What is the effect of fixing the maximum of GNI per capita at $75,000?
Income is instrumental to human development, but the contribution diminishes as incomes rise. Also, a high income without being translated into other human development outcomes is of less relevance for human development. Fixing the maximum at $75,000 means that for countries with GNI per capita greater than $75,000, only the first $75,000 contributes to human development. In this way the higher income is prevented from dominating the HDI value. Currently we have only three countries with GNI per capita above the cap – Liechtenstein, Qatar, and Singapore.