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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
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