# Human Development Index

How to calculate human deveIopment index?

## How to Calculate HDI

**What is HDI?**

HDI stands for **Human Development Index**.

Its a Statistical tool created by the Indian economist Amartya Sen and Pakistani economist Mahbub ul Haq. Later it was remodelled by the United States. This tool is used to measure and compare the social and economic development of a country to the other countries on the basis of three major index.

→ **Life expectancy at Birth **- Long and Healthy Life

→** Education index** - Mean years of schooling and Expected years of schooling

→ **Standard of Living** - Gross national income per capita.

**Formula**

Use the formula below to find the HDI** **of a country

HDI = ^{3}âˆšLEI . EI . II

**Step 1:**

Calculate LEI

Life Expectency Index (LEI) = **LE - 20 / 85 - 20**

**Step 2:**

**Calculate EI**

Education Index =
**MYSI + EYSI / 2**

**Step 3:**

**Calculate MYSI and EYSI**

Mean Years of Schooling Index (MYSI) = **MYS / 15**

Expected Years of Schooling Index (EYSI)** **= **EYS/18**

**Step 4:**

**Calculate II**

Income Index (II) = **ln(GNIpc) - ln(100) / ln(75,000) - ln(100)**

With the derived values of **LEI, EI and II, **we can find the Human Development Index of a country(HDI)

**Example**

Lets us calculate the HDI(Human Development Index) of India

Average Indian Life Expectancy - 65

Mean Years of Schooling - 4.4

Expected Years of Schooling - 10.7

Income Index - 5,350

Average Indian Life Expectancy is **65**

→ **Life Expectency Index (LEI) = LE - 20 / 85 - 20**

= 65 - 20/85 - 20

= 45/65

**LEI = 0.692**

→ **Education Index =
MYSI + EYSI / 2**

Mean Years of Schooling Index

**MYSI = MYS / 15**

= 4.4 / 15 =** 0.293**

Expected Years of Schooling Index

**EYSI = EYS/18**

= 10.7 / 18 = **0.594**

So, Education index = 0.29 + 0.59 / 2 = 0.88 / 2 = 0.443

**EI = 0.443**

→ **Income Index (II) = ln(GNIpc) - ln(100) / ln(75,000) - ln(100)**

=ln(5,350) - ln(100) / ln(75,000) - ln(100)

= 8.584 - 4.605 / 11.225 - 4.605

= 3.979 / 6.62

**II = 0.60115**

So, Human Development Index (HDI) of India is

HDI = ^{3}âˆšLEI . EI . II

= ^{3}âˆš0.692 X 0.443 X 0.60115

= ^{3}âˆš 0.184

**HDI ****= **0.56953

Enter the Life Expectancy, Mean Years of Schooling, Expected Years of Schooling and Income Index value to find the HDI of any country by using the simple HDI Calculator.