Question
What are the differences between human capital and human development?OR
Bring out the differences between human capital and human development.

Answer

Difference between human capital and human development:
S. No.
Basis
Human Capital
Human Development
1.
Concept
It is a narrow concept.
It is a broader concept.
2.
Means of productivity
It considers education and health as a means to increase labour productivity.
It considers that education and health are integral to human well being because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices they value.
3.
Link
Human capital treats human beings as a means to an end, the end being the increase in productivity.
According to the concept of human development, human beings are an end in themselves.
4.
Welfare
In human capital, investment in education and health is unproductive if it does not enhance output of goods and services.
In human development, human welfare should be increased through investments in education and health even if such investments do not result in higher labour productivity. Thus, every individual has a right to be healthy and literate.

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