Skip to content

How the Human Development Index is calculated

November 18, 2019
How the Human Development Index is calculated

Throughout history, they have created various universal INDICATORS whose function is to allow us to know and compare how developed is economically, culturally, technologically or just global way a society. One of the best known, used worldwide because of its importance is the Human Development Index (HID), which we will explain how it is calculated in this article

3.The second component is education, taking into account the degree of literacy and enrollment in primary schools. In this case, of the total education component, 2/3 is represented by the degree of literacy and 1/3 by that of enrollment. The same formula is used for both cases:

(Country GA – Minimum GA) / (Maximum GA – Minimum GA)

In this case, the literacy and enrollment grades that are handled are 100 at most and 0 at least.

4.The third component is the economic variable, which is carried out taking into account the country’s per capital GDP. To calculate it, we continue using the same formula, with the difference that the logarithms of each variable must be, which in this case would be:

(Country lopping – minimum lopping) / (maximum lopping – minimum lopping)

For this variable, we will consider a maximum of 40,000 and a minimum of 100, always measured in dollars.

5.Once we have performed the three indices individually, we can find the global HID by giving each of the previous results 1/3 of weighting, which is what they have, in order to have the final result.