Difference between Economic Development and Human Development

1. It was observed that despite economic achievements, the living standard of their masses remained largely unchanged.

2. It was realised that the economic development alone cannot promote human development.

3. Consequently the concept of human development got expanded beyond economic development.

4. Human development is the process of both quantitative change and qualitative growth.

5. As a result the concept of Gross Domestic Product was enlarged to encompass the elements of human happiness.

6. The concept of human development was taken into a broader perspective while touching upon social, economic, political and cultural aspects of human life with special emphasis on reduction in poverty and narrowing down the gap of inequality and. unemployment.

7. It galvanised the social-economic structure for people's development.

8. The concept of human development embraces all aspects of human life and not just the economic aspect. Here the utilisation effect of income is important and not the income itself.

9. Human development is the end whereas social development and economic growth are the means to it.

10. But the importance of economic growth among all contributory factors of development is paramount. It enlarges human skills, widens their choices and develops human beings as resources which in turn again influence economic development.