What is the human development index and how does it differ from the inequality-adjusted HDI?
What will be an ideal response?
Answer: The United Nations created the HDI in 1980 to measure the level of development of countries. Since 1990, the HDI of every country is computed annually. The HDI considers development to be a function of three factors: a decent standard of living; access to knowledge; and a long and healthy life. Each country gets a score for each of these three factors, when are then combined to into an overall HDI. The highest HDI possible is 1.0, or 100 percent.
As a result of the short-comings of the HDI, the UN came up with the inequality-adjusted HDI. Behind this new index is the belief that everyone should have access to decent standards of living, knowledge and health. The inequality-adjusted HDI (IHDI) modifies the HDI to account for inequality within the society. Under perfect equality, the HDI and the IHDI will be the same.
If the IHDI is lower than the HDI, the country has some inequality. The greater the difference in the two measures, the greater the inequality. A country where only a few people have high incomes, college degrees, and good health care would have a lower IHDI than a country where the differences in income, levels of education, and access to health care are minimal.
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What will be an ideal response?
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