Human Capital Formation in Bangladesh

Several studies have supported human capital as a significant source of economic growth. Barro(2004) ,empirical analysis, based on 98 countries from 1960-1985, uses school-enrolment rates as representations for human capital, supported the convergence hypothesis of neoclassical growth models, and says; if poor countries have high human capital than they tend to catch up with rich countries, but only in relation to level GDP per capita. Further stated; ‘As a related matter, countries with high human capital have low fertility rates and high ratios of physical investment to GDP’.

In his factual critique of policies that focus purely on GNP/human capital, he argues that capital is not an all-encompassing yardstick with which to measure development.  While capital and capabilities are closely linked, Sen believes that the capital approach focuses predominantly on human beings and their ability to increase production

Another common de factor can be drawn out of a country’s economic wealth connotes Said. Money is the foundation upon which these countries are able to amass magnificent and complex arsenals as well as train their military with the prevailing technologies. Additionally, with sufficient money, these countries are able develop their industries and further strengthen

Development is a broad concept that includes social, economic, political and human aspects. Human development consists of the foundation on which the first three aspects .According to Burkey (1993: 38), economic and political development should be translated into social development. As development is a broad concept, it has been extensively explored with a view to realize that economic growth and social development. However, the emphasis moved from industrial and economic development as the factors that determine societal transformations. Economic growth may bring material gain to the people, but development is about enrichment of the lives of the people in the society Edwards (1993:80) this means that development is much more important to a country than economic growth only because when people are not empowered and developed it takes us back to the theory of development which explains that empowerment and

The role of education in economic development is still an ongoing debate in academic environments. Despite of the obstacles against the precise

Australia, USA and Japan have very high literacy rates. These countries are extremely prosperous and the citizens have a high per capita income. In underdeveloped nations, where literacy rate is not as high, a number of people are still living below the poverty line. Education is vital for the economic prosperity of a nation. Globalization requires countries and their economies to compete with each other. Economically successful countries will hold competitive advantages over other economies, though a single country rarely specializes in a particular industry. This means that the country's economy will be made of various industries that will have different advantages and disadvantages in the global marketplace. The education and training of a country's workers is a major factor in determining how well the country's economy will do. The study of the economics of training and education involves an analysis of the economy as a whole, of employers and of workers. Two major concepts that

The paper draws conclusions regarding the importance of the sustainable development of human capital as the operation of a modern economy requires the existence of a well-trained labour force, education representing one of the fundamental pillars of any society’s development. According to Ranjeet Kumar (2015),”In today’s fast paced materialistic technology ridden life, an individual may feel good on the outside but has not found inner peace, Satisfaction, happiness, positivity or resilience.” Gill Seyfang & Smith (2012), obtained that Human Capital refers to the various qualitative dimensions of the human being. It plays an important role in sustainable development and the major source of economic growth in modern economies. This abstract views human welfare and well-being as both ends and means. Francisco Maldonado (2005) said that the Sustainability has been defined as an alternative to create new technologies and engineering systems that will satisfy the needs of humanity in this generation without placing at risk the ability to satisfy the needs of future generations. Collins et al.(2006) explained that Innovation and community action is

Pattern and Policy Issues Development literature in the past decade has become more people centric with human development being projected as one of the 'ends' of development planning. The present paper tries to explore the trends, patterns and regional dimension of human development (HD) in India through construction of alternate HD indices for the districts of India. The association between HD indices and conventional measures like per capita income has been explored.

This can be measured by the following formula; Per capita nominal GDP = Nominal GDP / Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an essential foundation to economic growth. Combined with the other resources of capital, labor and enterprises, natural resources can be developed and organized to increase the productive capacity if the nation. Consequently the quality and size of the labor force is a major determinant of economic growth. Education and vocational training are essential the growth potential of a nation. The promotion of education and job training schemes increase the knowledge, skills and flexibility of the workforce that contributes to potentially higher levels of productivity and efficiency. Whether from natural increase or immigration population growth can cause a higher level of economic growth. An increasing population requires increased public spending on housing, education and other social needs while businesses expectations of

Moreover, a small country offers an ideal social policy of the rule of law and the way amendments can occur. It is vital for individuals to enjoy their rights and freedoms, among which is the freedom of education, the freedom of expression without infringing on others’ civil liberties (Mitchell et al., 2013). In this way, there is assurance of proper relationship between different classes, the creation of stable family structures, and mode of worship. An efficient system of governance ensures that the population of a country is controlled to avoid over or under population considering availability of resources. To manage efficiently resources in a country, upgrading of social capital is paramount. Education of individual citizens assists building up social labor for proper exploitation and utilization of resources, thus realization of development in a country. Therefore, due to the spread of high levels of knowledge among citizens, industries can manage to employ and keep enough number of the workforce with the rest having to rely and benefit from the safety of entrepreneurship. As a result, the country develops wholesomely with the fulfillment of job opportunities among the youth who form the future of a country. Thus, per capita income is increased, which is production per person in a country, in this way improving individual satisfaction regarding living conditions.

In today’s scenario, the study shows that with increase in migration, there is an increase in the total spending within the economy which leads to an increase in the supply of labour and increase in demand. Therefore, an increase in spending within the economy brings about an increase in the GDP. Generally individuals or households look at the prices of the products and the quality before making a purchase because price of commodities determines their consumption behaviour. How much they save depends on how much they earn and how much they consume. Consumption and saving behaviour differ from place to place. A person

Neglecting the role of education in emerging countries is one more commonly made mistake and low Human Development Index pointing out the limited possibilities of human resources has its negative impact on economic as well as on social processes in particular country. How educated residents are, determine the speed of economic growth, while shortage of accumulated human capital makes difficult to implement innovations and lack of adaptation of proven technologies, methods, and practices. The importance of human capital for economic development in general is widely accepted (cf. Bils & Klenow,2000; Krueger & Lindahl, 2001; Prichett, 2001; Romer, 1989). As concerning on education, implies more capable and productive workers, who in turn increase an economy’s output of goods and services. Well-educated human resources also help to make possible the absorption of advanced technologies from developed countries (Barro & Lee, 2001, p. 541). As a consequence, states lacking institutions which promote the demand for education have to give incentives for human capital accumulation. Human capital was the main factor to South Korea’s fast economic development. Investment in education was more than 7% of GDP and 2.8% was private sector’s investment that is the highest rate among OECD countries. But the same policy, investing in education to develop economic, was not as successful in different countries as in South-Korea; consequently the same policies can lead to different results and

They gave special focus on disaggregated and sectoral expenditures. They employed time series technique on data over a period from 1977 to 2012. They revealed that their results indicated a high and statistically significant positive relationship is seen between the expenditure in education and the country’s economic growth in the long run. They recommended reduction of budgetary allocation by the government to recurrent expenditure on education and emphasizing more on the capital expenditures in order to accelerate the country’s economic growth.

Economic growth and Economic Development is of the highest priority in regards to a well-functioning sovereign state. Economic growth powers an economy through the stability ensured by equilibrium in the circular flow of money accompanied by: growing international competitiveness in a globalised market, increase in real GDP through the appropriate allocation of resources most suited to the expansion of the economy, increase in aggregate demand and increased efficiency in the economy. Stagnation or prolonged contraction of an economy, identified by the disequilibrium in the circular flow of money, with leakages exceeding injections, and a growing Current Account Deficit (CAD), can lead to a fall in aggregate demand, wages and employment. With this fall also comes a fall in the Quality of Life as the aggregate propensity to spend contracts and Government assistance is more widely needed to meet daily needs.

This paper seeks to compare and contrast various trends in the capital and recurrent expenditure on human capital development in Nigeria between the years 1981 and 2010. The data used for the study are from secondary sources: Central Bank of Nigeria (CBN) publications, Statistical Bulletins and CBN Annual Reports (various issues). The paper employed a descriptive statistical analysis of trends of government capital and recurrent expenditure on human capital development as well as economic growth using data on Real Gross Domestic Product (RGDP) as proxy. The findings reveal that government places higher premium on its recurrent expenditure compared to capital expenditure in the education and health sectors. The study recommends government increased funding to the education and health sectors by allocating more to capital expenditures than to recurrent expenditures in order to improve the quality of facilities, materials and equipment in the education and health sectors adequately, and enhance their role in the growth process.