Income Approach Of Human Development

The human development approach incorporates income levels.

Income approach of human development. Approaches to human development. Human development is seen as being linked to income the idea is that the level of income reflects the level of freedom an individual enjoys. The human development index hdi is a statistic composite index of life expectancy education literacy rate gross enrollment ratio at different levels and net attendance ratio and per capita income indicators which are used to rank countries into four tiers of human development a country scores a higher hdi when the lifespan is higher the education level is higher and the gross. Higher the level of income the higher is the level of development.

The human development approach focuses on improving the lives people lead rather than assuming that economic growth will lead automatically to greater opportunities for all. It is an improved standard means of measuring well being especially child welfare and thus human development. The others are the cost approach and the comparison approach. Contrary to simple income approach multidimensional indices and constructs do provide us with better insight.

Some of the important approaches are. Although this index makes an effort to simplify human development it is much more complex than any index or set of indicators. Human development or the human development approach is about expanding the richness of human life rather than simply the richness of the economy in which human beings live. Income growth is an important means to development rather than an end in itself.

This is one of the oldest approaches to human development. One of the most popular indexes is human deveopment index hdi that gives us information about country s education health and longevity variables in addition to income. Income approach this approach links the development to incomes as it believes that income determines the level of freedom that one enjoys. The income approach is typically used for income producing properties and is one of three popular approaches to appraising real estate.

This more representative approach allows evaluations of poverty to be multifaceted and carefully considers handicaps such as age diversity social exclusion and illness as these may impede the individual in achieving essential functionings like the conversion of income sen 1999 p 88. There are four ways of looking at or approach the problems of human development. What is human development.