The General Human Development Index
This is a simple measurement of the overall well-being of a nation.
The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. The HDI can also be used to question national policy choices, asking how two countries with the same level of GNI per capita can end up with different human development outcomes. These contrasts can stimulate debate about government policy priorities.
The Human Development Index (HDI) is a summary measure of average achievement in key areas of human development: a long and healthy life, education and having a decent standard of living.
The health part is assessed by life expectancy at birth. The education part is measured by mean of years of schooling for adults aged 25 years and more and expected years of schooling for children of school entering age. The standard of living dimension is measured by the country’s gross national income per capita.
The Inequality-adjusted Human Development Index
The HDI simplifies and captures only part of what human development entails. It does not reflect on inequalities, poverty, human security, empowerment, etc. The HDRO offers the other composite indices as broader proxy on some of the key issues of human development, inequality, gender disparity and poverty.
The IHDI combines a country’s average achievements in health, education and income with how those achievements are distributed among country’s population. It, in effect, ‘discounts’ each measurement’s average value according to its level of inequality in the country. Under perfect equality the IHDI is equal to the HDI, but falls below the HDI when inequality rises.
A high value (such as Norway) indicates a country where there is a high level of equal opportunity and development. A low ranking ( (such as the Central African Republic) indicated great ineuality in the country.