Human Development Approach

1. INTRODUCTION
1.1 BACKGROUND
Over the decades, developmental economists have emphasized a number of alternative approaches as the major focus of development. These approaches may be broadly categorized as growth oriented approach, basic need approach, welfare approach, human capital formation approach and human development approach. Though the thrusts of all these approaches are to improve the quality of life, they differ in their priority.
During 1950’s and 1960’s, the thrust of development was on higher economic growth through industrialization. Thus the GNP growth rate was emphasized as the indicator of development. But the development experience of LDCs in 1950s and 1960s brought about a change in the concept of development. In many developing

Welfare approach, measured the economic development from the point of view of economic welfare. It defines economic development as a process where the consumption of goods and services of an individual increases. It was not satisfactory to many developmental economists. Human welfare approach looks at human beings as men beneficiaries of the development process than as participants in it. They emphasize distributive policies rather than productive structure. Besides, it was highly difficult to measure the loss or gain in human welfare.
The basic need approach usually concentrates on the bundle of goods and services that deprive population need. These are mainly food, shelter, clothing, healthcare and water. It focuses on the provision of these goods and services rather than on the issues of human choices. It was not satisfactory and did not have wider acceptance.
In later years, the theories of human capital formation and human resources development focus on the development of human capital as the main thrust of development. It views human being primarily as a mean rather than as an end. They are concerned only with supply side with human beings as instruments for furthering commodity production. But human beings are also the ultimate end and beneficiaries of this process. Thus, the concept of human capital formation captures only one side of human development, not the

Human development treats a human being as an input in the production process, a means rather than an end. Human Development has two sides:
1. Formation of human capabilities such as improved health, knowledge and skill.
2. Use people to make their acquired capabilities for productive purpose.
Balance between the two sides is essential. While, human resource development focuses only on supply side, the human development focuses both on supply and demand side. The central conclusions of first human development report were:
• The link between economic growth and human progress is not automatic: GNP growth accompanied by reasonable equitable distribution of income is generally the effective path to sustain human development. If the distribution of income is unequal and if the social expenditure is low or distributed unevenly, human development may not improve much despite GNP growth.
• A significant reduction in population growth rate is absolutely essential for a