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Chapter 4 Human Development
Growth And Development
The terms 'growth' and 'development' both signify change over time, but they are distinct concepts.
Growth is primarily a quantitative change. It is value-neutral, meaning it can be either positive (an increase) or negative (a decrease).
Development, on the other hand, refers to a qualitative change and is always value-positive. True development implies an improvement or addition to existing conditions.
Development happens alongside positive growth. However, positive growth doesn't automatically guarantee development. Development occurs when there is a positive change in quality, leading to an improvement in the situation.
For example, if a city's population doubles (positive growth), but essential facilities like housing, basic services, and infrastructure do not improve, this growth has occurred without development.
Cities can also experience negative growth, such as a decrease in population, which can happen due to various reasons, not just natural disasters.
Historically, a nation's development level was often judged solely by its economic growth (GDP). A larger economy was considered more developed, even if this didn't translate into better lives for most citizens.
The idea that the quality of life, opportunities, and freedoms available to people are critical aspects of development gained prominence in the late 1980s and early 1990s.
The concept of human development was introduced by Dr. Mahbub-ul-Haq, a Pakistani economist. He defined it as development that focuses on enlarging people's choices and improving their lives. This perspective places people at the very centre of all development efforts.
According to this concept, the main objective of development is to create an environment where people can lead meaningful lives. A meaningful life is not just about living long; it involves purpose, being healthy, being able to develop one's talents, participating in society, and having the freedom to pursue goals.
Another key figure, Nobel Laureate Prof. Amartya Sen, viewed development as increasing people's freedoms (and reducing unfreedoms). Increasing freedoms is also considered an effective means to achieve development.
Both Dr. Mahbub-ul-Haq and Prof. Amartya Sen were instrumental in shifting the focus of development discussions towards people-centric approaches.
The most crucial aspects of human development are leading a long and healthy life, having the ability to acquire knowledge, and possessing the means to afford a decent standard of living (access to resources).
Access to resources, health, and education are therefore considered the core areas of human development.
Often, people lack the necessary capabilities and freedom to make even fundamental choices. This can stem from factors such as limited knowledge, poverty, social discrimination, or inefficient institutions, preventing them from leading healthy lives, getting educated, or having access to resources for a decent life.
Building capabilities in the areas of health, education, and access to resources is fundamental to expanding people's choices.
For instance, a child who lacks education cannot choose to become a doctor because their options are restricted by the lack of knowledge. Similarly, individuals living in poverty may not be able to afford necessary medical treatment, limiting their choices due to insufficient resources.
The Four Pillars Of Human Development
The concept of human development is built upon four foundational pillars:
Equity
Equity means ensuring equal access to opportunities for everyone.
Opportunities should be available to all individuals without discrimination based on gender, race, income, or caste (especially relevant in the Indian context).
However, achieving true equity remains a challenge in many societies.
Examining which groups have high rates of school dropouts can reveal underlying inequities and reasons for limited opportunities, often affecting women and socially/economically disadvantaged groups.
Sustainability
Sustainability in human development means ensuring the continuity of opportunities for future generations.
This requires careful and responsible use of all resources – environmental, financial, and human – to avoid limiting the options available to those who come after us.
For example, if a community does not value or facilitate girls' education, it restricts the opportunities and career choices available to those young women when they grow up, impacting their lives and potentially future generations. Each generation has a responsibility to preserve and create opportunities for the next.
Productivity
Productivity in this context refers to human labour productivity or the efficiency of human work.
Enhancing human productivity is achieved by continuously building people's capabilities.
Recognizing that people are the most valuable asset ("real wealth") of a nation, investing in their knowledge (education) and health leads to improved work efficiency and overall societal progress.
Empowerment
Empowerment is about enabling people to have the power to make choices affecting their lives.
This power is gained through increasing freedom and enhancing capabilities.
Good governance and policies that are focused on people's well-being are essential for empowering citizens, particularly socially and economically vulnerable groups.
Approaches To Human Development
There are several different perspectives or approaches to understanding and addressing human development. Some key approaches include:
| Approach | Description |
|---|---|
| Income Approach | Views human development as directly linked to a person's income level. It suggests that a higher income provides more freedom and thus indicates a higher level of human development. This is considered one of the oldest perspectives. |
| Welfare Approach | Considers human beings as the beneficiaries or recipients of development activities. It advocates for significant government spending on social sectors like education, health, and public amenities. People are seen as passive recipients rather than active participants in the development process. The state is responsible for maximizing welfare expenditure to improve human development. |
| Basic Needs Approach | Initially proposed by the International Labour Organisation (ILO), this approach identifies a set of minimum basic needs that should be met for defined sections of the population. Six core needs were identified: health, education, food, water supply, sanitation, and housing. This approach focuses on providing these essentials and tends to overlook the importance of individual choices. |
| Capabilities Approach | Associated with Prof. Amartya Sen, this approach emphasizes that building people's capabilities in key areas like health, education, and access to resources is crucial for increasing human development. It focuses on what people are actually able to 'do' and 'be'. |
Measuring Human Development
The Human Development Index (HDI)
The Human Development Index (HDI) is a composite index used to rank countries based on their achievements in three fundamental dimensions of human development: health, education, and standard of living (access to resources).
The HDI assigns a score to each country between 0 and 1.
The three key dimensions are measured by specific indicators:
- Health: Measured by Life Expectancy at Birth (indicating the potential for a long and healthy life).
- Education: Measured by Adult Literacy Rate and Gross Enrolment Ratio (reflecting access to knowledge and schooling).
- Access to Resources: Measured by Purchasing Power Parity (PPP) in US dollars (representing the ability to access resources needed for a decent living standard).
Each of these three dimensions is given an equal weight of 1/3 in the calculation of the HDI score.
A score closer to 1 indicates a higher level of human development (e.g., 0.983 signifies very high development), while a score closer to 0 signifies a very low level (e.g., 0.268 signifies very low development).
The HDI provides a measure of attainments in human development, showing what has been achieved in the key areas. However, it does not reflect the distribution of these achievements within a country (e.g., disparities between regions or social groups).
The Human Poverty Index (HPI)
The Human Poverty Index (HPI) is an alternative measure that focuses on the shortfall or deprivations in human development, rather than just the attainments.
It is considered a non-income measure of human development, focusing on the lack of basic capabilities.
The HPI considers indicators such as:
- The probability of not surviving to a specific age (e.g., 40).
- The adult illiteracy rate.
- The percentage of the population without access to clean water.
- The percentage of underweight children.
The HPI can sometimes provide a more revealing picture of the human development situation than the HDI alone, by highlighting the deprivations that exist.
Looking at both the HDI and HPI together offers a more comprehensive view of human development in a country.
Measurement methods for human development are continuously evolving, with ongoing research exploring additional indicators like the level of corruption or political freedom and their link to development.
The United Nations Development Programme (UNDP) has been publishing the annual Human Development Report (HDR) since 1990, which ranks countries based on their human development levels, primarily using the HDI and HPI.
Gross National Happiness (GNH)
Bhutan stands out as the only country that officially measures progress using the concept of Gross National Happiness (GNH) instead of purely economic indicators like GDP.
GNH takes a more holistic approach, cautiously considering material and technological advancements alongside their potential impact on the environment and the cultural and spiritual well-being of the population.
Essentially, GNH emphasizes that material progress should not come at the expense of happiness. It highlights the importance of non-material, qualitative aspects of development.
International Comparisons
Comparing human development levels across countries can yield interesting insights.
Factors like the size of a country's territory or its average income (per capita income) do not always directly correlate with its level of human development.
Often, smaller countries or relatively poorer nations may rank higher in human development compared to larger or richer neighbours.
Examples include Sri Lanka, Trinidad and Tobago having higher HDI ranks than India despite smaller economies. Within India, states like Kerala show better human development scores than Punjab or Gujarat, despite having lower per capita incomes, often attributed to greater investment in social sectors.
Countries can be grouped into four categories based on their HDI scores:
| Level of Human Development | Score in Development Index | Number of Countries (as per 2018 report) |
|---|---|---|
| Very High | above 0.800 | 59 |
| High | between 0.701 up to 0.799 | 53 |
| Medium | between 0.550 up to 0.700 | 39 |
| Low | below 0.549 | 38 |
Countries With Very High Human Development
These countries have an HDI score above 0.800 (59 countries as per the 2018 report).
Characteristics often include:
- High levels of investment in the social sector (education, health).
- Good governance and people-oriented policies.
- Many are located in Europe and represent the industrialised Western world, but include notable non-European countries as well.
- Often have been former imperial powers.
- Tend to have relatively low social diversity compared to other groups.
The top ten countries in this category in 2018 included Norway, Switzerland, Australia, Ireland, Germany, Iceland, Hongkong, Sweden, Singapore, and Netherlands.
High Level Of Human Development Group
This group includes countries with HDI scores between 0.701 and 0.799 (53 countries as per the 2018 report).
For these countries, providing education and healthcare is a significant government priority. Similar to the 'Very High' group, substantial investment in social sectors distinguishes them.
Countries With Medium Levels Of Human Development
This constitutes the largest group, with scores between 0.550 and 0.700 (39 countries as per the 2018 report).
Many of these countries emerged after the Second World War, including former colonies and countries formed after the breakup of the Soviet Union in 1990.
They often show significant progress in improving their HDI scores by implementing policies focused on people and reducing social inequalities.
This group generally exhibits higher social diversity than countries in the higher human development categories.
Some countries in this group have faced periods of political instability in their recent history.
Low Levels Of Human Development
These countries have HDI scores below 0.549 (38 countries as per the 2018 report).
This group often includes many small countries that have experienced significant challenges such as political turmoil, social instability, civil war, famine, or high rates of diseases.
There is a critical need for targeted policies to address the human development needs of populations in these countries.
Comparing countries reveals patterns in development investment. Countries with high human development tend to invest more in social sectors and experience political stability and equitable resource distribution.
Conversely, countries with low human development often allocate a larger portion of their resources to defence, indicating political instability and difficulties in achieving sustained economic development.
Attributing low development solely to cultural or religious factors is considered misleading; a better understanding requires examining government policies, investment in social sectors, political environment, and the degree of freedom and equity experienced by people.
Exercises
This section contains various questions and proposed activities designed for students to test their understanding of the chapter's concepts, including multiple-choice questions, short answer questions, questions requiring more detailed responses, and project/activity suggestions.