Meaning of Human Development Index (HDI)
What is the Human Development Index (HDI):
The Human Development Index (HDI) is an indicator used to measure the levels of human development of the countries, in order to evaluate and expose what are the possibilities of economic growth and quality of life that exist in them.
This index was created by the United Nations Development Program (UNDP) and has been applied from 1990 to the present.
Since then, these studies in relation to the collection of data on human development has become increasingly important for this program. Renowned people from the academic sector, civil society and governments participate in the elaboration of this index.
Its main objective is to know the reality in which the individuals of each country live, this in order to develop sustainable projects in order to improve all those aspects that are decaying and that prevent reaching human well-being.
Measurement variables of the Human Development Index
The variables taken into account for the elaboration of the Human Development Index are:
- Life expectancy at birth and guarantees of good health.
- Education takes into account the adult literacy rate and the degree of education obtained, that is, primary, secondary and higher education.
- Gross Domestic Product (GDP) per capita. It evaluates the purchasing power taking into account the access that people have to the economic resources to live in decent conditions.
The numerical values that determine the Human Development Index range from 0 to 1. 0 is the lowest score, and 1 the highest, which makes it possible to determine three groups as follows:
- Countries with High Human Development: the HDI is above 0.80.
- Countries with Medium Human Development: the HDI is between 0.50 and 0.80.
- Countries with Low Human Development: the HDI is less than 0.50.
For example, taking into account the data provided by the Human Development Index, it is possible to determine where food, educational or health aid should be directed in a country or region, with the hope of improving people's lives and reducing losses. inequalities.
It also serves to evaluate how the performance of these plans and public policies has been in each country from one year to the next, since the data obtained provides information that allows us to know if people's quality of life has been improved, what is missing to do and why.
Objectives of the Human Development Index
The main objectives of the elaboration of the Human Development Index are:
- Expose the possibilities of economic growth that societies have.
- Develop measurement and analysis instruments to obtain better search results for data on human development.
- Publicize the plans that are formulated in each country to achieve economic growth and improve social welfare.
- Based on the results, enable the creation of new policies in relation to the needs presented.
- Promote research on social, economic, cultural and political issues.