GROWTH AND DEVELOPMENT
Both growth and development refer to changes over time, but they mean different things. Understanding this difference is key to understanding human development.
- Growth is quantitative, meaning it's about numbers and can be measured. It is also value-neutral, which means it can be positive (an increase) or negative (a decrease).
- Development is qualitative, meaning it's about the quality of something. It is always value-positive. Development only happens when there is a positive change that improves existing conditions.
While development often involves positive growth, positive growth doesn't always lead to development.
Example
Imagine a city's population grows from one lakh to two lakhs. This is positive growth. However, if the housing, basic services, and other facilities don't improve to support the larger population, then development has not occurred. The city has simply gotten bigger, not better.
For many years, a country's development was measured only by its economic growth. The bigger the economy, the more "developed" the country was considered. This view often ignored the fact that economic growth didn't always improve the lives of most people.
In the late 1980s and early 1990s, a new perspective emerged, thanks to the work of two South Asian economists, Dr Mahbub-ul-Haq and Prof Amartya Sen. They argued that the quality of people's lives, the opportunities they have, and the freedoms they enjoy are the true measures of development.
The Concept of Human Development
The concept of human development was introduced by Dr Mahbub-ul-Haq. He described it as development that enlarges people's choices and improves their lives. In this view, people are the center of all development. The main goal is to create conditions where people can live meaningful lives.
A meaningful life is not just a long one; it is a life with purpose. This means people must:
- Be healthy.
- Be able to develop their talents.
- Participate in society.
- Be free to achieve their goals.
Note
Pakistani economist Dr Mahbub-ul-Haq created the Human Development Index (HDI) in 1990. His close friend, Nobel Laureate Prof Amartya Sen, saw an increase in freedom as the main goal of development. Together, their work shifted the focus of development from just the economy to the people themselves.
The Key Areas of Human Development
To live a meaningful life, people need certain capabilities. The most important aspects of human development are:
- Leading a long and healthy life.
- Being able to gain knowledge.
- Having enough means to live a decent life.
Therefore, access to resources, health, and education are the key areas in human development. When people lack capabilities in these areas, their choices become limited.
Example
An uneducated child cannot choose to become a doctor because their lack of education has already limited that choice. Similarly, a person living in poverty may not be able to choose medical treatment for an illness because they lack the necessary resources.
Building people's capabilities in health, education, and access to resources is essential for enlarging their choices and promoting human development.
THE FOUR PILLARS OF HUMAN DEVELOPMENT
The idea of human development is supported by four main concepts, or "pillars":
- Equity: This means ensuring everyone has equal access to opportunities, regardless of their gender, race, income, or caste. In many societies, this is not the case. For example, in India, women and people from socially and economically backward groups are more likely to drop out of school, which limits their choices later in life.
- Sustainability: This refers to the continuity of opportunities. For human development to be sustainable, each generation must have the same opportunities as the one before it. This requires using all environmental, financial, and human resources with the future in mind, so that future generations are not left with fewer opportunities.
- Productivity: This means human labor productivity. People are the real wealth of nations. By investing in people—improving their knowledge and providing better health facilities—their productivity and work efficiency increase.
- Empowerment: This means having the power to make choices. This power comes from increasing freedom and capability. To empower people, especially socially and economically disadvantaged groups, governments need to implement good governance and people-oriented policies.
APPROACHES TO HUMAN DEVELOPMENT
There are several ways to look at the concept of human development. The four major approaches are:
- The Income Approach: This is one of the oldest approaches. It links human development directly to income, based on the idea that a higher income gives a person more freedom and a higher level of human development.
- The Welfare Approach: This approach sees people as the beneficiaries of development. It argues for higher government spending on education, health, and other amenities. In this view, the government is responsible for improving human development by spending on welfare, and people are passive recipients.
- The Basic Needs Approach: Initially proposed by the International Labour Organisation (ILO), this approach focuses on providing six basic needs: health, education, food, water supply, sanitation, and housing. It emphasizes meeting these needs for specific sections of the population but ignores the broader question of human choices.
- The Capability Approach: Associated with Prof. Amartya Sen, this approach argues that the key to increasing human development is building human capabilities in the areas of health, education, and access to resources.
MEASURING HUMAN DEVELOPMENT
To compare the levels of human development across countries, the United Nations Development Programme (UNDP) uses specific indices.
Note
Since 1990, the United Nations Development Programme (UNDP) has published the Human Development Report every year. This report ranks countries based on their level of human development using two important indices: the Human Development Index and the Human Poverty Index.
The Human Development Index (HDI)
The Human Development Index (HDI) ranks countries based on their performance in the three key areas of human development. It assigns each country a score between 0 and 1. The closer the score is to 1, the higher the level of human development.
The HDI is calculated using indicators for three dimensions, each with a weightage of 1/3:
- Health: Measured by life expectancy at birth.
- Education: Measured by the adult literacy rate and the gross enrolment ratio.
- Access to Resources: Measured by purchasing power (in U.S. dollars).
While the HDI shows what a country has achieved, it doesn't show how these achievements are distributed among its population.
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 highlights the number of people who are deprived in a country. The HPI considers:
- The probability of not surviving to the age of 40.
- The adult illiteracy rate.
- The number of people without access to clean water.
- The number of small children who are underweight.
Often, the HPI is more revealing than the HDI because it shows the extent of deprivation in a country.
Gross National Happiness (GNH)
Bhutan is the only country in the world to officially measure its progress through Gross National Happiness (GNH). This approach encourages a more cautious view of material and technological progress, considering the potential harm to the environment and the cultural and spiritual life of its people. GNH emphasizes that material progress should not come at the cost of happiness and focuses on the non-material and qualitative aspects of development.
INTERNATIONAL COMPARISONS
Comparing human development levels across countries reveals interesting patterns. A country's size or per capita income is not always directly related to its level of human development. Often, smaller countries perform better than larger ones, and poorer nations rank higher than their richer neighbors.
Example
Sri Lanka, Trinidad and Tobago have a higher HDI rank than India, despite having smaller economies. Within India, Kerala has better human development outcomes than Punjab and Gujarat, even with a lower per capita income.
Countries are classified into four groups based on their HDI scores:
- Very High Human Development (score above 0.800): This group includes 69 countries (as of the 2023-24 report). These countries, many of which are in Europe, have high investment in the social sector (education and healthcare) and are generally politically stable.
- High Human Development (score 0.700–0.799): This group has 49 countries. Like the "very high" group, these countries prioritize government spending on social sectors and have good governance.
- Medium Human Development (score 0.550–0.699): This is the largest group, with 42 countries. Many of these nations emerged after World War II or were former colonies. They often have greater social diversity and may have experienced political instability. India, with an HDI of 0.644 in 2022, falls into this category.
- Low Human Development (score below 0.550): This group includes 33 countries. Many are small countries that have experienced political turmoil, civil war, famine, or a high incidence of disease.
The reasons for a country's level of human development are complex. It is misleading to blame low development on the culture or religion of its people. Instead, key factors include:
- Government spending: Countries with high human development invest more in social sectors like health and education. Places with low development tend to spend more on defense.
- Political stability: High-development countries are generally free from political turmoil. Low-development countries are often located in politically unstable regions.
- Resource distribution: In countries with high human development, resources are generally distributed more equitably.