This is an updated revision presentation on the Human Development Index

1. Human Development Index (HDI)
Year 1 Macroeconomics

2. The Human Development Index (HDI)
• HDI focuses on longevity, basic education and minimal income
1. Knowledge: First an educational component made up of two
statistics – mean years of schooling and expected years of
schooling
2. Long and healthy life: Second a life expectancy component is
calculated using a minimum value for life expectancy of 25
years and maximum value of 85 years
3. A decent standard of living: The final element is gross
national income (GNI) per capita adjusted to purchasing
power parity standard (PPP)
• GNI (Gross National Income is now used because of growing size
of remittances sent across countries
• Log of income is used in the HDI calculation because income is
instrumental to human development but higher incomes are
assumed to have a declining extra contribution to human
development

3. 2015 Human Development Index – Highest Rankings
Human
Development
Index (HDI)
Life
expectancy at
birth
Expected
years of
schooling
Mean years
of schooling
Gross
national
income (GNI)
per capita
GNI per
capita rank
minus HDI
rank
Country Value (years) (years) (years) (2011 PPP $)
2014 2014 2014 2014 2014 2014
Norway 0.944 81.6 17.5 12.6 64,992 5
Australia 0.935 82.4 20.2 13.0 42,261 17
Switzerland 0.930 83.0 15.8 12.8 56,431 6
Denmark 0.923 80.2 18.7 12.7 44,025 11
Netherlands 0.922 81.6 17.9 11.9 45,435 9
Germany 0.916 80.9 16.5 13.1 43,919 11
Ireland 0.916 80.9 18.6 12.2 39,568 16
United States 0.915 79.1 16.5 12.9 52,947 3
Canada 0.913 82.0 15.9 13.0 42,155 11
New Zealand 0.913 81.8 19.2 12.5 32,689 23
Singapore 0.912 83.0 15.4 10.6 76,628 -7
Hong Kong, China (SAR) 0.910 84.0 15.6 11.2 53,959 -2
Liechtenstein 0.908 80.0 15.0 11.8 79,851 -10
Sweden 0.907 82.2 15.8 12.1 45,636 -1
United Kingdom 0.907 80.7 16.2 13.1 39,267 9
Iceland 0.899 82.6 19.0 10.6 35,182 12
Korea (Republic of) 0.898 81.9 16.9 11.9 33,890 13

4. 2015 Human Development Index – Lowest Rankings
Human
Development
Index (HDI)
Life expectancy
at birth
Expected years
of schooling
Mean years of
schooling
Gross national
income (GNI)
per capita
GNI per capita
rank minus HDI
rank
Country Value (years) (years) (years) (2011 PPP $)
Côte d'Ivoire 0.462 51.5 8.9 4.3 3,171 -24
Malawi 0.445 62.8 10.8 4.3 747 13
Ethiopia 0.442 64.1 8.5 2.4 1,428 2
Gambia 0.441 60.2 8.8 2.8 1,507 -2
DRC 0.433 58.7 9.8 6.0 680 11
Liberia 0.430 60.9 9.5 4.1 805 7
Guinea-Bissau 0.420 55.2 9.0 2.8 1,362 -1
Mali 0.419 58.0 8.4 2.0 1,583 -8
Mozambique 0.416 55.1 9.3 3.2 1,123 1
Sierra Leone 0.413 50.9 8.6 3.1 1,780 -16
Guinea 0.411 58.8 8.7 2.4 1,096 0
Burkina Faso 0.402 58.7 7.8 1.4 1,591 -13
Burundi 0.400 56.7 10.1 2.7 758 1
Chad 0.392 51.6 7.4 1.9 2,085 -22
Eritrea 0.391 63.7 4.1 3.9 1,130 -6
Central African Republic 0.350 50.7 7.2 4.2 581 1
Niger 0.348 61.4 5.4 1.5 908 -5

5. Inequality Adjusted HDI for 2015
Human
Development
Index (HDI)
Inequality-
adjusted HDI
(IHDI)
Income inequality
Value Value
Overall loss
(%)
Difference
from HDI rank
Quintile ratio Palma ratio
Gini
coefficient
Country 2005–2013 2005–2013 2005–2013
Norway 0.944 0.893 5.4 0 4.0 0.9 26.8
Australia 0.935 0.858 8.2 -2 5.8 1.3 34.0
Switzerland 0.930 0.861 7.4 0 5.2 1.2 32.4
Denmark 0.923 0.856 7.3 -1 4.0 0.9 26.9
Netherlands 0.922 0.861 6.6 3 4.5 1.0 28.9
Germany 0.916 0.853 6.9 0 4.7 1.1 30.6
Ireland 0.916 0.836 8.6 -3 5.3 1.2 32.1
United States 0.915 0.760 17.0 -20 9.8 2.0 41.1
Canada 0.913 0.832 8.8 -2 5.8 1.3 33.7
Sweden 0.907 0.846 6.7 3 3.7 0.9 26.1
United
Kingdom
0.907 0.829 8.6 -2 7.6 1.7 38.0
Japan 0.891 0.780 12.4 -5 5.4 1.2 32.1
Finland 0.883 0.834 5.5 10 4.0 1.0 27.8
Spain 0.876 0.775 11.5 0 7.6 1.4 35.8
Italy 0.873 0.773 11.5 -1 6.9 1.4 35.5
Greece 0.865 0.758 12.4 -5 6.4 1.4 34.7
Poland 0.843 0.760 9.8 2 5.2 1.3 32.8
Argentina 0.836 0.711 15.0 -8 10.6 2.3 43.6
Chile 0.832 0.672 19.3 -13 12.6 3.3 50.8
Hungary 0.828 0.769 7.2 10 4.5 1.0 28.9

6. Countries with Highest Income Inequality (2014)
HDI Value
Inequality
Adjusted
HDI Value
Overall
loss (%)
Difference
from HDI
rank
Quintile
ratio
Palma
ratio
Gini
coefficient
Seychelles 0.772 .. .. .. .. 18.8 6.4 65.8
South Africa 0.666 0.428 35.7 -15 33.0 28.5 8.0 65.0
Namibia 0.628 0.354 43.6 -25 39.3 19.6 5.8 61.3
Botswana 0.698 0.431 38.2 -23 36.5 22.9 5.8 60.5
Haiti 0.483 0.296 38.8 -7 38.2 26.6 5.5 59.2
Zambia 0.586 0.384 34.4 -6 33.9 17.4 4.8 57.5
Honduras 0.606 0.412 32.1 -7 30.7 23.5 5.0 57.4
Central African
Republic
0.350 0.198 43.5 -1 43.1 18.0 4.5 56.3
Lesotho 0.497 0.320 35.6 -2 34.9 20.4 4.3 54.2
Colombia 0.720 0.542 24.7 -10 24.1 17.5 4.0 53.5
Brazil 0.755 0.557 26.3 -20 25.6 16.9 3.8 52.7
Swaziland 0.531 0.354 33.3 -2 33.1 14.0 3.5 51.5
Chile 0.832 0.672 19.3 -13 18.2 12.6 3.3 50.8
Rwanda 0.483 0.330 31.6 4 31.6 11.0 3.2 50.8
Costa Rica 0.766 0.613 19.9 -11 19.1 12.8 2.9 48.6
Mexico 0.756 0.587 22.4 -12 21.8 11.1 2.8 48.1
Paraguay 0.679 0.529 22.1 -1 21.8 13.0 2.9 48.0
Kenya 0.548 0.377 31.3 -3 31.1 11.0 2.8 47.7
Malawi 0.445 0.299 32.9 2 32.6 9.7 2.6 46.2

7. Countries with Lowest Income Inequality (2014)
HDI Value
Inequality
Adjusted
HDI Value
Overall
loss (%)
Difference
from HDI
rank
Quintile
ratio
Palma
ratio
Gini
coefficient
Hungary 0.828 0.769 7.2 10 7.1 4.5 1.0 28.9
Netherlands 0.922 0.861 6.6 3 6.5 4.5 1.0 28.9
Kazakhstan 0.788 0.694 11.9 1 11.8 4.0 1.0 28.6
Afghanistan 0.465 0.319 31.4 5 30.0 4.0 1.0 27.8
Finland 0.883 0.834 5.5 10 5.5 4.0 1.0 27.8
Romania 0.793 0.711 10.3 2 10.2 4.1 0.9 27.3
Denmark 0.923 0.856 7.3 -1 7.1 4.0 0.9 26.9
Norway 0.944 0.893 5.4 0 5.3 4.0 0.9 26.8
Slovakia 0.844 0.791 6.2 9 6.2 4.1 0.9 26.6
Belarus 0.798 0.741 7.1 4 7.1 3.8 0.9 26.5
Czech Republic 0.870 0.823 5.4 10 5.3 3.9 0.9 26.4
Iceland 0.899 0.846 5.9 4 5.8 3.8 0.9 26.3
Sweden 0.907 0.846 6.7 3 6.5 3.7 0.9 26.1
Slovenia 0.880 0.829 5.9 8 5.8 3.6 0.8 24.9
Ukraine 0.747 0.689 7.8 16 7.7 3.4 0.9 24.8

8. Gender Inequality Index (2014) - Lowest
Gender
Inequality Index
Maternal
mortality
ratio
Adolescent
birth rate
Share of
seats in
parliament
Population with at
least some secondary
education
Labour force
participation rate
Value Rank
(deaths
per100,000
live births)
(births per
1,000
women ages
15–19)
(% held by
women)
Female Male Female Male
Slovenia 0.016 1 7 0.6 27.7 95.8 98.0 52.3 63.2
Switzerland 0.028 2 6 1.9 28.5 95.0 96.6 61.8 74.9
Germany 0.041 3 7 3.8 36.9 96.3 97.0 53.6 66.4
Denmark 0.048 4 5 5.1 38.0 95.5 96.6 58.7 66.4
Austria 0.053 5 4 4.1 30.3 100.0 100.0 54.6 67.7
Sweden 0.055 6 4 6.5 43.6 86.5 87.3 60.3 67.9
Netherlands 0.062 7 6 6.2 36.9 87.7 90.5 58.5 70.6
Belgium 0.063 8 6 6.7 42.4 77.5 82.9 47.5 59.3
Norway 0.067 9 4 7.8 39.6 97.4 96.7 61.2 68.7
United Kingdom 0.177 39 8 25.8 23.5 99.8 99.9 55.7 68.7
United States 0.280 55 28 31.0 19.4 95.1 94.8 56.3 68.9
Saudi Arabia 0.284 56 16 10.2 19.9 60.5 70.3 20.2 78.3

9. Gender Inequality Index (2014) - Highest
Gender
Inequality Index
Maternal
mortality
ratio
Adolescent
birth rate
Share of
seats in
parliament
Population with at least
some secondary
education
Labour force
participation rate
Value Rank
(deaths
per100,000
live births)
(births per
1,000 women
ages 15–19)
(% held by
women)
Female Male Female Male
Malawi 0.611 140 510 144.8 16.7 11.1 21.6 84.6 81.5
Papua New Guinea 0.611 140 220 62.1 2.7 7.6 14.5 70.5 74.0
Benin 0.614 142 340 90.2 8.4 11.3 27.0 67.6 78.3
Gambia 0.622 143 430 115.8 9.4 17.4 31.5 72.2 82.9
Burkina Faso 0.631 144 400 115.4 13.3 0.9 3.2 77.1 90.0
Sierra Leone 0.650 145 1,100 100.7 12.4 10.0 21.7 65.7 69.0
Liberia 0.651 146 640 117.4 10.7 15.4 39.3 58.2 64.8
Central African
Republic
0.655 147 880 98.3 12.5 10.1 26.7 72.6 85.1
Tonga 0.666 148 120 18.1 0.0 87.5 88.3 53.5 74.6
Congo (Democratic
Republic of the)
0.673 149 730 135.3 8.2 12.8 32.4 70.7 73.2
Mali 0.677 150 550 175.6 9.5 7.7 15.1 50.8 81.4
Côte d'Ivoire 0.679 151 720 130.3 9.2 14.0 30.1 52.4 81.4
Afghanistan 0.693 152 400 86.8 27.6 5.9 29.8 15.8 79.5
Chad 0.706 153 980 152.0 14.9 1.7 9.9 64.0 79.2
Niger 0.713 154 630 204.8 13.3 2.4 7.8 40.0 89.7
Yemen 0.744 155 270 47.0 0.7 8.6 26.7 25.4 72.2

10. Countries with the Lowest Life Expectancy in 2013
45.3
47
48.8
48.9
49.8
50.4
50.7
51.5
52.1
53.6
54.6
54.6
54.7
55.8
55.9
0 10 20 30 40 50 60
Sierra Leone
Botswana
Lesotho
Swaziland
Mozambique
Côte d’Ivoire
Chad
Angola
Nigeria
Burundi
Cameroon
Mali
Malawi
Guinea
Burkina Faso
Life expectancy in years, Source: United Nations Human Development Index
Source: UNDP

11. Nations whose HDI Outcome > GNI Per Capita Ranking
Source: HDI report 2015, UNDP
Human Development
Index (HDI)
Gross national income
(GNI) per capita
GNI per capita rank
minus HDI rank
HDI rank Country Value (2011 PPP $)
67 Cuba 0.769 7,301 47
76 Georgia 0.754 7,164 40
100 Tonga 0.717 5,069 32
73 Sri Lanka 0.757 9,779 29
81 Ukraine 0.747 8,178 25
9 New Zealand 0.913 32,689 23
113 Palestine, State of 0.677 4,699 21
2 Australia 0.935 42,261 17
6 Ireland 0.916 39,568 16
18 Israel 0.894 30,676 16
145 Nepal 0.548 2,311 16
116 Vietnam 0.666 5,092 15
29 Greece 0.865 24,524 14
17 South Korea 0.898 33,890 13
173 Malawi 0.445 747 13
36 Poland 0.843 23,177 10
52 Romania 0.793 18,108 10
69 Costa Rica 0.766 13,413 10
5 Netherlands 0.922 45,435 9
14 United Kingdom 0.907 39,267 9

12. Nations whose HDI Outcome < GNI Per Capita Ranking
Source: HDI report 2015, UNDP
Human
Development
Index (HDI)
Gross national income
(GNI) per capita
GNI per capita rank
minus HDI rank
HDI rank Country Value (2011 PPP $)
138 Equatorial Guinea 0.587 21,056 -84
48 Kuwait 0.816 83,961 -46
121 Iraq 0.654 14,003 -44
106 Botswana 0.698 16,646 -41
41 United Arab Emirates 0.835 60,868 -34
32 Qatar 0.850 123,124 -31
149 Angola 0.532 6,822 -30
116 South Africa 0.666 12,122 -29
109 Turkmenistan 0.688 13,066 -28
39 Saudi Arabia 0.837 52,821 -27
152 Nigeria 0.514 5,341 -24
172 Côte d'Ivoire 0.462 3,171 -24
52 Oman 0.793 34,858 -23
64 Seychelles 0.772 23,300 -19
62 Malaysia 0.779 22,762 -14
72 Turkey 0.761 18,677 -12
11 Singapore 0.912 76,628 -7
90 China 0.727 12,547 -7

13. Limitations of the Human Development Index (HDI)
1. HDI fails to take account of qualitative factors, such as cultural
identity and political freedoms (human security, gender
opportunities and respect for human rights for example)
2. GNI per capita – and consequently the HDI figure – takes no
account of income distribution. If income is unevenly distributed,
then GNI per capita will be an inaccurate measure of the
monetary well-being of people. To many economists, inequitable
development is not genuine human development
3. Purchasing power parity (PPP) values used to adjust GNI data
change quickly and can be inaccurate or misleading
4. 2010 saw the launch of a new Inequality-adjusted HDI, a Gender
Inequality Index and a Multidimensional Poverty Index. The
average loss in the published HDI due to inequality is over 20%

14. Selected Nations with Highest Employment in Farming
Source: HDI report 2015, UNDP
Employment in Agriculture in 2012 Employment in Services in 2012
HDI rank Country % of total employment % of total employment
183 Burkina Faso 84.8 12.2
180 Mozambique 80.5 16.1
154 Madagascar 80.4 15.8
174 Ethiopia 79.3 13.0
163 Rwanda 78.8 16.6
151 Tanzania 76.5 19.2
139 Zambia 72.2 20.6
181 Sierra Leone 68.5 25.0
163 Uganda 65.6 28.4
145 Kenya 61.1 32.2
153 Cameroon 53.3 34.1
143 Cambodia 51.0 30.4
142 Bangladesh 48.1 37.4
116 Vietnam 47.4 31.5
130 India 47.2 28.1
147 Pakistan 44.7 35.2
152 Nigeria 44.6 41.7
140 Ghana 41.5 43.1
93 Thailand 39.6 39.4
73 Sri Lanka 39.4 41.5
90 China 34.8 35.7

15. Gender Inequality Adjusted HDI
Source: UNDP Human Development
Report, 2014
Rwanda has made significant
progress in addressing gender
inequalities – for example, in
Rwanda, female lawmakers make
up 64 percent of parliament,
outperforming the world average
of one women in five

16. Inequality Adjusted Human Development Index (HDI)
Source: UNDP Human Development
Report, 2014
Inequality-adjusted HDI
The average loss in the HDI due to
inequality is around 20 percent—
that is, adjusted for inequality, the
global HDI of 0.682 in 2011 would
fall to 0.525