HUMAN DEVELOPMENT INDEX (HDI)

What is the human development index (HDI)? The HDIhuman development indexis a summary composite index that measures a country's average achievements in three basic aspects of human development: longevity, kno ledge, and a decent standard of living! "ongevity is measured by life expectancy at birth# kno ledge is measured by a combination of the adult literacy rate and the combined primary, secondary, and tertiary gross enrolment ratio# and standard of living by $D% per capita &%%% '()*! +or details on ho to calculate the HDI, see pages ,-./0 Technical 1ote 0! What is the gender-related development index (GDI)? The $DIgender2related development indexis a composite indicator that measures the average achievement of a population in the same dimensions as the HDI hile ad3usting for gender ine4ualities in the level of achievement in the three basic aspects of human development! It uses the same variables as the HDI, disaggregated by gender! +or details on ho to calculate the $DI see pages ,-., ,-,2,-- and ,-5 Technical 1ote 0! What is the gender empowerment measure (GEM)? The $67 gender empo erment measureis a composite indicator that captures gender ine4uality in three key areas: 8 political participation and decision2making, as measured by omen9s and men9s percentage shares of parliamentary seats# 8 economic participation and decision2making po er, as measured by t o indicators omen9s and men9s percentage shares of positions as legislators, senior officials and managers and omen9s and men9s percentage shares of professional and technical positions# 8 po er over economic resources, as measured by omen9s and men9s estimated earned income &%%% '()*! +or details on ho to calculate the $67 see pages ,-., and ,-:/5 Technical 1ote 0! How are the GDI and the GEM used? To dra attention to gender issues! The $DI ad3usts the HDI for ine4ualities in the achievement of men and omen! ; comparison of a country9s ranking on the HDI and its ranking on the $DI can indicate the existence of gender discrepancy! To illustrate that gender empo erment does not depend on income, it is useful to compare relative rankings on the $67 and the relative level of national income! +or example, 8 %oland ranks <:th in the $67, ahead of =apan, in --th place, yet income per person in %oland is about one third that of =apan's &>,-:. %%% '() vs! <:,0,. %%% '() for <..0*! 8 The '? and +inland have very similar income per person &<-,05. %%% '() and <-,-,. %%% '() for <..0* yet in the $67 +inland ranks :th, the '? 0@th!

Aoth indicators can be disaggregated to highlight gender ine4uality ithin countries, hich can vary idely across regions! What is the human poverty index (H I-! and H I-")? %overty has traditionally been measured as a lack of incomebut this is far too narro a definition! Human poverty is a concept that captures the many dimensions of poverty that exist in both poor and rich countriesit is the denial of choices and opportunities for living a life one has reason to value! The H%I20human poverty index for developing countriesmeasures human deprivations in the same three aspects of human development as the HDI &longevity, kno ledge and a decent standard of living*! H%I2< human poverty index for selected high2income B6CD countriesincludes, in addition to the three dimensions in H%I20, social exclusion! +or H%I20 &developing countries*: deprivations in longevity are measured by the probability at birth of not surviving to age -.# deprivations in kno ledge are measured by the percentage of adults ho are illiterate# deprivations in a decent standard of living are measured by t o variables: the percentage of people not having sustainable access to an improved ater source and the percentage of children belo the age of five ho are under eight! +or H%I2< &selected high2income B6CD countries*: deprivations in longevity are measured by the probability at birth of not surviving to age 5.# deprivations in kno ledge are measured by the percentage of adults lacking functional literacy skills# deprivations in a decent standard of living are measured by the percentage of people living belo the income poverty line, set at :.D of the ad3usted median household disposable income# and social exclusion is measured by the rate of long2term &0< months or more* unemployment of the labor force! +or details on ho to calculate the H%I20 and H%I2< see pages ,-. and ,-< Technical 1ote 0! How is the H I used? 8 To focus attention on the most deprived people and deprivations in basic human capabilities in a country, not on average national achievement! The human poverty indices focus directly on the number of people living in deprivationpresenting a very different picture from average national achievement! It also moves the focus of poverty debates a ay from concern about income poverty alone! 8 To highlight the presence of human poverty in both the rich and poor countries! High income per person is no guarantee of a poverty2free country! 6ven among the richest countries, there is human poverty! The H%I2< for selected high2income B6CD countries &H%I2<* sho s that out of 0@ 6uropean and 1orth ;merican countries, the '!(! has the second highest level of income per person, but also the highest rate of human poverty! 8 To guide national planning for poverty alleviation! 7any National Human Development Reports no break do n the H%I by region or other socioeconomic groups to identify the areas or social groups ithin the country most deprived in terms of human poverty! The results can be dramatic, creating national debate and helping to reshape policies!