Human Development Index (HDI) Vs.(GDP) Gross Domestic Product

Details about Human Development Index (HDI) And Gross Domestic Product (GDP).And what is the basic difference between both GDP and HDI

1. Human Development Index Vs. GDP

2. Introduction of HDI and GDP The Human Development Index (HDI) is a statistical tool used to measure a country's overall achievement in its social and economic dimensions. The social and economic dimensions of a country are based on the health of people, their level of education attainment and their standard of living . Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time

3. Details About GDP The Department of  Commerce  releases GDP data for the U.S.  economy  on a quarterly  basis  at 8:30 am EST on the last business day of the next quarter . The equation used to calculate GDP is as follows: GDP = Consumption + Government Expenditures +  Investment  + Exports - Imports The components used to calculate GDP include : Consumption: --  Durable goods  (items expected to last more than three years) -- Nondurable goods (food and clothing) -- Services

4. DETAILS OF GDP Government Expenditures: -- Defense -- Roads -- Schools Investment Spending: -- Nonresidential (spending on plants and equipment), Residential (single-family and multi-family homes) -- Business inventories

5. GDP NET EXPORT NET EXPORT   Exports are added to GDP -- Imports are deducted from GDP The GDP report also includes information regarding inflation: -- The implicit price deflator measures changes in prices and spending patterns. -- The fixed-weight price deflator measures price changes for a fixed basket of over 5,000 goods and services GDP is calculated both in current dollars and in constant dollars. Current Dollar GDP involves calculating economic activity in present-day dollars. This, however, makes time period comparisons difficult due to the effects of  inflation . By comparison, Constant Dollar GDP  factors  out the impact of inflation and allows for easy comparisons by converting the value of the dollar in other time periods to present-day dollars.

6. Human Development of Index Pakistani economist Mahbub ul Haq created HDI in 1990 which was further used to measure the country's development by the United Nations Development Program (UNDP). Calculation of the index combines four major indicators: life expectancy for health, expected years of schooling, mean of years of schooling for education and Gross National Income per capita for standard of living . Every year UNDP ranks countries based on the HDI report released in their annual report. HDI is one of the best tools to keep track of the level of development of a country, as it combines all major social and economic indicators that are responsible for economic development. Nobel Laureate Amartya Sen and other economist was working in 1990

7. About Human Development In 1990the first human Development Report new approach for advancing human wellbeing. Human Development – or the Human Development approach – is about expanding the richness of Human life. Rather than simply the richness of the economy in which human beings live. Is an approach that is focused on people their opportunities and choice

8. Dimensions of Human Development

9. HDI The Human Development Index HDI is a composition statistic of life Expectancy , Education and Per capita income indicators, which are used to rank countries Human development. A country scores higher HDI when the lifespan is higher, the education level is higher , and the GDP per capita is higher

10. Three Indicators of HDI The 2010 Human Development Report revised the HDI formula using data and methodologies that were not available in most countries when the first HDI was published in the  1990  Human Development Report. The HDI was calculated in 2010 using the following indicators: Health - Life expectancy at birth Education - expected years schooling for school-age children and average years of schooling in the adult population Income - measured by Gross National Income (GNI) per capita (PPP US$)

11. Calculation of Method Older versions (1990-2009) of the HDI were calculated using the following indicators : Health - Life expectancy at birth Education - measured by adult literacy and the combined primary, secondary and tertiary enrolment ratio Income - measured by GDP per capita (PPP US$) The indicators of the three dimensions are calibrated and combined to generate an HDI score between zero and one. Countries are grouped into four human development categories or quartiles: very high, high, medium and low. A country is in the very high group if its HDI is in the top quartile, in the high group if its HDI is in percentiles 51–75, in the medium group if its HDI is in percentiles 26–50, and in the low group if its HDI is in the bottom quartile.

12. Calculation new Method New Method ; -(2010 Index onwards) The 2010 Human Development Index (HDI) combines three dimensions Life expectancy Education Standard of living

13. Calculation new Method Life expectancy Index (LEI ) = LE − 20/85- 20 LEI 1 when life expectancy at birth is 85 and 0 when life expectancy at birth is 20 EDUCATION Index EI = MYSI +EYSI/ 2 Mean years of schooling Index (MYSI) = MYS/25 average number of years of education received by people age 25 and older, Converted from education attainment levels using official duration of each level. Expected Years of schooling Index EYSI = EYS/18 NUMBER OF YEARS OF SCHOOLING THAT A CHILD OF SCHOOL ENTRANCE AGE CAN EXPECTED TO RECIVE IF PROVAILING PATTERNS OF AGE- SPECIFIC ENROLMENT RATES PERSIST THROUGHOUT THE CHILD LIFE

14. Calculation new Method 3 . Income Index II = In ( GNIpc ) – In(100)/ In(75,000) – In(100) INCOME INDEX IS 1 WHEN GNI PER CAPITA IS $ 75,000 AND 0 WHEN GNI PER CAPITA IS $ 100 HDI is the geometric mean of the pervious three normalized indices HDI =  

15. INTERNATIONAL COMPARISONS

16. Ranking of Globally Countries LEVEL OF HDI SCORE OF HDI NUMBER OF COUNTRY VERY HIGH ABOVE 0.808 49 HIGH BETWEEN 0.700 UP TO 8.807 52 MEDIUM BETWEEN 0.556 UP TO 0.699 42 LOW BELOW 0.555 43

17. GLOBAL HDI RANKING TOP TEN RANK COUNTRY HDI OF 2016 1   Norway 0.949 2 Australia 0.939 3   Switzerland 0.939 4 Germany 0.926 5   Denmark 0.925 6   Singapore 0.925 7   Netherlands 0.924 8   Ireland 0.923 9   Iceland 0.921 10 Canada 0.920

18. LOWEST FIVE GLOBAL HDI COUNTRY RANKING COUNTRY HDI OF 2016 1    Central African Republic 0.352 2    Niger 0.353 3    Chad 0.396 4   Burkina Faso 0.402 5   Burundi 0.420

19. HDI ASPECTS OF INDIA 2016 India Rank :-131 HDI :- 0.624 Gain 0.009 HDI from previous year Come under medium human development countries INDICATORS Life expectancy at birth (by UN). Overall:- 68.3 Education Index :- 11.7 Mean years of schooling GNI (Gross National income ) per capita (2011PPP $) :-5,663

20. THANKS THE END NAME :- SATISH KUMAR GDMC :- 3B