In the calculation of the Human Development Index (HDI), what is the weightage assigned to each of the three dimensions?

The correct option is 1/3 for each dimension.

Explanation

The Human Development Index (HDI) is a composite statistic used to rank countries by their level of human development. It was introduced by the United Nations Development Programme (UNDP) to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone.

Methodology and Weightage:

• The HDI measures average achievement in three basic dimensions of human development:
  1. Long and healthy life (Health): Assessed by Life Expectancy at birth.
  2. Knowledge (Education): Assessed by Mean Years of Schooling and Expected Years of Schooling.
  3. A decent standard of living (Resources): Assessed by Gross National Income (GNI) per capita.
• To calculate the HDI, an index is created for each of these three dimensions.
• The final HDI is the geometric mean of the three dimensional indices.
• Mathematically, the formula is: \( HDI = (I_{Health} \times I_{Education} \times I_{Income})^{\frac{1}{3}} \).
• This calculation method inherently assigns equal weight (1/3) to each of the three dimensions.

Key Takeaway: The HDI is calculated as the geometric mean of indices for Health, Education, and Standard of Living, assigning an equal weight of 1/3 to each dimension.