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Report on human development describing inequalities

Nov 16, 2010

Human Development Report 2010, christened as The Real Wealth of Nations: Pathways to Human Development was launched by United Nations Development Programme (UNDP) features three innovative new measurements complementing the Report’s traditional Human Development Index (HDI): the Inequality-adjusted HDI, the Gender Inequality Index and the Multidimensional Poverty Index.

The Real Wealth of Nations: Pathways to Human Development

Published by: UNDP, 2010



“These new measures are major methodological advances that can pinpoint problems and successes in a country, and help to develop ideas and policies that can improve people’s lives,” said Jeni Klugman, the Report’s lead author.

The 2010 Report, The Real Wealth of Nations: Pathways to Human Development, introduces the Inequality-adjusted HDI, a measure of human development that accounts for inequality. Under perfect equality, the HDI and Inequality-adjusted HDI are identical. The HDI for an average individual is less than the aggregate HDI when there is inequality in the distribution of health, education and income; the lower the Inequality-adjusted HDI (and the greater the difference between it and the HDI), the greater the inequality.

The average loss in the HDI due to inequality is 22%—adjusted for inequality, the global HDI of 0.68 in 2010 would fall to 0.52, which would represent a drop from the high to the medium HDI category in the world average. Losses range from 6% (Czech Republic) to 45% (Mozambique), with 80% of countries losing more than 10%, and 40% of countries losing more than 25%.

Countries with lower human development tend to have greater inequality—and thus larger losses in human development: Namibia lost 44% in the new Inequality adjusted HDI, the Central African Republic 42% and Haiti 41%.

“The Inequality-adjusted HDI shows that in many countries, despite rising overall average development achievement, far too many people are being left behind,” Jeni Klugman said.

Source : UNDP
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