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Measurement of Development
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Human Development Index (HDI)
HDI is a composite index measuring average achievement in three basic dimensions of human development: a long and healthy life, knowledge, and a decent standard of living. It is calculated using life expectancy, education level (mean years of schooling and expected years of schooling), and GNI per capita.
Gross National Happiness (GNH)
GNH is a measure of economic and moral progress introduced by Bhutan, based on the belief that the beneficial development of human society takes place when material and spiritual development occur side by side to complement and reinforce each other. It consists of nine domains including psychological well-being, health, education, and ecological diversity and resilience.
Multidimensional Poverty Index (MPI)
MPI identifies multiple deprivations at the household and individual level in health, education and standard of living. It uses 10 indicators to measure poverty in over 100 developing countries.
Purchasing Power Parity (PPP)
PPP is an economic theory that compares different countries' currencies through a 'basket of goods' approach. It allows for a more accurate comparison of economic productivity and standards of living between countries by eliminating the distortions of exchange rates.
World Happiness Report
The World Happiness Report ranks countries based on factors contributing to their citizens' well-being, such as income, social support, life expectancy, freedom of choice, generosity, and perceptions of corruption.
Gender Inequality Index (GII)
GII reflects women's disadvantage in three dimensions - reproductive health, empowerment, and the labor market. The index is the average of these dimensions' inequalities, calculated using factors such as maternal mortality ratio and female representation in parliaments.
Gross Domestic Product (GDP)
GDP is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It illustrates the economic activity and size of an economy.
Gross National Income (GNI) per capita
GNI per capita is the dollar value of a country's final income in a year, divided by its population. It reflects the average income of a country's citizens.
Gini Coefficient
The Gini Coefficient measures income inequality within a population. Values range from 0 to 1, with 0 representing perfect equality and 1 indicating perfect inequality. It is calculated based on the relative mean difference between every possible pair of individuals.
Environmental Performance Index (EPI)
The EPI ranks countries on 24 performance indicators across ten policy categories covering environmental health and ecosystem vitality. These categories include air quality, water management, and biodiversity. The EPI provides a gauge at a national scale of how close countries are to established environmental policy goals.
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