Do IMF assessments of growth take human development factors into consideration?
It is a popular misconception that the IMF simply equates economic growth with development. That is certainly not the case. To be sure, one of the key factors differentiating developed from less developed countries is gross domestic product (GDP), or national income, per head of population. Increases in national income matter not only because they raise current living standards but also because resources are generated that can be reinvested for improving health and education, and make it possible for a country to pursue a host of other social objectives. The correlation between GDP growth and social development, however, is not always as direct or straightforward as might be expected. Certain countries (like Sri Lanka and Costa Rica) that have pursued active pro-poor social policies have managed to achieve improvements in social indicators that are far better than the norm for their national income levels. At the same time, other countries that have failed to address these social conce
