Human Development
Concept of Human Development
Human development is the process of enhancing individuals' capabilities to live a creative and productive life according to their choices, fully realizing and utilizing their inherent potential. It emphasizes creating an enabling environment through economic and social policies that expand people's choices. Traditional metrics like national income fail to fully represent people's quality of life, leading to the development of the Human Development Index (HDI) under a human-centered development approach, pioneered by economist Mahbub ul Haq in 1990, with significant theoretical contributions from Amartya Sen. Since 1990, the United Nations Development Programme (UNDP) has published annual Human Development Reports, analyzing countries’ socioeconomic policies and their impacts, while providing recommendations for human welfare.
Dimensions and Indicators of Human Development
Human development is measured through three key dimensions, each with specific indicators:
| Dimensions | Indicators |
|---|---|
| Long & Healthy Life | Life Expectancy at Birth |
| Knowledge | Expected Years of Schooling (EYS), Mean Years of Schooling (MYS) |
| Decent Standard of Life | GNI per Capita (Purchasing Power Parity - PPP) |
Dimension Indexes:
- Life Expectancy Index
- Education Index
- GNI Index
Human Development Index (HDI) in Nepal
According to the UNDP Human Development Report published in May 2025, Nepal’s HDI status for 2023 is as follows:
| Indicator | HDI Value (2025 Report) |
|---|---|
| HDI | 0.622 (0.601 in 2022) |
| Rank (out of 193 countries) | 145 (146 in previous report) |
| Health (Life Expectancy) | 70.4 years |
| Education (EYS) | 13.8 years |
| Education (MYS) | 5.1 years |
| Standard of Living (GNI per Capita) | US$1,517 |
HDI is categorized into four levels: Very High (≥0.800), High (0.700–0.799), Medium (0.550–0.699), and Low (<0 .550="" category.="" falls="" in="" medium="" nepal="" p="" the="">
HDI Calculation Method
The HDI is calculated based on three major dimensions:
1. Life Expectancy at Birth (Health Indicator)- Formula: Life Expectancy Index = (LE - 20) / (85 - 20)
- LE = Life Expectancy (derived from census, health surveys, or living standards surveys)
- Maximum: 85 years, Minimum: 20 years
- Comprises two parts:
- Mean Years of Schooling Index = (MYS) / 15
- Expected Years of Schooling Index = (EYS) / 18
- Education Index = (Mean Index + Expected Index) / 2
- MYS: Average years of formal education for individuals aged 25+ (from census, education, or labor force surveys).
- EYS: Estimated years of formal education a child is expected to receive, based on enrollment rates and dropout rates.
- Decent Standard of Life Index
- Formula: Income Index = [log(GNI per Capita) - log(100)] / [log(75,000) - log(100)]
- GNI per Capita based on Purchasing Power Parity (PPP)
- HDI = ∛(Life Expectancy Index × Education Index × Income Index)
Suggestions for Improving HDI
- Use a weighted average of dimensional indicators instead of the geometric mean to better reflect real conditions.
- Incorporate environmental sustainability (e.g., carbon footprint) to address SDGs and global warming challenges.
- Include digital access and literacy as critical components for expanding human choices.
- Integrate indicators for civil rights and political freedom to make HDI more multidimensional.
- Adopt additional indicators like Human Poverty Index (HPI), Multidimensional Poverty Index (MPI), Gender Inequality Index (GII), Gender Development Index (GDI), Gender Empowerment Measure (GEM), Information Technology Index (ITI), Gini Coefficient, Governance Index (GI), and Happiness Indicator to measure inequality, poverty, security, empowerment, and socioeconomic aspects.
Efforts and Campaigns for Human Development
- Capacity-building programs
- Sustainable Development Goals (SDGs)
- Promoting international partnerships
- Sectoral strategic plans
- New initiatives for empowerment, inclusion, and equitable development
- State-building and restructuring (three-tier government)
- Strategy to transition Nepal from a least developed to a developing country
- Programs for education, health, nutrition, sanitation, energy, and skill development
Issues in Human Development
- Rights-based approach to development
- Rising inequality at all levels
- Social exclusion in development
- Ethnic diversity and cultural issues
- Sustainability
- Gender and development
- Population structure
- Globalization
- Evolving trends in development concepts
- Implementation of state restructuring and inclusive development
- Overwhelming pressures in the development context
Suggestions for Human Development
- Expand access, utilization, and quality of basic services like education, health, water, and sanitation
- Promote inclusivity and equity in governance opportunities
- Develop and expand infrastructure
- Commercially utilize potential in agriculture, energy, and tourism
- Implement strategic plans for human skill and capacity development for employment and self-employment
- Launch targeted programs for the poor and marginalized
- Adopt effective policies and governance systems
- Ensure stable peace and conflict management
- Focus on reconstruction and settlement management
- Develop partnerships at national, regional, and international levels
Human Development Challenges in Nepal
- Low per capita income
- Poor quality of health services
- Lack of easy and equitable access to education
- Low government investment in social development
- Inadequate and weak implementation of fundamental rights
- Wide gap between rich and poor
- Political instability
- Impunity and human rights violations
- Food and nutrition insecurity
- Social discrimination and widespread exclusion