Human Development Index
The Human Development Index (HDI) is a composite measure that assesses the development of countries based on three crucial dimensions: life expectancy, education, and per capita income. Unlike earlier methods that solely relied on income to define development, HDI incorporates indicators such as health (measured by life expectancy at birth) and education (measured by mean years of schooling and expected years of schooling). This holistic approach enables a more nuanced understanding of what constitutes development. The section emphasizes the limitations of using only economic metrics, illustrating how HDI can reveal disparities between countries, even when per capita income suggests otherwise. For instance, countries with lower per capita incomes, like Sri Lanka, perform better on HDI indicators than higher-income nations such as India, underscoring the importance of health and education in overall human welfare.