Why did the Report change the indicators for measuring education and income in 2010?
The indicators were changed for several reasons. For example, adult literacy used in the old HDI (which is simply a binary variable, literate or illiterate, with no gradations) is an insufficient measure for knowledge achievement. By including average years of schooling and expected years of schooling, one can better capture the level of education and recent changes.
Gross Domestic Product (GDP) is the monetary value of goods and services produced in a country irrespective of how much is retained in the country. Gross National Income (GNI) expresses the income accrued to residents of a country, including some international flows, and excluding income generated in the country but repatriated abroad. Thus, GNI is a more accurate measure of a country’s economic welfare. As shown in the 2010 Report, significant differences could exist between the income of a country’s residents, measured by GNI or GDP.