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Composite indices — HDI and beyond

The Human Development Report Office has been at the forefront of developing new indices to measure human development since its first Report in 1990. While the concept of human development is much broader than any composite index can measure, these composite human development indices offer powerful alternatives to income as a summary measure of human well-being. They provide useful entry points into the rich information contained in the indicator tables covering a wide range of human development issues in the Report.

The year 2010 marks the 20th anniversary of the Human Development Report and Index. The HDI has been the hallmark of the report. Its anniversary will be an occasion to reassess both the HDI as well as the HDR’s family of measures of human development (GDI, GEM and HPI-1 and HPI-2). For the 2010 report, we will revisit the methodology of the HD indices and changes will possibly be applied. We will specifically investigate the integration of other dimensions into the HDI including but not limited to environment, inequality and participation. There will also be a focus on measurement aspects related to gender and poverty, in particular the issue of multi-dimensional poverty.

For now, you will learn about these composite human development indices, as they stand, from their definitions to how they are constructed and used to assess progress in human development across countries. You will have access to interactive tools for calculating the indices, which give you a hands-on experience and facilitate immediate applications. You may also find the selected background readings helpful for a better understanding of the usefulness and limitations of these composite indices.

• The Human Development Index (HDI) Table H HDR 2009 [121 KB] measures the average achievements in a country in three basic dimensions of human development: a long and healthy life, knowledge and a decent standard of living. This year it has been calculated for 182 countries and areas for which data is available. In addition human development indicators are presented for another 12 UN member countries for which complete data was not available.

• The Human Poverty Index (HPI-1 and HPI-2) Human poverty is primarily a deprivation of choices and opportunities for living a life one has reason to value. Lack of income is therefore far too narrow to serve as a holistic poverty indicator. As a result, a broader measure was devised in order to capture the many—but not exhaustive—dimensions of human poverty. The HPI-1—human poverty index for developing countries  Table I1 HDR 2009 [111 KB] — measures human deprivation in the same aspects of human development as the HDI for deeloping and transition countries and the HPI-2—human poverty index for OECD countries  Table I2 HDR 2009 [60 KB] — includes, in addition to the three dimensions in HPI-1, social exclusion.

•  The Gender Related Development Index (GDI) Table J HDR 2009 [143 KB] is a composite index that measures human development in the same dimensions as the HDI while adjusting for gender inequality in those basic dimensions. Its coverage is limited to 155 countries and areas for which the HDI rank was recalculated. For a measure of gender inequality, one should refer to the difference between the HDI rank and the GDI rank presented in in the same table.

• The Gender Empowerment Measure (GEM)  Table K HDR 2009 [113 KB]  is a composite indicator that captures gender inequality in three key areas: the extent of women's political participation and decision-making, economic participation and decision making-power and the power exerted by women over economic resources.