The dilemma of measuring the developmental level of economies was solved once the United Nations Development Programme (UNDO) published its first Human Development Report (HDR) in 1990. The report had a human development index (HDI) which was the first attempt to define and measure the level of development of economies.
- The HDR measures development by combining three indicators-Health, Education and Standard of Living- Converted into a composite human development index, the HDI.
- The Education component of the HDI is now (since HDR-2010) measured by two other indicators –
- Mean of year of schooling (for adults aged 25 years).
- Expected years of schooling (for children of school entering age).
- The Health component is measures by the life expectancy at birth component of the HDI and is calculated using a minimum value of 20 years and maximum value of 83.57 years.
- The standatd of Living Component is measures by GNI (Gross National Income/Product).
