ABSTRACT

Economic conditions of living at the household and society level are important factors to be considered in studying the causes for the variation in human development outcomes between different states, regions, countries or social groups. Traditionally the focus has been on economic growth or per capita incomes as the ultimate objective of development. With the introduction of the human development approach, there has been some shift in economic analysis with greater attention being paid to outcomes such as better education or health as the end goals to be achieved and economic growth being one of the important instruments towards this. However, there is still no consensus on the exact relationship between economic growth and human development, especially when it is translated into recommendations on policy priorities.1