Human Development and Economic Growth

Human development and economic growth are two different paradigms that imply different objectives, measurement techniques, and policies. However, a broad literature has shown that economic growth and human development are intrinsically interconnected, co-evolutionary, and mutually reinforcing each other. The key aim of this chapter is to discuss and compare these two paradigms and outline their elements of specificity as well as their potential linkages. In particular, a review of potential linkages between human development and economic growth highlights their bidirectionality, both in theory and in terms of policy implications. In addition to the main theories, some empirical evidence is also being presented. Finally, specific sections are devoted to policy implications and specificities of transition countries.