This article attempts to place the UNDP’s Human Development Index in historical as well as analytical perspective by explicating its relationship with notions of  “basic needs”, “opportunities”, and “functioning and capabilities”. It is pointed out that while inevitably limited and incomplete, the index has great value, in particular for showing up the inadequacies of more simple-minded indices like GNP. In discussing the reasons why human development (as defined by the HDI) is a desirable objective, a distinction is drawn between those who stress the productivity-enhancing contributions of such improvements, who are labelled the “human resource developeess”, and those (the “humanitarians”) who stress human development as an end in itself. It is pointed out that while both groups appear to have the same cause at heart, there are important differences in approach and concrete policy recommendations, e.g., the latter will put more emphasis on participation and on general as opposed to (but not exclusive of) vocational education.

The article also considers the issue of an index that will capture aspects of human freedom. While such an index is assential, the article argues, it should not be incorporated into the general HDI, but should stand on its own