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How is human development a broader term as compared to human capital?

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CBSE/Class 11/Commerce/Economics Tuition/Class XI-XII Tuition (PUC)

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(i) Human development is a broader term as compared to human capital because human capital is a means to an end whereas human development is an end in itself. Human capital considers education and health as a means to make human being a good productive person. Human capital is a means to an end where... read more

(i) Human development is a broader term as compared to human capital because human capital is a means to an end whereas human development is an end in itself. Human capital considers education and health as a means to make human being a good productive person. Human capital is a means to an end where means implies skills that are used in the process of production and end denotes the consequent increase in the productivity. The higher level of output can be achieved through extensive application of human capital.

(ii) On the other hand, human development is an end in itself which refers to the holistic development of the individuals. The devel-opment can be possible only by acquiring good education and attaining good health. Therefore, education and health are the two main features of human development. Human development occurs when majority of the people in the economy are educated and healthy. Thus, the end signifies the development of an individual via education and health. Therefore, we can conclude that human development is a broader term as compared to human capital.

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Because Human capital without development of human is of no use. Human development is a key factor for development of nation as a whole.
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