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PPPs for policy making: a visual guide to using data from the ICP - Chapter 10: Human Development

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Human Development Index

The Human Development Index (HDI) published by the United Nations Development Programme (UNDP) provides an assessment of countries’ development performance through a summary measure of average achievement in three key areas of human development: a long and healthy life; being knowledgeable; and a decent standard of living. The HDI score is the geometric mean of normalized indices for each of three dimensions, one of which is PPP-based gross national income (GNI) per capita, chosen to reflect living standards and enable cross-country comparisons. The composite HDI score is used to classify countries into one of four groups of human development level (map 10.1). Furthermore, the Inequality-adjusted Human Development Index (IHDI) calculates an index score for each of these dimensions which adjust for the level of inequality within the country. Figure 10.1 shows both the HDI and the IHDI income index score as measured by PPP-based GNI per capita for each of the four human development groups. The greater the relative difference between the two, the more inequality exists within countries in that group.