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Human Development Index: Indicators, Ranking, Benefits, Limitations

Updated on January 23, 2023 · By Ahmad Nasrudin Tag: Development Economics, Economic Development, Human Development Index, Measuring Development

Human Development Index Indicators Ranking Benefits Limitations
You are here: Home / Economics / Macroeconomics / Human Development Index: Indicators, Ranking, Benefits, Limitations

What’s it: Human Development Index (HDI) is an indicator that tells you the country’s social and economic development. It considers three dimensions, namely, health, education, and living standards.

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Importance of the Human Development Index

Mahbub ul Haq designed and proposed the Human Development Index (HDI) in 1990. The aim is to promote economic development centered on the welfare of society.

Previously, we focused on national accounting, such as gross domestic product (GDP), to assess a country’s development. When the economy grows, we assume a country is moving towards improvement, regardless of whether it flows benefits to society or not. In short, we only focus on the economic aspect.

It is different from HDI. Through it, we have a better measure of a country’s development. It does cover not only the economic aspects but also the social aspects. Hence, we can use it to evaluate economic development as well as the welfare of society.

Human development matters. And, developing the economy should also mean building quality of life. When the quality of human resources improves, it ultimately contributes to sustainable economic growth.

Inequality-adjusted Human Development Index

Apart from the standard HDI, there is also an HDI that is adjusted to economic inequality measure. We call it the Inequality-adjusted Human Development Index (IHDI), a more precise HDI.

Source: United Nations Development Program (UNDP)

Experts view IHDI as the ideal measure of human development. IHDI is more actual because it shows you how human development achievements spread among the population. In contrast, the standard HDI is only a theoretical measure and assumes no inequality in a country.

Human Development Index components

The three dimensions for measuring human development are:

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  • Long and healthy life
  • Education
  • Standard of living

Long and healthy life

We measure it from indicators of life expectancy at birth. Life expectancy at birth measures how long a newborn can survive, assuming current mortality rates do not change.

Education

The education dimension represents the literacy and knowledge aspects of society. The two indicators are the expected years of schooling and the mean years of schooling. According to the United Nations (UN), the expected years of schooling is 18 years. Meanwhile, the maximum mean years of schooling is 15 years.

Standard of living

This dimension measures the country’s average income level, indicated by Gross National Income per capita (GNI per capita). For international comparisons, we adjust it for purchasing power parity.

Gross National Income shows you the income of citizens, regardless of where they earn it, whether at domestic or abroad. If you work in the domestic, your income is included in the calculation. Likewise, if your brother is currently working abroad, his income is also included in the calculation.

The following is complete data on the worldwide human development index in 2019:

RankCountryHuman Development Index (HDI) (value)Life expectancy at birth (years) SDG3Expected years of schooling (years) SDG 4.3Mean years of schooling (years) SDG 4.6Gross national income (GNI) per capita (PPP $) SDG 8.5
1Norway0.95482.30018.10012.60068,059
2Switzerland0.94683.60016.20013.40059,375
3Ireland0.94282.10018.80012.50055,660
4Germany0.93981.20017.10014.10046,946
4Hong Kong, China (SAR)0.93984.70016.50012.00060,221
6Australia0.93883.30022.10012.70044,097
6Iceland0.93882.90019.20012.50047,566
8Sweden0.93782.70018.80012.40047,955
9Singapore0.93583.50016.30011.50083,793
10Netherlands0.93382.10018.00012.20050,013
11Denmark0.93080.80019.10012.60048,836
12Finland0.92581.70019.30012.40041,779
13Canada0.92282.30016.10013.30043,602
14New Zealand0.92182.10018.80012.70035,108
15United Kingdom0.92081.20017.40013.00039,507
15United States0.92078.90016.30013.40056,140
17Belgium0.91981.50019.70011.80043,821
18Liechtenstein0.91780.50014.70012.50099,732
19Japan0.91584.50015.20012.80040,799
20Austria0.91481.40016.30012.60046,231
21Luxembourg0.90982.10014.20012.20065,543
22Israel0.90682.80016.00013.00033,650
22Korea (Republic of)0.90682.80016.40012.20036,757
24Slovenia0.90281.20017.40012.30032,143
25Spain0.89383.40017.9009.80035,041
26Czechia0.89179.20016.80012.70031,597
26France0.89182.50015.50011.40040,511
28Malta0.88582.40015.90011.30034,795
29Italy0.88383.40016.20010.20036,141
30Estonia0.88278.60016.10013.00030,379
31Cyprus0.87380.80014.70012.10033,100
32Greece0.87282.10017.30010.50024,909
32Poland0.87278.50016.40012.30027,626
34Lithuania0.86975.70016.50013.00029,775
35United Arab Emirates0.86677.80013.60011.00066,912
36Andorra0.85781.80013.30010.20048,641
36Saudi Arabia0.85775.00017.0009.70049,338
36Slovakia0.85777.40014.50012.60030,672
39Latvia0.85475.20016.00012.80026,301
40Portugal0.85081.90016.3009.20027,935
41Qatar0.84880.10012.2009.700110,489
42Chile0.84780.00016.50010.40021,972
43Brunei Darussalam0.84575.70014.4009.10076,389
43Hungary0.84576.70015.10011.90027,144
45Bahrain0.83877.20015.3009.40040,399
46Croatia0.83778.30015.00011.40023,061
47Oman0.83477.60014.7009.70037,039
48Argentina0.83076.50017.60010.60017,611
49Russian Federation0.82472.40015.50012.00025,036
50Belarus0.81774.60015.40012.30017,039
50Kazakhstan0.81773.20015.30011.80022,168
52Bulgaria0.81674.90014.80011.80019,646
52Montenegro0.81676.80015.00011.40017,511
52Romania0.81675.90014.30011.00023,906
55Palau0.81473.70015.60012.40016,720
56Barbados0.81379.10015.20010.60015,912
57Kuwait0.80875.40013.8007.30071,164
57Uruguay0.80877.80016.3008.70019,435
59Turkey0.80677.40016.4007.70024,905
60Bahamas0.80573.80012.80011.50028,395
61Malaysia0.80476.00013.50010.20027,227
62Seychelles0.80173.30015.5009.70025,077
63Serbia0.79975.80014.80011.20015,218
63Trinidad and Tobago0.79973.40013.00011.00028,497
65Iran (Islamic Republic of)0.79776.50014.70010.00018,166
66Mauritius0.79674.90015.0009.40022,724
67Panama0.79578.30012.90010.20020,455
68Costa Rica0.79480.10015.4008.70014,790
69Albania0.79178.50015.20010.10012,300
70Georgia0.78673.60015.40012.8009,570
71Sri Lanka0.78076.80014.00011.10011,611
72Cuba0.77878.70014.40011.8007,811
73Saint Kitts and Nevis0.77774.60013.6008.50026,770
74Antigua and Barbuda0.77676.90012.5009.30022,201
75Bosnia and Herzegovina0.76977.30013.8009.70012,690
76Mexico0.76775.00014.3008.60017,628
77Thailand0.76576.90014.7007.70016,129
78Grenada0.76372.40016.6008.80012,684
79Brazil0.76175.70015.4007.80014,068
79Colombia0.76177.10014.6008.30012,896
81Armenia0.76074.90013.20011.8009,277
82Algeria0.75976.70014.7008.00013,639
82North Macedonia0.75975.70013.5009.70012,874
82Peru0.75976.50013.8009.20012,323
85China0.75876.70013.9007.90016,127
85Ecuador0.75876.80014.9009.00010,141
87Azerbaijan0.75472.90012.40010.50015,240
88Ukraine0.75072.00015.10011.3007,994
89Dominican Republic0.74573.90014.1007.90015,074
89Saint Lucia0.74576.10013.9008.50011,528
91Tunisia0.73976.50015.1007.20010,677
92Mongolia0.73569.70014.20010.20010,784
93Lebanon0.73078.90011.3008.70011,136
94Botswana0.72869.30012.7009.30015,951
94Saint Vincent and the Grenadines0.72872.40013.6008.60011,746
96Jamaica0.72674.40013.1009.8007,932
96Venezuela (Bolivarian Republic of)0.72672.10012.80010.3009,070
98Dominica0.72478.10013.0007.8009,245
98Fiji0.72467.30014.40010.9009,110
98Paraguay0.72474.10012.7008.50011,720
98Suriname0.72471.60012.9009.10011,933
102Jordan0.72374.40011.90010.5008,268
103Belize0.72074.50013.1009.8007,136
104Maldives0.71978.60012.1006.80012,549
105Tonga0.71770.80014.30011.2005,783
106Philippines0.71271.10012.7009.4009,540
107Moldova (Republic of)0.71171.80011.60011.6006,833
108Turkmenistan0.71068.10010.9009.80016,407
108Uzbekistan0.71071.60012.00011.5006,462
110Libya0.70872.70012.8007.60011,685
111Indonesia0.70771.50012.9008.00011,256
111Samoa0.70773.20012.50010.6005,885
113South Africa0.70563.90013.70010.20011,756
114Bolivia (Plurinational State of)0.70371.20014.0009.0006,849
115Gabon0.70266.20012.9008.30015,794
116Egypt0.70071.80013.1007.30010,744
117Marshall Islands0.69873.90012.40010.9004,633
118Viet Nam0.69375.30012.7008.2006,220
119Palestine, State of0.69073.90012.8009.1005,314
120Iraq0.68970.50011.1007.30015,365
121Morocco0.67676.50013.1005.5007,480
122Kyrgyzstan0.67471.30013.40010.9003,317
123Guyana0.67069.80011.5008.5007,615
124El Salvador0.66773.10012.0006.9006,973
125Tajikistan0.65670.90011.40010.7003,482
126Cabo Verde0.65172.80011.9006.2006,513
126Guatemala0.65174.10010.6006.5007,378
126Nicaragua0.65174.30012.2006.8004,790
129India0.64769.40012.3006.5006,829
130Namibia0.64563.40012.6006.9009,683
131Timor-Leste0.62669.30012.4004.5007,527
132Honduras0.62375.10010.2006.6004,258
132Kiribati0.62368.10011.8007.9003,917
134Bhutan0.61771.50012.1003.1008,609
135Bangladesh0.61472.30011.2006.1004,057
135Micronesia (Federated States of)0.61467.80011.5007.7003,700
137Sao Tome and Principe0.60970.20012.7006.4003,024
138Congo0.60864.30011.6006.5005,804
138Eswatini (Kingdom of)0.60859.40011.4006.7009,359
140Lao People’s Democratic Republic0.60467.60011.1005.2006,317
141Vanuatu0.59770.30011.4006.8002,808
142Ghana0.59663.80011.5007.2004,099
143Zambia0.59163.50012.1007.1003,582
144Equatorial Guinea0.58858.4009.2005.60017,796
145Myanmar0.58466.90010.3005.0005,764
146Cambodia0.58169.60011.3004.8003,597
147Kenya0.57966.30011.1006.6003,052
147Nepal0.57970.50012.2004.9002,748
149Angola0.57460.80011.8005.1005,555
150Cameroon0.56358.90012.7006.3003,291
150Zimbabwe0.56361.20010.5008.3002,661
152Pakistan0.56067.1008.5005.2005,190
153Solomon Islands0.55772.80010.2005.5002,027
154Syrian Arab Republic0.54971.8008.9005.1002,725
155Papua New Guinea0.54364.30010.0004.6003,686
156Comoros0.53864.10011.2004.9002,426
157Rwanda0.53668.70011.2004.4001,959
158Nigeria0.53454.3009.7006.5005,086
159Tanzania (United Republic of)0.52865.0008.0006.0002,805
159Uganda0.52863.00011.2006.1001,752
161Mauritania0.52764.7008.5004.6003,746
162Madagascar0.52166.70010.4006.1001,404
163Benin0.52061.50012.6003.8002,135
164Lesotho0.51853.70010.7006.3003,244
165Côte d’Ivoire0.51657.4009.6005.2003,589
166Senegal0.51467.7009.0003.1003,256
167Togo0.51360.80012.6004.9001,593
168Sudan0.50765.1007.7003.7003,962
169Haiti0.50363.7009.5005.4001,665
170Afghanistan0.49664.50010.1003.9001,746
171Djibouti0.49566.6006.5004.0003,601
172Malawi0.48563.80011.0004.6001,159
173Ethiopia0.47066.2008.7002.8001,782
174Gambia0.46661.7009.5003.7001,490
174Guinea0.46661.2009.0002.7002,211
176Liberia0.46563.7009.6004.7001,040
177Yemen0.46366.1008.7003.2001,433
178Guinea-Bissau0.46158.00010.5003.3001,593
179Congo (Democratic Republic of the)0.45960.4009.7006.800800
180Mozambique0.44660.2009.7003.5001,154
181Sierra Leone0.43854.30010.2003.6001,381
182Burkina Faso0.43461.2008.9001.6001,705
182Eritrea0.43465.9005.0003.9001,708
184Mali0.42758.9007.6002.4001,965
185Burundi0.42361.20011.3003.100660
186South Sudan0.41357.6005.0004.8001,455
187Chad0.40154.0007.5002.4001,716
188Central African Republic0.38152.8007.6004.300777
189Niger0.37762.0006.5002.000912

Benefits and limitations of the Human Development Index

The two key benefits of the Human Development Index are.

First, the index provides a broader measure of development progress. It captures the economic and social aspects of society. The index also provides an additional matrix to measure development, besides economic growth, gross domestic product (GDP), employment, and poverty rate.

Second, some countries use it for government budget allocations, such as for health and education programs. The index plays a strategic role in evaluating policies and measuring government performance related to many social programs.

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However, the HDI also contains limitations. It only captures some aspects of human development. It does not reflect empowerment, people’s feelings of security, gender inequality, or racial inequality. Likewise, it does not consider technological development as a measure of development.

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