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. It will first review some of the theoretical debates on EG/HD linkages, then
review the conclusions suggested by empirical analysis. Finally it will examine the
policy implications of these linkages. Section II discusses the case for HD and what
produces HD. Section III discusses similar issues for EG, and Section IV concludes,
analyzing the two-way relationship between them.