2. FOUR PILLARS OF HUMAN
Just as any building is supported by pillars, the idea of human
development is supported by equity, sustainability, productivity,
and empowerment concepts.
Equity refers to making equal access to opportunities
available to everybody.
Sustainability means the continuity in the availability of
Productivity here means human labour productivity or
productivity in terms of human work.
Empowerment means to have the power of making choices
3. WHAT IS HUMAN DEVELOPMENT
It is a tool used to measure a country's
overall achievement in its social and economic
The human development index (HDI) is
a composite statistic of life expectancy, education, and
per capita income indicators, which is used to rank
countries into four tiers of humandevelopment.
The human development index is a measure of
economic development and economicwelfare.
5. MEASURING HUMAN DEVELOPMENT
The human development index (HDI) ranks the countries based on their
performance in the key areas of health, education, and access toresources.
The indicator chosen to assess health is the life expectancy at birth.
A higher life expectancy means that people have a greater chance of living
longer and healthierlives.
The adult literacy rate and the gross enrolment ratio
represent access to knowledge.
The number of adults who are able to read and write and the number
of children enrolled in schools show how easy or difficult it is to
access knowledge in a particular country.
Access to Resources: is measured in terms of purchasing
power parity (in U.S. Dollars).
7. CALCULATION OF HDI
1. Life Expectancy Index (LEI) =
2. Educational Index (EI) =
Mean Years of Schooling Index =
Expected Years of Schooling Index =
3. Income Index (II)=
[ln 𝐺𝑁𝐼𝑝𝑐 −ln 100 ]
[ln 75000 −ln 100 ]
HDI = ∛(𝐿𝐸𝐼 ∗ 𝐸𝐼 ∗ 𝐼𝐼)
8. 1. The HDI gives an overall index of economic development.
2. To highlight disparities within countries and help countries
set targets for improvement.
3. It gives an idea regarding areas of development that
4. Statistics gives better decision-making for areas having wide
5. More focus on social and human development rather than
only capital accumulation and growth.
Importance of HDI
9. 1. Economic welfare depends on several other factors, such as the
threat of war, levels of pollution, access to clean drinking water, etc.
2. Longevity can also be desired as the life expectancy of a person
does not consider how healthy the life was led.
3. Life expectancy value for a country is the given average of the total
population. There are many communities in the country that will not
all have access to good healthcare services and so there will be
variations in life expectancy values.
4. HDI fails to take into account qualitative factors, such as cultural
identity and political freedoms ( human security, gender
opportunity, and respect for human rights for example).
Limitations of HDI
Despite these criticisms, the HDI continues to
be used today and is important because it
consistently draws the attention of governments,
corporations, and international organizations to
portions of development that focus on aspects
other than income like health and education.