Consider the following statements related to the Human Capital Index (HCI): 1. It is published by the World Bank. 2. It measures the average achievement of a country in key dimensions of human development, such as life expectancy, education, etc. Which of the statements given above is/are correct?

Human Development Index (HDI)

Human Capital Index (HCI)

Measured by UNDP

Measured by the World Bank

• • The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development: Along and healthy life, being knowledgeable and have a decent standard of living.
  • Thus, it measures the present level of human development

• • It measures the amount of human capital that a child born today can expect to attain by age 18.
  • Thus, it is more of a potential or future level of human development expected from investment in education and health.

3 Parameters:

• • Life Expectancy Index: Measured by life expectancy at birth
  • Education Index: Measured by expected years of schooling and mean years of schooling
  • Standard of Living: Measured by per capita income

3 Parameters:

• • Survival: Measured by under 5 mortality.
  • Expected years of Quality-adjusted school: Measured by both quantity and quality of education
  • Health environment: Measured by adult survival rate and rate of stunting of children under the age 5