HUMAN CAPITAL Human resource is trained population. Human resource is the population which is trained , and skillful. The size of population of a country along with its efficiency, educational qualities, organizational abilities, and productivity.human capital implies technical knowledge, skills among population.
ROLE OF HUMAN CAPITAL/ HUMAN RESOURCE IN THE DEVELOPMENT ECONOMICS
1) "INCREASE IN THE PRODUCTION" Qualified human resource does not wast the raw material which is to be used in the production, hence it could increase, at the end increase the GDP. Technical knowledge is required for higher productivity which exist in the human resource development. 2) PROPER UTILIZATION OF RESOURCES The skillful labour know about the production, that how much they have to produce, when the labour or human are trained they use the raw materials efficient. They dont waste the raw materials, They will produce according to the market demand and will supply according to the market demand. If the market demand is less and they produce more products , they will pay higher cost for that.
3) RAISES PER CAPITA INCOME As we improve the skills of human and make them educated and provide perfect knowledge , they will increase the productivity and they will efficiently use the raw materials it will increase the per capita income. Per capita income general formula is Total production/total population. When the production increases, It increase the GDP , and increase in the GDP increase the income of the people. Per capita income doesn't mean that all the population are getting the income that government has estimated. Per capita income is just a measure / estimater.
4) TOOL FOR ECONOMIC CHANGE As we discussed that skillful labour focus on the production to increase the production , when our country's production increase means we are in surplus and surplus increase the exports which it lead to increase foreign exchange rate , it increase the GDP and Economic growth.
5) IMPROVING STANDARD OF LIFE with the increase of per capita income , saving of the people increases which is almost 70% to 80% Used for standard of life. But question arises that per capita income is just a measure , all people are not getting the money which government has estimated. So how it increase the saving ? We are talking about skillful labour and educated labour / population which could be employed in the productive sectors. With the enployment of the population their income increases and with the increase of income people save money for the standard of life to live with standard.
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