ECODEPT

CARTEL, CHARLES GIL D.

UNIT DELIVERABLE: OVERALL INSIGHTS FOR ECONOMIC GROWTH

Leveraging Human Development Index and its impact on Economic Growth

In this fast-paced world, the only thing that is constant is change. Matters focusing on the correlation between the
Human Development Index (HDI) and the Economic Growth is uniquely indubitable as the two covers a wide range of
economical understanding. Significantly, the Human Development Index serves as a metric in assessing the individualistic
capabilities in relation to the people’s quality of living as the basis of a country’s functioning. The level of Human
Development Index determines the status of economic growth of a nation in terms of the life expectancy, knowledge, and
the living standards of people in a state. To say the least, both the Human Development Index and the Economic Growth
have significant proportional gains wherein Economic growth improves Human Development, and the upsurge of Human
Development Index widens the prospect of Economic Growth.

Factually, most countries across the globe are regarded as developing countries. In this states, socioeconomic
dilemmas are more prevalent, such as: poverty, lack of quality education, medical limits, low rates of employment, etc. The
extreme need for socio-economic structural reform cannot only be achieved through the tangible factors or an aspect of
human development. Development also needs structural reform on varying ideals, perspective, and norms. As the former is
concerned with the idea of the enhancement of the quality of people’s lives by having wide arrays of opportunity and
promoting subjective choice to the life one aims to have, the Human Development Index (HDI) impacts Economic growth
through the countenance of developmental values.

The importance of sustenance in development should be acknowledged in accordance with the capacity of people to
sustain themselves with basic life commodities such as food, clothes, electricity, etc. The necessity to make these needs
accessible to people especially the marginalized ones will enable them to experience an accelerated condition of life. For
instance, economic growth enhances human development by means of increasing the income and job fuels to suffice people
with life essentials for their daily living. In fact, a massive number of poverty-stricken people are incapacitated to provide
themselves with these commodities due to restricted opportunities and abilities. The inclination of people lacking
sustenance will cause turbulence in their living conditions such as health issues, education, maintenance, and societal aid.
Hence, the absence of sustenance will surely lead to a severe effect on economic growth resulting in decreased
consumption per capita, life-expectancy rate, and population growth.

In relation to sustenance, self-esteem is subjected to the promotion of human development as it pertains to the
indispensable sense of worthiness or importance by means of utilitarianism. Developed countries are known to be of high
national-esteem due to their great capacity to be independent and self-sufficient as compared to developing and
underdeveloped ones. For an individual to gain self-esteem is to have exposure to opportunities made available for them.
As a result, people tend to pursue education by all means to achieve educational experience and land on prominent jobs for
them to be looked upon and be in service to the community. This leads to a higher chance of urbanization, increase in labor
force and the Gross National Product (GDP) --- people with educational attainment or those employed can achieve
anything they aim for and have lots of life openings. Nevertheless, the ownership of material things cannot simply be the
basis of one’s self-esteem, rather it is the respect and dignity of an individual having a good reputation. Countries
consisting of majority of individuals with self-esteem are more economically progressive since freedom and capabilities
obtained from it will have a crucial effect on growth.

Accordingly, the power of having to choose for oneself --- freedom --- is a cumulative factor of economic growth.
The elevation of the scope of human choices enables people to gain control of things essential to their upbringing. The idea
of freedom from servitude does not only focus on the freedom of choice, but also unrestricted involvement in political,
societal, environmental, and congregational issues. With liberation in the hands of people can serve as a gateway towards
economic rise, wherein people, belonging to any hierarchal status, are free to conduct things as for the betterment of the
nation. If an individual decides to break the chain of poverty in his family, then he or she could have made a momentous
change to the generations to come. Moreover, by simply being vocally active in societal issues can bring about change in
mitigating oppression, inequality, and commercial biases. By the capacity of freedom uplifting reforms can diminish the
factors impeding economic growth. As noted, social conditions in a particular community or state can be enhanced.

Putting into account the values of Human Development can leverage social and economic development through
definite adherence to its importance and impact on growth. Development is not a single-dimensional process of tangible
structural construction as it can entail other internal factors. Main revolutions in social norms, popular cultural and societal
perceptions will result in the enhancement of economic growth and enlargement of the Human Development Index (HDI)
in eradicating poverty, low capital rate, suppression, and a lot more. Currently, all nations are possibly doing their best in
maintaining high rate of Human Index Development or at least create an upgrade through joint and international succors.
Once and for all, the people are the major pioneers of economic growth, and their initiatives will create a ripple effect on
what lies ahead of them in line with their goal of global advancement.