In recent years there has been considerable discussion on the enhancement of our understanding of what constitutes economic development and human well being. Income growth as an indicator of development has been subjected to considerable questioning. A view has emerged that the understanding of economic development has to be achieved by supplementing income measurement with other indices of human development. Research has also been done on understanding better the relationship between human development and income growth. Many of the composite indices proposed in the recent past have considered education, health status and such other variables as important components of well being. In this context public investment in these sectors assumes significance. A study of the effect of such investment and its judicious allocation is therefore useful for policy formation and Programme design for the future.
This working paper is the result of such an attempt. Using cross section data from secondary sources, this study makes an assessment of the impact of public investment in human resources, particularly in education and health, under a social sector model. Under realistic assumptions this also attempts to trace the growth pattern in these aspects of well being in the near future.