Introduction

The Human Development Index (HDI) and Ethnolinguistic Complexity Index (ELIC) are two composite indices that measure different aspects of human development and diversity within countries.

The HDI, created by the United Nations Development Programme (UNDP), is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable, and have a decent standard of living. The HDI is used to distinguish whether a country is developed, developing, or underdeveloped.

The ELIC, proposed by James Fearon, quantifies the ethnolinguistic complexity within a country. The ELIC measures the probability that two randomly selected individuals in a country will have different ethnolinguistic backgrounds. Factors like language and ethnicity are considered.

While related, the HDI and ELIC quantify different elements of human development and diversity. This article will explore the key differences between the two indices regarding their purpose, methodology, data sources, and usage.

Purpose of the indices

HDI

The purpose of the HDI is to measure a country’s average achievements in three fundamental dimensions of human development:

• Health – Measured by life expectancy at birth
• Education – Measured by expected years of schooling and mean years of schooling
• Standard of living – Measured by Gross National Income (GNI) per capita

By combining these three dimensions, the HDI provides a broadened prism to view human progress and evaluate development beyond just economic growth. The HDI serves as a frame of reference to monitor progress over time and compare across countries.

ELIC

The purpose of the ELIC is to quantify the degree of ethnolinguistic heterogeneity within a country. It measures the probability that two randomly selected individuals will have different ethnolinguistic backgrounds.

The ELIC provides insight into the ethnic, religious, and linguistic divisions within a country. A higher ELIC indicates greater diversity in languages and ethnicities. The index helps analyze the potential impacts of diversity on economic growth, public goods provision, civil conflict, and democratic stability.

Methodology

HDI

The HDI is a summary composite index that combines three dimensions:

• Health: Life expectancy at birth
• Education: Expected years of schooling and Mean years of schooling
• Standard of living: GNI per capita (PPP $)

For each dimension, a subindex is calculated on a scale of 0 to 1 by applying minimum and maximum values (“goalposts”) defined by the UNDP. The three subindices are then averaged to calculate the overall HDI value, also ranging between 0 and 1.

ELIC

The ELIC is calculated using a Herfindahl-Hirschman formula based on the probability that two randomly selected individuals in a country will belong to different ethnolinguistic groups.

The formula is:

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ELIC = 1 - Σ(si)2

Where si is the share of ethnolinguistic group i in the country’s population.

The ELIC value ranges from 0 to 1, with higher values indicating greater ethnolinguistic heterogeneity.

To compute the ELIC, data on the sizes of ethnolinguistic groups is gathered from census data, demographic surveys, and fieldwork studies within each country.

Data sources

HDI

The HDI uses data from official international data agencies and national statistical offices for its indicators:

• Life expectancy at birth: UN Population Division
• Expected years of schooling: UNESCO Institute for Statistics
• Mean years of schooling: UNESCO Institute for Statistics
• GNI per capita: World Bank

ELIC

The ELIC relies on ethnolinguistic data compiled by researchers. Key sources include:

• Atlas Narodov Mira (USSR Academy of Sciences)
• Encyclopedia Britannica
• CIA World Factbook
• Individual country censuses and surveys
• Fieldwork studies of ethnic groups

As seen, the ELIC requires more primary research and compilation of demographic data compared to the macroeconomic data used for the HDI.

Usage of the indices

HDI

The UNDP publishes the global HDI ranking and data annually in the Human Development Report. The HDI is widely used:

• To classify countries into development levels (very high, high, medium, low)
• To track progress in health, education, and income dimensions over time
• To inform policy decisions and budget allocation within countries
• To advocate for human-centered development approaches globally

ELIC

The ELIC has been used in academic research analyzing the impacts of diversity:

• On economic growth, public goods provision, and redistribution policies
• On social tensions, armed conflict, and democratization
• To control for ethnic heterogeneity in country-level studies

Unlike the HDI, the ELIC is not routinely produced or used to classify countries. It remains an experimental index used for academic studies.

Key differences summarized

Basis	HDI	ELIC
Purpose	Measure human development	Measure ethnolinguistic diversity
Dimensions	Health, education, income	Languages, ethnicity
Data sources	International agencies	Academic research
Usage	Development policy and advocacy	Academic research
Produced by	UN Development Programme	Individual researchers
Frequency	Annual	Intermittently

Conclusion

While the HDI and ELIC both provide numerical indices summarizing national development, they measure different aspects. The HDI measures overall human progress across health, education and income. The ELIC specifically quantifies the ethnic and linguistic heterogeneity within countries. The HDI is established in development policy, while the ELIC remains an academic research tool. Both indices provide value, but in different realms.

Frequently Asked Questions

What does HDI stand for and measure?

HDI stands for the Human Development Index. It is a composite index measuring a country’s average achievements in three fundamental dimensions:

• Health (life expectancy at birth)
• Education (expected years of schooling and mean years of schooling)
• Standard of living (GNI per capita in PPP dollars)

What does ELIC stand for and measure?

ELIC stands for Ethnolinguistic Complexity Index. It measures the probability that two randomly selected individuals from a country will have different ethnolinguistic backgrounds. It quantifies ethnic, religious, and linguistic heterogeneity within countries.

How is the HDI calculated?

The HDI is calculated by taking the geometric mean of normalized indices measuring health, education, and income. Each subindex ranges from 0 to 1 and the final HDI value is also a number between 0 and 1.

What are some uses of the HDI?

The HDI is used to:

• Classify countries into very high, high, medium and low human development
• Track progress in health, education, and income over time
• Inform policy decisions and resource allocation within countries
• Advocate for people-centered development rather than just economic growth

What countries have the highest and lowest HDI scores?

As of 2019, the countries with the highest HDI scores are: Norway (0.954), Switzerland (0.946), Ireland (0.942).

The countries with the lowest HDI scores are: Niger (0.377), Central African Republic (0.367), Chad (0.374).

What data sources are used to calculate the ELIC?

The ELIC uses demographic data on the sizes of different ethnolinguistic groups within a country. Key sources include national censuses, surveys, the Atlas Narodov Mira, Encyclopedia Britannica, CIA World Factbook, and academic fieldwork studies.