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Sri Lanka Human Development Report 2012.pdf

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HDI= (I Life Expectancy ) 1 / 3 × (IEducation ) 1 / 3 × (IIncome ) 1 / 3<br />

I Life Expectancy =Life Expectancy Index=<br />

Life Exp.of the country or district -<br />

Mini. observed Life Exp.<br />

Max.observed Life Exp.- Mini.observed Life Exp.<br />

A country’s overall HDI can conceal the fact that different<br />

regions, districts or sectors within the country have very different<br />

levels of human development. Sub-national HDIs are calculated<br />

by using the data for the HDI dimensions and indicators at the<br />

sub-national levels, such as regions or districts. Disaggregated<br />

HDIs help to draw attention to disparities and gaps.<br />

For more details on the methodological aspects of the HDI, see<br />

Technical Note 2 of United Nations <strong>Development</strong> Programme<br />

2011a. The Statistical Annex of UNDP 2011a, provides the<br />

recalculated HDI values (Table T2) for <strong>Sri</strong> <strong>Lanka</strong>, based on the<br />

new goalposts for HDI.<br />

Atkinson (1970) family of inequality measures.The IHDIis<br />

computed as a geometric mean of geometric means, calculated<br />

across the population for each dimension separately. It accounts<br />

for inequalities in HDI dimensions by discounting each<br />

dimension’s average value according to its level of inequality.<br />

The IHDI equals the HDI when there is no inequality across<br />

people, but is less than the HDI as inequality rises. In this sense,<br />

the IHDI is the actual level of human development (accounting<br />

for this inequality), while the HDI can be viewed as an index of<br />

‘potential’ human development (or the maximum level of HDI)<br />

that could be achieved without inequality. The ‘loss’ in potential<br />

Table T.2: <strong>Sri</strong> <strong>Lanka</strong>: Recalculated HDI Value, 1980-2011<br />

Year 1980 1990 2000 2005 2009 2010 2011<br />

Recalculated HDI 0.539 0.583 0.633 0.662 0.680 0.686 0.691<br />

Source: United Nations <strong>Development</strong> Programme 2011a.<br />

Inequality-adjusted <strong>Human</strong> <strong>Development</strong> Index<br />

The IHDIadjusts the HDI for inequality in the distribution<br />

of each dimension across the population. It is based on a<br />

distribution-sensitive class of composite indices proposed by<br />

Foster, Lopez-Calva and Szekely (2005), which draws on the<br />

human development due to inequality is given by the difference<br />

between the HDI and the IHDI, and can be expressed as a<br />

percentage.<br />

The IHDI is the mean of the three dimension indicators adjusted<br />

for inequality.<br />

HDI= 3 √ (1 - A Life ) (1 - A Education ) (1 - A Income ) × HDI<br />

where A Life = Atkinson Inequality Measure for Life Expectency<br />

A Education = Atkinson Inequality Measure for Education<br />

A Income = Atkinson Inequality Measure for Income<br />

168<br />

sri lanka <strong>Human</strong> <strong>Development</strong> report 2012

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