Human capital which represents “the knowledge, skills, competencies and attributes embodied in individuals that facilitate the creation of personal, social and economic well-being” (OECD) was first defined and measured by Sir William Petty (1690). He believed that labour was the ‘father of wealth’ and included national wealth during the measurement. After Petty, Adam Smith (1776) presented a clear analysis of human capital and mentioned it as part of general stock. Afterwards Shultz (1961) classified the formation of human capital as skills and knowledge that people acquire, and recognized the human capital as one of key elements for national economic growth.
Nowadays, the United Nation introduces the Human Development Index as a composite of life expectancy, education and income index to rank countries into four tiers of human development. It is obvious to see that people in higher human development countries receive higher income than those in lower human development countries by reviewing the data from World bank. The statistic from UNESCO also show that the country with higher literacy rate is the country with higher income rate.
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Castello(2002) displayed that the Gini coefficient slightly changes within countries over time, even thought the reducing education inequality improves the life standard of population at the bottom end of income distribution. They found two plausible explanations: (1) the improvement in wages of those lower educated people may also cause the wage of higher educated people increase; (2) the return to schooling are increasing with the level of education. According to Laroche’s eight main aspects of human capital, human capital investments are not qualitatively homogeneous. Denison(1967) argued that...
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...ion, such as government policy. A positive role of government can bring extra benefit for its citizen and nation. For example, embracing globalization can converge the growth and increase both private and social returns effectively; Improving the government administration can reduce the corruption and other public sector problems; building infrastructure can raise the standard of living. These actions would finally increase the output per capital of the country.
In conclusion, human capital is definitely one of the key factors that can affect the wealth of countries. But it is not the only reason for the poverty of the country and cross-country inequality. There are so many work should be done in the study of human capital and economic growth in future. Just like what Lindahl (2009) said, “We know something about the former but very little about the latter issue.”
The Human Development Index rates each country with a score between 0 and 1, with 1 being the most advanced, globalized country. Factors that are involved in determining a country's HDI are gross domestic production per capita, life expectancy at birth, adult literacy, and the number of persons enrolled in educational institutions. In 1975, Peru's Human Development Index was 0.643. By 2003, the Human Development Index had risen more than one tenth to 0.762. The substantial increase in Peru's HDI is a clear indication that globalization has made a positive impact.
Economic growth focuses on encouraging firms to invest or encouraging people to save, which in turn creates funds for firms to invest. It runs hand-in-hand with the goal of high employment because in order for firms to be comfortable investing in assets such as plants and equipment, unemployment must be low. Hereby, the people and resources will be available to spur economic growth.
When looking through the topic of development, two drastically different ways to assess it arise. The majority of the western world looks at development in terms of per capita GNP. This means each country is evaluated on a level playing field, comparing the production of each country in economic value. Opposite this style of evaluation is that of the alternative view, which measures a country’s development on its ability to fulfill basic material and non-material needs. Cultural ties are strong in this case as most of the population does not produce for wealth but merely survival and tradition.
The rationale behind selecting these three countries as the subject of this comparative analysis with Pakistan is that, they all achieved independence in the same decade, were at a similar stage of economic development and had similar levels of GDP per capita initially. By researching and investigating the social indicators, the reforms and the policies of these four countries, over the preceding 60 years, this paper will help to identify the factors that may help explain the subsequent divergence in the rate of development of these countries.
The fact that it has been developed and used by the United Nations is significant. The syll It can be deduced that although social and economic indicators do have their relative merits, they have many weaknesses. Generally, it can be said that economic indicators measures the wealth of the country but gives little indication of the standard of living of the majority of people. The World Bank classifies GNP as an economic indicator of development but stresses that. Classification by income does not necessarily reflect development.
The input is education spending, wages of teacher, ratio of teacher and student [6], [18]-[20]. Human Development Index is defined as index for describing labor force and is obtained from aggregated life of expectancy, level of education and standard of life. As a result, this index is form of labor force quality [1], [22]-[24]. The last variable is poor people based on the consumption of 20% (considered as low level) as applied by [9], [10], [13], [16], [25].
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
There are at least four different research perspectives about the relationship between development and economic growth. Firstly, economic growth is the basis for social development. Secondly, economic growth and social development are not necessarily linked. Thirdly, both economic growth and social development are not basic causes by each other, but they depend on interaction. Fourthly, social development is the prerequisite for economic growth (Mazumdar. 1...
In determining the influences that relate to the living standard of people in a country, I will consider the different issues in each argument and analyze it with statistical data. The influences evaluated will consist of the social, economic and political conditions in the country, which will be proven to be the most significant when considering its effect on the happiness and living standards of people residing in a country. As money is strongly correlated to happiness and the wellbeing of people due to its ability to provide, the economic portion will be considered in the relationship between a country’s wealth and the living standards. Furthermore, the social factor of a nation and how its citizens are living affect the living standards of people in a country. These factors include multiple aspects of social wellbeing such as the education, health and happiness, and crime rates which ultimately affect the living standards of people residing in a certain region. Finally, the government is crucial in the overall living standards of people in a country due to their abilities to create laws that citizens are required to abid...
Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public
Our world is essentially divided into two sections: rich and poor. Unfortunately , the majority of people are poor. Each society has certain attributes that are part of its culture. Richer countries are literate, industrial, overweight, overfed, and comfortable. Poorer societies are illiterate, under-developed, hungry, malnourished, and struggling to merely survive.
The critical difference between most development models and human development index is that most development models exclusively focus on the expansion of income while the human development index embraces embraces the enlargement of all human choices – economic, political, social and cultural which all affect income. Comparing countries’ GNP (or GDP) per capita is the most common way of assessing their level of development. This model of economic growth was based on a very weak foundation that was not sustainable over the long-term politically, economically or ethically. Higher per capita income in a country does not always mean that its people are better off than those in a country with lower income, because there are many aspects of human well being that these indicators do not capture. Sometimes a country with a very high level of national income recorded a very high percentage of population in poverty, illiteracy, in poor health, and a huge disparity based on gender, ethnicity and income. “The Human Development Index (HDI) is a composite statistic of life expectancy, education, and income indices used to rank countries into four tiers of human development, well-being concept based on capability approach. In which poverty is investigated as an indicator of standard of living.” It is a simple average of three indexes reflecting a country’s achievements in health, life expectancy at birth, education (measured by adult literacy and combined primary, secondary, and tertiary enrolments), and living standard (measured by GDP per capita in purchasing power parity terms). Achievement in each area is measured by how far a country has gone in attaining the following goal: life expectancy of 85 years, adult literacy and enrolments of 100 ...
United Nations Development Program (UNDP). (2000). Human development report 2000. New York and Oxford: Oxford University Press.
Human Resource Development (HRD) is often seen to be a central feature of SHRM. Discuss the role and importance of HRD in achieving SHRM organizational outcomes.
In international parlance, development encompasses the need and the means by which to provide better life for people in poor countries and it includes not only economic growth, although that is crucial, but also human development like...