The methodology involves aggregating normalized indices across three key dimensions: health, education, and standard of living. The health dimension is assessed using life expectancy at birth. Education is measured by mean years of schooling for adults aged 25 years and more and expected years of schooling for children of school entering age. Standard of living is gauged by gross national income (GNI) per capita. Before aggregation, each of these dimensions is transformed into an index ranging from 0 to 1 using minimum and maximum values observed in time series data. For instance, a country’s life expectancy at birth is compared to the established minimum and maximum life expectancies to generate a health index.
This composite index serves as a key indicator of a nation’s overall progress. It offers a broader perspective than income alone, providing insight into population health and knowledge levels. Tracking this metric over time allows for evaluation of development policies and comparisons between countries, highlighting areas where improvements are most needed. Its adoption by the United Nations Development Programme (UNDP) has facilitated a globally standardized approach to measuring and promoting human advancement.