HUMAN POVERTY INDEX FOR DEVELOPING COUNTRIES (HPI-1) While the HDI measures average achievement, the HPI-1 measures deprivations in the three basic dimensions of human development captured in the HDI: A long and healthy life Knowledge A decent standard of living

CALCULATING THE HPI-1 Knowledge DIMENSION A long and healthy life Knowledge A decent standard of living Population without sustainable access to an improved water source* Children under weigth for age* Probability at birth of not surviving to age 40* Adult literacy rate* INDICATOR Unweighted average Human poverty index for developing countries (HPI-1) * The indicators used are already normalized betwen 0 and 100 (because they are expressed as percentages).

100 α = 3 GOALPOSTS FOR CALCULATING THE HPI-1 Dimension index A long and healthy life Knowledge A decent standard of living Indicator Probability at birth of not surviving to age 40 Adult literacy rate Population without sustainable access to an improved water source Children under weigth for age Maximum value 100 Minimum value α = 3

Population without sustainable access to an improved water source EXAMPLE 1: IPH-1 IN PERU Unweighted average formula 1. Measuring deprivation in a decent standard of living 1 2 ( ) Population without sustainable access to an improved water source + ( ) 1 2 Children under weight for age Replacement in general formula ( ) + ( ) 1 2 1 2 = 13,5 Indicator Maximum val. Minimum val. Actual value* Population without sustainable access to an improved water source 100 20 Children under weight for age 7 * Information from Human Development Report 2004 20 7

[ ] [ ] ( ) ( ) + + + = 12,86 EXAMPLE 1: IPH-1 IN PERU α α α 10,2 15 HPI-1 formula 2. Calculating the IPH-1 [ ( α 1 3 α α ) ] 1 α Survival + Literacy + Living standard Probability at birth of not surviving to age 40 Adult literacy rate Unweighted average of population without sustainable access to an improved water source and children under weight for age Replacement in HPI-1 formula 1 3 [ + ( ) ] = 12,86 Indicator Shorthand Actual value Probability at birth of not surviving to age 40 Survival 10,2 Adult illiteracy rate Iliteracy 15 Unweighted average of population without sustainable access to an improved water source and children under weight for age Living standard 13,5 α = 3 10,2 15 13,5 3 3 3 3