Measurement of Human Development Indicators

Indicators used to measure the level of development of a human group residing in a specific area are human development indicators. By using these indicators, a comparative study can be made of the level of human development in different countries. The past and present human development levels of a country can be compared.

The level of human development in different provinces, regions, districts, or districts within a country can also be studied comparatively based on human development indicators. Based on the status of development indicators, the state or government is helped to formulate policies and laws for the work to be done in the field of human development and to implement them.

Along with this, human development indicators also help in keeping track of the work done by the government in the field of human development.

Some of the major human development indicators in practice are discussed here:

(a) Long and Healthy Life: The health status of the people of any country reveals the level of human development in that country. The health status of the people is determined by infant mortality rate, child mortality rate, maternal mortality rate, birth rate, crude death rate, number of hospitals, population per doctor, population per nurse, nutritional status, level of health awareness, etc. 

The health status of the people of a country is reflected in the average life expectancy. If the health status of the people of a country is good, the average life expectancy is also high. Higher average life expectancy or longevity indicates a better level of human development. 

Thus, increasing average life expectancy shows that the country has made progress in the areas of people's lifestyle, availability of physical goods and services, nutritious food, and health care, and that the level of human development is improving.

(b) Education Attainment: This is a social indicator. The development of education contributes to human development. The level of education attainment reflects the progress made by the country in the context of education. Various indicators that reflect the status of education in the country include literacy rate, adult literacy rate, student-teacher ratio, average years of schooling, gross enrollment rate, teacher-student ratio, etc. 

The access of the people of a country to education and the quality of education in that country determine the level of human development. Therefore, education is taken as an indicator of human development.

(c) Per Capita Income: Per capita income is an economic indicator of human development. It reflects the economic standard of living of the people. That is, it is used to know whether people in the country have enough income to meet their basic needs for a decent standard of living. The higher the per capita income, the better the standard of living. 

However, it cannot be assumed that human development is good just because per capita income is high, as per capita income can also increase if the income of a few wealthy individuals increases while the majority of people are poor. Therefore, for human development, along with the increase in per capita income, there should be equality in the distribution of income.

(d) Fulfillment of Basic Needs: Basic needs primarily refer to food, shelter, clothing, education, health, and security. The fulfillment of these needs in adequate quantities is essential for human development. An increase in the availability of such services reflects an improvement in the level of human development.

(e) Happiness or Well-being: To assess the level of human development, human well-being or happiness is also measured. By giving importance to human happiness or well-being, the Happy Planet Index (HPI) has been developed. 

It measures the level of human development in different countries by including the economic, environmental, mental, and workplace conditions of the people of the country, as well as social and political prosperity. According to this index, the increase in human happiness or well-being is human development.

(f) Human Development Index (HDI): The Human Development Index (HDI) is the most important and popular indicator for measuring the level of human development. It measures the average achievement in three basic dimensions of human development: a long and healthy life, knowledge, and a decent standard of living. 

It is also considered an important indicator of economic development. The United Nations Development Programme (UNDP) first introduced this index in 1990. Since then, the popularity of this index has been increasing. 

Since 1990, the UNDP has been publishing the Human Development Index of various countries annually in the World Human Development Report (WHDR). 

The Human Development Index measures three dimensions of human development in a combined way. These dimensions are as follows:

1. Long and Healthy Life: This is measured by life expectancy at birth. Life expectancy is the number of years a newborn child is expected to live, assuming that the age-specific mortality rates remain constant throughout their lifetime.

2. Educational Indicator: This is measured based on expected years of schooling and mean years of schooling. Expected years of schooling refer to the number of years of schooling a child of school entry age is expected to receive, assuming that the age-specific enrollment rates remain constant throughout their lifetime. Mean years of schooling refer to the average number of years of formal education received by people aged 25 years or older. This is derived from education attainment levels using the duration of each level.

3. Decent Standard of Living Indicator: This is measured by Gross National Income (GNI) per capita. Gross National Income is the total income earned by a country or economic entity from its production and factors of production owned by it, minus the income payments made for the use of factors of production owned by the rest of the world. Per capita Gross National Income is obtained by converting it into international dollars using purchasing power parity rates and dividing by the mid-year population.

These three aspects are combined, and based on the data of various countries for a specific year, the Human Development Index is calculated, and countries are categorized. The value of the Human Development Index ranges from 0 to 1. 

In the World Human Development Report, countries are categorized into four groups based on the value of the Human Development Index: countries with low human development, medium human development, high human development, and very high human development.

Classification of Countries based on the World Human Development Report 2016 and the Human Development Index and Values of SAARC Member Countries

Source: WHDR, 2024

Out of the 188 countries mentioned in the World Human Development Report [WHDR (2016): UNDP], Norway has the highest Human Development Index (HDI = 0.949), while Central African Republic has the lowest Human Development Index (HDI = 0.352). Nepal ranks 144th in the Human Development Index ranking (from high to low). 

Among SAARC countries, Nepal ranks sixth in terms of the Human Development Index (from high to low), and Nepal's Human Development Index (HDI) value is 0.558.

In the past, although the Human Development Index included aspects such as longevity, education, and income, it was not considered a comprehensive indicator because it could not effectively cover aspects such as gender inequality, income inequality, respect for human rights, and political freedom. 

However, these aspects are now being included in the Human Development Report.