efficiency – Wealth Forum Online

Human Development (HD) is defined as “the process of enlarging people’s choices”. The term ‘choices’ are the many things human beings have a good reason to value and to desire. These ‘choices’ are solidly based on a reasonable and reasoned moral argument and it excludes whimsical or relativistic elements such as one’s choice to kill or sell heroin. Put in another way, the ‘choices’ you make must have moral justification and be reasonable. Examples of ‘choices’ are: the ‘choice’ to go to school and improve one’s knowledge; the ‘choice’ to apply for a job to earn some income; the ‘choice’ to marry; the ‘choice’ to eat a particular type of food in a day; the ‘choice’ to go to the movies etc. The most critical of these ‘choices’ are to lead a long and healthy life, to be educated and to enjoy a decent standard of living. Additional choices may include political freedom and guaranteed human right and self-respect.

HD differs from economic growth in that economic growth is the sustained increase in a country’s per capita income. Economic development is defined as the visible changes or improvements which come about as a result of economic growth. Therefore a country’s per capita income may improve but until it yields visible changes or improvements in the country, we can’t confirm that there is improvement in wellbeing of the citizens.

HD strives to achieve the three core values of contemporary ethics: Efficiency; Equity; Freedom.

Efficiency- Efficiency is defined as optimal use of existing resources. In our case, it is the maximum enlargement of the material base for the satisfaction of human choices. How do we increase the availability of goods and services to satisfy human needs?
Equity-Equity refers to commutative and distributive justice, particularly to the apportionment of opportunities among different human beings.
Freedom- Freedom refers to the possibility of choosing, and forms a bridge between Efficiency and Equity.

It is partly true that income is a good proxy for human choices because of several reasons. These are:

Income is a means and not an end. Wellbeing of a society depends on the uses to which income is put, not on the level of income itself.
Some countries have enjoyed high levels of human development at modest income levels and some countries have also enjoyed poor levels of human development at high income levels.
If a country has invested in its people, its potential income may be higher than it is experiencing now and vice versa.
Multiplying problems of most industrialized, rich countries show that high incomes, by themselves, are no guarantee for human progress.

To conclude, income growth does not automatically bring about human progress. It depends on the use to which income is put. HD denotes both a process of widening people’s choices and the level of their achieved wellbeing. The process involves formation of human capabilities and the level involves the use that people make of their acquired capabilities.

Let us ask our selves two questions. 1. How much have you widened your choices and 2. How have you used your acquired capabilities? If you are at a point where you need more knowledge or education or skills, prepare and go for it. Develop your mind and your skills. Let ‘space’ be your limit because the ‘sky’ is not the limit! If you think you already have enough education or skill or knowledge, what have you been able to do with it? Be innovative by identifying human needs and providing solutions to those needs with what you have acquired. Solving those problems will generate the wealth you so much desire and make a positive impact on your world. Don’t forget that the world will always celebrate distinguished leaders!