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EuCham - European Chamber - 2015-01 Human Development Index in Europe

     


     
     
     



2015-01 Human Development Index in Europe

EuCham - European Chamber lists the richest European countries for human capitals based on HDI (Human Development Index). The HDI was created by UN to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. HDI is a summary measure of achievements in key dimensions of human development: life expectancy, education and income indices.

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EuCham Charts
January 2015

Human Development Index in Europe


1

Norway

0.944

2

Switzerland

0.917

3

Netherlands

0.925

4

Germany

0.911

5

Denmark

0.900

...

   

46

Moldova

0.663


United Nations Development Program data 2014
46 European countries were considered

EuCham_Charts_Logo.jpg
  • Norway maintained a high level of development with 0.944, achieving the first place in the last 5 years

  • Following in the rankings are Switzerland, Netherlands, Germany and Denmark in the top 5

  • Moldova is at the bottom of the list with 0.663


Source: eucham.eu/charts

 

Detailed Information

EuCham - European Chamber lists the richest European countries for human capitals based on HDI (Human Development Index). The HDI was created by UN to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. HDI is a summary measure of achievements in key dimensions of human development: life expectancy, education and income indices.

Europe performs well with 20 countries in the global top 30 HDI list. Norway is also the world leader, achieving a HDI value of 0.944. The countries following at the top are Switzerland, Netherlands, Germany and Denmark. At the bottom of the rankings there are countries from the Balkans such as Macedonia, Bosnia and Herzegovina, Albania and Moldova.

Further analysis shows that the top 5 countries achieved a steady growth over 20 years from 1980 to 2000 (Figure 1), but in the last 13 years the growth has slightly declined particularly due to the increase perceived risk of terrorism and the economic recession of 2007. On the other hand, countries like Moldova and Serbia achieved a sharp increase in development, nevertheless still far behind compared to other European countries.

However, EuCham would suggest to consider also sustainability and environmental factors for further development of HDI.

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Methodology

The HDI is the geometric mean of normalized indices for each of the three dimensions. Minimum and maximum values (goalposts) are set in order to transform the indicators expressed in different units into indices between 0-1. These goalposts act as the ‘natural zeroes’ and ‘aspirational goals’, respectively, from which component indicators are standardized.

Figure 1 has been created based on the values in the database of the United Nations Development Program. Average annual HDI growth percentage values have been used throughout the years from 1980 to 2013, having three different groups, annual growth between 1980-1990, 1990-2000 and 2000-2013.

Table 1: Human Development Index in Europe

HDI rank

Country

HDI value

1

Norway

0.944

2

Switzerland

0.917

3

Netherlands

0.915

4

Germany

0.911

5

Denmark

0.900

6

Ireland

0.899

7

Sweden

0.898

8

Iceland

0.895

9

United Kingdom

0.892

10

Liechtenstein

0.889

11

France

0.884

12

Luxembourg

0.881

13

Belgium

0.881

14

Austria

0.881

15

Finland

0.879

16

Slovenia

0.874

17

Italy

0.872

18

Spain

0.869

19

Czech Republic

0.861

20

Greece

0.853

21

Cyprus

0.845

22

Estonia

0.840

24

Lithuania

0.834

23

Poland

0.834

26

Andorra

0.830

25

Slovakia

0.830

27

Malta

0.829

28

Portugal

0.822

29

Hungary

0.818

30

Croatia

0.812

31

Latvia

0.810

32

Montenegro

0.789

33

Belarus

0.786

34

Romania

0.785

35

Russia

0.778

36

Bulgaria

0.777

37

Turkey

0.759

39

Serbia

0.745

41

Ukraine

0.734

42

Macedonia

0.732

43

Bosnia and Herzegovina

0.731

45

Albania

0.716

46

Moldova

0.663

Sources: United Nations Development Program, Human Development Report (2014),
EuCham Research Department - Compiled by Agnes Kovatsova and Kim Dung Tran 2015-01-06

 

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