How is human development a broader term as compared to human capital?
Human capital considers education and health as a means to increase labour productivity. It treats human beings as a means to an end, where the end is the increase in productivity. In this view, any investment in education and health is considered unproductive if it does not enhance the output of goods and services.
On the other hand, human development is a broader term because it is based on the idea that education and health are integral to human well-being. In this perspective, human beings are ends in themselves. Human welfare should be increased through investments in education and health even if such investments do not result in higher labour productivity. It enables people to lead a long and healthy life and make other choices which they value.
Explanation
The distinction lies in how human beings are perceived. Human capital views people as a means to achieve higher productivity and output, making investments conditional on economic returns. Human development views people as the ultimate end, where education and health are essential for overall well-being and making life choices, regardless of whether they increase labour productivity.