Progress in Human Development : Are We On the Right Path?

The conventional measure of the Human Development Index (HDI) is a linear average in three dimensions, HDI1. This is indifferent to uniformity in attainment across dimensions. An alternative, HDI2, based on the shortfall from the ideal using Euclidean distance, addresses the above anomaly. These two measures are used to analyse progress in human development or 127 countries over the period 1990-2004. Introducing the notion of an ideal path, measures of fluctuation and normalised-change are proposed. Empirical illustration highlights the pattern in Sub-Saharan countries, Commonwealth of Independent States (CIS), and some of the emerging economies