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Notes 7.3 Human Development

Human development is a multifaceted and complex process. There are many dimensions along
which development occurs and there are complex interdependencies and linkages between
these dimensions. (In mathematical terms, you may say that these dimensions are not mutually
orthogonal.) Due to these dependencies and linkages, attaining goals is not a simple process of
randomly enumerating them and then arbitrarily attempting to work on each sub goal. The
enumeration of the goals itself should reveal some of the dependencies. Care must be taken to
distinguish between causes and effects, between underlying causes and their symptoms.

India's Human Development goals enumerate them randomly. Indeed, the first "goal" is Reduction
of poverty ratio by 5 percentage points by 2007 and by 15 percentage points by 2012. Poverty
cannot be reduced by declaring it as a goal. If indeed it were that easy, we should reduce poverty
by 100 percent, and not pussy-foot around the place with goals of reducing it by only five
percentage points.
Poverty reduction is the combined effect of a number of other 'goals' that one may have. For
instance, poverty will be reduced if these were to happen.
1. Control population growth.
2. Increase access to education.

3. Provide access to credit.
4. Have a rational labor and industrial policy.
If you do all the above (and more, perhaps) successfully, the outcome will be reduction in
poverty. Whether that is a 5 percentage points reduction or a 50 percentage points only time will
tell.
If there was an incentive for people to state realistic goals and achieve them, then we could have
an honest goal setting exercise.

Example: Suppose if the goals were not achieved, those setting the goals were to lose
their jobs, they would not set these goals at all.
They would then think very clearly and figure out what the factors are that, if obtained, would
lead to certain results. These bureaucrats would then list out the factors and say in the end, "Don't
know by how many points exactly will poverty be reduced but it will be reduced if the factors
are obtained."

A partial list of factors needs to be targeted for achieving development:
1. education, primary as well as vocational
2. access to credit
3. access to markets
4. a transparent legal system and law enforcement
5. rule of law as opposed to rule by men

Monitorable Targets for the Tenth Plan and Beyond

1. Reduction of poverty ratio by 5 percentage points by 2007 and by 15 percentage points by
2012;

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