Income approach
Topic: Human Development: Concept, Approaches and Measurement · NCERT: Class 12, Ch 3 "Human Development"
Meaning
The income approach is the oldest approach to human development. It links human development to income. The idea is simple: the higher a person's income, the more freedom they have and the higher their level of human development. Money lets people buy food, health care and education. The weakness is that income alone does not show whether people are actually healthy, educated or free to make choices.
Example
Direct Benefit Transfer (DBT) in India puts cash straight into people's bank accounts, which raises their income directly. Yet some oil-rich Gulf states show that high income does not always lead to equally strong health and education.
Don't confuse with
- Capability approach: the income approach focuses on how much people earn. The capability approach, linked to Amartya Sen, focuses on what people are actually able to do and be.