Question

Please solve the following question.

1. The following are the components to calculate New Human Development Index for China and South Korea. Calculate the New Human Development Index for China and South Korea, and make your remarks basing on your calculations. Please show all working Index China 73.7 South Korea 80.7 Particulars Life Expectancy at Birth Mean Years of Schooling in years) Expected Years of schooling GNI per Capita 7.5 11.7 7945 11.6 17.2 28231 For minimum and maximum values, to calculate Health Index, please refer to page 52 of the textbook. The minimum value is 20 and the maximum value is 83.6 Minimum value of income index = 100 and Maximum value of income index = 87478 (observed) Minimum value of schooling years = 0 and maximum value of schooling years = 13.3 (observed) Minimum value of expected schooling years = 0 and maximum value of expected schooling years = 18

Answer 1

Human Development Index (HDI) is an index that measures national socio-economic development, based on combining measures of education, health, and adjusted real income per capita.

In November 2010, the UNDP () introduced its New Human Development Index (NHDI) , intended to address some of the criticizms or failures of the traditional HDI.

NHDI is calculated by the same method as in HDI.

First calculating NHDI for China :

A) Life expextancy at birth = 73.7 (given)

Minimum value = 20 (given)

Maximum value = 83.6 (given)

Formula : given value of life expectancy - min value / max value - min value

Therefore , 73.7 - 20 / 83.6 - 20 = 53.7/ 63.6 = 0.844

B) Education index :

(i) Mean years of schooling : 7.5 - 0 / 13.3 - 0 = 7.5 / 13.3 = 0.563

(ii) Expected years of schooling : 11.7 - 0 / 18 - 0 = 11.7 / 18 = 0.65

Therefore education index = geometric mean of the above two components = √ 0.563 × 0.65

C) Income index = [log(7945) - log(100)] / [log( 87478) - log(100)] =

NHDI = √ life expectancybat birth × education index × income index

= √

For South Korea :

A) Life expectancy at birth = 80.7 - 20 / 83.6 - 20 =

B) Education index :

(i)Meannyears of schooling = 11.6 - 0 / 13.3 - 0

(ii) Expected years of schooling = 17.2 - 0 / 18 - 0 =

Therefore education index =

C) Income index : [log(7945) - log(100)] / [log(87478) - log(100)]

NHDI = √ life expextancy at birth × education index × income index

The country with more NHDI value implies that the country is more developed in its socio economic aspect.