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Growth and Human Development: Comparative Latin American Experience

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  • Gustav Ranis

    (Economic Growth Center, Yale University)

  • Frances Stewart

Abstract

This paper seeks to examine the interdependence between economic growth (EG) and human development (HD). It is concerned with changes in per capita income and its two-way relationship with the basic societal objective of human development. Regressions across various Latin American countries are run for 1960-92. Country performance is separated into virtuous/vicious cycles or HD/EG lopsidedness. The study makes an attempt to correct the commonly held view that ensuring increases in economic growth automatically leads to advances in human development. Human development has to occur prior to or simultaneous with improvements in economic growth, if a country is to reach a virtuous cycle. The Latin American experience indicates that a balanced approach to development has to be adopted. It is imperative to focus on human development from the outset of any reform program, as policies that emphasize economic growth alone are futile in sustaining high levels of human development.

Suggested Citation

  • Gustav Ranis & Frances Stewart, 2001. "Growth and Human Development: Comparative Latin American Experience," Working Papers 826, Economic Growth Center, Yale University.
    • Handle: RePEc:egc:wpaper:826
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    More about this item

    Keywords

    Human Development; Economic Growth; Latin America;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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