TOP-20 largest economies by the Human Development Index
When identifying the level of social and economic development at international comparison of the countries, the universal indicator of GDP per capita is used. However, it is not always accurate. There are countries with low GDP per capita, and high life expectancy.
For example, life expectancy at birth in Cuba is 79,1 years, when in the USA it is 77,8 years. Cuba has high level of available medicine and education. Therefore, the wealth of the country does not always determine the quality of life of its inhabitants.
In this regard, Human Development Index as more objective indicator was developed.
In comparison for 2018, Russia’s HDI is 0,816, which corresponds to the very high human development level. In TOP-20 largest economies, our country is ranked 11th by HDI. Germany is the leader in this regard: at GNI (PPP) almost equal to the Russia’s one, Germany’s HDI is 0,936 (see Table 1).
|Rank||Country||Human Development Index in 2018||GNI (PPP), trillion dollars, 2019||Rank by GNI|
|1||Germany||VERY HIGH||0,936||4 444||5|
|4||Great Britain||0,922||3 131||9|
|6||Republic of Korea||0,903||2 320||14|
|10||Saudi Arabia||0,8533||1 899||17|
Source: International Monetary Fund, Human development report (UN), calculations by Credinform
Being the largest economy, China is ranked the 17th and is inferior to Russia and most of TOP-20 participants by HDI.
Despite being the third largest economy, India closes the ranking. The country have a long way to increase wellbeing of inhabitants and introduction of mass education.
Picture 1 demonstrates the dependence of GNI (PPP) on HDI.
The presented ranking method is being criticized because of formal approach and small number of indicators for calculation. It bears remembering the difference in access to data, while income level, education and life expectancy are one of the most universal indicators describing the societal development.