What is the purpose of the Inequality-adjusted HDI (IHDI)?
The HDI represents a national average of human development achievements in the three basic dimensions making up the HDI: health, education and income. Like all averages, it conceals disparities in human development across the population within the same country. Two countries with different distributions of achievements can still have the same average HDI value.
The IHDI takes into account not only the average achievements of a country in health, education, and income, but also how those achievements are distributed among its population by “discounting” each dimension’s average value according to its level of inequality.