Linkages between Economic Growth & Human Development: A Case Study of Gujarat

Abstract

What is development and how can one measure it? Development cannot be measured only on the condition of roads or on the duration of the power supply; though these can be an indicative measurement they cannot be the sole criteria as portrayed by the media and the various government- sponsored audio visuals meant for mass consumption. Going beyond these two criteria another measurement that is propagated is the GDP (or Net State Domestic Product (State NDP) for states) growth rate, which the Government agencies make the common man believe to be the sole measurement for development and prosperity. Since the implementation”“of the neo-liberal programme in India, the rate of GDP growth has assumed a larger than life proportion. Today it seems that the rate of GDP growth is the only yardstick to judge the health of an economy. The much talked about Gujarat-model of development, is heavily criticized on its definition of development. Though one may observe the per capita income of Gujarat rising and the FDI inflows increasing, would it truly lead to overall human development is a glaring question. Also, it questions the very foundation of the theory which says that economic growth has strong linkages to human development. If you visit Gujarat expecting the fruits of industrial progress to have virtually eradicated poverty, you might be thoroughly disheartened that along with the northeast „backward‟ districts like Dahod, Panchmahals, Sabarkantha, even the industrialized district of Vadodara have a very large proportion of population falling below the poverty line. Gujarat is characterized by stark differentiation between the industrially advanced regions and poor backward regions in terms of economic growth and human development.