this presentation is all about human capital what is human capital what are its impact what are pros and cons of its history of human capital from where it started and what is its current position

1. BABA SAHEB BHIMRAO
UNIVERSITY
Presentation of indian economy

2. TOPIC –HUMAN CAPITAL

3. History of human capital
 arthur lewis is said to begun the field of
development economies and idea of human
capital in book “ECONOMIC DEVELOPNMENT
AND UNLIMITED SUPPLIES
 Word human capital was given by ARTHUR
CELL PIGOU

4. adam smith views
“the greatest improvement in the
productive powers of labour seem to have
been the effect of division of labour ”
1. Useful machines instrument of trade ,improvement of land
2. Building as the means of procuring revenue
3. Relationship between division of labour and human capital

5. KARL MARX VIEWS
concept of labour power
 MARX distinguished between one capacity
to work ,labour , power, and the activity
of working
a/c to him the workers does not sell his
skills but contracts to utilize those skills in
same way that an industrialist sells his
produce not machinery

9. PEOPLE AS A RESOURCE
 Alfred marshall said that the most valuable
of all capital is that investment in human
being
 Population become human capital when
there is investment made in the form of
education ,training and medical care
 In fact of criticizing the country population
its better to make them skillful and used
them as a resource
 Investment in human capital yield a return
just like investment in physical capital

10. Why is human capital important for
development ?
 Structural unemployment – rapid deindustrialization
and movement of labour
1. Ability of employment –divergence b/w low skilled
,low to high skilled and creative workers increased
opportunities for self employment
2. economic growth and productivity
3. Human capital flight – globalization low
income countries to higher income countries
4. Raw materials and sustainability

11. factors that determine human
capital
1. skills and qualifications
2. Education level
3. Work experience
4. Social skills –communication
5. Emotional intelligence,judgement
6. Personality ,habits ,personality traits
,creativity ,ability to innovate new working

12. increase human capital
1. Education –basic education to improve literacy
2. Health – basic health facility should be on the basis of
curative health measure but also preventive health measure
3. Investment
4. Increasing working skills

13. Opportunities that human capital
provides
1. Opportunity to develop creativity
skills
2. Open way for investment
3. Competitiveness – environment which
encourages self employment & the
creation of business enables greater use of
potential of human capital in economy

14. Difference between human and
physical capital
 Characterstics – it is
tangible in nature
Ownership – separated
from its owner
Benefits – only to
private individuals
transportability
–transportable between
countries
it is intangible in nature
Cannot be separated from its
owner
Social benefits apart from
private
Cannot be transport because of
restrictions of culture and
nationalities
 Physical capital  Human capital

19. State of human capital formation in
india
1. Federal country with a union and state government and local
functionary
2. Constitution of india mentions the functions to be carried out
by each level of government
3. Expenditure on both education & health are carried out by
three tiers hence it makes substantial long term impact &they
cannot be easily reversed hence government interventions is
essentials individually creates monopoly
4. Dependence on private is more as compared to government
5. Government must ensure that private providers of any services
musr adhere to standard stipulated by government &charge
correct price