Human Development and growth
Conceptual Differences Between Development and Growth
Human development and growth are related concepts but possess distinct characteristics. Growth is a quantitative change and is considered value-neutral. It refers to changes over a period of time that may be either positive, showing an increase (denoted as ), or negative, indicating a decrease (denoted as ).
Development, conversely, refers to a qualitative change which is always value-positive. Development only occurs when there is a positive change in quality. For instance, if the population of a city grows from one lakh to two lakhs over a period of time, we say the city has grown. However, if the provision of basic facilities like housing, services, and other characteristics remain the same, then the growth has not been accompanied by development.
For many decades, a country's level of development was measured only in terms of its economic growth. This meant that the bigger the economy of the country, the more developed it was considered. However, this growth did not necessarily mean a significant change in the lives of the people.
The Contributions of Mahbub-ul-Haq and Amartya Sen
The works of two South Asian economists, Dr. Mahbub-ul-Haq and Professor Amartya Sen, were vital in redefining development. Dr. Mahbub-ul-Haq, a Pakistani economist, created the Human Development Index (HDI) in 1990. According to him, development is about enlarging people's choices to lead long and healthy lives with dignity. The United Nations Development Programme (UNDP) has used his concept of human development annually since 1990 to publish the Human Development Report (HDR).
Professor Amartya Sen, a Nobel Laureate, saw an increase in freedom (or a decrease in unfreedom) as the main objective of development. Interestingly, increasing freedoms is also one of the most effective ways of bringing about development. His work explores the role of social and political institutions and processes in increasing freedom.
The Definition and Objectives of a Meaningful Life
The basic goal of development is to create conditions where people can live meaningful lives. A meaningful life is not just a long one; it must be a life with a purpose. This means that people must be healthy, be able to develop their talents, participate in society, and be free to achieve their goals. The necessary conditions for such a life include access to resources, health, and education.
Very often, people do not have the capability to make even basic choices due to several factors: their inability to acquire knowledge (literacy), material poverty that prevents the fulfillment of basic needs (food, water, shelter, clothing, or medicine), social discrimination, and the inefficiency of institutions. All these hurdles prevent individuals from leading healthy lives, being educated, or having the means to live a decent life.
Building people's capabilities in the areas of health, education, and access to resources is therefore important in enlarging their choices. If people do not have capabilities in these areas, their choices get limited. For example, an uneducated child cannot make the choice to be a doctor because her choice has been limited by her lack of education. Similarly, poor people often cannot choose to take medical treatment for a disease because their choice is limited by their lack of resources.
The Four Pillars of Human Development
The idea of human development is supported by four core concepts: equity, sustainability, productivity, and empowerment.
Equity refers to equal opportunities being available to everybody. These opportunities must be equal irrespective of gender, race, income, or caste. In the case of India, school dropout rates are higher among women and lower-caste groups, which demonstrates how the choices of these groups are limited by lack of access to knowledge.
Sustainability means continuity in the availability of opportunities. Each generation must have the same opportunities. All environmental, financial, and human resources must be used with the future in mind. Misuse of these resources leads to fewer opportunities for future generations. For example, if a community does not send girl children to school, many opportunities will be lost to these women as adults, severely curtailing their career choices and affecting other aspects of their lives.
Productivity in this context refers to human labor productivity or productivity in terms of human work. It should be constantly enriched by increasing knowledge or providing better health facilities, which results in better work efficiency.
Empowerment means having the power to make decisions. Such power comes from increasing freedom and capability. Good governance and people-oriented policies are essential, and the empowerment of socially and economically disadvantaged groups is of special importance.
Approaches to Human Development
There are several methods or approaches to human development. The Income Approach is one of the oldest, where human development is directly linked to income levels. The Welfare Approach argues for higher government expenditure on health, education, and other amenities, viewing human beings as targets of all development activities.
The Basic Needs Approach was initially proposed by the International Labour Organisation (ILO). It identifies six basic needs: health, education, food, water supply, sanitation, and housing. Finally, the Capability Approach is associated with Professor Amartya Sen. It posits that building human capabilities in health, education, and access to resources is the key to increasing human development.
Measuring and Quantifying Human Development
The Human Development Index (HDI) measures the quality of life and is prepared by the UNDP. It ranks countries based on their performance in three key areas, each given a weightage of . The calculation is summarized as follows:
Life Expectancy at birth denotes the average expected length of life. A higher life expectancy indicates that people have a greater chance of living longer, healthier lives. Literacy Rate (measured for the population aged 15 and older) shows the number of adults who can read and write, as well as enrollment ratios in primary, secondary, and higher education. Access to Resources is measured by per capita income in terms of purchasing power in US dollars so that it is comparable across countries.
The HDI score ranges from to . The closer a score is to , the greater the level of human development. For example, a score of is considered very high, while means a very low level.
The Human Poverty Index (HPI)
The Human Poverty Index (HPI) is related to the HDI but measures the shortfall in human development. It is a non-income measure that takes into account: the probability of not surviving till the age of 40, the adult illiteracy rate, the number of people who do not have access to clean water, and the number of small children who are underweight. These factors show the deficiency in human development in any region.
International Comparisons and Country Classifications
Size and per capita income are not directly related to human development. Smaller economies like Sri Lanka and Trinidad and Tobago have higher HDI ranks than India. Within India, Kerala performs better than Punjab and Gujarat despite having a lower per capita income. Countries are classified into four groups based on their HDI scores:
- Very High: Scores above (66 countries).
- High: Scores between and (49 countries).
- Medium: Scores between and (44 countries).
- Low: Scores below (32 countries).
The top ten ranked countries include Norway (1st), Switzerland (2nd), Australia (3rd), Germany (5th), Denmark (5th), Singapore (9th), Netherlands, Ireland, Iceland, and Sweden.
Characteristics of Developmental Groups
Countries with high or very high index values (such as those in Europe) typically invest more in education and healthcare. They are often heavily industrialized and many were former imperial powers. These nations generally have lower social diversity.
Countries with a medium index value often emerged after the Second World War. This group includes former colonies and nations that emerged after the breakup of the Soviet Union (USSR) in 1990. They are improving their scores by adopting people-oriented policies and reducing social discrimination. They tend to have much higher social diversity than the high-HDI group and may have faced political instability or social uprisings in recent history.
Countries with low index values are often those going through political turmoil, social instability, civil war, famine, or high incidences of disease. They tend to spend more on defense rather than social sectors, which prevents accelerated economic development.
It is a common misconception to blame low levels of human development on the culture or religion of the people. Such statements are misleading. To understand low levels of human development, one must look at the pattern of government expenditure on social sectors and the political environment, including the amount of freedom people have.