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Traditional Human Capital Theory (HCT) views ‘children as an investment’ and is concerned with how children can be turned into productive members of society. The Economics of Human Development (EHD) grew out of the HCT but positions itself closer to the Capability Approach (CA), where ‘investing in children’ means a social commitment to children's human development. The purpose of this article is to critically analyse the EHD and its actual positioning. It concludes that the EHD's approach is essentially the same as that of the HCT, paying attention to children insofar as they are the future adult workforce. Although having appropriated the terminology of the CA, the EHD reduces social problems to economic problems, ultimately promoting a social policy that puts economic returns ahead of human development.
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Children Human capabilities Human capital Human development Social policy