Developing countries are currently facing many obstacles. Human development is the most affected by these obstacles especially in rural Egypt. Therefore, any improvement in the economic condition in these countries will result in improving human development. The study investigates the problem of under estimating human development indicators resulting from Economic Reform Programs. The rate of investment in rural Egypt is low, the percent of farm labor to total labor in rural areas is also low, and the rate of unemployment is estimated at about 1.1 million, of which 0.6 million is rural unemployment. The impact of economic reform on human development is very clear in rural Egypt, such as the improvement in food diet composition, level of health services, and level of education during the post economic liberalization period (1988-2003) in comparison to the pre economic liberalization period (1976-1987). In order to achieve the study goals, a methodology depending on social welfare among rural residents has been designed to measure the level of human development among rural residents. Study results indicated that farm labor increased to reach 9.5% during the economic reform period, whereas unemployment declined by 55.4%. The rate of growth in farm labor has been estimated at 2.9%, and the percent of females participating in farm labor increased to reach about 18.2%. Moreover, the rate of investments in rural and agricultural activities increased to reach 24% and 12.3% respectively. Estimating the compound indicator on farm labor indicated that it increased to reach about 67%. In addition, estimating the different compound indicators on diet composition, education, basic services in rural areas, basic services for agricultural residents, human development and agricultural development, which the study used for assessing human development in rural Egypt, showed that they reached 72%, 58.3%, 42.1%, 38.6%, 59%, and 57% respectively.