Adjusted HDI for 2015Human

Development Index (HDI)

Inequality-adjusted HDI

(IHDI) Income inequality

Value Value Overall loss (%)

Difference from HDI rank Quintile ratio Palma ratio Gini

coefficient

Country 2005–2013 2005–2013 2005–2013Norway 0.944 0.893 5.4 0 4.0 0.9 26.8Australia 0.935 0.858 8.2 -2 5.8 1.3 34.0Switzerland 0.930 0.861 7.4 0 5.2 1.2 32.4Denmark 0.923 0.856 7.3 -1 4.0 0.9 26.9Netherlands 0.922 0.861 6.6 3 4.5 1.0 28.9Germany 0.916 0.853 6.9 0 4.7 1.1 30.6Ireland 0.916 0.836 8.6 -3 5.3 1.2 32.1

United States 0.915 0.760 17.0 -20 9.8 2.0 41.1

Canada 0.913 0.832 8.8 -2 5.8 1.3 33.7Sweden 0.907 0.846 6.7 3 3.7 0.9 26.1United Kingdom 0.907 0.829 8.6 -2 7.6 1.7 38.0

Japan 0.891 0.780 12.4 -5 5.4 1.2 32.1Finland 0.883 0.834 5.5 10 4.0 1.0 27.8Spain 0.876 0.775 11.5 0 7.6 1.4 35.8Italy 0.873 0.773 11.5 -1 6.9 1.4 35.5Greece 0.865 0.758 12.4 -5 6.4 1.4 34.7Poland 0.843 0.760 9.8 2 5.2 1.3 32.8Argentina 0.836 0.711 15.0 -8 10.6 2.3 43.6Chile 0.832 0.672 19.3 -13 12.6 3.3 50.8Hungary 0.828 0.769 7.2 10 4.5 1.0 28.9

Countries with Highest Income Inequality (2014)

HDI ValueInequality Adjusted HDI Value

Overall loss (%)

Difference from

HDI rankQuintile

ratioPalma ratio

Gini coefficien

tSeychelles 0.772 .. .. .. .. 18.8 6.4 65.8

South Africa 0.666 0.428 35.7 -15 33.0 28.5 8.0 65.0

Namibia 0.628 0.354 43.6 -25 39.3 19.6 5.8 61.3

Botswana 0.698 0.431 38.2 -23 36.5 22.9 5.8 60.5

Haiti 0.483 0.296 38.8 -7 38.2 26.6 5.5 59.2

Zambia 0.586 0.384 34.4 -6 33.9 17.4 4.8 57.5

Honduras 0.606 0.412 32.1 -7 30.7 23.5 5.0 57.4

Central African Republic 0.350 0.198 43.5 -1 43.1 18.0 4.5 56.3

Lesotho 0.497 0.320 35.6 -2 34.9 20.4 4.3 54.2

Colombia 0.720 0.542 24.7 -10 24.1 17.5 4.0 53.5

Brazil 0.755 0.557 26.3 -20 25.6 16.9 3.8 52.7

Swaziland 0.531 0.354 33.3 -2 33.1 14.0 3.5 51.5

Chile 0.832 0.672 19.3 -13 18.2 12.6 3.3 50.8

Rwanda 0.483 0.330 31.6 4 31.6 11.0 3.2 50.8

Costa Rica 0.766 0.613 19.9 -11 19.1 12.8 2.9 48.6

Mexico 0.756 0.587 22.4 -12 21.8 11.1 2.8 48.1

Paraguay 0.679 0.529 22.1 -1 21.8 13.0 2.9 48.0

Kenya 0.548 0.377 31.3 -3 31.1 11.0 2.8 47.7

Malawi 0.445 0.299 32.9 2 32.6 9.7 2.6 46.2

Countries with Lowest Income Inequality (2014)

HDI Value

Inequality

Adjusted HDI

Value

Overall loss (%)

Difference from HDI rank

Quintile ratio

Palma ratio

Gini coefficie

nt

Hungary 0.828 0.769 7.2 10 7.1 4.5 1.0 28.9

Netherlands 0.922 0.861 6.6 3 6.5 4.5 1.0 28.9

Kazakhstan 0.788 0.694 11.9 1 11.8 4.0 1.0 28.6

Afghanistan 0.465 0.319 31.4 5 30.0 4.0 1.0 27.8

Finland 0.883 0.834 5.5 10 5.5 4.0 1.0 27.8

Romania 0.793 0.711 10.3 2 10.2 4.1 0.9 27.3

Denmark 0.923 0.856 7.3 -1 7.1 4.0 0.9 26.9

Norway 0.944 0.893 5.4 0 5.3 4.0 0.9 26.8

Slovakia 0.844 0.791 6.2 9 6.2 4.1 0.9 26.6

Belarus 0.798 0.741 7.1 4 7.1 3.8 0.9 26.5

Czech Republic 0.870 0.823 5.4 10 5.3 3.9 0.9 26.4

Iceland 0.899 0.846 5.9 4 5.8 3.8 0.9 26.3

Sweden 0.907 0.846 6.7 3 6.5 3.7 0.9 26.1

Slovenia 0.880 0.829 5.9 8 5.8 3.6 0.8 24.9

Ukraine 0.747 0.689 7.8 16 7.7 3.4 0.9 24.8

Gender Inequality Index (2014) - Lowest

Gender Inequality

Index

Maternal mortality ratio

Adolescent birth rate

Share of seats in parliame

nt

Population with at least some secondary education

Labour force participation

rate

Value Rank(deaths

per100,000 live births)

(births per 1,000

women ages 15–19)

(% held by women) Female Male Female Male

Slovenia 0.016 1 7 0.6 27.7 95.8 98.0 52.3 63.2

Switzerland 0.028 2 6 1.9 28.5 95.0 96.6 61.8 74.9

Germany 0.041 3 7 3.8 36.9 96.3 97.0 53.6 66.4

Denmark 0.048 4 5 5.1 38.0 95.5 96.6 58.7 66.4

Austria 0.053 5 4 4.1 30.3 100.0 100.0 54.6 67.7

Sweden 0.055 6 4 6.5 43.6 86.5 87.3 60.3 67.9

Netherlands 0.062 7 6 6.2 36.9 87.7 90.5 58.5 70.6

Belgium 0.063 8 6 6.7 42.4 77.5 82.9 47.5 59.3

Norway 0.067 9 4 7.8 39.6 97.4 96.7 61.2 68.7

United Kingdom 0.177 39 8 25.8 23.5 99.8 99.9 55.7 68.7

United States 0.280 55 28 31.0 19.4 95.1 94.8 56.3 68.9

Saudi Arabia 0.284 56 16 10.2 19.9 60.5 70.3 20.2 78.3

Gender Inequality Index (2014) - HighestGender

Inequality Index

Maternal mortality

ratioAdolescent birth rate

Share of seats in parliame

nt

Population with at least some secondary education

Labour force participation

rate

Value Rank(deaths

per100,000 live births)

(births per 1,000 women ages 15–19)

(% held by women) Female Male Female Male

Malawi 0.611 140 510 144.8 16.7 11.1 21.6 84.6 81.5

Papua New Guinea 0.611 140 220 62.1 2.7 7.6 14.5 70.5 74.0

Benin 0.614 142 340 90.2 8.4 11.3 27.0 67.6 78.3

Gambia 0.622 143 430 115.8 9.4 17.4 31.5 72.2 82.9

Burkina Faso 0.631 144 400 115.4 13.3 0.9 3.2 77.1 90.0

Sierra Leone 0.650 145 1,100 100.7 12.4 10.0 21.7 65.7 69.0

Liberia 0.651 146 640 117.4 10.7 15.4 39.3 58.2 64.8Central African Republic 0.655 147 880 98.3 12.5 10.1 26.7 72.6 85.1

Tonga 0.666 148 120 18.1 0.0 87.5 88.3 53.5 74.6Congo (Democratic Republic of the) 0.673 149 730 135.3 8.2 12.8 32.4 70.7 73.2

Mali 0.677 150 550 175.6 9.5 7.7 15.1 50.8 81.4

Côte d'Ivoire 0.679 151 720 130.3 9.2 14.0 30.1 52.4 81.4

Afghanistan 0.693 152 400 86.8 27.6 5.9 29.8 15.8 79.5

Chad 0.706 153 980 152.0 14.9 1.7 9.9 64.0 79.2

Niger 0.713 154 630 204.8 13.3 2.4 7.8 40.0 89.7

Yemen 0.744 155 270 47.0 0.7 8.6 26.7 25.4 72.2

Countries with the Lowest Life Expectancy in 2013

Sierra Leone

Botswana

Lesotho

Swaziland

Mozambique

Côte d’Ivoire

Chad

Angola

Nigeria

Burundi

Cameroon

Mali

Malawi

Guinea

Burkina Faso

0 10 20 30 40 50 6045.3

47

48.8

48.9

49.8

50.4

50.7

51.5

52.1

53.6

54.6

54.6

54.7

55.8

55.9

Life expectancy in years, Source: United Nations Human Development Index

Source: UNDP

Nations whose HDI Outcome > GNI Per Capita Ranking

Source: HDI report 2015, UNDP

Human Development Index (HDI)

Gross national income (GNI) per

capita

GNI per capita rank minus HDI

rankHDI rank Country Value (2011 PPP $)

67 Cuba 0.769 7,301 4776 Georgia 0.754 7,164 40

100 Tonga 0.717 5,069 3273 Sri Lanka 0.757 9,779 2981 Ukraine 0.747 8,178 259 New Zealand 0.913 32,689 23

113 Palestine, State of 0.677 4,699 212 Australia 0.935 42,261 176 Ireland 0.916 39,568 16

18 Israel 0.894 30,676 16145 Nepal 0.548 2,311 16116 Vietnam 0.666 5,092 1529 Greece 0.865 24,524 1417 South Korea 0.898 33,890 13

173 Malawi 0.445 747 1336 Poland 0.843 23,177 1052 Romania 0.793 18,108 1069 Costa Rica 0.766 13,413 105 Netherlands 0.922 45,435 9

14 United Kingdom 0.907 39,267 9

Nations whose HDI Outcome < GNI Per Capita Ranking

Source: HDI report 2015, UNDP

Human Development Index (HDI)

Gross national income (GNI) per

capita

GNI per capita rank minus HDI

rankHDI rank Country Value (2011 PPP $)

138 Equatorial Guinea 0.587 21,056 -8448 Kuwait 0.816 83,961 -46

121 Iraq 0.654 14,003 -44106 Botswana 0.698 16,646 -4141 United Arab Emirates 0.835 60,868 -3432 Qatar 0.850 123,124 -31

149 Angola 0.532 6,822 -30116 South Africa 0.666 12,122 -29109 Turkmenistan 0.688 13,066 -2839 Saudi Arabia 0.837 52,821 -27

152 Nigeria 0.514 5,341 -24172 Côte d'Ivoire 0.462 3,171 -2452 Oman 0.793 34,858 -2364 Seychelles 0.772 23,300 -1962 Malaysia 0.779 22,762 -1472 Turkey 0.761 18,677 -1211 Singapore 0.912 76,628 -790 China 0.727 12,547 -7

Limitations of the Human Development Index (HDI)

1. HDI fails to take account of qualitative factors, such as cultural identity and political freedoms (human security, gender opportunities and respect for human rights for example)

2. GNI per capita – and consequently the HDI figure – takes no account of income distribution. If income is unevenly distributed, then GNI per capita will be an inaccurate measure of the monetary well-being of people. To many economists, inequitable development is not genuine human development

3. Purchasing power parity (PPP) values used to adjust GNI data change quickly and can be inaccurate or misleading

4. 2010 saw the launch of a new Inequality-adjusted HDI, a Gender Inequality Index and a Multidimensional Poverty Index. The average loss in the published HDI due to inequality is over 20%

Selected Nations with Highest Employment in Farming

Source: HDI report 2015, UNDP

Employment in Agriculture in 2012 Employment in Services in 2012

HDI rank Country % of total employment % of total employment183 Burkina Faso 84.8 12.2180 Mozambique 80.5 16.1154 Madagascar 80.4 15.8174 Ethiopia 79.3 13.0163 Rwanda 78.8 16.6151 Tanzania 76.5 19.2139 Zambia 72.2 20.6181 Sierra Leone 68.5 25.0163 Uganda 65.6 28.4145 Kenya 61.1 32.2153 Cameroon 53.3 34.1143 Cambodia 51.0 30.4142 Bangladesh 48.1 37.4116 Vietnam 47.4 31.5130 India 47.2 28.1147 Pakistan 44.7 35.2152 Nigeria 44.6 41.7140 Ghana 41.5 43.193 Thailand 39.6 39.473 Sri Lanka 39.4 41.590 China 34.8 35.7

Gender Inequality Adjusted HDI

Source: UNDP Human Development Report, 2014

Rwanda has made significant progress in addressing gender inequalities – for example, in Rwanda, female lawmakers make up 64 percent of parliament, outperforming the world average of one women in five

Inequality Adjusted Human Development Index (HDI)

Source: UNDP Human Development Report, 2014

Inequality-adjusted HDIThe average loss in the HDI due to inequality is around 20 percent—that is, adjusted for inequality, the global HDI of 0.682 in 2011 would fall to 0.525