Human Capital and Human DevelopmentThe two terms: Human Capital and Human Development sound similar but they are fundamentally different from each other. While human capital considers education and health as means of increased productivity of the workforce, human development is formed on the idea that education and health are an integral part for human well-being. Human development has its basis on education and health as it is quite plain that unless the people are educated and are healthy they will not be able to make the choices that they value. Human capital treats human beings as the means to increase productivity. Hence any investment in education or health is not profitable unless it increases the out of goods and services.
Human development, on the other hand, treats human beings as ends in themselves meaning any investment in unproductive education and health is still essential for the well being of the human beings. In this view, basic education and basic health are important irrespective of their contribution to the economic growth and hence every individual has a right to have their access.