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Human Development and Economic Sustainability

Human Development and Economic Sustainability by Minahil Mohsin

CSS 2022 Solved Essay | Human Development and Economic Sustainability

Minahil Mohsin, a Sir Syed Kazim Ali student, has attempted the CSS 2022 Solved Essay “Human Development and Economic Sustainability” on the given pattern, which Sir Syed Kazim Ali teaches his students. Sir Syed Kazim Ali has been Pakistan’s top English writing and CSS, PMS essay and precis coach with the highest success rate of his students. The essay is uploaded to help other competitive aspirants learn and practice essay writing techniques and patterns to qualify for the essay paper.

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Outline

1-Introduction

While a stable economy propels a nation’s development, true economic sustainability hinges on a robust system of human development, which requires investments in education, modernization of critical sectors, and improved governance to empower a skilled and healthy workforce.

2-Understanding Human Development and its Relationship with Economic Sustainability

3-How Does Human Development Lead to the Economic Sustainability of a Country?

3.1-Via Educating the Masses

  • Argument: Bringing Scientific Innovations to Produce Energy in a Cleaner, Efficient, and Economical Way
    • Evidence: Sweden, ranking 7 out of 191 Countries on the Human Development Index (HDI) 2021, Targeting to Achieve 100 per cent Renewable Energy Production by 2040
  • Argument: Creating a Trained and Skilled Work Force to Increase Production
    • Evidence: A 10 per cent Increase in Wages Associated with One Year of Education, As per the United Nations Educational, Scientific, and Cultural Organization
  • Argument: Integration of Theoretical and Practical Knowledge, Setting the Stage for Better Economic Prospects
    • Evidence: South Korea, a Gem in the Developing World, emphasizes and invests heavily in Technical and Vocational Training, Ranking 19 in the Human Development Index 2021

3.2-✓Via Entrepreneurial Ventures

  • Argument: Improving a Country’s Economic Prospects by Facilitating New Businesses
    • Evidence: Singapore’s 12th Ranking on the Human Development Index, earning it First Place in the Index of Economic Freedom 2023
  • Argument: Providing a Business Friendly Environment Through Good Regulatory Mechanisms Bringing About Economic Prosperity
    • Evidence: New Zealand Ranking First in the Ease of Doing Business Index Due to a Strong and Transparent Governance Structure, with a Corruption Perception Index Ranking at 2 out of 180 Countries as of 2022

3.3-✓Via Better Healthcare

  • Argument: Dealing with Diseases in a Better and More Efficient Way to Avoid Health Crises
    • Evidence: Germany Ranking 7th on the Global Competitiveness Index 2019, Owing to its Third Best Developed Healthcare System in the world
  • Argument: Reducing Absenteeism and Hospitalization via State-of-the-art and Universal Healthcare Access
    • Evidence: Denmark Ranking 1st in the Legatum Prosperity Index 2023 Because of its Strong Healthcare System with Free and Universal Access to Health Services
  • Argument: Improving Life Expectancy Leading to Better Economic Outcomes
    • Evidence: 0.3 to 0.4 per cent Economic Growth per year Possible with a 10-year Increase in Average Life Expectancy, According to the World Health Organization

4-How Does the Lack of Human Development Manifest the Weak Economic Standing of a Country?

  • Argument: Financial Instability of the Masses Leads to a Deceleration in the Gross Domestic Product
    • Evidence: Report of a European Commission Quoting a 0.42 per cent decrease in GDP Growth with a One Per Cent Rise in Unemployment
  • Argument: A Struggling Governance and Currency Instability Leading to Poor Economic Sustainability
    • Evidence: Zimbabwe Ranking 167 on the Ease of Doing Business Index 2020
  • Argument: Weak Institutional Capacity and Limited Access to Essential Services Causing Economic Decline
    • Evidence: Yemen Ranking 121st out of 121 Countries on the Global Hunger Index 2022, Classifying the Hunger Situation in the country as “Alarming”

5-Case Study of Pakistan

  • Spending Less than 2 per cent of GDP on Education and Ranking 140 on the Corruption Perception Index, Making the Country Fall to 136 on the Legatum Prosperity Index and 147 on the Ease of Doing Business Index

6-How Could Human Resources Be Developed Efficiently, Especially in Third World Countries?

  • Investing in the Education Sector to Make It More Inclusive and Efficient
  • By Improving the Healthcare System and Expanding its Services to Under Developed Areas
  • Strengthening the Industrial Sector to Give a Boost to the Economy
  • By Ensuring Gender Equality in All Fields of Life
  • By Enhancing Social Cohesion and Building Positive Social Relations
  • By Improving on the Indicators of Good Governance, like Transparency, Inclusiveness, and Responsiveness
  • By Shifting to Advanced Agricultural Practices and Incorporating Biotechnology to Increase Production Significantly

7-Is Human Development Solely Responsible for Economic Sustainability? A Critical Analysis

8-Conclusion

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The economy is the wheel that, if stable, takes a country towards the zenith of development. On the other hand, an unstable economy can unleash doom upon a nation. And what guides the fate of the economy is nothing but human development. The term “human development” denotes the quality of a nation’s human resources, driven by various factors such as the healthcare system, financial conditions, governance structure, and education system. A robust education system that produces a skilled and competent workforce is instrumental in propelling a nation towards economic sustainability. Sweden exemplifies this, ranked 7 out of 191 countries on the Human Development Index (HDI) due to its progressive education system. Conversely, a lacklustre and outdated education system, as observed in Pakistan, where less than 2 per cent of GDP is allocated to education, can seriously impede economic progress, resulting in a low rank of 136 on the Legatum Prosperity Index. However, strategic interventions encompassing investment in the education sector, modernization of agricultural and industrial domains, and enhancements in governance structures are vital steps towards improving human resources and, consequently, fostering economic conditions in the developing world. This essay aims to underscore the indispensable role of human development in determining economic sustainability and proposes practical measures to enhance both aspects.

“Economic growth without investment in human development is unsustainable and unethical.”

Amartya Sen, Indian Economist

Before moving into the complexities of the topic under discussion, it is crucial to understand what human development truly is and to realize the relationship between the two variables, human development and economic sustainability. Simply put, human development is brought about by several factors, like education, healthcare, economy, and good governance. Now, for their causative relationship, the more the human capital is developed, the more a nation’s economy thrives and vice versa. Thus, when a country is strengthened in the aforementioned areas, its human capital gets upgraded and is better able to work towards economic sustainability.

“You cannot predict the outcome of human development. All you can do is like a farmer, create the conditions under which it will begin to flourish.”

Sir Ken Robinson, British Author

Now, moving towards how exactly human development brings about economic sustainability, it is essential to start with the importance of education. Education, when imparted according to the needs of the time, brings about revolutions in all aspects of life by developing human capital. For instance, today, there is a dire need to produce cleaner and renewable energy from sources that are not dependent on the fossil fuels the world is running out of. Thus, through scientific innovations, mankind’s dependence upon inexhaustible energy sources would definitely result in a sustainable economy run on that energy. To elaborate, Sweden ranks 7 out of 191 countries on the human development index as it targets to reach 100 per cent renewable energy production by 2040. So, scientific development via education develops a country’s human resources and brings about economic sustainability.

Likewise, imparting essential work-related education to the labour in the production sector also impacts the economy positively. To elaborate, a skilled and well-trained staff is more efficient in producing goods than an unskilled and illiterate workforce. The reason lies in the former’s ability to resolve issues arising in the production line because of the technical training that the latter lacks. According to a study by the United Nations Educational, Scientific, and Cultural Organization (UNESCO), a 10 per cent wage increase has been associated with one year of education. Thus, creating a well-trained workforce for industries leads to better economic outcomes.

Third, with the integration of theoretical and practical knowledge, the masses can better understand the nitty-gritty of every subject they study, thus enhancing their economic prospects. Hence, equipped with the essential tools required to practically apply the knowledge they attain, the human resource becomes more productive and efficient in the production sector. South Korea, a gem in the developing world, could be considered an exemplary country investing heavily in its young workforce’s technical and vocational training and ranking 19 in the Human Development Index (HDI) 2021. In other words, the ever-flourishing economy of South Korea speaks volumes of the economic betterment brought about by a thoroughly educated workforce.

“Education makes us the human beings we are. It has major impacts on economic development, social equity, and gender equity.”

Amartya Sen

Moving towards the world of business and entrepreneurship, a high-income generation is seen in countries where the public is more inclined towards taking unique initiatives for earning. When people do not rely on traditional means of making money, they expand the ambit of opportunities by investing in newer businesses and ventures. For instance, Singapore, ranking 12 on the HDI, has earned first place in the Index of Economic Freedom (IEF) 2023, which goes on to solidify the importance human development holds in the economic realm. Thus, a country’s economic prospects could be improved by facilitating new businesses.

In other words, it could also be claimed that a business-friendly environment in a country is conducive to economic sustainability. When more opportunities are available to the masses, there are lower chances of migration to other countries, and more human resources tend to stay back and work within the country. Such an environment could be brought about through suitable regulatory mechanisms that ensure a healthy system of governance. For instance, New Zealand ranks first in the Ease of Doing Business Index (EDB) 2022 due to its strong and transparent governance structure, shown by its Corruption Perception Index (CPI) ranking of 2 out of 180 countries. Hence, promoting a safer business environment tends to boost economic activity.

“Economic liberty and creative entrepreneurship are the basis of any solution to today’s social and economic difficulties. “

Doug Bandow, American Writer

Similarly, healthcare is also a prerequisite for human development and tends to guide the course of a country’s economy. If the healthcare experts are efficient, hardworking, and competent, diseases are handled safer and better. This way, health crises could be avoided, which, if not controlled, could wreak havoc on the economy by increasing the demand for medicines, personal protective equipment, vaccines, and doctors, concentrating all the country’s resources on countering the health challenge. In such a case, other sectors of the economy experience a grave downfall. Alternatively, the economy flourishes when it does not have to focus on providing for the health sector’s over-the-top needs. As a case in point, Germany has the third best-developed healthcare system in the world and, hence, ranks seventh on the Global Competitiveness Index (GCI) 2019. So, a healthcare system with efficiently working experts is essential for a sustainable economy.

Likewise, reduced pressure on hospitals and healthcare staff due to a modern, universal, and accessible healthcare system with competent doctors in a country enables putting more energy and finances into other sectors of the economy, thereby enhancing the country’s economic prospects. When hospitals have state-of-the-art facilities and responsible and well-trained staff, and the country provides free and universal healthcare to its citizens, there will be fewer chances of mortality and extended hospitalization. This would, in turn, require fewer resources to be spent on healthcare, bringing prosperity to the country. To substantiate, Denmark has a robust healthcare system and provides free universal health services, earning it first place in the Legatum Prosperity Index (LPI) 2023. Hence, reduced absenteeism, along with improved facilities in a healthcare system, allow for healthier human resources to direct their efforts towards other areas of the economy, paving the way for economic sustainability.

Finally, advancement in the healthcare system also promises better economic conditions in a country. If the masses have access to modern and well-developed health facilities, the average life expectancy and the country’s economic growth will improve tenfold. On the other hand, if people live short, miserable lives, as seen in several third-world countries in Africa, they hardly enable their citizens to make ends meet. To elaborate, the World Health Organization states that 0.3 to 0.4 per cent economic growth is possible with a 10-year increase in the average life expectancy. Hence, a well-maintained and developed healthcare system that improves people’s lives allows for more chances of economic sustainability.

“Health is the core of human development.”

Gro Burndtland, former Norwegian Prime Minister

In contrast to the arguments mentioned above, the lack of human development causes doom in a country’s economy. It is evident from the fact that if the masses are financially unstable, a country’s Gross Domestic Product (GDP) experiences a substantial fall. People there are more concerned about bringing food to their tables rather than working for the common good; contrarily, financially stable citizens tend to be more patriotic and generous when it comes to investing for the country’s benefit. To elaborate, a European Commission report quotes a 0.42 per cent decrease in GDP growth with every per cent rise in unemployment. So, the more economic declivity persists in the masses, the worse the country’s economic prospects would be.

“Poverty is not just a lack of money; it is not having the capability to realize one’s full potential as a human being.”

Amartya Sen

Similarly, when it comes to a country’s governance structure and currency stability, stormy conditions in these realms also lead to poor economic sustainability. A struggling system of governance, where transparency, inclusiveness, responsiveness, and other prerequisites of good governance are absent, gives rise to currency instability. This, in turn, depreciates foreign investment and the trust of the country’s citizens in investing there, leading to ever-worsening economic conditions. As a case in point, Zimbabwe is an under-developed country that ranks 167 on the EDB 2020, owing to a weak currency and governance structure. Thus, poor governance and currency devaluation lead to overall poor economic conditions.

Last but not least, people’s access to essential services and the level of capacity building at the institutional level also determine a country’s economic conditions. If the institutional capacity is weak, and people cannot access all the necessary services, they cannot work to their fullest potential. On the other hand, if institutions run at their full capacity, people can better explore their capabilities and give their best in what they do, improving the country’s economic outcomes. To elaborate, Yemen ranks 121 out of 121 countries on the Global Hunger Index (GHI) 2022, and the hunger situation in the country is evidently classified as alarming. This also sheds light on why Yemen is unable to progress economically. Thus, a lack of access to essentials, coupled with a limited institutional capacity, is the recipe for an economic disaster.

Pakistan’s case, unfortunately, is no different from the counterarguments mentioned above. The country is in a miserable state of affairs due to a disturbed healthcare system, a crumbling governance structure, a weakening economy, and an archaic education system. All these factors have impacted the skilled labour pool in the country. To delve deeper, one needs to observe statistics like the Country’s GDP and rankings on international indices. Pakistan, unfortunately, spends less than 2 per cent of its GDP on education, ranks horribly low – 140 on the Corruption Perception Index (CPI) – has a score of 136 on the LPI, and holds the 147th position on the EDB. So, it is high time the country took measures to avoid a complete economic shutdown.

“All that is valuable in human society depends upon the opportunity for development accorded the individual.”

Albert Einstein

Before the time runs out, there is a critical need to handle the situation of human resource decline, especially in developing countries, to ensure economic sustainability. The first step in this regard would be to invest in the education sector globally to make it more inclusive and efficient, which will, in turn, help countries grow on human development indicators and indices.

Next in line is the improvement of the healthcare system. By improving its services and expanding its accessibility and availability to the masses, especially those living in underprivileged areas, human resources can be developed to a great extent, which can then work towards improving the economy.

“It is health that is the real wealth and not pieces of gold and silver.”

Mahatma Gandhi

Third, strengthening the industrial sector would also boost the economy, for the industry is the wheel that runs a country’s affairs by maintaining the inflow and outflow of resources. Thus, investing in state-of-the-art technology and providing proper vocational training to the labour force is the need of the hour to give a head start to the economy.

Fourth, ensuring gender equality in all fields of life is also a prerequisite for healthy economic activity. When the workforce has a balance of men and women, both genders will flourish equally in the financial realm, thus contributing positively to the economy and leading to economic sustainability.

Fifth, building social cohesion and enhancing positive social relations would also increase economic growth. When people are connected healthily, they tend to direct all their efforts towards common betterment and human resource development. And the common good, in other words, means a flourishing economy.

Sixth, improving on good governance indicators, like transparency, inclusiveness, rule of law, and responsiveness, is also crucial to human resource development and the subsequent growth in the financial mobility of the masses. Thus, adopting a good governance model would bring about economic sustainability.

Finally, there is a dire need to improve countries’ production sectors by adopting modern techniques and methodologies. For instance, shifting to advanced agricultural practices and incorporating biotechnology in the field could increase the yield significantly, bringing in more capital and enhancing economic prospects.

After critically reviewing all the arguments in favour of the given statement, a question arises: is human development solely responsible for economic sustainability? The answer is definitely in negation. The economy has a considerable ambit that could not be enveloped by a single factor, i.e. human development. Instead, it also depends upon the availability of several resources, like raw materials, precious metals, and hardworking youth in a country. It could be witnessed in the blooming growth pattern of Arab nations, who have exploited their natural mineral treasures to rise as great economic powers on the world map, on which even the superpowers, America and China, find themselves dependent. So, economic sustainability could not be solely attributed to human development, but it is truly the single most important factor defining the course of economic sustenance.

“The wealth of the nation is its air, water, soil, forests, minerals, rivers, lakes, oceans, scenic beauty, wildlife habitats and biodiversity… that’s all there is. That’s the whole economy. That’s where all the economic activity and jobs come from. These biological systems are the sustaining wealth of the world.”

Gaylord Nelson, American Politician

In a nutshell, human development, although not the only factor in determining the economy’s fate, is the most essential ingredient for economic sustainability. It could be brought about by developing human resources and ensuring a strong education system, a robust healthcare structure, good governance, and healthy social interactions. However, as under-developed countries like Pakistan, Yemen, and Zimbabwe lack the prerequisites of human resource development, they display miserable statistics on global development indicators. For instance, Pakistan ranks 140 on the CPI, Yemen ranks 121 out of 121 on the GHI, and Zimbabwe ranks 167 on the EDB index. On the other hand, several reports and studies substantiate how improved human development translates into economic sustainability. For instance, Denmark ranks first in the LPI, owing to its strong healthcare system, and New Zealand ranks first in the EDB index due to its business-friendly environment and good regulatory mechanisms. So, progress in education, social cohesion, and governance leads to better human resources, which, in turn, is followed by economic sustainability.

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