Human development

In Matías Vernengo, Esteban Perez Caldentey & Jayati Ghosh, The New Palgrave Dictionary of Economics. Palgrave Macmillan (2024)
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Abstract

The concept of human development, formulated explicitly in the nineteenth century, expands upon the notion of economic development to include social, political and even ethical dimensions. Since the mid-twentieth century, international organisations such as the United Nations and the World Bank have adopted human development as a holistic approach to evaluating a country’s progress that considers living conditions, social relations, individual freedoms and political institutions that contribute to freedom and well-being, in addition to standard measures of income growth. The 1990 Human Development Report by the United Nations Development Programme (UNDP) was a significant milestone in establishing the concept of human development. Expanding the freedom of individuals to lead long, healthy and creative lives is at the heart of UNDP’s focus on human development. Beyond the UNDP approach, other human development frameworks, such as those proposed by Martha Nussbaum, have emerged and are based explicitly on self-fulfilment, well-being and happiness. Recent studies add ethics to the latter approach and emphasise the importance of pro-social behaviour and holistic mental health in achieving a good life.

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Felipe Correa
University of Chile

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