The Importance of Human Development Index in Calculating the Quality of Life in a Nation

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Human Development Index Income is not the only way of calculating a person’s well-being. The HDI (Human Development Index) was created so that quality of life could be better calculated. The Human development index is divided in 3 parts: GDP per capita, life expectancy, and various measures of education such as enrollment in school and literacy rates ("Human development index, n.d."). Each part varies from 0 to 1, 0 being the lowest level of development and 1 being the highest and a country’s score is represented by the value in percent that it scores. Average out the 3 parts, and there is the HDI. Therefore, quality of life is measured instead of income per capita; this represents the strong suit of the human development index ("Human development index, n.d."). The very first Human development report was released in 1990. The main creators of the HDI are Pakistani economist Mahbub ul Haq and Nobel laureate Amartya Sen (Briney,2013). They thought that this index had the potential to change the focus of public decisions from concentration on economic to human well-being ("About Human Development"). The human development index is a superior stat to GDP for figuring out the well-being of the population. The HDI takes into account a lot of characteristics that calculate people’s living standards. GDP per capital is a generalisation, because a small group of highly rich people can make this statistic look artificially high ("How does HDI relate to GDO? (n.d.)"). In a situation where HDI is greater than GDP, it reveals how development of a country has taken over in terms of making money. This can provide the nation with the development needed for the optimal growth, which would allow development to be sustained as growth continues ("About human development"). When GDP is greater than HDI it reveals how production has taken the place of developing the population. Due to the reduced investment in education and health, the access to these services can be more restrained. Simply because the money is reinvested back into the economy for economic growth instead of being used to increase the overall welfare of the population (How does HDI relate to GDO? (n.d.)). The human development index was traditionally measured by using a set of fixed minimum and maximum values for life expectancy, knowledge and education measured by adult literacy rate with the combination of primary, secondary, and tertiary gross enrollment ratio, and standard of living (Noorbakhsh, 1998).

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