Human Development Index - HDI

Loading the player...

DEFINITION of 'Human Development Index - HDI'

A tool developed by the United Nations to measure and rank countries' levels of social and economic development based on four criteria: Life expectancy at birth, mean years of schooling, expected years of schooling and gross national income per capita. The HDI makes it possible to track changes in development levels over time and to compare development levels in different countries.

BREAKING DOWN 'Human Development Index - HDI'

In 2010, the index ranked Norway, Australia, New Zealand, the United States and Ireland at the top of its list for "very high human development." The countries that fell at the bottom of its "low human development" list were Mozambique, Burundi, Niger, Congo and Zimbabwe. The index also shows that countries with lots of income do not always spend that money in ways that create high life expectancies or education levels.

RELATED TERMS
  1. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  2. United Nations - UN

    An international organization formed in 1945 to increase political ...
  3. Advanced Economies

    A term used by the International Monetary Fund to describe developed ...
  4. Developed Economy

    While there is no one, set definition of a developed economy ...
  5. Net Domestic Product - NDP

    An annual measure of the economic output of a nation that is ...
  6. Emerging Market Economy

    A nation's economy that is progressing toward becoming advanced, ...
Related Articles
  1. Economics

    Explaining the Human Development Index

    The Human Development Index (HDI) is a metric developed by the United Nations to take the emphasis off economic growth and focus on human wellbeing.
  2. Insurance

    An Introduction to Microfinance

    Is microfinance a way to help the poor, or will it just make them poorer?
  3. Economics

    Does High GDP Mean Economic Prosperity?

    GDP is the typical indicator used to measure a country's economic health. Find out what it fails to reveal and how the Genuine Progress Indicator can help.
  4. Retirement

    Two Roads: Debt Or Financial Independence?

    A higher income won't make you richer - unless you learn to live on less.
  5. Fundamental Analysis

    Standard Of Living Vs. Quality Of Life

    What is the difference between a standard of living and quality of life? Find out in this breakdown.
  6. Forex Education

    The New World Of Emerging Market Currencies

    Take advantage of foreign currency markets without stepping out of your house.
  7. Economics

    How To Prepare For Rising Interest Rates

    Ignoring interest rates is a mistake because there are many ways to increase your income as they start to rise. The key is to be ready to act.
  8. Economics

    Understanding Conflict Theory

    Karl Marx advanced conflict theory, which claims society is in a state of perpetual conflict due to the competition for limited resources.
  9. Fundamental Analysis

    3 Times the FOMC Got It Right This Century

    Learn about three times that the Federal Open Market Committee (FOMC) and the Federal Reserve took positive steps to help the economy in the 21st century.
  10. Economics

    The Truth about Productivity

    Why has labor market productivity slowed sharply around the world in recent years? One of the greatest economic mysteries out there.
RELATED FAQS
  1. Is Malaysia a developed country?

    Despite undergoing rapid economic development over the past five decades, Malaysia is not considered a developed country, ... Read Full Answer >>
  2. Is Italy a developed country?

    Italy is a developed nation with extensive infrastructure, a rich cultural history and control over several exports. Italy ... Read Full Answer >>
  3. Is France a developed country?

    Benefiting from one of the world’s largest economies, France is considered to be a developed country. As of 2015, France ... Read Full Answer >>
  4. How does gross domestic product (GDP) affect standard of living?

    Gross domestic product (GDP) measures the total output of an entire economy by adding up total consumption, investment , ... Read Full Answer >>
  5. What governments have used the human development index (HDI) to set policy?

    The Human Development Index (HDI) is a United Nations measurement tool to compare human prosperity between countries. Most ... Read Full Answer >>
  6. What institutions employ the human development index (HDI)?

    Some institutions that employ the human development index (HDI) include the United Nations and the World Health Organization. ... Read Full Answer >>
  7. Are there critics of the human development index (HDI)?

    The human development index (HDI) assigns numerical values to different countries as a measure of human prosperity. These ... Read Full Answer >>
  8. What are the key metrics of the human development index (HDI)?

    The key metrics of the standard U.N. Human Development Index (HDI) are health, education and income. These metrics were chosen ... Read Full Answer >>
  9. Who developed the human development index (HDI) and why?

    The United Nations Development Programme developed the Human Development Index (HDI) to create a uniform statistic to measure ... Read Full Answer >>
Hot Definitions
  1. Short Selling

    Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is ...
  2. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  3. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  4. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  5. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  6. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center