the human development index irwan

8/3/2019 The Human Development Index Irwan

1/4

Irwan Saputra DD IX MPKD

THE HUMAN DEVELOPMENT INDEX (HDI)

Sources : 1. 2010, UNDP Human Development Report 2010,2. 2008, Bappenas Indeks Pembangunan Manusia Tahun 2006-2007

A. Background and Origins

The successful development, especially human development can be partially

assessed by looking at how big the most fundamental problems in society are resolved. These

problems include poverty, unemployment, illiteracy, food resilience, and upholding democracy.

But the problem is the partial achievement of human development varies greatly in

which some aspects of certain development work well and some other is failure. The

United Nations has set a standard human development that is Human Development Index (HDI)

The origin of the HDI is found in the first Human Development Report in 1990 of

the United Nations Development Programme (UNDP). These were devised and launched by

Pakistani economist late Mahbub ul-Haq and his close friend and collaborator Amartya Sen of

India, working with other leading development thinkers. It successfully advanced the Reports

central thesis, stated succinctly: People are the real wealth of a nation. It is now almost

universally accepted that a countrys success or an individuals well-being cannot be evaluated

by money alone. Income is of course crucial: without resources, any progress is difficult. Yet we

must also gauge whether people can lead long and healthy lives, whether they have the

opportunity to be educated and whether they are free to use their knowledge and talents to

shape their own destinies. It had the explicit purpose "to shift the focus of development

economics from national income accounting to people-based policies".

B. Definition and Use

The Human Development Index (HDI) is a summary to measure the achievements of

human development based on a number of four basic components of quality of life such as a

long and healthy life that represents the health field; means years of schooling and expected

years of schooling to measure achievement in education field; and purchasing power of the

community to buy staple food based on the average expenditure per capita as a presenting of

decent standard of living.

HDI is used to distinguish whether the country is a developed, a developing or an under-

developed country, and also to measure the impact of economic policies on quality of life. There

are also HDI for states, cities, villages, by local organizations or companies. Furthermore HDI

data became more essential and strategically valuable since it is used by many institutionsespecially government as references in determining various government policies. In Indonesia,

it is used as a measuring tool for the determination of government policy in general allocation

Budget (DAU) can be disbursed for each region.

C. Human Development Index Components

HDI is constructed through a three basics dimensions approach. Three basics

dimensions of HDI:
http://en.wikipedia.org/wiki/United_Nations_Development_Programmehttp://en.wikipedia.org/wiki/United_Nations_Development_Programme


2/4

1. Life Expectancy

Life expectancy is calculated using the indirect approach. There are two types of data used

that are children born alive and children still alive.

2. Knowledge Level.

Measuring of knowledge dimension of the population used two indicators, namely themeans years of schooling and expected years of schooling. Mean years of schooling is

years that a 25-year-old person or older has spent in schools, while Expected years of

schooling is years that a 5-year-old child will spend with his education in his whole life.

3. A decent standard of living

The third dimension of the measure of the quality of human life is worth living standards. In

the broader scope of reasonable living standards describe the level of welfare enjoyed by

the residents as the impact of economic improvement. UNDP decent living standards

measured using real gross domestic product adjusted while the BPS in calculating

the reasonable living standards using average real expenditure per capita formula adjusted

for Atkinson.

D. Calculating the Human Development Index (UNDP 2010)

As in past Human Development Reports, the HDI remains a composite index that

measures progress in the three basic dimensionshealth, knowledge and income. Under the

previous HDI formula, health was measured by life expectancy at birth; education or

knowledge by a combination of the adult literacy rate and school enrolment rates (for primary

through university years); and income or standard of living by GDP per capita adjusted for

purchasing-power parity (PPP US$).

Health is still measured by life expectancy at birth. But the 2010 HDI measures

achievement in knowledge by combining the expected years of schooling for a school-age child

in a country today with the mean years of prior schooling for adults aged 25 and older.

The income measurement, meanwhile, has changed from purchasing-power-adjusted per capita

Gross Domestic Product (GDP) to purchasing-power-adjusted per capita Gross National Income

(GNI); GNI includes remittances and foreign assistance income, for example, providing a more

accurate economic picture of many developing countries.The first step is to create subindices for each dimension. Minimum and maximum values

(goalposts) need to be set in order to transform the indicators into indices between 0 and 1.

No Dimension Observed maximum Minimum

1. Life expectancy 83.2(Japan, 2010) 20.0

2.1. Mean years of schooling 13.2(United States, 2000)

0

2.2. Expected years of schooling 20.6(Australia, 2002)

0

2.3. Combined education index 0.951(New Zealand, 2010)

0

3. Per capita income (PPP $) 108,211(United Arab Emirates, 1980)

163(Zimbabwe)


3/4

Having defined the minimum and maximum values, the subindices are calculated as follows:

Dimension index = actual value minimum value

maximum value minimum value .(1)

The HDI is the geometric mean of the three dimension indices:

(I Life1/3 . I Education

1/3 . I Income1/3). .(2)

Example: China

No Indicator Value

1. Life expectancy 73.5

2.1. Mean years of schooling 7.5

2.2 Expected years of schooling 11.43. GNI per capita (PPP $) 7,263

Life expectancy index = 73.5 20/ 83.2 20 = 0.847.

Mean years of schooling index = 7.5 0 / 13.2 0 = 0.568

Expected years of schooling index = 11.4 0 / 20.6 0 = 0.553

Education index = - 0 / 0.951 0 = 0.589

Income index = ln(7,263) ln(163) / ln(108,211) ln(163) = 0.584

Human Development Index =

= 0.663

The Followings are the classification of HDI ranking according to Human Development Report2010 :

1. Very high HDI/ Developed Country (0.801 1.000)

There are 42 countries achieved very high HDI value. The highest HDI achieved by

Norway (0.938). The second and the third place is Australia (0.937) and New Zealand

(0.907) subsequently. Two Asean Countries include in this classification that are Singapore

(0.846) in twenty seventh place and Brunei Darussalam (0.805) in thirty seventieth place.

Barbardos has the lowest rank in this classification (HDI 0.788).

2. High HDI (0.701 - 0.800)

It covers 43 countries in this classification. The three top ranks are Bahamas (0.784),Lithuania (0.783) and Chile (0.783). The only one Asean country in The High HDI level is

Malaysia (rank 57, HDI value 0.744).

3. Medium HDI (0,501 - 0.700)

It covers 42 countries of which the four top gainers are Fiji (0.669), Turkmenistan (0.669),

Dominican Republic (0.663) and China (0.663) in fourth place. Several Asean Countries

including Indonesia are categorized as Medium HDI achiever. They are Sri Lanka (rank 91

HDI 0.658, Thailand (rank 92 HDI 0.654), Philippines (rank 97 HDI 0.638), Indonesia (rank


4/4

108 HDI 0.600), Viet Nam (rank 113 HDI 0.572), Lao Peoples Democratic Republic (rank

122 HDI 0.497) and Cambodia (rank 124 HDI 0.494).

4. Low HDI (0.100 - 0.500)

It includes 35 countries of which the three top gainers are Kenya (0.470), Bangladesh

(0.469), and Ghana (0.467). Asean country categorized in this class is Myanmar (rank 132HDI 0.451). The least HDI gainer (rank 169) is Zimbabwe with HDI 0.140.

It noted that Indonesia is The top 10 countries of HDI movers (countries that are considered

made the greatest progress in improving the HDI). It is ranked four , below Oman, China

and Nepal, and on top of Saudi Arabia (5) and South Korea (8).

E. Human Development Index in Indonesia

For over ten years (1996-2009) Indonesia has shown an increase trend of HDI. It

increased from 67.74 in 1996 to 71.76 in 2009. The HDI number turned down on 64.3 in 1997

because of economic crisis. However the number indicated an upward trend again up to nowas Indonesia made economic recovery.

Over a period of three years provinces HDI in Indonesia showed increased growth.

DKI Jakarta is always listed as the province with the highest HDI at 76.3 in 2006, 76,53 in 2007,

77.08 in 2008 and 77.36 in 2009. Meanwhile Sulawesi Utara always recorded in second place

on this period with a value of HDI 74.37, 74.63, 75.16 and 75.68 consecutively. Moreover

Riau is at third place with HDI values 73.81, 74.63, 75.09, 75.60 respectively. The

three lowest achiever of HDI in 2009 was Papua (rank 33, HDI 64.53), NusaTenggara

Barat (rank 32, HDI 64.36), and NTT (rank 31, HDI 66.60).

the human development index irwan

Documents