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ECONOMIC GROWTH CENTER YALE UNIVERSITY P.O. Box 208269 New Haven, CT 06520-8269 /~egcenter/ CENTER DISCUSSION PAPER NO. 887 HUMAN DEVELOPMENT AND ECONOMIC GROWTH Gustav Ranis Yale University May 2004 Notes: Center Discussion Papers are preliminary materials circulated to stimulate discussions and critical comments. The assistance of Dan Keniston and Tavneet Suri is gratefully acknowledged. This paper can be downloaded without charge from the Social Science Research Network electronic library at: /abstract=551662 An index to papers in the Economic Growth Center Discussion Paper Series is located at: /~egcenter/research.htm Human Development and Economic Growth Gustav Ranis Abstract 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 w