Measuring Development: An Index of Human Progress

The United Nations Human Development Index contains a major weakness: Gross Domestic Product (GDP) per capita is arbitrarily adjusted to limit its impact in the index. In addition, too little attention is paid to historical trends in human development. The Fraser Institutes Index of Human Progress, since it is based upon unadjusted GDP per capita and measurements from 1975 through 1999, provides a more complete view of the recent history and current state of development throughout the world. The Index of Human Progress uses 10 development indicators, six more than the Human Development Index.

Using more indicators allows us to draw clearer distinctions among countries though it reduces the number of countries that can be included in the Index of Human Progress.

The Index of Human Progress, using actual GDP per capita (US$1995) and the expanded set of indicators, ranks the United States first, and Canada sixteenth in 1999 out of 128 countries. Only 4 of the 128 countries did not see an improvement in their score on the Index of Human Progress. Canada's score on the Index of Human Progress improved from 73.2 in 1975 to 94.0 in 1999 (a 28.5% increase); the score of the United States improved from 81.4 in 1975 to 105.8 in 1999 (a 30.1% increase).