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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.

Suggested Citation

  • Krishna Mazumdar, 2003. "A New Approach to Human Development Index," Review of Social Economy, Taylor & Francis Journals, vol. 61(4), pages 535-549.
    • Handle: RePEc:taf:rsocec:v:61:y:2003:i:4:p:535-549
    DOI: 10.1080/0034676032000160895
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    1. D. P. Doessel & Rukmani Gounder, 1994. "Theory and measurement of living levels: Some empirical results for the human development index," Journal of International Development, John Wiley & Sons, Ltd., vol. 6(4), pages 415-435, July.
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    3. Ram, Rati, 1982. "Composite indices of physical quality of life, basic needs fulfilment, and income : A principal component representation," Journal of Development Economics, Elsevier, vol. 11(2), pages 227-247, October.
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    3. Elizabeth Stanton, 2007. "The Human Development Index: A History," Working Papers wp127, Political Economy Research Institute, University of Massachusetts at Amherst.
    4. Panagiotis Ravanos & Giannis Karagiannis, 2021. "A VEA Benefit-of-the-Doubt Model for the HDI," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(1), pages 27-46, May.
    5. Merwan Engineer & Ian King, 2013. "Maximizing human development," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(2), pages 497-525, May.
    6. Swati Dutta, 2011. "Efficiency in Human Development Achievement," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 5(4), pages 421-450, November.
    7. Swati Dutta, 2013. "Human Development Achievement and Improvement," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(2), pages 317-342, September.
    8. 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).
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    10. Merwan Engineer & Nilanjana Roy & Sari Fink, 2010. "“Healthy” Human Development Indices," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 99(1), pages 61-80, October.
    11. Sevinc Rende & Murat Donduran, 2013. "Neighborhoods in Development: Human Development Index and Self-organizing Maps," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(2), pages 721-734, January.
    12. Sebastián Lozano Segura & Ester Gutiérrez Moya, 2009. "Human Development Index: A Non-Compensatory Assessment," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, June.
    13. Bhawna MUDGAL & Hemlata MANGLANI, 2023. "A proposal for modified human development index for BRICS countries. A holistic approach towards sustainable human development," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(636), A), pages 107-130, Autumn.

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