Photographs: Sivaram V/Reuters.
The income distribution has worsened in most parts of the world. Latin America has the largest income inequality, although it is more equitable than sub-Saharan Africa and South Asia in life expectancy and schooling, states a UNDP report.
The report also shows that countries at the bottom of the list still suffer from inadequate incomes, limited schooling opportunities and low expectancy rates due to preventable diseases such as malaria and AIDS.
The HDI combines measures of life expectancy, literacy, school enrolment and gross domestic product (GDP) per capita. This year, the study included a record number of 187 countries and territories.
Despite, economic growth India is still ranked way below at 134. The 10 countries that place last in the 2011 HDI are all in sub-Saharan Africa: Guinea, Central African Republic, Sierra Leone, Burkina Faso, Liberia, Chad, Mozambique, Burundi, Niger, and the Democratic Republic of the Congo.
Click NEXT to find out the top 25 countries in the Human Development Index...
20 best nations to live in
Image: A gingerbread town, consisting of buildings, boats, bridges and other structures, is seen in Bergen.Photographs: Reuters.
1. Norway
Human Development Index: Rank 1
Life expectancy at birth (years): 81.1
Expenditure on health, public (% of GDP): 7.5
Life expectancy at birth (years): 81.1
Health index (life expectancy): 0.964
Public expenditure on education (% of GDP): 6.8
Income GNI per capita in PPP terms (constant 2005 international $): 47,557
GDP per capita in PPP terms (constant 2005 international $) 47,676
Income index (GNI per capita):0.883
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20 best nations to live in
Image: Thousands of beach goers enjoy the sun, sea and sand on Bondi Beach in Sydney.Photographs: Reuters.
2. Australia
Life expectancy at birth (years): 81.9
Health index (life expectancy): 0.976
Public expenditure on education (% of GDP) 4.5
Education index (expected and mean years of schooling): 0.981
Income GNI per capita in PPP terms (constant 2005 international $): 34,431
GDP per capita in PPP terms (constant 2005 international $): 34,259
Income index (GNI per capita): 0.837
Inequality Inequality-adjusted HDI: 0.856
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20 best nations to live in
Image: A cyclist makes his way over a snow covered bridge in the Dutch capital of Amsterdam.Photographs: Maartje Blijdentein/Reuters.
3. Netherlands
Life expectancy at birth (years): 80.7
Health index (life expectancy): 0.958
Education index (expected and mean years of schooling): 0.931
Public expenditure on education (% of GDP): 5.3
GDP per capita in PPP terms (constant 2005 international $):36,358
GNI per capita in PPP terms (constant 2005 international $): 36,402
Income index (GNI per capita): 0.845
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20 best nations to live in
Image: Visitors walk past the Statue of Liberty and part of the New York skyline, constructed out of lego bricks.Photographs: Pierre DuCharme/Reuters.
4. United States
Life expectancy at birth (years): 78.5
Expenditure on health, public (% of GDP): 7.1
Health index (life expectancy): 0.923
Public expenditure on education (% of GDP): 5.5
GNI per capita in PPP terms (constant 2005 international $): 43,017
GDP per capita in PPP terms (constant 2005 international $): 41,761
Income index (GNI per capita): 0.869
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20 best nations to live in
Image: A view of the city skyline from Westhaven in Auckland.Photographs: Jacky Naegelen/Reuters.
5. New Zealand
Life expectancy at birth (years): 80.7
Expenditure on health, public (% of GDP) 7.1
Life expectancy at birth (years): 80.7
Public expenditure on education (% of GDP) 6.1
Income GNI per capita in PPP terms (constant 2005 international $): 23,737
GDP per capita in PPP terms (constant 2005 international $): 24,706
Income index (GNI per capita): 0.783
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20 best nations to live in
Image: A girl with face paint in Irish national colours looks on during the Saint Patrick's Day parade along Dublin's city centre.Photographs: Victor Fraile/Reuters.
6. Canada
Life expectancy at birth (years): 81.0
Health index (life expectancy): 0.962
Public expenditure on education (% of GDP): 4.9
Income GNI per capita in PPP terms (constant 2005 international $) 35,166
GDP per capita in PPP terms (constant 2005 international $): 34,567
Income index (GNI per capita): 0.840
6. Ireland
Life expectancy at birth (years): 80.6
Public expenditure on education (% of GDP) 4.9
GDP per capita in PPP terms (constant 2005 international $): 36,278
GNI per capita in PPP terms (constant 2005 international $): 29,322
Income index (GNI per capita): 0.814
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20 best nations to live in
Image: Liechtenstein.8. Liechtenstein
Life expectancy at birth (years): 79.6
Public expenditure on education (% of GDP): 2.0
Expected years of schooling (of children under 7) (years): 14.7
Education index (expected and mean years of schooling): 0.818
Combined gross enrolment in education (both sexes) (%): 86.7
Income GNI per capita in PPP terms (constant 2005 international $): 83,717
Income index (GNI per capita): 0.964
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20 best nations to live in
Image: People walk in an allee near the Brandenburg Gate during a sunny day in Berlin.Photographs: Fabrizio Bensch/Reuters.
9. Germany
Life expectancy at birth (years): 80.4
Expenditure on health, public (% of GDP): 8.0
Health index (life expectancy): 0.953
Public expenditure on education (% of GDP) 4.5
Income GNI per capita in PPP terms (constant 2005 international $): 34,854
GDP per capita in PPP terms (constant 2005 international $): 32,255
Income index (GNI per capita): 0.838
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20 best nations to live in
Image: Henrik Widlund looks out during the wolf hunt in Hasselforsreviret, central Sweden.Photographs: Reuters.
10. Sweden
Life expectancy at birth (years): 81.4
Expenditure on health, public (% of GDP): 7.4
Health index (life expectancy): 0.969
Public expenditure on education (% of GDP): 6.6
Income GNI per capita in PPP terms (constant 2005 international $): 35,837
GDP per capita in PPP terms (constant 2005 international $): 32,314
Income index (GNI per capita): 0.842
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20 best nations to live in
Image: A gardener prepares the dial made of plants, of a giant clock during sunny summer weather at the borders of Lake Zurich.Photographs: Arnd Wiegmann/Reuters.
11. Switzerland
Life expectancy at birth (years): 82.3
Health index (life expectancy): 0.983
Public expenditure on education (% of GDP): 5.2
Income GNI per capita in PPP terms (constant 2005 international $): 39,924
GDP per capita in PPP terms (constant 2005 international $): 36,954
Income index (GNI per capita): 0.858
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20 best nations to live in
Image: A Thai tourist poses with Disney character Piglet at Tokyo Disneyland in Urayasu, north of Tokyo.Photographs: Yuriko Nakao/Reuters.
12. Japan
Life expectancy at birth (years): 83.4
Expenditure on health, public (% of GDP): 6.5
Health index (life expectancy): 1.000
Income GNI per capita in PPP terms (constant 2005 international $): 32,295
GDP per capita in PPP terms (constant 2005 international $): 29,692
Income index (GNI per capita): 0.827
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20 best nations to live in
Image: A visitor takes a picture in front of Two IFC, Hong Kong's highest commercial building, on a sunny day.Photographs: Bobby Yip/Reuters.
13. Hong Kong, China (SAR)
Life expectancy at birth (years): 82.8
Health index (life expectancy): 0.990
Public expenditure on education (% of GDP) 4.5
Income GNI per capita in PPP terms (constant 2005 international $): 44,805
GDP per capita in PPP terms (constant 2005 international $): 39,255
Income index (GNI per capita): 0.874
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20 best nations to live in
Image: Bathers at the Blue Lagoon hot springs swim in hot mineral waters amid a chilly wind as a thermal electricity plant looms in the background.Photographs: Reuters.
14. Iceland
Life expectancy at birth (years): 81.8
Expenditure on health, public (% of GDP): 7.7
Health index (life expectancy): 0.975
Public expenditure on education (% of GDP): 7.4
Income GNI per capita in PPP terms (constant 2005 international $): 29,354
GDP per capita in PPP terms (constant 2005 international $): 33,980
Income index (GNI per capita): 0.814
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20 best nations to live in
Image: Members from a Chinese tourism delegation visit a beach area at Mount Kumgang resort in Kumgang.Photographs: Carlos Barria/Reuters.
15. Republic of Korea
Life expectancy at birth (years): 80.6
Expenditure on health, public (% of GDP): 3.5
Health index (life expectancy): 0.956
Income GNI per capita in PPP terms (constant 2005 international $): 28,230
GDP per capita in PPP terms (constant 2005 international $): 25,493
Income index (GNI per capita): 0.808
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20 best nations to live in
Image: Child models present creations for the Spring/Summer 2012 collection at the Copenhagen International Fashion Fair for Kids.Photographs: Reuters.
16. Denmark
Life expectancy at birth (years): 78.8
Expenditure on health, public (% of GDP): 8.2
Health index (life expectancy): 0.928
Income GNI per capita in PPP terms (constant 2005 international $) 34,347
GDP per capita in PPP terms (constant 2005 international $): 32,252
Income index (GNI per capita): 0.836
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20 best nations to live in
Image: An aerial view shows Saint-George Yacht Club surrounded by construction work in Beirut.Photographs: Cynthia Karam/Reuters.
17. Israel
Life expectancy at birth (years): 81.6
Expenditure on health, public (% of GDP): 4.5
Under-five mortality rate (per 1,000 live births): 4
Health index (life expectancy): 0.972
Income GNI per capita in PPP terms (constant 2005 international $): 25,849
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20 best nations to live in
Image: A visitor walks past one of a hothouse on the grounds of the Belgian royal family's residence of Laeken in Brussels.Photographs: Reuters.
18. Belgium
Life expectancy at birth (years): 80.0
Expenditure on health, public (% of GDP): 7.0
Under-five mortality rate (per 1,000 live births): 5
Health index (life expectancy): 0.947
GDP per capita in PPP terms (constant 2005 international $) 32,395
GNI per capita in PPP terms (constant 2005 international $) 33,357
Income index (GNI per capita): 0.832
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20 best nations to live in
Image: A tourist takes a picture of the basilica of the Styrian town of Mariazell.Photographs: Herbert Neubauer/Reuters.
19. Austria
Life expectancy at birth (years): 81.9
Health index (life expectancy): 0.976
Public expenditure on education (% of GDP) 4.5
Education index (expected and mean years of schooling): 0.981
Income GNI per capita in PPP terms (constant 2005 international $): 34,431
GDP per capita in PPP terms (constant 2005 international $): 34,259
Income index (GNI per capita): 0.837
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20 best nations to live in
Image: The general view of the Louvre Museum with its glass Pyramid entrance designed by Chinese-born US Architect I.M. Pei.Photographs: Regis Duvignau/Reuters.
20. France
Life expectancy at birth (years): 81.5
Health index (life expectancy): 0.971
Education index (expected and mean years of schooling): 0.870
Public expenditure on education (% of GDP) 5.6
Education index (expected and mean years of schooling): 0.870
Combined gross enrolment in education (both sexes) (%) 94.5
Income GNI per capita in PPP terms (constant 2005 international $) 30,462
GDP per capita in PPP terms (constant 2005 international $)29,578
Income index (GNI per capita):$0.819
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