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macroeconomics m.com sem 2 mumbai university question paper

 M.com Part 1 (Semester 2)

MACROECONOMIC

Most Important Question Bank for Current Exam


11.   Explain
the concept of Human Development?


ANS:

The
UNDP Human Development Report 1997 describes 
human
development as “the process of widening people’s choices 
and
the level of well-being they achieve are at the core of the notion 
of
human development. Such theories are neither finite nor static. 
But
regardless of the level of development, the three essential 
choices
for people are to lead a long and healthy life, to acquire
knowledge
and to have access to the resources needed for a 
decent
standard of living. Human development does not end there, 
however.
Other choices highly valued by many people, range from 
political,
economic and social freedom to opportunities for being 
creative
and productive and enjoying self-respect and guaranteed 
human
rights”.


The
HDR 1997 further stated that, “Income clearly 
is
only one option that people would like to have though an 
important
one. But it is not the sum-total of their lives. Income is 
only
a means with human development the end”.


What
we understand from the description of human 
development
found in HDR 1997 is that human development is a 
continuous
process. The process becomes developmental only if it 
increases
choices and improves human well-being. Amongst other 
choices,
the three most important choices are that of long and 
healthy
life which is determined by life expectancy at birth, to 
acquire
knowledge which is determined by education and a decent 
standard
of living which is determined by GDP per capita. These 
three
choices are also the components of human development 
index.
While these three choices are basic to human development, 
the
choices go beyond these three to include the ever expanding 
social,
political and economic freedoms that make human life worth 
living.
Thus, guaranteed human rights become an important aspect 
of
human development.


According
to Paul Streeton, human development is necessary due to the following reasons:


1. Economic
growth
is only a means to the end of achieving human
development.


2.
Investments in education
, health and training will increase longevity
and productivity of the labor force and thereby improve 
human
development.


3.
Female education and development
widens choices for women’s
development. Reduced infant mortality rate reduces 
fertility
rate and reduces the size of the family. It further 
improves
female health and helps to reduce the rate of growth 
of
population.


4.
Encroachment upon
the natural environment is the result of growing
size of impoverished populations. Problems of 
desertification,
deforestation, and soil erosion, erosion of natural 
beauty,
unpleasant habitats and surroundings will reduce with 
human
development.


5.
Poverty reduction
will encourage people to satisfy higher
order 
needs
like esteem needs and the need for self-actualization. 
Thus,
human development can contribute to a better civil 
society,
a credible democracy and social stability and political 
stability.

 

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