Read the following passage and answer the item that follows. Your answer to this item should be based on the passage only.

A central claim of development economics has long been that a rising Human Development Index (HDI), which combines measures of health, education and income, signals genuine improvement in a population's wellbeing. As a country's HDI climbs, the reasoning goes, its people gain longer, healthier lives, better education and rising incomes together, a broader and more meaningful measure of progress than income growth measured alone.

With reference to the passage, the following assumptions have been made:

1. A rising HDI is necessary for a country to be classified as developed.

2. A rising HDI guarantees improvement is shared equally across all households.

Which of the above assumptions is/are valid?