According to the UNDP, human development – or the human development approach - is about expanding the richness of human life, rather than simply the richness of the economy in which human beings live. It is an approach that is focused on people and their opportunities and choices. Human development focuses on two important aspects –

a) It tries to directly enhance human abilities. Human development achieves the direct enhancement of human abilities by focussing on a long and healthy life, being knowledgeable and by having a decent standard of living.

b) It creates conditions for further human development. It achieves this by helping governments create policies and legislation to encourage participation in political and community life; through environmental sustainability; by enabling human rights and security and through ensuring gender equality.

Our lives have two separate distinctive aspects. One is the material aspect; the other is the less tangible non - material aspect. The material aspect is taken care of through income. For e.g., income shall allow us to buy or rent a house which can provide us with shelter against the elements. The non-material aspect is not so easily gained. For e.g., one can desire to be healthy and put in money to achieve the goal. But without proper exercise and clean living, it cannot be achieved.

Thus, at an individual level, income is an important aspect in our lives. But individuals also make decisions based on other non-income aspects as it affects their lives as a whole. The process of human development allows individuals to develop their full potential. Hence, development goals will differ from individual to individual.

Someone in the lower economically developed group may only be interested in policies which would allow them to earn more. Someone in the higher economically developed group may be interested in policies that provide a better environment. None of these goals is wrong; they differ because at an individual level the requirements are different.