Human Development Index and Nepal

Below is a conversation between a teacher and student on the lesson on Human Development Index (HDI).

Student: What is HDI, miss?

Teacher: Before understanding HDI, we need to know more on Human Development. The development of human health, education, food, housing, skill, etc is overall human development. The index showing the levels of economic, social, educational development of any country is the HDI. This helps to strengthen the alternatives that help a human, society and country in itself. Three factors responsible for human development are per capita income, education, and average age. HDI for any geographical area, people, society, etc can be calculated by taking these three factors into account. HDI is calculated in the range of 0 to 1.

Student: Why is HDI important?

Teacher: HDI is important because:

1. To know the level of Human Development in any area.
2. To know the areas that needs improvement in human development.
3. Improve the human development situation.
4. To make the plans for improvement of human development in any country.

Student: How do we calculate HDI?

Teacher: We need Average Age Index, Education Index, and Per Capita Income Index. The following formulas are updated after 2010 A.D.

1. Average Age Index

Average Age = (Average Age for the subjected country - Minimum Average Age for the World) / (Maximum Average Age for the World - Minimum Average Age for the World)

2. Education Index

Education Index = ((Average Educational Involvement Time for the subjected country) / 15) + (Expected Educational Involvement Time for the subjected country) / 18)) / 2

3. Income Index

Income Index = ((Average Per Capita Income for the subjected country) - (Minimum Per Capita Income for the World)) / ((Maximum Per Capita Income for the World) - (Minimum Per Capita Income for the World))

4. HDI

HDI = √(Average Age Index x Education Index x Per Capita Income Index)

Student: What is Nepal’s HDI?

Teacher: Nepal’s HDI is developing in comparison to the developed countries. Nepal was ranked 157^th (HDI 0.463) in 2012 AD, 146^th (HDI 0.543) in 2013 AD and 145^th (HDI 0.548) in 2015 AD.

HDI for SAARC countries, 2015

HDI for the world, 2015

1. Which are the countries with highest HDI? What could be the reason for them to have highest HDI?
2. Evaluate the HDI situation for SAARC countries.
3. What could be the challenges for countries with low HDI?
4. What should be done to improve HDI?