Correct Option (c)
Statement 2 is correct.
The passage explicitly states that "focusing exclusively on economic growth is problematic," noting that growth is "often elusive" and can lead to "negative environmental consequences and adverse distributional effects." This indicates that human development and economic growth are not always positively inter-related, as an overemphasis on growth can have detrimental outcomes for human development.
Incorrect Options:
Statement 1 is incorrect.
The passage mentions that individuals, groups, and leaders "operate under strong institutional, structural and political constraints." While acknowledging the significance of institutional frameworks, the passage does not assert that a strong institutional framework is the only requirement for human development and policy options. It highlights these as influential factors, not exclusive prerequisites.
Statement 3 is incorrect.
The passage advocates for "balanced approaches that emphasize investments in the non-income aspects of human development." It critiques an exclusive focus on economic growth but does not suggest that focusing only on human development should be the sole goal of economic growth. Instead, it promotes an integrated approach considering both income and non-income dimensions.