In the year 1990 the United Nations Development Programme in its first Human Development Report introduced the concept of Human Development Index.

It is the cumulative measurement of:

(a) Longivity

(b) Knowledge

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(c) Decent Standard of Living.

(a) Longevity: It shows the life expectancy. It is a choice to live long and healthy life.

(b) Knowledge: It is a choice to acquire literacy, education, information, etc. It is measured by the literate percentage in ratio with the total population. The literacy rate may be compared in the primary, secondary and tertiary levels.

(c) Decent standard of life: It is a joy to enjoy a quality and standard life. It depends upon the purchasing power of the people and the per capita income of the people etc.

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The rank of a country is determined by the overall developments in these three basic dimensions of human developments. ADI ranks countries, in relation to each other to tell them how for a country has travelled and how for yet it has to travel in the part of Human Development.