Human Capital and Human Development

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Example-Human Capital and Human Development Mrs Kamla Age 80 Years Never gone to School Wants to Study so that she can write her own name & read newspapers Suppose an 80-Year-old wants to study and go to School Should govt spend on her free education? No There is no Economic Benefit of giving her education She won't be able to do job Yes She will be able to Read and write, It will improve her life HUMAN CAPITAL It is skills and knowledge which provide economic value HUMAN DEVELOPMENT It is the process of improving life of people without considering economic value Example 2-Human Capital and Human Development Should Vaccines be given to Old People for Covid No There is no Economic Benefit They are going to die anyways in some years This is Concept of Human Capital HUMAN CAPITAL It is skills and knowledge which provide economic value Yes It is our social responsibility Everyone has right to live This is Concept of Human Development HUMAN DEVELOPMENT It is the process of improving life of people without considering economic value Relation between Human Capital & Human Development Investment in Education and Health Increases Economic Value Does not Increases Economic Value Example Education for Young Example Education for Senior Citizens This is Human Capital This is not Human Capital But Both these are Human Development Investment in Human Capital leads to Human Development Human Capital means More Schools/Colleges/Hospitals For working Population(Young) Better Skills/Health of People Improvement in life of people Will lead to Human Development Human Development may not lead to Human Capital Human Development means More Schools/Colleges/Hospitals For whole Population Young People Old People Increase their skills And They contribute to Economic Growth Increase their skills But They do not contribute to economic Growth Create Human Capital Does not create Human Capital Difference Human Capital and Development Education for Young Human Capital It is skills and knowledge which provide economic value It is economic concept If investment in health and education do not increase economic value It is not human capital Increase in Human Capital leads to Human Development Narrow Concept (Focus only on economic Part) Human Development It is the process of improving life of people without considering economic value It is social concept If investment in health and education do not increase economic value Still, it is human development Increase in Human development may not generate human capita Broader Concept (Focus on Overall Development)