The Human Development Index (HDI) for China and India - Essay Example

The four input dimension indices for calculating HDI are, therefore, the life expectancy index, mean years of schooling index, expected years of schooling index, and income index (HDRO 1). Minimum value for life expectancy is set at 20 years, 0 years for both of the education variables, and $100 for the income variable measured in per capita gross national income (GNI). General formula for calculating dimension index is: Dimension index = Actual value – Minimum value Maximum value – Minimum value The HDI is the geometric mean of the normalised indices measuring achievements in each dimension.

It is calculated as HDI =  Where; Ilife – life expectancy index2 Ieducation - Education index Iincome – Income index Case study: China and India Table 1: Computed HDIs and input variables for China and India INDIA: HDI Indicators HDI Indicator Value Goalposts for HDI 2011 Dimension Indices Maximum value Minimum value Life anticipation (years) 65.4 65.9 20.0 0.716 0.546 Schooling mean years (years)3 4.4 4.6 0 0.336 Expected years of schooling (years)4 10.3 9.8 0 0.572 Combined education index 0.978 0 0.448 GNI per capita (PPP $)5 3,468 3,435 100 0.

508 CHINA: HDI Indicators Indicator Value Maximum value Minimum value Dimension Indices HDI Life anticipation (years) 73.5 83.4 20.0 0.844 0.687 Schooling Mean years (years) 7.5 13.1 0 0.573 Expected years of schooling (years) 11.6 18.0 0 0.644 Combined education index 0.978 0 0.621 GNI per capita (PPP $) 7,476 107,721 100 0.618 HDI computation process: (I) India Life Expectancy index = (65.4-20)/(83.4-20) = 0.716 Mean years of schooling index = (4.4-0)/ (13.1-0) = 0.336 Expected years of schooling index = (10.3-0)/ (18-0) = 0.

572 Combined education index = (0.336*0.572) ^ (1/2)-0/ (0.978-0) = 0.448 Income index = (Ln (3,468) – Ln (100))/ (Ln (107,721) - Ln (100)) = 0.508 HDI = (0.716*0.448*0.508) ^ (1/3) = 0.546 (II) China Life Expectancy index = (73.5-20)/(83.4-20) = 0.844 Mean years of schooling index = (7.5-0)/ (13.1-0) = 0.573 Expected years of schooling index = (11.6-0)/ (18-0) = 0.644 Combined education index = (0.573*0.644) ^ (1/2)-0/ (0.978-0) = 0.621 Income index = (Ln (7,476) – Ln (100))/ (Ln (107,721) - Ln (100)) = 0.

618 HDI = (0.844*0.621*0.618) ^ (1/3) = 0.687 Table 2: Computed and Reported HDIs for India and China HDI Comparison Country Reported 2011 Calculated India 0.547 0.546 China 0.687 0.687 Calculated HDIs for both India and China are not significantly different from the reported figures as shown in Table 2. Small difference in the case of India could have been as a result of round off effects. It is notable, however, that computed HDIs would be significantly different from reported 2011 numbers if maximum values for input variables adopted for the calculation were to be drawn from the respective larger region (continent) data or observed values (HDRO 2).

Evaluation of Calculated HDIs for China and India China’s HDI of 0.687 falls under the medium human development category together with countries such as Samoa, Thailand, Viet Nam among others in East Asia. According to the 2011 Human Development Report, countries that have the highest human development achievement in this continent are Palau, Malaysia, and Tonga with HDI’s at 0.782, 0.761, and 0.704 respectively. Countries such as Solomon Islands, Papua,