December 14, 2020 | Investopaper
Nepal has improved its Human Development Index (HDI). According to the 2020 report released by the National Planning Commission and the United Nations Development Program on Sunday, Nepal’s human development index is 0.587. This is 0.08 point more than the previous year 2019. In the 2019 report, the index price was 0.579. HDI is calculated from 0 to 1. The closer HDI is to 1 point, the more the country is considered to be economically and socially developed.
Finance Minister Bishnu Prasad Poudel released the Nepal Human Development Report-2020 through a virtual program on Sunday. For the past five years, Nepal has been in the category of moderate human development. Achieving HDI above 0.550 points up to 0.690 is considered moderate. The report states that Nepal’s HDI has increased in recent years due to positive improvements in health, education and economic growth.
The latest Human Development Index report has shown that Nepal is ready to be upgraded from a least developed country to a developing country. There are three criteria for promotion. First, per capita gross national income should be 1,230 US dollars. Second, the human resource index should be more than 66 points out of 100, and third, the economic risk index should be below 32 points out of 100.
Nepal has already passed the threshold for the second and third indices. According to the United Nations Development Program (UNDP), the human resource index of Nepal is 72.1 points. Similarly, Nepal’s value in the Economic Risk Index is 25.4 points. In 2020, Nepal’s per capita gross national income is 1163 US dollars. Nepal needs to raise $67 per capita to reach the per capita gross national income threshold.