1. 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

2. 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).

3. 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

4. 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

5. [ ] [ ] ( ) ( ) + + + = 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