DOES THE HUMAN DEVELOPMENT INDEX (HDI) MEASURE REAL PROGRESS?

This article examines whether the Human Development Index (HDI) accurately reflects a country’s real progress. Although it represents significant developments over traditional measures like GDP per capita and income per capita, it still has some shortcomings. Based on the theories of economists like Amartya Sen, Acemoglu and Robinson, this article proves that HDI mostly measures outcomes rather than institutional processes that actually generate a development in the country. It explains why high HDI does not mean a real progress in the short-term and how it changes over the period. Moreover, this paper suggests alternative approaches, including the Inequality-adjusted Human Development Index (IHDI).