Conclusion

Last updated at April 16, 2024 by

Does Human Development and Human Capital Formation has economic benefit or social benefit?

Both

It has Economic benefit because:

It increases productivity of workforce

A skilled person contributes more Economic Growth as compared to illiterate person

A healthy person contributes more to economic growth than an unhealthy person

Skill Development of a person helps them to adapt to new technologies

Adequate education and training to farmers can also increase productivity in farms

Economic Benefits of Human CapitalHuman Development - Teachoo.JPG

It has social benefit because:

Human Capital benefits not only person but also the society

An educated person maintains good health and hygiene and takes part in democratic process of country.

Education provides knowledge to understand changes in societies.

Social Benefits of Human CapitalHuman Development - Teachoo.JPG

Summary Benefits of Human Capital Or Human Development - Teachoo.JPG

 

What should Govt do to promote Human Capital formation in India?

Increase Govt Budget

Govt should increase budget on expenditure and health and

should ensure that Education and Health Services are provided to all sectors of society.

 

Prevent Brain Drain

India has a rich stock of scientific and technical manpower

However, many of these prefer to leave India to work abroad

Govt should ensure such conditions that they are utilised in India and there is no brain drain

 

Improve Quality of Education

India have a huge amt of workforce who have degrees but not job ready

Govt should improve quality of education and ensure that employable skills are provided to students

Government Performance in Education Sector in India -Current Status and how to Improve - Teachoo.JPG

MCQ Other Books

Question 1

In the following questions, select the correct answers:

What are the economic benefits of Human Development and Human Capital formation?

  1. Increase in productivity of workforce
  2. Education provides knowledge to understand changes in societies.
  3. Skill Development of a person helps them to adapt to new technologies
  4. None of these
View Answer

 

Question 2

What steps should government perform to promote human capital formation?

  1. Improve quality of education
  2. Prevent Brain drain
  3. Increase government budget
  4. Increase productivity of workforce
View Answer

 

Transcript

Economic Benefits of Human Capital/Human Development Increases productivity of Labour Unskilled Labour Less Output, Less Salary Skilled Labour More Output, More Salary Increases productivity of farming Farmer using old Techniques Less Output, Less Income Farmer using New Techniques More Output, More Income Improves Health Sick Person has Less Productivity Less Output Healthy Person has More Productivity More Output Ensures New Innovation and Creativity Uneducated Person Suffers from Lack of Creativity & New Ideas Educated Person is more Creative And Innovates New products All these Increase Output and Income, so these are Economic Benefits Social Benefits of Human Capital/Human Development Uneducated Person Doesn't Maintain Hygiene Children, Family also get disease Uneducated Person Doesnot understand Changes in Society (Example- Having no idea of COVID) Educated Person Maintain health and hygiene of self and family, Educated Person Understand Changes in Society (Example-taking Proper Covid Protection All these benefit Person as well as Society So these are Social Benefits Summary Benefits of Human Capital/Human Development Economic Benefits Increases productivity of Labour Increases productivity of farming Improves Health Ensures New Innovation and Creativity All these Increase Output and Income, so these are Economic Benefits Social Benefits Maintain health and hygiene of self and family, Educated Person Understand Changes in Society All these benefit Person as well as Society So these are Social Benefits Government Performance in Education Sector Current Scenario Budget Cuts on Education Brain Drain People get educated in India and work abroad Rote Learning and lack of Practical Skills What Govt should do? Need to increase Spending Need to Stop Brain Drain (Ensure conditions that People stay in India and contribute to Country's growth) Need to Provide Employable Skills and Practical Knowledge

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Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years and a teacher from the past 18 years. He teaches Science, Economics, Accounting and English at Teachoo