Importance of Human Capital in Economicdevelopment

Economic growth comes form the use of natural resources. In the 1930’s, natural resources are what fueled the growth of the U.S. economy. The use of resources such as water, timber, coal, oil, and minerals were in very high demand. Even now there is still a market for these resources. The use of natural resources was very high in the 1930’s and the possible damage that the use of these resources was of little concern, or not even known at the time. In the 1930s the growth of the U.S. economy would become a burden due to the use of natural resources, how the resources were collected and extracted, and the impact that harvesting had on the environment. The main point of this article, is that the mass consumption and mass production is not always ideal.

Human capital is what makes us work, and working is what establishes are living conditions. That’s why productive countries have had increases in income, which made for increases in education and labor training. This is especially beneficial to third world countries, because as women receive more education, the more they learn about their roles in society, independence, family, and contraceptives - which, in turn, decreases the infant mortality rates. However, in order to be productive for a society’s economy, you need to possess certain skills. Skilled individuals have to work together to achieve success. Those who are talented come to the realization that their skills are more valuable in countries that already have a great amount of skilled workers. Being skilled helps trade, and not practicing trade, or being a closed off economy, has a damaging effect. An open economy will grow

South Asia is one of the most densely populated regions of the world, where despite a slow growth, agriculture remains the backbone of rural economy as it employs one half to over 90 percent of the labor force. Both extensive and intensive policy measures for agriculture

Under a staggering development of economy, many people immigrate to foreign country, such as USA, UK and Australia. Therefore, they promote development of economic of these countries, as well as bringing to negative effects. In this essay, I will discuss that how influence the economic of developed countries. For example, population of America will be twice in this century. Especially, the number of children increased sharply. So that need as twice as houses, cars, roads, prison, hospitals, schools water treatment facilities and so on. Therefore American needs more nature resource than before.

It is unfortunate to learn that Liberia has no agricultural education programs in the Liberian Education System. Not teaching the young generations about agricultural and the importance of it could be detrimental to all of society. Not knowing how to properly grow crops and raise livestock makes it hard

“ Human capital is what makes individuals productive, and productivity is what determines our standard of living.”(Wheelan, 130). By investing in human capital, we are able to have more skilled workers who are productive and positively affect the economy because we make more contribution and therefore will get more in return.

2.Education is a type of capital by that represent expenditure of resources at certain point to raise productivity in the future.

Becker states, “Economic growth closely depends on the synergies between new knowledge and human capital, which is why large increases in education and training have accompanied major advances in technological knowledge in all countries that have achieved significant economic growth” (2017). This statement indicates that people need skills to produce goods that others want, or the skills to perform acts that others deem necessary to succeed. The authors of Common Sense Economics provide “12 elements of economics”, within those 12 are: “incentives, trade, marginal cost, transaction costs, prices that bring choices to the buyers and sellers, profits, income vs. value, production, investment, general welfare, and consequences” (Gwartney, Stroup, Lee, Ferrarini, & Calhoun, 2016). If the economy is handled by applying work, goods, and trade then the economy can circulate and grow; the people and companies who find the needs or wants of the people will make more money, which is how the economy

Ignores the agricultural sectors: The theory emphasis heavily on industries, it ignores the agricultural sector. This sector is large and has surplus labor in most under developed countries. Investment in agricultural sector needs to work with those in industry, so as to provide a market for industrial goods, in order to stimulate the industrial sector. if the agricultural sector is neglected, it will be difficult to meet the nations food requirement and expand the size of the market in the short run and long run respectively.

Economic growth is a necessary but not sufficient condition of economic development. There is no single definition that encompasses all the aspects of economic development. The most comprehensive definition perhaps of economic development is the one given by Todaro: ‘Development is not purely an economic phenomenon but rather a multi – dimensional process involving reorganization and re orientation of the entire economic and social system. Development is a process of improving the quality of all human lives with three equally important aspects. These are: 1.

A nation that has a numerous amount of natural resources expand their economic development. For instance, oil rich nations have a number of per capita earnings than nations with less natural resources. It is most likely possible for nations to become more rapidly without having natural resources. For instance, Hong Kong and Japan don't have numerous natural resources however despite everything they are steady growing. These nations depend on different means for money.

The questions are raised as what and how the wealth is distributed or allocated among societies. Countries with similar average incomes can differ substantially when it comes to people’s quality of life such as social justice, access to education and health care, job opportunities, availability of clean air and safe drinking water, the threat of crime, freedom of speech, life expectancy, birth-death control, identity, culture, conservation, equal opportunities, environmental change. Development is important as it covers a wide range process involving cultural, economic, environmental, political, social and technological change of a country. Regarding goals and means of development, recent United Nations documents emphasize on human development measured by life expectancy, adult literacy, access to all three levels of education as well as people‘s average income which is a necessary condition of their freedom of choice. In other words, human development incorporates all aspects of individuals’ well -being from their health status to their economic and political freedom. The Human Development Report 1996 of UNDP focuses on development as the end and economic growth a

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

Many studies have demonstrated the idea that institutions are the main factor of economic development because empirical evidence points to strong institutions being able to determine large growth of GDP per capita. Although the characteristics of strong institutions can be described as the potential fundamental cause of economic growth, the effects of geography and materials available to different certain regions have a huge hand in properly developing a society economically and allowing for further growth. The resources of the countries heavily depend on the raw materials available to each region and the kinds of animals they are able to domesticate. This is where the argument circulates around in which geography is a large determinant of whether a civilization or society can prosper in a certain area or not.

Economic growth and the use of environmental resources go hand in hand. No country or economy will be able to sustain economic growth without using the natural resources available in the environment. The constant need for resources is the fuel for economic growth and any country going through a heightened level of economic activity tends to use more resources from the environment.