Importance of Human Capital in Economicdevelopment

1851 WordsMay 5, 20118 Pages
HUMAN CAPITAL AND IT’S ROLE IN ECONOMIC DEVELOPMENT: 1. Introduction: The modern economists are of the view that natural resources i...e forest minerals, climate, water power etc. play in important role in the economic development of an country. A country which has abundant natural resources is in position to development more rapidly than a country which is deficient in such resources. They here how ere emphasize that the presence of abundant resources is not a sufficient condition of economic growth. Physical factures they say are passive factors of economic growth. They are to be combined with human resources of a country who are active facture of economic development. Human resources of a country are the size of population rate of…show more content…
(viii) No manpower planning: Due to non availability of reliable data there is little manpower planning in less developed countries of the world including of course Pakistan. As a result thereof, there is no matching of demand and supply of different types of skills. The result is that large number of skilled and highly qualified persons remain underemployed. The frustration and discontentment among the unemployed or underemployed graduate and post graduates result in brain drain from the country. It is a huge loss to resources of developing countries. (ix) Neglect of agriculture education: In LDC's where agriculture is the major sector of the economy., very little attention is paid for educating the farmers to the use of modern agricultural practices. Unless the farmers are provided agricultural education and training on the fields, they will not be able to raise the agricultural the outlook of the farmers. 6. IMPORTANCE OF HUMAN CAPITAL ON SOCIAL AND ECONOMIC DEVELOPMENTP: In today's world production of goods and services on large scale are knowledge intensive. Knowledge can be imported and increased by making investment in education and provision of better health services to man. which is called investment in Man' or Human Capital Formation. The modern economists are of the view that a dollar invested on education bring a greater increase in national income than a dollar spent on dams, roads, bridges or other tangible capital goods. In the words of

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