The Human Development Index (HDI) is a composite statistic of life expectancy, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income indicators, which are used to rank countries into four tiers of development. It is a summary measure for assessing long-term progress in three basic dimensions of human development: a long and healthy life, access to knowledge and a decent standard of living. A high value indicates a country that provides a better quality of life. For instance, Norway consistently ranks highly due to its robust healthcare system, strong educational infrastructure, and high gross national income per capita.
This metric provides a broader perspective than solely examining economic growth. By considering health and education alongside economic indicators, a more holistic assessment of a nation’s advancement is achieved. Its significance lies in providing a standardized means to compare well-being across nations and over time. Furthermore, the index encourages policymakers to focus on improving aspects beyond simple economic production, emphasizing human-centric growth. The concept emerged in the 1990s as an alternative to purely economic measures of national progress.