INTERNATIUNAL BUSINESS

BIBLIUCRAPHIC RESEARCH



HUMAN
DEVELUPMENT
AND
ECUNUMIC CRUWTH







November ŶŴŵŵ






CurrenLlyţ human developmenL and economlc growLh appear Lo be Lhe mosL pursued goals by
naLlons worldŴwldeŦ PlsLorlcallyţ Lhey have Lended Lo be lsolaLed and consldered lndlvldually
and separaLelyŦ Poweverţ modern Lheorles puL forLh Lhe sLrong lnLerrelaLlons LhaL underlle
beLween boLh concepLsŦ We wlll now proceed Lo presenL Lhe analysls made on such Loplc by
Aloyslus A[ab Amlnţ who ls an experL on uevelopmenL Lconomlcsţ and CusLav 8anlsţ who also
masLers Lhe fleld of lnLernaLlonal and uevelopmenL LconomlcsŦ

ln Lhe flrsL placeţ lL ls lmporLanL Lo sLress Lhe facL LhaL Lhere ls a LwoŴway llnkage Lo
conslder as lL ls clear LhaLţ as CusLav 8anls saysţ ºLo Lhe exLenL LhaL greaLer freedom and
capablllLles lmprove economlc performanceţ human developmenL wlll have an lmporLanL
effecL on growLh (ŧ) Lo Lhe exLenL LhaL lncreased lncomes wlll lncrease Lhe range of cholces
and capablllLles en[oyed by households and governmenLsţ economlc growLh wlll enhance
human developmenL"
1
Ŧ ln order Lo explaln Lhls lasL llnkţ lL ls necessary Lo brlng forward Sen's
concepL of developmenLť he advocaLes LhaL developmenL ls based on capablllLlesţ Lhese
referrlng Lo Lhe ablllLy and poLenLlals Lo do and Lo be ŶLhusţ accordlng Lo hlmţ developmenL ls
Lhe quallLy of llfe ln Lerms of capablllLy expanslonŦ 1hls concepL of developmenL ls Lherefore
dependenL on Lhe economlcţ soclalţ culLural and lnsLlLuLlonal envlronmenL as lL ls wlLhln Lhe
enLlre conLexL of a naLlon LhaL posslble opporLunlLles avallable Lo lndlvlduals are deLermlnedŦ
locuslng flrsL ln Lhe economlc envlronmenLţ one can see LhaL a growLh ln lncome leads dlrecLly
Lo an lncrease of Lhe capablllLles of lndlvlduals ŶCuÞ can be Lherefore seen as an lnsLrumenL Lo
achleve a wlde range of capablllLlesţ such as beLLer houslng and LransporLaLlonŴ and lndlrecLlyţ
Lhrough prlvaLe expendlLures and governmenL programsţ lL has a sLrong effecL on llLeracy and
healLh ouLcomesŦ ln Lhls senseţ hlgher lncomes enable Lhe achlevemenL of cruclal human
developmenL ob[ecLlvesŦ noneLhelessţ Lhe lmpacL of economlc growLh on a naLlon's human
developmenL level ls also affecLed by lLs soclalţ pollLlcal and culLural envlronmenLŦ lL ls of uLLer
lmporLance Lhe way lncome ls dlsLrlbuLed among a socleLyţ boLh aL a mlcro level wlLhln a
household as well as aL a macro level across households Ŷln generalţ Lhe more equal Lhe
dlsLrlbuLlon of resourcesţ Lhe more llkely LhaL lncome growLh wlll be reflecLed ln an
lmprovemenL ln Lhe llfe of each lndlvldualŦ

Moreoverţ wlLh regard Lo Lhe chaln Lowards human developmenL lL ls lmporLanL Lo
noLe Lhe Lwo maln seLs of llnks whlch lL hasť Lhe lnfluence of household acLlvlLy and spendlng
on human developmenLţ and Lhe lnfluence of governmenL pollcles and expendlLuresŦ ln Lhls
sense lL can be sald LhaL Lhe effecLs of economlc growLh on governmenL human developmenL
expendlLures are bound Lo complemenL prlvaLe expendlLure channelsŦ Pereţ Aloyslus A[ab
Amln remarks Lhe lmporLance of lnsLlLuLlons ln Lhls process as expendlLure pollcles ºare
deslgned by people and people lmplemenL pollcles based on Lhe lnsLlLuLlonal framework"
2
ŶlL
lsţ Lhusţ wellŴfuncLlonlng lnsLlLuLlons LhaL creaLe Lhe necessary and approprlaLe condlLlons and
envlronmenL for Lhe expanslon of lndlvlduals' capablllLlesţ lŦeŦ human developmenLŦ


1
CusLav 8anlsţ ºPuman uevelopmenL and Lconomlc CrowLhţ" ¥ole uolvetsltyţ ceotet Jlscossloo popet
ooŦ 887Ŧ (May 2004)Ŧ

2
Aloyslus A[ab Amlnţ ºLconomlc CrowLh and Puman uevelopmenL wlLh CapablllLles LxpanslonŦ"

Cn Lhe oLher handţ as has been menLloned aboveţ human developmenL also has
effecLs on economlc growLhŦ 1he mosL lmporLanL componenLs of human developmenL whlch
conLrlbuLe largely Lo economlc growLh are educaLlon and healLhŦ 1he former has a sLrong
effecL on labour producLlvlLyţ on Lhe raLe of lnnovaLlon and on Lechnologlcal lmprovemenLsŦ
Slmllarlyţ Lhe laLLer can also lmprove producLlvlLy and lncomesŦ 1hese Lwo facLors may also
have sLrong lndlrecL lmpacLs on economlc growLh Lhrough Lhelr effecL on Lhe dlsLrlbuLlon of
lncome Ŷas educaLlon and healLh lmprove and become more broadly basedţ low lncome
people are beLLer able Lo seek ouL economlc opporLunlLlesŦ

ln addlLlonţ Lhere ls lnevlLably a parallellsm beLween human developmenL and human
caplLalŦ AlLhough Lhe flrsL represenLs a broader concepLţ as CusLav 8anls polnLs ouLţ many of
lLs elemenLs overlap slgnlflcanLly wlLh Lhe more LradlLlonal noLlon of human caplLalŦ 1hls ls
relevanL now slnce economlcally lL has been proven LhaLţ regardless of Lhere belng Lhe
posslblllLy of economlc growLh Laklng place ln Lhe shorL run on Lhe basls prlnclpally of caplLal
accumulaLlonţ ln Lhe long run lL ls lndlspensable Lo focus on human caplLal and Lechnologlcal
progress because Lhe marglnal producL of caplLal Lends Lo zeroţ Lhls meanlng LhaL lL ls Lechnlcal
progress and Lhe growLh raLe of labour whaL wlll essenLlally deLermlne Lhe raLe of growLhŦ 1haL
ls Lo sayţ for susLalned economlc growLhţ human caplLal ls a prlnclpal facLor Lo Lake care of Ŷ
Aloyslus A[ab Amln brlngs agaln Lhe lmporLance of lnsLlLuLlons as Lhe responslble for
approprlaLe human caplLal formaLlonŦ Moreoverţ lL ls noL only LhaLţ LheoreLlcallyţ growLh
becomes a funcLlon of Lechnology and human caplLalţ as such concluslon has also been proven
by emplrlcal meansŦ Plro lzushl and 8oberL Pugglns carrled ouL a research pro[ecL on Lhls Loplc
and reached Lhe same concluslonť ºLhe raLe of economlc growLh ls deLermlned by Lhe
accumulaLlon of human caplLal"
3
ţ lmplylng Lhls LhaL educaLlon and Lralnlng are Lhe key facLors
Lo Lake lnLo conslderaLlon when approachlng Lhls fleldţ as lL ls noLlceable LhaL healLhyţ wellŴ
educaLed people make an economy more producLlveŦ 1hls same llne of argumenL ls adopLed
by Wllmar de !esus 8rlceno 8ondón and nelson Ávlla ŶLhey assure LhaLţ aparL from belng an
end ln Lhemselvesţ Lhe developmenL of human capablllLles Lhrough lnvesLmenL ln educaLlon
andţ more lmporLanLlyţ ln healLhţ ls cruclal as an lnsLrumenL Lo achleve soclal and economlc
developmenL of naLlonsŦ

All ln allţ Lhe exlsLence of a poslLlve correlaLlon beLween human developmenL and
economlc growLh and vlce versa ls undenlableŦ 1hese Lwo concepLs are lmbrlcaLed ln such a
way LhaLţ when pursulng Lhe prosperlLy of a naLlon and lLs lndlvldualsţ Lhey have Lo come hand
ln handť lmprovlng levels of educaLlonţ for exampleţ should aL leasL move LogeLher wlLh efforLs
Lo dlrecLly enhance growLhŦ




3
8oberL Pugglns and Plro lzushlţ ºLmplrlcal analysls of human caplLal developmenL and economlc
growLh ln Luropean reglonsŦ lmpacL of educaLlon an LralnlngŦ" @ltJ tepott oo vocotloool ttololoq
teseotc lo íotopeţ Offlce fot Offlclol lobllcotloos of te íotopeoo commooltles (2004)Ŧ

BIBLIUCRAPHY

8anlsţ CusLav (May 2004)Ŧ ºPuman uevelopmenL and Lconomlc CrowLhţ" ¥ole uolvetsltyţ
ceotet Jlscossloo popet ooŦ 887Ŧ

Amlnţ Aloyslus A[abŦ ºLconomlc CrowLh and Puman uevelopmenL wlLh CapablllLles
LxpanslonŦ"

8rlceno 8ondónţ Wllmar de !esus and nelson Ávlla (2011) ºlnvesLlng ln healLh Ŷ Lconomlc
CrowLh and Puman uevelopmenLť 1he 8epubllc of venezuelaŦ 1990Ŵ2008 ÞerlodŦ"
wwwŦtevlstooeqotlomŦotqŦve 19 (7) pŦ 126Ŵ 161Ŧ

Pugglnsţ 8oberL and Plro lzushl (2004)Ŧ ºLmplrlcal analysls of human caplLal developmenL and
economlc growLh ln Luropean reglonsŦ lmpacL of educaLlon an LralnlngŦ" @ltJ tepott oo
vocotloool ttololoq teseotc lo íotopeţ Offlce fot Offlclol lobllcotloos of te íotopeoo
commooltlesŦ

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