Some thoughts on the human development index

The Human Development Index (HDI) of a nation, proposed by UNDP (1990), is the average of its score, relative to all other nations, on three basic indicators: GDP per person, life expectancy and literacy. The HDI and its components are examined critically with respect to accuracy, sensitivity, and discriminant power. Differential implications for evaluating a particular project or regulation are derived, suggesting some ways to improve the HDI. It is concluded that the HDI is potentially a powerful instrument for world social development and bears examination for validity and consistency with public objectives.