Conference Paper

Basically, it could be concluded that by the end of the 1980s, the central issue of development was focused on the growth of income and not on the growth of quality of life. Therefore, the development strategies were oriented towards production and left no significant space for improving the welfare of individuals. In the beginning of the 1990s the human development concept emerged. According to this concept economic development ultimately should result in growth of quality of life of individuals, while the goal of the development process is to expand the capabilities of individuals by placing them in the focus of the efforts for development. Therefore, the quality of people's lives should not be evaluated on the basis of the average income level, but according to the people's capabilities to lead healthy lives, be educated, have self-respect and take active part in the social mainstreams. Human welfare growth is directly related to the freedom of choice. The increase of human capabilities leads to greater freedom in the people's choice, and thus they can compare a large number of options that lead to increased wellbeing. Consequently, we can refer to two key concepts: 1) the economic concept, and 2) the human development concept.