ABSTRACT
The object of this chapter is to analyse the relationship between macroeconomics and human development. The interdependence and the interconnections between them are seldom explored in the literature in either domain. There is, of course, some literature on economic growth and human development. And economic growth is an important dimension of macroeconomics. There is, also, an extensive literature on income distribution and economic growth. And income distribution matters for human development. But this paper is about neither of those intersections. It seeks to examine the interactions between macroeconomics, in terms of objectives or policies, and human development, which is about the well-being of people. Each can, and often does, exercise a significant influence on the other. Hence, it is necessary to understand the nature and the direction of causation. At the same time, even if the focus of the literature on human development is almost entirely on the developing world, it is necessary to recognize that this relationship also exists and could matter in industrial societies. The similarities and differences between poor countries and rich countries, in this sphere, deserve more attention.
