A composite statistic used to rank countries based on their level of social and economic development. This metric considers three primary dimensions: health, education, and standard of living. Health is assessed by life expectancy at birth; education is measured by mean years of schooling and expected years of schooling; and standard of living is gauged by gross national income per capita. The resulting score ranges from 0 to 1, with higher scores indicating greater levels of development. For example, Norway consistently scores high on this index, reflecting its high life expectancy, robust education system, and strong economy.
This statistical measure is valuable for several reasons. It provides a broader assessment of a nation’s well-being than solely relying on economic indicators like GDP. It allows for comparisons between countries, identifying disparities in development levels. Furthermore, it highlights areas where a country needs to improve to achieve higher levels of human well-being. Historically, its introduction shifted the focus of development economics from national income accounting to people-centered policies.