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What is Human resource Development? Methods of calculating HDI.

HUMAN RESOURCE DEVELOPMENT

Human resource development refers to improvement in the quality of life, increase in the number of opportunities, and in the freedom people enjoy.

  • The concept of human development, as understood today, was introduced by Dr. Mahbub ul Haq, a Pakistani economist. According to him, human development refers to an enlargement of people’s choices. Indian economist Prof. Amartya Sen has also adopted this view of human development.
  • The choices of people can be increased either by skill development of people (by granting vocational education), improving their health, or increasing their income level.
  • Education enhances choices with people as it confers them freedom to think and choose out of various career options. Health enlarges choices of people as a healthy person can undertake various types of activities in comparison to an unhealthy person. Increase in income level enlarges the options as it enables the people to buy various kinds of goods and services

HUMAN DEVELOPMENT INDEX

Based on the above view, Human Development Index (HDI) was developed by Mahbub ul Haq along with Amartya Sen and was launched by the United Nations Development Programme (UNDP).

New Method for Calculating HDI

In its 2010 Human Development Report, the UNDP began using a new method for calculating the HDI. The following three indices are used:

  1. A long and healthy life: Life expectancy at birth
  2. Education index: Mean years of schooling and expected years of schooling
  3. A decent standard of living: per capita income (PPP in US$)

Life Expectancy Index

Life Expectancy Index (LEI) is 1 when life expectancy at birth is 85 and 0 when life expectancy at birth is 20.

LE — 20

LEI =

85 — 20

 

LE: Life expectancy at birth in a given country

Education Index

MYSI + EYSI

Education Index (EI) =

2

 

MYS

  • Mean Years of Schooling Index (MYSI) =
    15

Fifteen is the maximum years of schooling.

MYS: Mean years of schooling (i.e., years that a person aged 25 or older has spent in formal education)

EYS

  • Expected Years of Schooling Index (EYSI) =
    18

Eighteen is equivalent to achieving a master’s degree in most countries.

EYS: Expected years of schooling (i.e., total expected years of schooling for children under 18 years of age)

Income Index

Income Index (II) is 1 when GNI per capita is $75,000 per year and 0 when GNI per capita is $100 per year.

GNI per capita — 100

II =

75000 —100

Value of HDI

The maximum value of HDI can be 1. Finally, the HDI is the geometric mean of Life Expectancy Index, Education Index, and Income Index.

 

 

Characteristics of nations with different levels of human development

Level of human

development

High (0.7 and above) Medium (035 to 0.699) Low (0 to 0.549)
Nations North America,

Northern and Western Europe

South America and

Asia

Africa
State of economic

development

Developed Developing Underdeveloped
Political condition Political

stability

History of past instability

but presently stable

nations

Going through civil

wars

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