Chapter 1: Introduction The ultimate purpose of development is to expand the capabilities of people, to increase their ability to lead long and healthy lives, to enable them to cultivate their talents and interests, and to afford them an opportunity to live in dignity and with self-respect. The means by which this is achieved may be diverse--by increasing the stock of physical capital, introducing new technologies, changing institutions, altering incentives. Equally important, and sometimes more important, are investments in human capital--the provision of education and training, the creation of employment and opportunities to acquire skills while on the job, the provision of primary health care and adequate nutrition, expenditure on research and on seeking out new sources of information. Both these ideas--development as capability expansion and as human capital formation--are captured in the phrase human development and throughout this essay we shall take development to mean human development. 1 It is now widely recognized that at the national level, an increase in outpu......

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