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A New Approach to Human Development Index

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  • Krishna Mazumdar

Abstract

Human development Index (HDI) was introduced by the United Nations Development Programme (UNDP) in 1990. For the first four years UNDP used the maximum and the minimum values of the data series to standardize the variables. In 1994 the procedure of standardization was modified with the introduction of arbitrary fixed minimum and maximum values for each variable. Both methods have merits and demerits. The present study proposes an alternative measure of estimating HDI which bridges the gap between the methods of computing HDI proposed by the UNDP in 1990 and 1994. This study also incorporates unadjusted per capita real gross domestic product (PCRGDP) instead of adjusted PCRGDP used by the UNDP. The data from the Human Development Report (HDR) 2000 for 174 countries are used to test the robustness of the suggested index and the results are compared to those of the HDI. Also average values for full sample as well as top 20 percent and bottom 20 percent are offered to show the superiority of our method to that of the UNDP's HDI.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Review of Social Economy.

Volume (Year): 61 (2003)
Issue (Month): 4 ()
Pages: 535-549

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Handle: RePEc:taf:rsocec:v:61:y:2003:i:4:p:535-549

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Related research

Keywords: Human Development Index (HDI); Rescaled New Human Development Index (RNHDI); Fixed goal posts; Moving goal posts; D2- statistics;

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Cited by:
  1. Merwan Engineer & Ian King, 2012. "Maximizing Human Development," Working Paper Series 30_12, The Rimini Centre for Economic Analysis.
  2. Laurens Cherchye & Erwin Ooghe & Tom Puyenbroeck, 2008. "Robust human development rankings," Journal of Economic Inequality, Springer, vol. 6(4), pages 287-321, December.
  3. Sevinc Rende & Murat Donduran, 2013. "Neighborhoods in Development: Human Development Index and Self-organizing Maps," Social Indicators Research, Springer, vol. 110(2), pages 721-734, January.
  4. Merwan Engineer & Nilanjana Roy & Sari Fink, 2010. "“Healthy” Human Development Indices," Social Indicators Research, Springer, vol. 99(1), pages 61-80, October.
  5. Elizabeth Stanton, 2007. "The Human Development Index: A History," Working Papers wp127, Political Economy Research Institute, University of Massachusetts at Amherst.
  6. Sabina Alkire & James Foster, 2010. "Designing the Inequality-Adjusted Human Development Index (IHDI)," Human Development Research Papers (2009 to present) HDRP-2010-28, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
  7. Sebastián Lozano Segura & Ester Gutiérrez Moya, 2009. "Human Development Index: A Non-Compensatory Assessment," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID.

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