The human development approach emerged in response to the growing criticism of the use of economic development as a measure in the standard of living. The approach examines broader human development issues and is concerned with both building up human capabilities and with using those human capabilities fully. It underlines the expansion of opportunities so that the disadvantaged can do more for themselves through economic, social and political empowerment.
Human development approach recognizes that there is no automatic link between economic growth and human development. The link has to be made through deliberate policies at all levels. Economic growth is a necessary but not sufficient prerequisite to enlarge human choices .Economic growth provides resources to support health care, education, and advancement in other Millennium Development Goals (MDGs). In turn, achievements in human development make critical contribution in assuring quality human capital to spur economic growth via productivity gains.
The use of human development Index (HDI), normally in the Hunan Development Reports (HDR) measure a country‘s development which is a composite index measuring average achievement in three basic dimensions of human development to reflect a country‘s achievements in health and longevity (as measured by life expectancy at birth), education (measured by adult literacy and combined primary, secondary, and tertiary enrolments), and living standard (measured by GDP per capita in purchasing power parity terms). Achievement in each area is measured by how far a country has gone in attaining the following goal: life expectancy of 85 years, adult literacy and enrolments of 100 percent, and real GDP per capita of $40,000 in purchasing power parity terms.