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The Human Development Index (HDI) is used as a status component for the Livelihoods & Economies goal.
HDI ranks countries on their citizens’ health, education and standard of living. The HDI score is the geometric mean of normalized indices for each of those three dimensions. Health is measured as life expectancy at birth. Education is measured using UNESCO data for the mean of years of schooling for adults aged 25 years and the expected number of years of schooling for children of school entering age. Standard of living is measured as price-parity corrected gross national income per capita (ppcGNI). Find additional details at HDI.
How is it measured?
HDI information is used in calculating the overall economic effects of jobs and revenue in marine sectors as part of the Livelihoods & Economies goal, specifically as a criterion for assigning 'multiplier' values that are used in those calculations. . Multipliers express the overall direct and indirect economic importance to the economy of the existence or creation of jobs or revenue. For example, creation of one job in the fishing industry likely leads to creation of other jobs in food processing, restaurants, transportation or other related sectors. Similarly, revenue in one sector ripples through the economy as the money gained is spent elsewhere on goods or services. The multiplier is a numerical value that expresses how many other jobs arise in the economy when one new job is created in a sector; or how much additional revenue is generated throughout the economy for a given revenue increase within a sector. Multiplier values are different for different sectors and for economies at different stages of development.
The Ocean Health Index assumes that sector-specific job and revenue multipliers are static and globally consistent, but different for developed versus developing countries. HDI 2010 (Report 49) was used to classify countries as developed or developing. All countries in the HDI category “very high human development” were classified as ‘developed’ and all others as ‘developing’. To classify regions for which Livelihoods & Economies data were available, but which were not assessed by the HDI, information was gathered to calculate an HDI score and designate the region as ‘developed’ or ‘developing’ based on the 2010 HDI categorizations. Different multipliers were assigned to developed and developing countries.
Values for multipliers used in calculating Livelihoods & Economies scores are shown in Table S10 in the Supplementary Information for Halpern et al. ( 2012).
Why is it important?
The health, education and standard of living of a country’s citizens is strongly positively correlated with the country’s score in the Ocean Health Index. The relationship between 2010 HDI scores and 2012 Ocean Health Index scores for 141 countries was strongly significant (p < 0.0001) (Halpern et al. 2012).