Review of HDI Critiques and Potential Improvements

2010 Occasional Paper
By Kovacevic, Milorad

This paper reviews critiques of the Human Development Report over the last twenty years. The critiques are mostly related to the choice of indicators, to high correlation of HDI components, functional form of the HDI including normalization of component indicators, aggregation vs. multiplication, and issues related to weighting. A thorough analysis of the critiques leads us to a proposal for modification of the HDI.