Human Development Index (HDI): A composite statistic of life expectancy, education, and per capita income indicators, used to rank countries into four tiers of human development.
Score Range: Between 0 and 1, where higher values indicate higher development.
Components of HDI
Health
Measured by average life expectancy.
Education
Measured by mean years of schooling.
Income
Measured by GDP per capita.
Calculation
Score for Each Component: Ranges from 0 to 1.
Overall HDI Score: The arithmetic mean of the scores for health, education, and income.
Importance of HDI
Beyond GDP: HDI is used because GDP per capita alone can present a misleading picture due to high income inequality.
Comprehensive Indicator: Incorporates critical indicators for health and education which GDP does not cover.
Examples of HDI Rankings
Lowest HDI Score: Niger with a score of 0.394.
Netherlands: 0.944, joint eighth highest.
Highest HDI Score: Norway, consistently holding the highest position on the HDI list.
Conclusion
The HDI is a comprehensive measure for assessing and comparing the level of development across countries, providing a more balanced view than per capita GDP alone.