EDUindex News

EDUindex News

WHY IS HUMAN CAPITAL IMPORTANT?

Human capital is basically the amount of skill, expertise, knowledge and experience instilled in people. It is associated with the investment in the development of a man as a creative and productive resource. It is the population that helps in the growth of the country. For this, they need to be educated and trained. Their knowledge and efficient work will prove out to be a great contribution in the economic growth. This makes it quite obvious that the contribution of an educated person is far more than that of an illiterate one. Therefore, it is necessary to invest in the human capital formation. Here is a detailed description of how human capital plays an important role in the growth of the nation.

 

1.EFFECTIVE USE OF PHYSICAL CAPITAL

The physical capital can only be created by the hard work and intelligence of an educated man. The productivity of physical capital is widely depended on the human capital available. Therefore, the human capital and their skills and efforts helps in the effective use of the physical capital.

 

2.HIGHER PRODUCTION

The human capital increases the production and productivity because the knowledgeable population will use the resources efficiently and effectively. Increase in the quality and productivity can only be achieved by the high technical skills of people which is only possible if they educated and trained enough.

 

3.TECHNOLOGICAL IMPROVEMENT

The human capital formation will prepare the generation for the upcoming technologies. This means that they will be able to adopt the new technologies easily. Education provides them with the knowledge to embrace the changes in their surroundings both, economically and technologically. This will ease them out to be introduced to new mechanizations.

 

4.MODERNIZATION OF SOCIETY

The more the people would be educated, the more the society will develop. There is no denying in the fact that a lot of small towns and villages in India are still backward and people are not very open minded. If people are educated and have knowledge, they will grow personally and as a community. Their new ideologies and perspectives will allow them to change their actions and move ahead of the backward thinking. Therefore, investment in human capital helps in changing the mental outlook and helps in the development of the country.

 

5.INCREASES LIFE EXPECTANCY

More educated people are more health conscious. They focus on their diet and the nutrition they are absorbing. Being fit becomes one of their major agendas as they are aware of the consequences of living an unhealthy life. This leads them to have a longer life and also adds to their quality of life. Not just this but, being educated also advances the health facility extensively and more medications are being invented to help cure people with different diseases. This also contributes to more people being fit.

 

6.CONTROLS POPULATION

It has been observed that the educated people have smaller families as compared to the illiterate ones. They are aware of the population problem and know the meaning of planning. Also, they know the methods of controlling their family size. Therefore, more and more people must be educated so as to control the population of the country.