Human Development And Economic Growth

Human Development has been recently considered as the ultimate goal of human activity instead of economic development. We can define Human Development as expanding people 's opportunities and Choices to reach a point in which they can live longer, healthier, more educated and fuller lives. Apparently, there is a substantial relation between economic growth (EG) and human development (HD). From one way, economic growth gives the resources to allow perpetual progress in human development. On the other way, improvements in the quality of the labour force (Education, Health) are an essential factors contributing to economic growth. But, while this two-way connection between human development and economic growth may now be widely agreeable, the

If the low income families get more income, they spend more on food consumption substantially. Of 38 studies on various countries one-third show that at least 50% of extra income is spent in this way. Practical evidence, for example, for Indonesia, Pakistan, Philippines, Malaysia, Bolivia, Brazil, Nicaragua, Chile, Côte D 'Ivoire, Ghana, India, and Peru, are also pointing the good effects of family income shift to child Education. Based on this relationship, it is anticipated that if the distribution of income in Brazil were the same as Malaysia 's, school enrolments through poor student would be 40% more than they currently are. While the evidence on the relation between income and health is less extensive, studies in Brazil, Nicaragua, Côte d 'Ivoire and Chile suggest that household income also has a critical effect on the demand for health, some showing a much higher relative response for lower than for high income

Since 1980s, the same ratio of GNI has gone to public expenditure (30% in Malawi; 27% in Kenya) but Kenya had much higher social allocation proportion (47% compared to 35%) and social priority proportion (34% compared to 14%) so that the ratio of GDP going directly to HD-enhancing priorities in Kenya was over three times that of Malawi (5.1% compared to 1.5%). The significance of economic growth for rising resources to support human development is illustrated by a comparison between Sudan and Botswana. In 1970 public expenditure on education and health per person was similar in the two states (96USD in 1987 prices in Sudan, and 65USD in Botswana). In the period between 1970 and 1992 expenditure per capita increased more than 7 times in Botswana, while in Sudan it was remaining unchanged. However, by 1992, expenditures in Sudan were less than 25% of that in Botswana (114USD Vs. 466USD). The differences in the public expenditure ratio was not the reason of this, although it was higher in Sudan during the 70s and equal to Botswana 's during the 80s, but comparing to much faster income growth in Botswana, which meant that, with the same share of GNP going to education and health, expenditure would increase much faster