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HUMAN DE VELOPMENT REPORT 2007/2008 355
Political participationand decision-making
Economic participationand decision-making
Gender empowerment measure (GEM)
Power overeconomic resources
Female and male sharesof parliamentary seats
EDEP forparliamentaryrepresentation
EDEP foreconomic participation
EDEP forincome
Female and male sharesof positions as legislators,
senior officials and managers
Female and male sharesof professional andtechnical positions
Female and maleestimated earned
income
DIMENSION
INDICATOR
EQUALLYDISTRIBUTEDEQUIVALENTPERCENTAGE(EDEP)
GEM
A long andhealthy life Knowledge
FemaleGER
MaleGER
Femaleadult literacy
rate
Maleeducation
index
Equally distributededucation index
Equally distributedlife expectancy
index
Gender-related development index (GDI)
Femaleeducation
index
Maleadult literacy
rate
A decent standardof living
Female lifeexpectancy
at birth
Male lifeexpectancy
at birth
Equally distributedincome index
Femaleestimated
earnedincome
Maleestimated
earnedincome
DIMENSION
INDICATOR
DIMENSIONINDEX
EQUALLYDISTRIBUTEDINDEX
Malelife expectancy
index
Femalelife expectancy
index
Maleincomeindex
Femaleincomeindex
GDI
Knowledge
Human poverty indexfor developing countries (HPI-1)
Deprivation in a decent standard of living
A decent standard of livingProbability at birth
of not surviving to age 40
Percentage of populationnot using an improved
water source
Percentage of childrenunder weight-for-age
DIMENSION
INDICATOR
HPI-1 A long and healthy life
Adult illiteracy rate
Knowledge
Human poverty indexfor selected OECD countries (HPI-2)
A decent standardof living
Socialexclusion
Probability at birthof not surviving
to age 60
Percentage of people living below the
poverty line
Long-termunemployment rate
DIMENSION
INDICATOR
A long andhealthy life
HPI-2
Percentage of adults lacking functional
literacy skills
KnowledgeGross enrolment ratio
(GER)Adult literacy rate
GER indexAdult literacy index
Education indexLife expectancy index
Human development index (HDI)
Life expectancyat birth
GDP index
GDP per capita(PPP US$)
DIMENSION
INDICATOR
DIMENSIONINDEX
A long andhealthy life
A decent standardof living
HDI
TECHNICAL NOTE 1
Calculating the human development indices
! e diagrams here summarize how the " ve human development indices used in the Human Development Report are constructed, highlighting both their similarities and their di# erences. ! e text on the following pages provides a detailed explanation.
356 HUMAN DE VELOPMENT REPORT 2007/2008
1.00
.900
.800
.700
.600
.500
.400
.300
.200
.100
0
IndicatorDimension
index
Goalpost formaximum
value
Goalpost forminimum
value
Indicatorvalue
Indexvalue
Goalposts for calculating the HDIMaximum Minimum
Indicator value value
Life expectancy at birth (years) 85 25
Adult literacy rate (%)* 100 0
Combined gross enrolment ratio (%) 100 0
GDP per capita (PPP US$) 40,000 100
1.00
.800
.600
.400
.200
0
Lifeexpectancy
(years)
Lifeexpectancy
index
Goalpost85 years
Goalpost25 years
90
80
70
60
50
40
30
20
71.40.773
1.00
.800
.600
.400
.200
0Adult
literacyrate(%)
Grossenrolment
ratio(%)
Educationindex
100
90
80
70
60
50
40
30
20
10
0
87.4 68.7 0.812
GDPper capita(PPP US$)Log scale
GoalpostUS$40,000
GoalpostUS$100
1.00
.800
.600
.400
.200
0GDPindex
0.740
100,000
10,000
1,000
8,407
4. Calculating the HDIOnce the dimension indices have been calculated, determining the HDI is straightforward. It is a simple average of the three dimension indices.
HDI = 1/3 (life expectancy index) + 1/3 (education index)
+ 1/3 (GDP index)
= 1/3 (0.773) + 1/3 (0.812) + 1/3 (0.740) = 0.775
1.00
.800
.600
.400
.200
0
1.00
.800
.600
.400
.200
0Life
expectancy
0.773
0.8120.775
0.740
GDP
HDI
Education
Dimension indices
* The goalpost for calculating adult literacy implies themaximum literacy rate is 100%. In practice, the HDI iscalculated using an upper bound of 99%.
HUMAN DE VELOPMENT REPORT 2007/2008 357
358 HUMAN DE VELOPMENT REPORT 2007/2008
Calculating the GDI continues on next page
HUMAN DE VELOPMENT REPORT 2007/2008 359
Calculating the GDI (continued)
Second, the female and male income indices are combined to create the equally distributedincome index :
FEMALE MALEPopulation share: 0.504 Population share: 0.496Income index: 0.681 Income index: 0.877
Equally distributed income index = {[0.504 (0.681–1)] + [0.496 (0.877–1)]}–1 = 0.766
4. Calculating the GDICalculating the GDI is straightforward. It is simply the unweighted average of the threecomponent indices—the equally distributed life expectancy index, the equally distributededucation index and the equally distributed income index.
GDI = 1/3 (life expectancy index) + 1/3 (education index) + 1/3 (income index)
= 1/3 (0.380) + 1/3 (0.773) + 1/3 (0.766) = 0.639
360 HUMAN DE VELOPMENT REPORT 2007/2008
HUMAN DE VELOPMENT REPORT 2007/2008 361
Selected readings
Anand, Sudhir, and Amartya Sen. 1994. “Human Development
Index: Methodology and Measurement”. Occasional Paper 12,
United Nations Development Programme, Human
Development Report Office, New York. (HDI)
——, 1995, “Gender Inequality in Human Development Theories
and Measurement.” Occasional Paper 19, United Nations
Development Programme, Human Development Report Office,
New York. (GDI, GEM)
——, 1997, “Concepts of Human Development and Poverty:
A Multi-dimensional Perspective.” In United Nations
Development Programme, Human Development Report
1997 Papers : Poverty and Human Development New York.
(HPI-1, HPI-2)
Bardhan, Kalpana, and Stephan Klasen, 1999. “UNDP’s
Gender-Related Indices. A Critical Review.” World
Development 27 (6): 985–1010 (GDI, GEM)
United Nations Development Programme, 1995. Human
Development Report 1995. New York: Oxford University Press,
Technical notes 1 and 2 and chapter 3. (GDI, GEM)
——, 1997, Human Development Report 1997. New York:
Oxford University Press. Technical note 1 and chapter 1.
(HPI-1, HPI-2)
——, 1999, Human Development Report 1999. New York:
Oxford University Press. Technical note (HDI, GDI)
Klasen, Stephan. 2006. "UNDP's Gender-related Measures:
Some Conceptual Problems and Possible Solutions." Journal
of Human Development Alternative Economics in Action, 7 (2):
243 - 274.