What is the relationship between the HDI and income inequality?

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What is the relationship between the HDI and income inequality?

The Human Development Index (HDI) and income inequality are inversely related. As income inequality decreases, the HDI tends to increase. This means that countries with lower levels of income inequality generally have higher HDI scores, indicating better overall human development. Conversely, countries with higher levels of income inequality tend to have lower HDI scores, indicating lower levels of human development. Therefore, reducing income inequality is crucial for improving a country's HDI and promoting sustainable human development.