Difference between old and new calculation methods of Human Development Index (HDI)
This article gives information about new and old methods of calculation of Human development Index. The indices which are part of it also described in this write up. The goalposts changed in the indices are given in this article. The formulas to calculate HDI are also mentioned.
Human Development Index (HDI)
Human development assessment cannot be an easy task as it is multi-dimensional rather than single issue. To assess human development, one index cannot be the solution. Countries utilised Gross Domestic Product as human development which can show only economic sphere excluding all other elements. In order to assess better than GDP and other calculations used by different countries United National Development Programme began to report it through multi-dimensional method known as Human Development Index. It is upgraded all the time to show better results and changed recently to have better result. In 2010 HDI report, this change was used to declare various nations' HDI.Changes occurred in new Human Development Index (HDI)
The differences between old and new HDIs are given in below explanation.
The basic differences in old and new HDIs are as follows
1. There is a change of goalposts in three indices of HDI.
2. Geometric mean is taken for assessment of HDI.
There are three indices used in Human Development Index. Those are Life Expectancy Index, Education Index and Income Index. This article gives the comparison of old and new HDIs.Changes occurred in Life Expectancy Index (LEI) in new HDI calculation
As per old HDI, the minimum life expectancy was 25 years. In new HDI, the minimum life expectancy is reduced to 20 years. As per old HDI, the maximum life expectancy was 85 years. In new HDI, the maximum life expectancy is reduced to 83.5 years. The formula to calculate the LEI is same given in old HDI.Changes occurred in Education Index (EI) in new HDI calculation
As per old HDI, there were two indices named Adult Literacy Index (ALI) and Gross Enrolment Index (GEI). As per new HDI, these are replaced by Minimum Years of School Index (MYSI) and Expected Years of Schooling Index (EYSI). MYSI is given minimum value as zero and maximum value as 13.2 and EYSI is given minimum value of zero and maximum value as 20.6. For total education index minimum value is set as zero and maximum value is set as 0.951. The formula is changed for calculation of new Education Index, which you can gain from below link about new HDI.Changes occurred in Income Index (II) in new HDI calculation
As per old HDI, the minimum income was $100 and maximum was $40, 000. As per new HDI, the minimum income is $163 and maximum income is $108, 211. In old HDI, Gross Domestic Product was taken and in new HDI, Gross national Income was taken. The formula to calculation of new Income Index remained the same.Changes occurred in new HDI calculation
There used to be taking of average mean of three indices to determine old HDI, but as per new HDI, the geometric value of three indices is taken as HDI.
Conclusion
Human Development Index is even though is not ultimate index to calculate and assess human development, it is better than other indices which are being used by various countries. Now, there can be assessment as per the new HDI which can better assess than old HDI.
Read more articles related to Human Development Index (HDI).
New method of calculation of Human Development Index (HDI).
Old method of Human Development Index (HDI) calculation prior to 2010.
Please, tell the reasons behind changing the education index?