international dollars by using PPP established by the WorldBank based on the results of the survey by the International Comparison Programme (ICP).
The standardization of the coverage of income is also another concern that needs to be looked into when comparing HDIs.
8.12. The components of human development have much to do with the basic needs like nutrition, health and longevity, clothing and shelter, literacy and education, income and livelihood, and political participation. However, due to problems in the availability of data for many countries, HDI is constructed based only on the three outcomes of development: life expectancy at birth, literacy and enrolment rates, and level of real income per capita. This limits the HDI to provide a comprehensive evaluation of a country's achievements. For one, it cannot capture the quality of education which is perceived to have declined as shown in the test performance data of elementary school graduateS. Simply using enrolment rate to measure human development does not necessary mean well-educated populace as in most areas, primary and secondary education are free.
8.13. The level of disaggregation is also another limitation. HDI can only be computed at the provincial level which can give the impression that any progress in human development is equally distributed across municipalities within the provinces.
8.14. The HDI is computed just by dividing the values of the three components by three, that is, equal weights are given to health, education and income. Moreover, for enrolment and literacy rates, literacy rate weighs more than enrolment rate. If indeed literacy is indicative of high development, it would be better if functional literacy is the one considered because functional literacy does not only include the ability to read and write with understanding but also numeracy skills. Skills must be sufficiently advanced to enable the individual to participate fully and efficiently in activities commonly occurring in his life situation that require a reasonable capability of communicating by written language. The problem with functional literacy is that not many countries are collecting this information because of the difficulty in gathering it.
8.15. The need to include other indicators of human development was the basis for the Minimum Basic Needs (MBN) index, which include the following eight
