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Calculating the Human Development Indices The Human Development Indices • The HDI (Human Development Index) - a summary measure of human development The Human Development Indices • The HDI (Human Development Index) - a summary measure of human development • The GDI (Gender-related Development Index) - the HDI discounted for gender inequality The Human Development Indices • The HDI (Human Development Index) - a summary measure of human development • The GDI (Gender-related Development Index) - the HDI adjusted for gender inequality • The GEM (Gender Empowerment Measure) - Measures gender equality in economic and political participation and decision making The Human Development Indices • The HDI (Human Development Index) - a summary measure of human development • The GDI (Gender-related Development Index) - the HDI adjusted for gender inequality • The GEM (Gender Empowerment Measure) - Measures gender equality in economic and political participation and decision making • The HPI (Human Poverty Index) - Captures the level of human poverty Walk through the steps of calculating – • The HDI (Human Development Index) - a summary measure of human development • The GDI (Gender-related Development Index) - the HDI adjusted for gender inequality Why Statistics? “ …as long as we are unable to put our arguments into figures, the voice of our science, although occasionally it may help to dispel gross errors, will never be heard by practical men. They are, by instinct, econometricians all of them, in their distrust of anything not amenable to exact proof.” -J.A. Shumpeter 1933 “The common sense of econometrics.” Econometrica 1:5-12 Why HDI? Human development accounting vs. a summary measure – “Give me a measure – a single measure – which is as vulgar as GNP per capita, but not as insensitive to broader aspects of human life.” - Mahbubul Haq ?A advocacy tool ?Simplicity and focus ?A Composite combines economic + social factors The basic steps Note the similarity between HDI and GDI in components methodology The 3 steps to creating the index What dimensions of human development to include What indicators to use to capture these dimensions How to combine these dimensions and indicators to create one number Calculating the HDI Dimensions A long and healthy life Being Knowledgeable A decent standard of living