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    Calculating Traditional HDI

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    Suppose a country has a life expectancy of 51.5, an adult literarcy rate of 62.6%, a combined gross enrollement ratio of 45%, and GDP per capita PPP of $853.
    1. What is its Traditional Human Development Index (HDI)?
    2. Calculate how much its life expectancy would have to rise to achieve "medium human development" status (that is, a Traditional HDI of 0.500) other things equal.

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    Solution Preview

    ** Please see the attached file for an Excel formatted copy of the solution response **

    1. Traditional HDI refers to the HDI formula in use up to 2010:

    HDI = (LEI + EI + GDP)/3

    Life Expectancy Index (LEI) = (LE - 25)/(85 - 25)
    LEI = (51.5 - 25)/(85 - 25)
    LEI = 0.442

    Adult Literacy Index (ALI) = (ALR - 0)/(100 - 0)
    ALI = ...

    Solution Summary

    Traditional HDI is the term used to refer to the original method of calculating the Human Development Index (HDI) in use up to 2010. This solution presents a detailed sample calculation of a country's HDI and calculates the amount by which the country's life expectancy would have to rise for the country to achieve "medium human development".