Evan Carmichael Top Header about About About facebook Twitter YouTube Google+

The concept of development: Africa’s human development



Free PDF Download
References: Human Capital and Economic Development - By African Development Bank

Name: Email:


The concept of human development centres around the notion that human welfare depends on various
dimensions, many of which are not well captured by conventional measures of economic income (see Griffin and Knight, 1990; UNDP, 1990). Particular attention has been given to using measures of health
and education as welfare indicators in addition to GDP per capita. Education, good health and longevity
are intrinsically valuable outputs. In conventional measures of economic output, health and education’s
contribution is measured essentially by the costs of producing the outcomes, ie expenditures on schools
and medical facilities. Such a procedure identifies inputs rather than outputs. The valuation of both
health and education is difficult as both are goods with attributes different from most types of goods
produced in an economy. Whilst high incomes may be conducive to health, health cannot be directly
purchased like material goods and services. Health and education are often subsidised by the state and
in some countries education is compulsory for certain minimum length of times. Many, if not most,
health and education services are produced by the public sector. Governments play a direct part in
providing services very directly linked to human welfare.
In this paper, health outcomes are measured mainly through mortality statistics. Of these, life
expectancy at birth is perhaps the most comprehensive, depending as it does on the current agespecific
mortality rates for all age groups. Educational indicators are either stock or flow measures.
Stock measures of educational indicators include the literacy of the population, the average number of
years of education of the population and the extent of educational attainment by level. These measures
are appropriate for assessing the accumulated achievement of a country or for estimating the contribution
of education to economic performance. Flow measures are school enrolment ratios and measure
investment in the future capacities of the population.1
The UNDP has developed a composite indicator, the human development index (HDI),
which gives equal weight to three indicators: real GDP per capita (measured at purchasing power
parity in constant prices); life expectancy at birth; and educational attainment, measured by adult
literacy (two-thirds weight) and combined primary, secondary and tertiary enrolment ratios (onethird
weight) (see UNDP, 1997, p122 for details). The index is valuable in extending the economic
concept of welfare, but for many purposes it is more useful to focus on the individual components
of the index than the index itself. Africa has performed very differently in each of the three
dimensions of the welfare and the dimensions are not independent.
The most recent UNDP Human Development Report shows that Africa has the lowest level
of human development of any region but its income per capita is higher than that of South Asia.2
In what follows, we often compare Africa with South Asia. This comparison provides a useful
benchmark, since South Asia is the region most similar to Africa in terms of income and overall
development. For example, it is instructive to consider why Africa has a lower HDI than South
Asia despite having higher income. The proximate cause is the relatively low life expectancy at
birth of Africans.

Human Capital and Economic Development
Simon Appleton and Francis Teal


Related Articles

  Human and Physical Capital: The Effects of Human Capital on Economic Development
  Introduction: Human Capital and Economic Development
  Preface: HUMAN CAPITAL FORMATION AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES
  Marcus Asay and Economic Development
  Moving Forward: International Community
  Marcus Asay Learns Why Economic Development is Required
  VI. B. Banking Sector Development: WHAT DETERMINES STOCK MARKET DEVELOPMENT IN AFRICA?
  Web Development in India and the Related Assumptions
  New Partnership for Africa’s Development
  2.0 Recent Economic Performance in Africa and Prospects for 2007: Economic Report on Africa 2007
  Application Development for SmartPhones
  Managing Unrealistic Employee Expectations for Rapid Promotion
  Introduction: Fiscal Dimensions of Sustainable Development
  Mobile Software Development Benefits
  Why Should You Hire a PHP Developer For Your Website Development?
  Why Should You Hire a PHP Developer For Your Web Development?
  Agile Software Development – An Overview
  Miscellaneous use of Android SDK tools and techniques
  5.3 Other government SME agencies and organizations: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005
  Talent Development and The Wheel of Becoming

Home > African-Accounts > African Development Bank > The concept of development Africas human development >

Free PDF Download
References: Human Capital and Economic Development - By African Development Bank

Name: Email:

About the Author: African Development Bank

RSS for African's articles - Visit African's website
The African Development Bank is the premier financial development institution of Africa, dedicated to combating poverty and improving the lives of people of the continent and engaged in the task of mobilizing resources towards the economic and social progress of its Regional Member Countries.The Bank’s s mission is to promote economic and social development through loans, equity investments, and technical assistance. The ADB is a multilateral development bank whose shareholders include 53 African countries and 24 non-African countries from the Americas, Asia, and Europe. It was established in 1964, with its headquarters in Abidjan, Côte d’Ivoire, and officially began operations in 1967.
Click here to visit African's website.
Dashed Line

More from African Development Bank
Abstract Factors Impeding the Poverty Reduction Capacity of Microcredit Some Field Observations from Malawi and Ethiopia
Targeting women Tenets of Microcredit for Poverty Reduction
Interest Rates Tenets of Microcredit for Poverty Reduction
Introduction Human Capital and Economic Development
Poverty and Human Resources

Related Forum Posts

Setting a Budget For Professional Development Setting a Budget For Professional Development
15-Entrepreneur help/advice 15-Entrepreneur help/advice
Re: Search Engine Business Ideas Re: Search Engine Business Ideas
Re: Search Engine Business Ideas Re: Search Engine Business Ideas
re: angel investor re: angel investor

Share this article. Fund someone's dream.

Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
Share for a Cause
Featured Video


Expert author video by:
Canada Mortgage, Mortgage Canada Rates



Worksheets
By: Evan Carmichael

Do you have what it takes to be an entrepreneur?

8 Powerful Steps to Finding Your Passion

Does your pitch suck?

Create a plan of attach to launch your new business.

8-Cover

Like this page? PLEASE +1 it! Evan Signature
Bottom Footer



Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

Why It Pays to Know Your Customers

Four Types of Highly Effective Business Plans

Self Employed Opportunities for Retirees

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.