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BASIC NEEDS (70s)
Disposable
money
income
Social
income
CAPABILITIES (80s)
Entitlements
Personal
characteristics
Capability set
Choices
BN goods and
services
Metaproduction
function
Decent life
characteristics
Choices
BN goods and
services
Characteristics of
goods
Functionings
HDI = (Life Expectancy Index + Education Index + GDP Index)/ 3;
Life Expectancy Index = (Life Expectancy – 25)/(85 – 25);
Education Index = 2/3 * (Adult Literacy Rate – 0 )/(100 – 0) +
1/3 * (Gross Enrolment Ratio – 0 )/(100 – 0);
GDP (PPP) Index = [Log (GDP) – Log (100)] / [Log (40,000) – Log (100)]
Goalpost are set arbitrarily as follows and kept fixed for comparability purposes
Minimum Goalpost
Maximum Goalpost
Life
Expectancy
25
85
Literacy
Rate
0
100
Enrolment
GDP (PPP)
Ratio
0
100
100
40.000
GDI  same dimensions as HDI, but calculating EQUALLY DISTRIBUTED
EQUIVALENT INDEXES
Each of the 3 indexes is computed separately for female and male, according to
the previous method, they are then aggregated to form the 3 Equally Distributed
Equivalent Indexes, according to this formula.

EDEI  femalepop.share* femaleindex
1
 malepop.share* maleindex 
1
ε is the degree of inequality aversion, and gives the size of penalty for gender
inequality, if ε = 0 gender inequality is not penalized, while the greater its value
the more penalization. In the Human Development Report ε = 2
The 3 Equally Distributed Equivalent Indexes so far calculated are then
aggregated into the GDI as an unweighted average (that is in the same procedure
as for the HDI).
1
1
GEM  obtained aggegating the EQUALLY DISTRIBUTED EQUIVALENT
PERCENTAGES over 3 dimensions:
1.
2.
Parliamentary share
Share of positions as legislator and senior officials, as well as share of
professional and technical positions
3.

Estimated earned income (PPP)
EDEP  femalepop.share* femaleindex
1
 malepop.share* maleindex 
1
The interpretation and definition of ε is similar to the one given for the GDI.
The 3 Equally Distributed Equivalent Percentages calculated under the above
methodology are then aggregated into the GEM as an unweighted average (that
is in the same procedure as for the HDI).
1
1
MILLENNIUM DEVELOPMENT GOALS
INCOME
MDG 1: Eradicate Extreme Poverty and Hunger
 2 TARGETS  5 INDICATORS
EDUCATION
MDG 2: Achieve Universal Primary Education
 1 TARGET  3 INDICATORS
MDG 3: Promote Gender Equality and Empower
Women
 1 TARGET  4 INDICATORS
HEALTH
MDG 4: Reduce Child Mortality
 1 TARGET  3 INDICATORS
MDG 5: Improve Maternal Health
 1 TARGET  2 INDICATORS
MDG 6: Combat HIV/AIDS, Malaria and other
diseases  2 TARGET  7 INDICATORS
SUSTAINABLE
DEVELOPMENT
PARTNERSHIP
MDG 7: Ensure Environmental Sustainability
 3 TARGETS  8 INDICATORS
MDG 8: Develop a Global Partnership for
Development  7 TARGET  16 INDICATORS
MDG PROGRESS CHART 2007 (a)
MDG PROGRESS CHART 2007 (b)
MDG 1: Eradicate Extreme Poverty and Hunger
MDG 2: Achieve Universal Primary Education