Human Development Index (HDI) as a living standard measure. The use of distance method

Abstract

The aim of this study is presentation of two statistical methods used in the study of living standards: 1) statistical procedure, called the distance (or Geneva) method; 2) HDI (Human Development Index). The analysis of both, theoretical considerations and mathematical formulas, was the basis for the synthetic presentation of the main assumptions of the distance (Geneva) method as well as the presentation of the methodology for the construction of the HDI social development level indicator. The other method used to achieve the above objective was the analysis of data published in official sources–UNDP reports, regarding the position of Poland in the ranking of countries due to the standard of living. The analysis was preceded by methodological comments, explaining the rules for the classification of countries and the ways of building the HDI indicator, whose structure is, in a sense, a generalization of the Geneva method. The method of calculating HDI for Poland in the selected years was also presented. On the basis of the presented research results, the systematic growth of the indicator value for Poland can be noticed which results in higher and higher ranking position. Both the advantages and disadvantages of the procedures presented were indicated in the above study presentation.