The HDI is a single number that tells us how well a country is doing in three key areas: health, education, and income. Think of it as a “well‑being score” that helps compare countries beyond just their money.
Exam Tip: When answering questions about HDI, remember to explain the three components and how they are combined into one index. Use the formula to show your understanding of the calculation.
| Component | Indicator | Example | Scale |
|---|---|---|---|
| Health | Life expectancy at birth | 80 years (high) | 0–1 (normalised) |
| Education | Expected years of schooling + Mean years of schooling | 12 years (expected), 8 years (mean) | 0–1 (normalised) |
| Income | Gross National Income per capita (PPP) | $30,000 | 0–1 (normalised) |
The HDI is the average of the three normalised indices:
\$HDI = \frac{1}{3}\bigl(I{\text{health}} + I{\text{education}} + I_{\text{income}}\bigr)\$
Imagine you’re making a smoothie. You need three ingredients: fruit (health), milk (education), and honey (income). Each ingredient has a quality level (0–1). Mix them together in equal parts, and you get a tasty smoothie that represents the country’s overall development. If any ingredient is weak, the smoothie isn’t as good—just like a low HDI score.
- Explain the three components and why each matters for development.
- Show the formula and describe the normalisation process.
- Use real‑world examples (e.g., Norway vs. Afghanistan) to illustrate differences.
- Remember the analogy of the smoothie to help remember the equal weighting of components.
- Answer in clear, concise sentences and avoid jargon that might confuse the examiner.