Abstract
Recent literature has contrasted Human Development, described as the ultimate goal of
the development process, with economic growth, described as an imperfect proxy for more
general welfare, or as a means toward enhanced human development. This debate has broadened
the definitions and goals of development but still needs to define the important interrelations
between human development (HD) and economic growth (EG). To the extent that greater
freedom and capabilities improve economic performance, human development will have an
important effect on growth. Similarly, to the extent that increased incomes will increase the
range of choices and capabilities enjoyed by households and governments, economic growth will
enhance human development. This paper analyzes these relationships and the two-way linkages
involved.