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Measuring Human Development: A Primer
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What is the human poverty index (HPI-1 and HPI-2)?

Poverty has traditionally been measured as a lack of income - but this is far too narrow a definition. Human poverty is a concept that captures the many dimensions of poverty that exist in both poor and rich countries—it is the denial of choices and opportunities for living a life one has reason to value. The HPI-1–human poverty index for developing countries – measures human deprivations in the same three aspects of human development as the HDI (long and healthy life, knowledge and a decent standard of living). HPI-2–human poverty index for selected high-income OECD countries–includes, in addition to the three dimensions in HPI-1, social exclusion.

For HPI-1 (developing countries), deprivation in health is measured by the probability at birth of not surviving to age 40; deprivation in knowledge is measured by the percentage of adults who are illiterate; deprivation in a decent standard of living is measured by two variables: the percentage of people not having sustainable access to an improved water source and the percentage of children below the age of five who are underweight. See: PDF Inline (GIF) Table 3 HDR 2007/2008 [92 KB].

For HPI-2 (selected high-income OECD countries), deprivation in health is measured by the probability at birth of not surviving to age 60; deprivation in knowledge is measured by the percentage of adults lacking functional literacy skills; deprivation in a decent standard of living is measured by the percentage of people living below the income poverty line, set at 50% of the adjusted median household disposable income; and social exclusion is measured by the rate of long-term (12 months or more) unemployment of the labour force. See: PDF Inline (GIF) Table 4 HDR 2007/2008 [70 KB].

For details on how to calculate the HPI-1 and HPI-2 see PDF Inline (GIF) Technical note 1 HDR 2007/2008 [5,680 KB].

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