Topic Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
3. What do you understand by human capital? Explain how human capital formation contributes to economic growth and development. (250 words)
Reference: Investopedia
Why the question:
The question is premised on the concept of human capital and its contributions to economic growth and development of the country.
Key Demand of the question:
Discuss in detail the concept of human capital; explain in what way it contributes to economic growth and development.
Directive:
Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.
Structure of the answer:
Introduction:
Define human capital first, Human Capital can be defined as the knowledge, skills, competence and other attributes that individuals or groups of individuals acquire during their life and use to produce goods, services and ideas in the economy. It can be developed through skilling, training and providing quality education & health care facilities.
Body:
Write a brief note on the economic and non-economic benefits of investment in human capital. Giving few examples discuss how human capital formation contributes to economic growth and development.
Discuss how it enhances employability of the human resources, how it has a positive correlation with improved earnings and career prospects etc.
Conclusion:
Conclude with importance.
