• NG ZHEN XIANG

Introduction

Human Development Index (HDI) was created by the Pakistan economist Mahbub ul Haq and the Indian economist Amartya Sen in 1990. This report was published by the United Nations Development Program (UNDP) in its annual series of Human Development Reports (UNDP) .

The Human Development Index (HDI) attempts to rank all the countries on scale of 0 which is lowest human development to 1 which is highest human development.

There are 2 type of Human Development Index which is Human Development Index (HDI) and New Human Development Index (NHDI). The HDI were used from year 1990 until 2009. When year 2010, the UNDP introduced the New Human Development Index (NHDI) or Inequality-adjusted Human Development Index (IHDI) and were used until today.

Aim and objective

By using statistical tool to measure achievement of social and economic dimensions for Malaysia and other country based 4 category which is life expectancy at birth, expected years of schooling, mean years of schooling and Gross National Income (GNI) per capita in $USD. Besides, to determine Malaysia is under which category of human development countries.

Assumption and limitation

Malaysia is a country that place at a good geography environment. This is a country that did not have natural disasters. Population in Malaysia is just about 30 million in the year 2014, with the advantages of the natural resources in the country, Malaysia should in the category in very high human development or high human development category in the report Human Development Reports.

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Human Development Index (HDI)

Definition of Human Development Index (HDI) in the Human Development Repost 2013 – The Rice of the South: Human progress in a Diverse World is a composite index measuring average achievement in three basic dimensions of human development – a long and healthy life, knowledge and decent standard of living.

The original HDI is based on three target of development. First is longevity as measured by life expectancy at birth. Second, standard of living as measured by real per capita gross domestic product for each countries. Last is knowledge. Knowledge measured by two -thirds a weighted average of adult literacy and one-thirds of gross school enrollments.

The HDI rank or category all countries into four groups which is very high human development (0.90 – 1), high human development (0.80 – 0.90), medium human development (0.500 – 0.799), low human development (0 – 0.499).

Formula for HDI

Life expectancy index = life expectancy – 25

85 – 25