Theoretically, the Index seeks to measure the distance between people who are able to participate in development and those who are excluded from development processes. Hence, the “distance” between the included/excluded groups may be measured as follows:

$$[dExv]=\frac{\alpha P_{x}^{v}}{1-{\alpha P_{x}^{v}}}$$

where$(P^{v}) $measures the degree of exclusion of an individual for a specifc dimension of development or vulnerability (v), such as the prevalence of children undernourished or the proportion of individuals below the poverty line, in a particular population group (x).

If $\alpha P_x^v>0.5$ the formula will establish a maximum value of 1, as more than 50 percent of the population excluded would represent a disproportional situation (normalization).

In the case where the indicator$(P^v)$ measures the degree of inclusion (or “non-exclusion”), for instance the proportion of people NOT effected by a specific vulnerability $(\alpha P_x^v)$ as is the case of literacy rate, the indicator is transformed by applying:

$$(\alpha P_x^v)=1-(\alpha P_x^v)$$

Hence the “distance” in the level of exclusion can be calculated by applying the inverse equation:

$$[dExv]=\frac{1-{\alpha P_{x}^{v}}}{\alpha P_{x}^{v}}$$

Similarly, if $\alpha P_x^v>0.5$, the formula will establish a maximum value of 1.

After normalization, the level of human exclusion will result in a score that will range between $(0>dEx^v\leq1))$ indicating the proportional distance between those participating in the specifc dimensions of development and those excluded from those processes.

In the case of indicators where there is no national comparative value, such as the case of mortality rates and life expectancy, a comparable reference is applied to estimate the distance to a desired or expected situation, as follows:

$$[dEx^{v}]=\frac{P_x^v-P_x^r}{P_x^v}$$

where (r) is a reference value established as a comparative parameter for a given population (P) and age group (x).

In case the indicator presents a situation of “inclusion”, such as life expectancy at 60, the following reverse equation should be applied:

$$[dEx^{v}]=\frac{P_x^r-P_x^v}{P_x^v}$$

See more methodology here:

Neonatal mortality ,, Child Stunting ,, Literacy rate (15-24 years) ,, Youth unemployment (15-24 years old) ,, National-based poverty ,, Life expectancy at 60 ,, Aggregation of the Index ,, Review of social development and exclusion indices ,,