,The chapter 'People as Resource' is an effort to explain population as an
asset for the economy rather than a liability. Population becomes human
capital when there is investment made in the form of education, training and
medical care. In fact, human capital is the stock of skill and productive
knowledge embodied in them.
population also is a resource — a 'human resource'. This is the positive side of a
large population that is often overlooked when we look only at the negative side,
considering only the problems of providing the population with food, education and
access to health facilities. When the existing 'human resource' is further developed
by becoming more educated and healthy, we call it 'human capital formation' that
adds to the productive power of the country just like 'physical capital formation'.
, ADVANTAGE OF HUMAN CAPITAL(POPULATION)
Investment in human capital (through education, training, medical care) yields a return
just like investment in physical capital. This can be seen directly in the form of higher
incomes earned because of higher productivity of the more educated or the better
trained persons, as well as the higher productivity of healthier people.
Not only do the more educated and the healthier people gain through higher incomes,
society also gains in other indirect ways because the advantages of a more educated or
a healthier population spreads to those also who themselves were not directly
educated or given health care. In fact, human capital is in one way superior to other
resources like land and physical capital: human resource can make use of land and
capital. Land and capital cannot become useful on its own!
, The role of education in human capital formation
Education is the most important component of human resource development.
❑ →Proper education and training enable the formation of this human capital. An educated population is an asset,
a resource.
❑ → Education enhances the quantity and quality of individual productivity, which in turn adds to the growth of
the economy.
❑ →It develops personality and sense of national consciousness among the people which are important for rapid
economic growth.
asset for the economy rather than a liability. Population becomes human
capital when there is investment made in the form of education, training and
medical care. In fact, human capital is the stock of skill and productive
knowledge embodied in them.
population also is a resource — a 'human resource'. This is the positive side of a
large population that is often overlooked when we look only at the negative side,
considering only the problems of providing the population with food, education and
access to health facilities. When the existing 'human resource' is further developed
by becoming more educated and healthy, we call it 'human capital formation' that
adds to the productive power of the country just like 'physical capital formation'.
, ADVANTAGE OF HUMAN CAPITAL(POPULATION)
Investment in human capital (through education, training, medical care) yields a return
just like investment in physical capital. This can be seen directly in the form of higher
incomes earned because of higher productivity of the more educated or the better
trained persons, as well as the higher productivity of healthier people.
Not only do the more educated and the healthier people gain through higher incomes,
society also gains in other indirect ways because the advantages of a more educated or
a healthier population spreads to those also who themselves were not directly
educated or given health care. In fact, human capital is in one way superior to other
resources like land and physical capital: human resource can make use of land and
capital. Land and capital cannot become useful on its own!
, The role of education in human capital formation
Education is the most important component of human resource development.
❑ →Proper education and training enable the formation of this human capital. An educated population is an asset,
a resource.
❑ → Education enhances the quantity and quality of individual productivity, which in turn adds to the growth of
the economy.
❑ →It develops personality and sense of national consciousness among the people which are important for rapid
economic growth.
