Question

How is human development a broader term as compared to human capital?

Answer 1

Human capital considers education and health as a means to increase labour productivity. On the other hand, human development is based on the idea that education and health are integral to human well-being because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices they value.

In human capital view, any investment in education and health is unproductive, if it does not enhance the output of goods and services. In the human development perspective, human beings are ends in themselves. So, human capital is a part of human development.