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Economic Growth vs Economic Development
Economic Growth is a narrower concept than economic development. It is an increase in a country's
real level of national output which can be caused by an increase in the quality of resources (by
education etc.), increase in the quantity of resources & improvements in technology or in another
way an increase in the value of goods and services produced by every sector of the economy.
Economic Growth can be measured by an increase in a country's GDP (gross domestic product).
Economic development is a normative concept i.e. it applies in the context of people's sense of
morality (right and wrong, good and bad). The definition of economic development given by Michael
Todaro is an increase in living standards, improvement in self-esteem needs and freedom from
oppression as well as a greater choice
The most accurate method of measuring development is the Human Development Index which
considers the literacy rates & life expectancy which affects productivity and could lead to Economic
Growth
DEFINITION OF HUMAN DEVELOPMENT
The UNDP Human Development Report 1997 describes human development as “the process of
widening people’s choices and the level of well-being they achieve are at the core of the notion of
human development. human development is a continuous process. The process becomes
developmental only if it increases choices and improves human well-being. Amongst other choices,
the three most important choices are that of long and healthy life which is determined by life
expectancy at birth, to acquire knowledge which is determined by education and a decent standard
of living which is determined by GDP per capita. These three choices are also the components of
human development index. While these three choices are basic to human development, the choices
go beyond these three to include the ever expanding social, political and economic freedoms that
make human life worth living. Thus guaranteed human rights become an important aspect of human
development
The Four Pillars of Human Development
Productivity
•Productivity refers to human labour productivity or productivity in terms of human effort in this
context.
•People's capacities must be continually enhanced in order to maintain high levels of production.
People are, in the end, a country's most valuable resource.
•As a result, efforts to improve their knowledge or provide better health facilities result in
increased productivity.
Equity
•Equity refers to ensuring that all people have access to the same opportunities.
•People must have equal access to opportunities regardless of their gender, ethnicity, income,
social position, or, in India's case, caste. However, this is not always the case, and it occurs in
practically every community.
•For instance — It's fascinating to examine which demographic accounts for the majority of school
dropouts in any country. This should lead to a better understanding of why such conduct occurs.
• In India, a substantial number of women and people from economically and socially
disadvantaged backgrounds drop out of school.
• This demonstrates how a lack of access to knowledge limits the options available to these
populations
Sustainability
•Sustainability refers to the availability of opportunities remaining constant.
•To achieve long-term human growth, each generation must have equal access to decision-
making possibilities.
•Sustainable development necessitates the utilization of all environmental, financial, and human
resources with the future in mind.
•If any of these resources are misused, subsequent generations will have fewer chances.
•The necessity of sending girls to school is an excellent example.
• If a community does not emphasize the value of sending girls to school, these young girls
will miss out on many chances.
• Their professional options will be limited, which will have an impact on other elements of
their lives.
•As a result, it is critical for each generation to ensure that future generations have access to
options and opportunities.
Empowerment
•Empowerment means the ability to make decisions.
•Increased freedom and capability to select are the sources of such power.
•To empower individuals, good governance and people-centered policies are
essential.
•Empowerment of socially and economically marginalised populations is particularly
important.
Approaches to Human Development
The four approaches to Human Development are the basic needs approach, income approach,
capacity approach, and welfare approach.
Basic Needs Approach
•The International Labour Organization (ILO) was the first to advocate this strategy.
•Six fundamental needs were identified: health, education, food, water supply,
sanitation, and shelter.
•The issue of individual choice is neglected, and the focus is instead on meeting the basic
requirements of specific groups.
Income Approach
•This approach is one of the oldest approaches to human development.
•Income is thought to be linked to human growth.
•The concept is that an individual's amount of freedom is reflected in his or her
income.
•The more one's income, the higher one's level of human developmen
Capability Approach
•This approach is associated with Prof. Amartya Sen.
•The key to enhancing human development is to improve human
capacities in the areas of health, education, and resource access.
Welfare Approach
•Human beings are seen as beneficiaries or goals of all developmental
efforts in this paradigm, which advocates for more government spending
on education, health, and basic necessities.
•People are merely passive recipients, not active players.
•The government is exclusively accountable for boosting human
development levels through maximising welfare spending.
Human Development Index (HDI)

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Human Development Index and Human Development Issue

  • 1.
  • 2. Economic Growth vs Economic Development Economic Growth is a narrower concept than economic development. It is an increase in a country's real level of national output which can be caused by an increase in the quality of resources (by education etc.), increase in the quantity of resources & improvements in technology or in another way an increase in the value of goods and services produced by every sector of the economy. Economic Growth can be measured by an increase in a country's GDP (gross domestic product). Economic development is a normative concept i.e. it applies in the context of people's sense of morality (right and wrong, good and bad). The definition of economic development given by Michael Todaro is an increase in living standards, improvement in self-esteem needs and freedom from oppression as well as a greater choice The most accurate method of measuring development is the Human Development Index which considers the literacy rates & life expectancy which affects productivity and could lead to Economic Growth
  • 3. DEFINITION OF HUMAN DEVELOPMENT The UNDP Human Development Report 1997 describes human development as “the process of widening people’s choices and the level of well-being they achieve are at the core of the notion of human development. human development is a continuous process. The process becomes developmental only if it increases choices and improves human well-being. Amongst other choices, the three most important choices are that of long and healthy life which is determined by life expectancy at birth, to acquire knowledge which is determined by education and a decent standard of living which is determined by GDP per capita. These three choices are also the components of human development index. While these three choices are basic to human development, the choices go beyond these three to include the ever expanding social, political and economic freedoms that make human life worth living. Thus guaranteed human rights become an important aspect of human development
  • 4. The Four Pillars of Human Development Productivity •Productivity refers to human labour productivity or productivity in terms of human effort in this context. •People's capacities must be continually enhanced in order to maintain high levels of production. People are, in the end, a country's most valuable resource. •As a result, efforts to improve their knowledge or provide better health facilities result in increased productivity.
  • 5. Equity •Equity refers to ensuring that all people have access to the same opportunities. •People must have equal access to opportunities regardless of their gender, ethnicity, income, social position, or, in India's case, caste. However, this is not always the case, and it occurs in practically every community. •For instance — It's fascinating to examine which demographic accounts for the majority of school dropouts in any country. This should lead to a better understanding of why such conduct occurs. • In India, a substantial number of women and people from economically and socially disadvantaged backgrounds drop out of school. • This demonstrates how a lack of access to knowledge limits the options available to these populations
  • 6. Sustainability •Sustainability refers to the availability of opportunities remaining constant. •To achieve long-term human growth, each generation must have equal access to decision- making possibilities. •Sustainable development necessitates the utilization of all environmental, financial, and human resources with the future in mind. •If any of these resources are misused, subsequent generations will have fewer chances. •The necessity of sending girls to school is an excellent example. • If a community does not emphasize the value of sending girls to school, these young girls will miss out on many chances. • Their professional options will be limited, which will have an impact on other elements of their lives. •As a result, it is critical for each generation to ensure that future generations have access to options and opportunities.
  • 7. Empowerment •Empowerment means the ability to make decisions. •Increased freedom and capability to select are the sources of such power. •To empower individuals, good governance and people-centered policies are essential. •Empowerment of socially and economically marginalised populations is particularly important.
  • 8. Approaches to Human Development The four approaches to Human Development are the basic needs approach, income approach, capacity approach, and welfare approach. Basic Needs Approach •The International Labour Organization (ILO) was the first to advocate this strategy. •Six fundamental needs were identified: health, education, food, water supply, sanitation, and shelter. •The issue of individual choice is neglected, and the focus is instead on meeting the basic requirements of specific groups.
  • 9. Income Approach •This approach is one of the oldest approaches to human development. •Income is thought to be linked to human growth. •The concept is that an individual's amount of freedom is reflected in his or her income. •The more one's income, the higher one's level of human developmen Capability Approach •This approach is associated with Prof. Amartya Sen. •The key to enhancing human development is to improve human capacities in the areas of health, education, and resource access.
  • 10. Welfare Approach •Human beings are seen as beneficiaries or goals of all developmental efforts in this paradigm, which advocates for more government spending on education, health, and basic necessities. •People are merely passive recipients, not active players. •The government is exclusively accountable for boosting human development levels through maximising welfare spending.