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VOLUME 9 NUMBER 1 DECEMBER 2013
SAARC Journal of Human Resource Development 2013
32
Human Resource Development, Government Spending
and Productivity of Human Capital in Pakistan
Muhammad Abdul Wahab, Dr.Vaqar Ahmed,AsifJaved2
Abstract
The growth experience in South Asia, exhibits how skilled
human capital paved the way for foreign direct investment and
technology transfer in the region. Developing countries, in the
same region, however, felt constraints on growth primarily
associated with institutional factors that kept productivity of
labour and capital at lower levels. Despite investment in
vocational and skills development, health and education, the
multinational enterprises and local investors are reluctant to
engage in longer term investment contracts, in Pakistan.
This study analyses the relationship between endowment of
human capital, government spending on Human Resource
Development (HRD) and productivity of labour in Pakistan. The
recent data from official sources exhibit that a)Pakistan is
performing relatively poorly in HRD indicators in comparison to
South Asian neighbours; b) The Government spending on HRD
as percentage of Gross Domestic Product (GDP) is relatively
lower vis-a-vis South Asian average; and c) Productivity of
labour in Pakistan continues to decline over time. The only
productivity increase is observed in some services sectors over
the past decade. The skills development programs must cater to
the demands of employers in value added agriculture, industry
and services sectors. The vocational institutions also need to
carefully look at their syllabi in the light of overseas
developments, where Pakistani Diaspora has potential for
employment. Greater coordination is required between Federal
and Provincial Governments for eliminating fragmentation of
HRD programs across the country. The governance of public
sector education and skills development institutions may be
improved through allowing private management, as seen in the
Punjab province.
2
M. Abdul Wahab(email: wahab907@gmail.com), Economic
Consultant and Dr. Vaqar Ahmed (email: vaqar@sdpi.org), Deputy
Executive Director, Sustainable Development Policy Institute;AsifJaved
(email: asifjaved04@gmail.com), Research Analyst, Global Research
Insight for Development, Pakistan.
HRD Government Spending and Productivity
33
5.1
5.6
3.8
5.86.0
2.4
3.3
2.02.2
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Germany
USA
Japan
Brazil
SouthAfrica
Pakistan
India
Srilanka
Bangladesh
%ofGDP
Education Spending as % of GDP
11.1
17.9
9.3 8.9 8.1
2.5 3.9 3.4 3.7
0.0
5.0
10.0
15.0
20.0
Germany
USA
Japan
Brazil
SouthAfrica
Pakistan
India
Srilanka
Bangladesh
Health Spending as % of GDP
Introduction
HRD plays a crucial role in enhancing firm level productivity
and ultimately, a country's national income. HRD policies
mainly include education, skill development, and health facilities
available to working age population and prudent labour market
laws and regulations (OECD 2012). Each component of HRD
policies is important for developing enabling environment for
domestic and foreign enterprises to lure additional investments as
well as attract technological advancements for increased
competitiveness. The political economic milieu, initial
endowments of factors of production, and institutional stability
across government and non-government institutions play an
important role in enhancing the quality of human capital.
The impact HRD policies provide coherence between programs
at national and sub-national levels. Equally important is to
synchronize the public sector investments in HRD. In the initial
phases of development, these scarce budgetary resources should
be targeted to sectors or regions with high impact in the shortest
possible time.
Figure 1: Education and Health Spending
(asPercentage of GDP)
Source: World Development Indicators, 2013
The above figure shows education and health spending as
percentage of GDP of developed, middle income and developing
economies. In education spending developed economies like
SAARC Journal of Human Resource Development 2013
34
Germany, USA and Japan spend around 5.1, 5.6 and 3.8 percent
of GDP respectively whereas, middle income group economies
like Brazil and South Africa spending on education as percentage
of GDP is around 5.6 and 6.0 percent. The developing South
Asian economies like Pakistan, India, Sri Lanka and Bangladesh
spend less than 3.5 percent of their GDP.
In health spending as percentage of GDP Germany, USA and
Japan spent around 11.1, 17.9 and 9.3 percent of GDP, whereas,
Brazil and South Africa spent 8.9 and 8.1 percent of GDP
respectively. In case of Pakistan, India, Sri Lanka and
Bangladesh spending stands at less than 4 percent. One could
observe that the recipe to sustain economic growth at higher
trajectories is by looking into the level of investment in human
capital by the developed economies in comparison with the
developing economies like South Asia.
Table 1: GDP per Capita and Investment in HRD
Country
Countries
by Income
Groups
GDP Per
Capita
current $
Education
Spending (%
of GDP) (A)
Health
Spending
(% of GDP)
(B)
Spending on
HRD (% of
GDP)
C = A + B
Germany High
Income
Developed
Economies
41,863 5.1 11.1 16.1
USA 51,749 5.6 17.9 32.2
Japan 46,720 3.8 9.3 13.1
Brazil Middle
Income
Developin
g
Economies
11,340 5.8 8.9 14.7
South
Africa
7,508 6.0 8.1 14.1
Pakistan
Low
Income
Developin
g
Economies
1,257 2.4 2.5 4.9
India 1,489 3.3 3.9 7.2
Sri Lanka 2,923 2.0 3.4 5.4
Banglade
sh
752 2.2 3.7 6.0
Source: World Development Indicators, 2013
High income economies have a double digit spending in HRD as
percentage of GDP (see Table 1). Even in case of middle income
economies like Brazil and South Africa their spending on HRD
as percentage of GDP is 14.7 and 14.1 percent respectively. The
South Asian economies as shown in the Table 1 are far lower
than these levels.
HRD Government Spending and Productivity
35
The next section provides a literature review on HRD, economic
growth and productivity. Section 3 provides a comparison of
HRD indicators in Pakistan and across South Asia. This is
followed by an analysis of sectoral labour productivity in
Pakistan overtime. Section 5 concludes with policy
recommendations.
HRD, Economic Growth and Productivity
Empirical literature has highlighted various dimensions of HRD
which influence work force productivity and its spill over effects
on economic growth. HRD plays an important role in attracting
and encouraging foreign and local investment and technology
transfer. Silva (1997) argued that appropriate human capital goes
hand in hand with economic, trade and investment policies. Both
are interlinked and their effect cannot be separated. It is further
added that returns on human capital are not spontaneous therefore
planning has to be done at the right time to generate effective
results.
Ichniowski et al. (1997) and Wood (1999) emphasized that high
performance work place accompany with good Human Resource
Management (HRM) policies increase the productivity by
motivating workers (see also Bartel,1994). Good HRM policies
contribute towards loyalty and commitments of workers to do
their tasks and willingness to do better job. Arthur (1994) studies
the impact of HR policies on steel industries and found that
productivity level of the mills who have adopted good HR
policies is higher than the industries with no HR policies. Batt
(2002) and Zwick (2002) attributed that high performance work
place has significant effect on firm productivity.
Andries de Grip, IngeSieben (2003) study the impact of HRD in
small pharmaceutical firms and argue that small firms do not
benefited from advance HRM policies, moreover in small firms
personal relation between employer and employees are given
more importance than workersโ€™ productivity levels. Horwitz
(1996) pointed out that adaptation of HRD and Management
approaches at the same time developed efficient labour and
organizational change. Whereas, proper information is significant
for development, monitoring, appraising the efficiency of HRD
and diversity of management.
SAARC Journal of Human Resource Development 2013
36
Cheong (2012) study the impact of HRD on economic growth of
Macao and attribute knowledge as vital factor for productivity,
economic growth and employment. Education expenditure
increased considerably which resulted in enhancing educational
skills of workforce. It is also analyzed that workers with lower
educational level are more likely to remain unemployed.
Ranis (2004) argued that Human Development (HD)is an
essential requirement for sustainable growth but it depends on a
specific HD level. In this regard, government policy and public
funding are important elements that put forward a nation beyond
threshold HD level. Targeted government investment comprise of
investment in education, health and improvement in governance.
Afza and Nazir (2007) examined the function of HRD as an
instrument to enhance economic competitiveness in South Asian
region with respect to Pakistan. Their findings show that global
markets have raised economic competitiveness which is a key for
foreign direct investment. Furthermore, knowledge and expertise
of labour force are crucial for nations and should be the policy
target for development and competitiveness. They suggest that
Pakistan can develop its human capital by providing education, in
line with the market demand locally and abroad.
Wahab et al. (2013) study the impact of HRD on remittances for
South Asian economies and their finding shows that south Asian
economies including India, Bangladesh and Pakistan were top
recipient of workers' remittances in 2010. Based on econometric
analysis, it is suggested that an increased stock and quality of
human resources raises remittance inflows, implying the need for
policies to improve education and training.
Sharif et al. (2013) validate that HRD is important factor in
development of Bangladesh. By using econometric analysis their
findings show positive link between HRD and economic growth.
Furthermore, Investment in education shows significant
contribution while research and development expenditures also
play a constructive role.
HRD Patterns in Pakistan and South Asia
Pakistan is home to more than 184 million people and it is
estimated that 17.2 percent people were living below poverty line
in 2007 (World Bank 2009). One could observe significant
HRD Government Spending and Productivity
37
decline in poverty from 34 percent in 2002 to 17.2 percent in
2007 but in 2008, due to global financial crisis exports of
Pakistan to EU market significantly declined, aid flows also
reduced and balance of payments was exposed to commodity
market volatilities which resulted in declining foreign reserves,
reduced production and higher unemployment. Pakistan being a
frontline state in the war against terror, faced the problem of
deterioration in law and order, prohibited investors to enter into
longer term investment contracts.
The on-going energy crisis which aggravated after 2007-08 due
to higher oil prices not only discouraged the foreign investor but
also led to closure of substantial proportion of Small and Medium
Enterprises (SMEs) in Pakistan. The SME sector could not
absorb the higher input costs and the overall costs of production,
increased to a level, where unprecedented labour in Punjab and
Sind provinces had to be laid off.
Going forward Pakistan will need to address the short term
irritants like the lack of energy in order to reach its potential
growth rate of 5-6 percent. Beyond this, major structural reforms
are required in order to set the country on a path of higher growth
trajectory where productivity gains can be realized. Investment in
HRD remains one such reform which needs to be coordinated
from the highest tiers of the Government.
It is important that high performance workers should not merely
be seen as economic units of labour. Equally important is to
understand that empowering working age population through
prudent HRD policies, programs and projects results in a grass
roots level social change. Countries such as Vietnam, Cambodia
and Sri Lanka have realized exactly such a phenomenon.
SAARC Journal of Human Resource Development 2013
38
Table 2: Pakistan: Macroeconomic Indicators (%)
Indicator 2007 2008 2009 2010 2011 2012 2013(P)
GDP growth 5.5 5.0 0.4 2.6 3.7 4.4 3.6
Agriculture
growth
3.4 1.8 3.5 0.2 2.0 3.5 3.3
Industrial
sector growth
7.7 8.5 -5.2 3.4 4.7 2.7 3.5
Service
sector growth
5.6 4.9 1.3 3.2 3.9 5.3 3.7
Total
investment
(% of GDP)
18.7 19.2 17.5 15.8 14.1 14.9 14.2
Federal tax
revenue(% of
GDP)
9.2 9.5 8.8 8.9 8.5 9.4 10.1
Labour force
(millions)
50.3 51.7 53.7 56.3 57.2 - -
Source: Economic Survey of Pakistan, 2013
Table 2 shows a downward trend in GDP growth rate - a
phenomenon that has serious implications for the poorest of the
poor in the country. Growth is certainly a necessary if not
sufficient condition for poverty reduction. Agriculture sector has
seen volatility owing to recurrent annual floods since 2010.
Industrial growth peaked during 2007-08 but plunged
dramatically to a negative 5.2 percent during 2009.
Growth in non-commodities or services sectors showed bumpy
trends in 2007 around 5.6 percent and experienced a significant
decline in 2009 standing at 1.3 percent. Investment as percentage
of GDP remains one of the lowest in South Asian region. Federal
tax revenue as percentage of GDP reached at 10.1 in 2013 which
is highest in the last 5 years however, dismally low if compared
to the average of developing Asia. The concerning aspect is that
Pakistan has a youth bulge in its population pyramid. The growth
rate of labour force is over 3.5 percent. However, the depressed
GDP growth is not enough to absorb these rising number of youth
in the working age population. This calls for a serious
introspection of HRD and growth policies in Pakistan.
In 2011, it is estimated that 57.8 million people constitutes
Pakistan labour force and among which 3.4 million are
unemployed labour force (Economic Survey 2013).Table 3 shows
HRD Government Spending and Productivity
39
Human Development Index values of south Asian economies for
the year 2012. Pakistan HDI value stands around 0.51 which is
low in comparison with India and Sri Lanka.
Table 3: Human Development Index 2012
Country Human Development Index
Bangladesh 0.51
India 0.55
Nepal 0.46
Pakistan 0.51
Sri Lanka 0.71
South Asia 0.55
Source: Human DevelopmentReport 2013, UNDP
Table 4 shows that in Pakistan primary education completion rate
is very low as compared to other regional economies like Bhutan,
India, Maldives, Nepal and Sri Lanka. Total net enrolment in
primary education in Pakistan is very low it stands around 66.4
percent which is inadequate in comparison with other regional
economies. Adult literacy rate in Pakistan stands around 55.5
percent which is low in comparison with India, Maldives, Nepal
and Sri Lanka.
Table 4: Education in South Asia 2009 (%)
Country/Indicators
Primary
education
completion
rate
Total net
enrolment
ratio in
primary
education
Adult literacy rate
Bangladesh 60.5 89.6 55.9
Bhutan 88.5 88.4 52.8
India 94.8 95.5 62.8
Maldives 119.4 96.2 98.4
Nepal 70.0 73.6 59.1
Pakistan 61.1 66.4 55.5
Sri Lanka 97.5 95.1 90.6
South Asia 78.8 86.4 67.9
Source: Asian Development Bank Online Database,2011
SAARC Journal of Human Resource Development 2013
40
Figure 2: Mean Year of Schooling- South Asia 2012
Source: UNDP, 2013
Figure 2 shows average year of schooling of South Asian
countries. Overall in South Asia, average year of schooling is 4.8
years. Among the South Asian countries, in Sri Lanka mean year
of schooling is reported at 9.3, in Pakistan, it is 4.9 which is
better than Afghanistan (3.1), India (2.3) and Nepal (3.2).
Table 5: Skill Development Indicators- South Asia
Country
Higher education
and training (rank)
Quality of
education
system3
Local availability of
specialized research
& training services
Bangladesh 126 94 127
Nepal 131 116 133
India 85 39 51
Pakistan 123 87 97
Sri Lanka 62 44 46
Source: Global Competiveness Report, 2010-11, World Economic
Forum
3
Imparting quality and new education with higher education means the
increase in the enrolment from secondary level to the college or
university level.
3.1
4.8
2.3
5.8
3.2
4.9
9.3
0
2
4
6
8
10
Yearsofschooling
HRD Government Spending and Productivity
41
Table 5 shows skill development indicators of south Asian
countries. In higher education and training ranking, Pakistan
ranked at 123, showing its performance poor in comparison with
India and Sri Lanka, ranked at 85 and 62 respectively. In terms of
quality of education Pakistan ranked at 87, again, performing
poor in comparison with India and Sri Lanka which are ranked at
39 and 44. In local availability of specialized research and
training services, Pakistan ranked at 97 which are far behind the
regional economies like India and Sri Lanka which are ranked at
51 and 46.
Table 6: Health Indicators of South Asian Countries
Countries Bangladesh Bhutan India Nepal Pakistan
Sri
Lanka
Mortality
rate, infant
(per 1000 live
births)
33.1 35.7 43.8 33.6 69.3 8.3
Life
expectancy at
birth, total
(years)
69.9 67.5 66.0 67.5 66.3 73.9
Population
growth
(annual %)
1.2 1.7 1.3 1.2 1.7 1.0
Population
(million)
154.7 0.7 1236.7 27.5 179.2 20.3
Birth rate,
crude (per
1,000 people)
20.6 20.2 21.0 22.3 26.2 18.3
Death rate,
crude (per
1,000 people)
5.8 6.6 7.9 6.8 7.0 7.0
Health
expenditure,
total (% of
GDP)
3.7 4.1 3.9 5.4 2.5 3.4
Fertility rate,
total (births
per woman)
2.2 2.3 2.5 2.5 3.3 2.3
Source: World Development Indicators,World Bank, 2013
SAARC Journal of Human Resource Development 2013
42
Table 6 shows health indicators of South Asian countries. In
Pakistan infant mortality rate stands around 69.3 per 1000 live
births which are the highest among the South Asian countries.
Annual population growth rate of Pakistan stands around 1.7
percent which is very high. If country unable to control its
population growth then it is projected that the population may
cross 342 million by the end of 2050 and country will become
4th
largest nation by population. Pakistan crude birth rate stands
around 26.2 per thousand people which are very high in
comparison with other South Asian countries. While crude death
rate in Pakistan is reported at 7 which is better than India but
worst in comparison with Bangladesh, Bhutan and Nepal.
Fertility rate is reported at 3.3 which, is very high among the
South Asian countries. It is observed that the health expenditures
as percentage of GDP,is 2.5 percent which is very the low in
comparison with Bhutan, Bangladesh, India, Nepal and Sri
Lanka. Poor performance of health indicators may be attributed
to low expenditures in health as percentage of GDP.
Table 7:Skills Development in South Asia
Countries
Percent of
firms offering
formal
training
Proportion
of unskilled
workers
(out of all
production
workers)
(%)
Percent of
firms
identifying
labour
regulations as
a major
constraint
Percent of firms
identifying an
inadequately
educated
workforce as a
major constraint
Afghanistan
(2008)
14.6 29.9 4.5 18.0
Bangladesh
(2013)
21.9 21.3 3.4 15.7
Bhutan
(2009)
29.9 ... 16.4 12.6
India
(2006)
15.9 36.3 9.2 14.5
Nepal
(2013)
31.9 15.2 2.7 9.1
Pakistan
(2007)
4.5 19.1 6.4 8.1
Sri Lanka
(2011)
13.1 14.6 12.7 16.0
South Asia 19.3 20.0 7.7 13.2
Source:World Bank Enterprise Survey, 2013
Table 7 shows that in Pakistan 4.5 percent of the firms offered
formal trainings to their employees in the year 2007. There are
HRD Government Spending and Productivity
43
19.1 percent unskilled workers out of all production workers, in
India unskilled worker are reported high at 36.3 percent in the
year 2006 where as in Sri Lanka and Nepal it is reported at 14.6
and 15.2 percent in the years 2011 and 2013 respectively. In
Pakistan 6.4 percent of the firms believe that labour regulations is
a major constraint in their productivity, this percentage is high in
Bhutan which is 16.4 percent, however years of figures are
different i.e. 2006 and 2009 respectively. In Pakistan 8.1 percent
of the firms believe that lack of educated workers is major
constraint in productivity.
Labour Productivity in Pakistan
Labour productivity is an important determinant of long run
economic growth. It increases the economy-wide average wage
rate and helps to mitigate poverty. It brings greater efficiency in
the goods market and encourages foreign as well as local
investors to invest more towards skills development of their
employees. Eventually the knowledge and skills paradigm
defines the competitiveness levels across firms and countries.
Theoretically labour productivity can be enhanced by investing in
education, health, vocational trainings and through prudent labour
market laws and policies. Equally important is to have
institutional reforms, in place that help in curtailing the brain
drain in the developing economies like South Asia.
SAARC Journal of Human Resource Development 2013
44
22
24
26
28
30
Agriculture
0
20
40
60
80
Manufacturing
0
500
1000
1500
2000
Mining
0
5
10
15
20
25
Construction
Figure 3:Labour Productivity "per hours" Worked, by all
Sectors (constant factor cost in PKR)
Labour Productivity "per hours" Worked, in
DifferentSectors
(constant factor cost in PKR)
38
40
42
44
46
48
50
52
2000 2002 2004 2006 2007 2008 2009 2010 2011
All sectors
HRD Government Spending and Productivity
45
35
40
45
50
55
Wholesales and retail trade
0
1
2
3
4
Public Spending on Education (% of GDP)
Linear (Public Spending on Education (% of GDP))
Source: Pakistan Labour Force Survey, 2013
Figure 4 shows that over the last one decade there is declining
trend in education and health expenditures which results in
declining labour productivity in all the sectors of the economy.
Declining trends in labour productivity push the country toward
low economic growth equilibrium.
Figure 4: Investment in HRD (as Percentage of GDP)
0
100
200
300
2000
2002
2004
2006
2007
2008
2009
2010
2011
Electricity, gas and water
SAARC Journal of Human Resource Development 2013
46
Conclusion
Pakistan economic growth is dwindling over the time which may
be attributed to global financial crisis of 2008, floods of 2010,
poor law and order situation due to front line ally in war against
terrorism, declining trend in FDI, growing debt to GDP ratio and
low tax base. Study has highlighted the fundamental need of
HRD for fast growing population of the country. Over the period,
Pakistan has performed poor in human capital development in
comparison with regional economies like Bangladesh, India, Sri
Lanka and Nepal. Pakistan's poor performance in HRD indicators
are due to decline in investment in human capital over the time.
The skills development programs must cater to the demands of
employers in value added agriculture, industry and services
sectors. The vocational institutions also need to carefully look at
their syllabi in the light of developments overseas, where,
Pakistani Diaspora has potential for employment. Greater
coordination is required between Federal and Provincial
Governments for eliminating fragmentation of HRD programs
across the country. The Governance of public sector education
and skills development institutions may be improved through
allowing private management, as seen in the Punjab province.
Apart from the above, there are major governance reforms
required in HRD. After the 18th Constitutional Amendment (in
2011) education, health and vocational training have become
provincial subjects to the extent of funds management and actual
implementation on-ground. However, it is important to note that
this devolution does not excuse the Federal Government from its
policy and planning role in HRD. Since2011, the Federal
0
1
2
3
4
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Health Expenditure (% of GDP)
Linear (Health Expenditure (% of GDP))
HRD Government Spending and Productivity
47
Government has not been able to engage the Provincial
Governments pro-actively on HRD promotion. It is of utmost
importance that the Council of Common Interests, a
constitutional body that has responsibility of overseeing
implementation of economy-wide national level reforms, should
put forward a consensus based plan for HRD uplift in a manner
that it becomes binding on all provincial Governments. The
National Planning Commission can be designated as the
coordinator for this purpose.
References
Aftab, T. and Nazir, M. (2007). Economic Competitiveness and
Human Resource Development: An FDI perspective,
Pakistan Economic and Social Review, Vol. 45, No. 2
(Winter 2007), pp. 167-180.
Andries de Grip, Sieben, I. (2003). The Effects of Human
Resource Management on Workers' Wages and Firm
Productivity, Research Centre for Education and the
Labour Market, ROA-RM-2003/9E.
Arthur, J. B. (1994). Effects of Human Resource Systems on
Manufacturing Performance and Turnover, Academy of
Management Journal, Vol. 37, pp. 670-687.
Bartel, A. P. (1994). Productivity Gains from the Implementation
of Employee Training Programs, Industrial Relations, Vol.
33, pp. 411-425.
Batt, R. (2002).Managing Customer Services: Human Resource
Practices, Quit Rates, and Sales Growth, Academy of
Management Journal, Vol. 45, pp. 587-597.
Cheong, W. (2012).Human Resource Development for
Knowledge-Based Economies and ItsImplementation for
Macao, Monetary Authority of Macao, Quarterly
Publication.
Debrah, Y. and Budwar, P. (2000). Complementarily or
Competition: The Development of Human Resources in a
South-East Asian Growth Triangle: Indonesia, Malaysia
SAARC Journal of Human Resource Development 2013
48
and Singapore, The International Journal of Human
Resource Management, Vol. 11, Issue 2.
Government of Pakistan.(Various Issues). Economic Survey of
Pakistan, Issue 2010, 2011, 2012 and 2013.
Horwitz, F. (1996). Human Resource Development and
Managing Diversity in SouthAfrica, International Journal
of Manpower, Vol. 17, Issue 4/5, pp. 134 โ€“ 151.
Ichniowski, C., Shaw, K. and Prennushi, G. (1997). The Effects
of Human Resource Management Practices on
Productivity: A Study of Steel Finishing Lines, American
Economic Review, Vol. 87, pp. 291-312.
Wahab, M., Vaqar, A. and Hamid, M. (2013). Human Resource
Development and Foreign Remittances, the Case of South
Asia, Journal of World Economics, Vol. 14(4), pp. 29-56.
OECD.(2012). Policy Framework for Investment Userโ€™s Toolkit,
Chapter 8.Human Resource Development.
Ranis, G. (2004).Human Development and Economic Growth,
Economic Growth Centre, Yale University, Centre
Discussion Paper No. 887, Yale University.
Sharif, T., Ahmed, J. and Abdullah, S. (2013). Human Resource
Development and EconomicGrowth in Bangladesh: An
Econometric Analysis, European Journal of Business and
Management, Vol. 5(7).
Silva, S. (1997). Human Resources Development for
Competitiveness: A Priority for Employers, International
Labour Organization, ACT/EMP Publications, Paper
presented at the ILO Workshop on Employers'
Organizations.
Wolf, E. and Zwick, T. (2002). Reassessing the Impact of High
Performance Workplaces,Discussion Paper No. 02-07,
Mannheim.
Wood, S. (1999). Human Resource Management and
Performance, International Journal ofManagement
Reviews, Vol. 1, pp. 367-413.
VOLUME9NUMBER1DECEMBER2013
SAARC HUMAN RESOURCE DEVELOPMENT CENTRE
ISLAMABAD, PAKISTAN

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Human Resource Development, Government Spending and Productivity

  • 1. VOLUME 9 NUMBER 1 DECEMBER 2013
  • 2. SAARC Journal of Human Resource Development 2013 32 Human Resource Development, Government Spending and Productivity of Human Capital in Pakistan Muhammad Abdul Wahab, Dr.Vaqar Ahmed,AsifJaved2 Abstract The growth experience in South Asia, exhibits how skilled human capital paved the way for foreign direct investment and technology transfer in the region. Developing countries, in the same region, however, felt constraints on growth primarily associated with institutional factors that kept productivity of labour and capital at lower levels. Despite investment in vocational and skills development, health and education, the multinational enterprises and local investors are reluctant to engage in longer term investment contracts, in Pakistan. This study analyses the relationship between endowment of human capital, government spending on Human Resource Development (HRD) and productivity of labour in Pakistan. The recent data from official sources exhibit that a)Pakistan is performing relatively poorly in HRD indicators in comparison to South Asian neighbours; b) The Government spending on HRD as percentage of Gross Domestic Product (GDP) is relatively lower vis-a-vis South Asian average; and c) Productivity of labour in Pakistan continues to decline over time. The only productivity increase is observed in some services sectors over the past decade. The skills development programs must cater to the demands of employers in value added agriculture, industry and services sectors. The vocational institutions also need to carefully look at their syllabi in the light of overseas developments, where Pakistani Diaspora has potential for employment. Greater coordination is required between Federal and Provincial Governments for eliminating fragmentation of HRD programs across the country. The governance of public sector education and skills development institutions may be improved through allowing private management, as seen in the Punjab province. 2 M. Abdul Wahab(email: wahab907@gmail.com), Economic Consultant and Dr. Vaqar Ahmed (email: vaqar@sdpi.org), Deputy Executive Director, Sustainable Development Policy Institute;AsifJaved (email: asifjaved04@gmail.com), Research Analyst, Global Research Insight for Development, Pakistan.
  • 3. HRD Government Spending and Productivity 33 5.1 5.6 3.8 5.86.0 2.4 3.3 2.02.2 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Germany USA Japan Brazil SouthAfrica Pakistan India Srilanka Bangladesh %ofGDP Education Spending as % of GDP 11.1 17.9 9.3 8.9 8.1 2.5 3.9 3.4 3.7 0.0 5.0 10.0 15.0 20.0 Germany USA Japan Brazil SouthAfrica Pakistan India Srilanka Bangladesh Health Spending as % of GDP Introduction HRD plays a crucial role in enhancing firm level productivity and ultimately, a country's national income. HRD policies mainly include education, skill development, and health facilities available to working age population and prudent labour market laws and regulations (OECD 2012). Each component of HRD policies is important for developing enabling environment for domestic and foreign enterprises to lure additional investments as well as attract technological advancements for increased competitiveness. The political economic milieu, initial endowments of factors of production, and institutional stability across government and non-government institutions play an important role in enhancing the quality of human capital. The impact HRD policies provide coherence between programs at national and sub-national levels. Equally important is to synchronize the public sector investments in HRD. In the initial phases of development, these scarce budgetary resources should be targeted to sectors or regions with high impact in the shortest possible time. Figure 1: Education and Health Spending (asPercentage of GDP) Source: World Development Indicators, 2013 The above figure shows education and health spending as percentage of GDP of developed, middle income and developing economies. In education spending developed economies like
  • 4. SAARC Journal of Human Resource Development 2013 34 Germany, USA and Japan spend around 5.1, 5.6 and 3.8 percent of GDP respectively whereas, middle income group economies like Brazil and South Africa spending on education as percentage of GDP is around 5.6 and 6.0 percent. The developing South Asian economies like Pakistan, India, Sri Lanka and Bangladesh spend less than 3.5 percent of their GDP. In health spending as percentage of GDP Germany, USA and Japan spent around 11.1, 17.9 and 9.3 percent of GDP, whereas, Brazil and South Africa spent 8.9 and 8.1 percent of GDP respectively. In case of Pakistan, India, Sri Lanka and Bangladesh spending stands at less than 4 percent. One could observe that the recipe to sustain economic growth at higher trajectories is by looking into the level of investment in human capital by the developed economies in comparison with the developing economies like South Asia. Table 1: GDP per Capita and Investment in HRD Country Countries by Income Groups GDP Per Capita current $ Education Spending (% of GDP) (A) Health Spending (% of GDP) (B) Spending on HRD (% of GDP) C = A + B Germany High Income Developed Economies 41,863 5.1 11.1 16.1 USA 51,749 5.6 17.9 32.2 Japan 46,720 3.8 9.3 13.1 Brazil Middle Income Developin g Economies 11,340 5.8 8.9 14.7 South Africa 7,508 6.0 8.1 14.1 Pakistan Low Income Developin g Economies 1,257 2.4 2.5 4.9 India 1,489 3.3 3.9 7.2 Sri Lanka 2,923 2.0 3.4 5.4 Banglade sh 752 2.2 3.7 6.0 Source: World Development Indicators, 2013 High income economies have a double digit spending in HRD as percentage of GDP (see Table 1). Even in case of middle income economies like Brazil and South Africa their spending on HRD as percentage of GDP is 14.7 and 14.1 percent respectively. The South Asian economies as shown in the Table 1 are far lower than these levels.
  • 5. HRD Government Spending and Productivity 35 The next section provides a literature review on HRD, economic growth and productivity. Section 3 provides a comparison of HRD indicators in Pakistan and across South Asia. This is followed by an analysis of sectoral labour productivity in Pakistan overtime. Section 5 concludes with policy recommendations. HRD, Economic Growth and Productivity Empirical literature has highlighted various dimensions of HRD which influence work force productivity and its spill over effects on economic growth. HRD plays an important role in attracting and encouraging foreign and local investment and technology transfer. Silva (1997) argued that appropriate human capital goes hand in hand with economic, trade and investment policies. Both are interlinked and their effect cannot be separated. It is further added that returns on human capital are not spontaneous therefore planning has to be done at the right time to generate effective results. Ichniowski et al. (1997) and Wood (1999) emphasized that high performance work place accompany with good Human Resource Management (HRM) policies increase the productivity by motivating workers (see also Bartel,1994). Good HRM policies contribute towards loyalty and commitments of workers to do their tasks and willingness to do better job. Arthur (1994) studies the impact of HR policies on steel industries and found that productivity level of the mills who have adopted good HR policies is higher than the industries with no HR policies. Batt (2002) and Zwick (2002) attributed that high performance work place has significant effect on firm productivity. Andries de Grip, IngeSieben (2003) study the impact of HRD in small pharmaceutical firms and argue that small firms do not benefited from advance HRM policies, moreover in small firms personal relation between employer and employees are given more importance than workersโ€™ productivity levels. Horwitz (1996) pointed out that adaptation of HRD and Management approaches at the same time developed efficient labour and organizational change. Whereas, proper information is significant for development, monitoring, appraising the efficiency of HRD and diversity of management.
  • 6. SAARC Journal of Human Resource Development 2013 36 Cheong (2012) study the impact of HRD on economic growth of Macao and attribute knowledge as vital factor for productivity, economic growth and employment. Education expenditure increased considerably which resulted in enhancing educational skills of workforce. It is also analyzed that workers with lower educational level are more likely to remain unemployed. Ranis (2004) argued that Human Development (HD)is an essential requirement for sustainable growth but it depends on a specific HD level. In this regard, government policy and public funding are important elements that put forward a nation beyond threshold HD level. Targeted government investment comprise of investment in education, health and improvement in governance. Afza and Nazir (2007) examined the function of HRD as an instrument to enhance economic competitiveness in South Asian region with respect to Pakistan. Their findings show that global markets have raised economic competitiveness which is a key for foreign direct investment. Furthermore, knowledge and expertise of labour force are crucial for nations and should be the policy target for development and competitiveness. They suggest that Pakistan can develop its human capital by providing education, in line with the market demand locally and abroad. Wahab et al. (2013) study the impact of HRD on remittances for South Asian economies and their finding shows that south Asian economies including India, Bangladesh and Pakistan were top recipient of workers' remittances in 2010. Based on econometric analysis, it is suggested that an increased stock and quality of human resources raises remittance inflows, implying the need for policies to improve education and training. Sharif et al. (2013) validate that HRD is important factor in development of Bangladesh. By using econometric analysis their findings show positive link between HRD and economic growth. Furthermore, Investment in education shows significant contribution while research and development expenditures also play a constructive role. HRD Patterns in Pakistan and South Asia Pakistan is home to more than 184 million people and it is estimated that 17.2 percent people were living below poverty line in 2007 (World Bank 2009). One could observe significant
  • 7. HRD Government Spending and Productivity 37 decline in poverty from 34 percent in 2002 to 17.2 percent in 2007 but in 2008, due to global financial crisis exports of Pakistan to EU market significantly declined, aid flows also reduced and balance of payments was exposed to commodity market volatilities which resulted in declining foreign reserves, reduced production and higher unemployment. Pakistan being a frontline state in the war against terror, faced the problem of deterioration in law and order, prohibited investors to enter into longer term investment contracts. The on-going energy crisis which aggravated after 2007-08 due to higher oil prices not only discouraged the foreign investor but also led to closure of substantial proportion of Small and Medium Enterprises (SMEs) in Pakistan. The SME sector could not absorb the higher input costs and the overall costs of production, increased to a level, where unprecedented labour in Punjab and Sind provinces had to be laid off. Going forward Pakistan will need to address the short term irritants like the lack of energy in order to reach its potential growth rate of 5-6 percent. Beyond this, major structural reforms are required in order to set the country on a path of higher growth trajectory where productivity gains can be realized. Investment in HRD remains one such reform which needs to be coordinated from the highest tiers of the Government. It is important that high performance workers should not merely be seen as economic units of labour. Equally important is to understand that empowering working age population through prudent HRD policies, programs and projects results in a grass roots level social change. Countries such as Vietnam, Cambodia and Sri Lanka have realized exactly such a phenomenon.
  • 8. SAARC Journal of Human Resource Development 2013 38 Table 2: Pakistan: Macroeconomic Indicators (%) Indicator 2007 2008 2009 2010 2011 2012 2013(P) GDP growth 5.5 5.0 0.4 2.6 3.7 4.4 3.6 Agriculture growth 3.4 1.8 3.5 0.2 2.0 3.5 3.3 Industrial sector growth 7.7 8.5 -5.2 3.4 4.7 2.7 3.5 Service sector growth 5.6 4.9 1.3 3.2 3.9 5.3 3.7 Total investment (% of GDP) 18.7 19.2 17.5 15.8 14.1 14.9 14.2 Federal tax revenue(% of GDP) 9.2 9.5 8.8 8.9 8.5 9.4 10.1 Labour force (millions) 50.3 51.7 53.7 56.3 57.2 - - Source: Economic Survey of Pakistan, 2013 Table 2 shows a downward trend in GDP growth rate - a phenomenon that has serious implications for the poorest of the poor in the country. Growth is certainly a necessary if not sufficient condition for poverty reduction. Agriculture sector has seen volatility owing to recurrent annual floods since 2010. Industrial growth peaked during 2007-08 but plunged dramatically to a negative 5.2 percent during 2009. Growth in non-commodities or services sectors showed bumpy trends in 2007 around 5.6 percent and experienced a significant decline in 2009 standing at 1.3 percent. Investment as percentage of GDP remains one of the lowest in South Asian region. Federal tax revenue as percentage of GDP reached at 10.1 in 2013 which is highest in the last 5 years however, dismally low if compared to the average of developing Asia. The concerning aspect is that Pakistan has a youth bulge in its population pyramid. The growth rate of labour force is over 3.5 percent. However, the depressed GDP growth is not enough to absorb these rising number of youth in the working age population. This calls for a serious introspection of HRD and growth policies in Pakistan. In 2011, it is estimated that 57.8 million people constitutes Pakistan labour force and among which 3.4 million are unemployed labour force (Economic Survey 2013).Table 3 shows
  • 9. HRD Government Spending and Productivity 39 Human Development Index values of south Asian economies for the year 2012. Pakistan HDI value stands around 0.51 which is low in comparison with India and Sri Lanka. Table 3: Human Development Index 2012 Country Human Development Index Bangladesh 0.51 India 0.55 Nepal 0.46 Pakistan 0.51 Sri Lanka 0.71 South Asia 0.55 Source: Human DevelopmentReport 2013, UNDP Table 4 shows that in Pakistan primary education completion rate is very low as compared to other regional economies like Bhutan, India, Maldives, Nepal and Sri Lanka. Total net enrolment in primary education in Pakistan is very low it stands around 66.4 percent which is inadequate in comparison with other regional economies. Adult literacy rate in Pakistan stands around 55.5 percent which is low in comparison with India, Maldives, Nepal and Sri Lanka. Table 4: Education in South Asia 2009 (%) Country/Indicators Primary education completion rate Total net enrolment ratio in primary education Adult literacy rate Bangladesh 60.5 89.6 55.9 Bhutan 88.5 88.4 52.8 India 94.8 95.5 62.8 Maldives 119.4 96.2 98.4 Nepal 70.0 73.6 59.1 Pakistan 61.1 66.4 55.5 Sri Lanka 97.5 95.1 90.6 South Asia 78.8 86.4 67.9 Source: Asian Development Bank Online Database,2011
  • 10. SAARC Journal of Human Resource Development 2013 40 Figure 2: Mean Year of Schooling- South Asia 2012 Source: UNDP, 2013 Figure 2 shows average year of schooling of South Asian countries. Overall in South Asia, average year of schooling is 4.8 years. Among the South Asian countries, in Sri Lanka mean year of schooling is reported at 9.3, in Pakistan, it is 4.9 which is better than Afghanistan (3.1), India (2.3) and Nepal (3.2). Table 5: Skill Development Indicators- South Asia Country Higher education and training (rank) Quality of education system3 Local availability of specialized research & training services Bangladesh 126 94 127 Nepal 131 116 133 India 85 39 51 Pakistan 123 87 97 Sri Lanka 62 44 46 Source: Global Competiveness Report, 2010-11, World Economic Forum 3 Imparting quality and new education with higher education means the increase in the enrolment from secondary level to the college or university level. 3.1 4.8 2.3 5.8 3.2 4.9 9.3 0 2 4 6 8 10 Yearsofschooling
  • 11. HRD Government Spending and Productivity 41 Table 5 shows skill development indicators of south Asian countries. In higher education and training ranking, Pakistan ranked at 123, showing its performance poor in comparison with India and Sri Lanka, ranked at 85 and 62 respectively. In terms of quality of education Pakistan ranked at 87, again, performing poor in comparison with India and Sri Lanka which are ranked at 39 and 44. In local availability of specialized research and training services, Pakistan ranked at 97 which are far behind the regional economies like India and Sri Lanka which are ranked at 51 and 46. Table 6: Health Indicators of South Asian Countries Countries Bangladesh Bhutan India Nepal Pakistan Sri Lanka Mortality rate, infant (per 1000 live births) 33.1 35.7 43.8 33.6 69.3 8.3 Life expectancy at birth, total (years) 69.9 67.5 66.0 67.5 66.3 73.9 Population growth (annual %) 1.2 1.7 1.3 1.2 1.7 1.0 Population (million) 154.7 0.7 1236.7 27.5 179.2 20.3 Birth rate, crude (per 1,000 people) 20.6 20.2 21.0 22.3 26.2 18.3 Death rate, crude (per 1,000 people) 5.8 6.6 7.9 6.8 7.0 7.0 Health expenditure, total (% of GDP) 3.7 4.1 3.9 5.4 2.5 3.4 Fertility rate, total (births per woman) 2.2 2.3 2.5 2.5 3.3 2.3 Source: World Development Indicators,World Bank, 2013
  • 12. SAARC Journal of Human Resource Development 2013 42 Table 6 shows health indicators of South Asian countries. In Pakistan infant mortality rate stands around 69.3 per 1000 live births which are the highest among the South Asian countries. Annual population growth rate of Pakistan stands around 1.7 percent which is very high. If country unable to control its population growth then it is projected that the population may cross 342 million by the end of 2050 and country will become 4th largest nation by population. Pakistan crude birth rate stands around 26.2 per thousand people which are very high in comparison with other South Asian countries. While crude death rate in Pakistan is reported at 7 which is better than India but worst in comparison with Bangladesh, Bhutan and Nepal. Fertility rate is reported at 3.3 which, is very high among the South Asian countries. It is observed that the health expenditures as percentage of GDP,is 2.5 percent which is very the low in comparison with Bhutan, Bangladesh, India, Nepal and Sri Lanka. Poor performance of health indicators may be attributed to low expenditures in health as percentage of GDP. Table 7:Skills Development in South Asia Countries Percent of firms offering formal training Proportion of unskilled workers (out of all production workers) (%) Percent of firms identifying labour regulations as a major constraint Percent of firms identifying an inadequately educated workforce as a major constraint Afghanistan (2008) 14.6 29.9 4.5 18.0 Bangladesh (2013) 21.9 21.3 3.4 15.7 Bhutan (2009) 29.9 ... 16.4 12.6 India (2006) 15.9 36.3 9.2 14.5 Nepal (2013) 31.9 15.2 2.7 9.1 Pakistan (2007) 4.5 19.1 6.4 8.1 Sri Lanka (2011) 13.1 14.6 12.7 16.0 South Asia 19.3 20.0 7.7 13.2 Source:World Bank Enterprise Survey, 2013 Table 7 shows that in Pakistan 4.5 percent of the firms offered formal trainings to their employees in the year 2007. There are
  • 13. HRD Government Spending and Productivity 43 19.1 percent unskilled workers out of all production workers, in India unskilled worker are reported high at 36.3 percent in the year 2006 where as in Sri Lanka and Nepal it is reported at 14.6 and 15.2 percent in the years 2011 and 2013 respectively. In Pakistan 6.4 percent of the firms believe that labour regulations is a major constraint in their productivity, this percentage is high in Bhutan which is 16.4 percent, however years of figures are different i.e. 2006 and 2009 respectively. In Pakistan 8.1 percent of the firms believe that lack of educated workers is major constraint in productivity. Labour Productivity in Pakistan Labour productivity is an important determinant of long run economic growth. It increases the economy-wide average wage rate and helps to mitigate poverty. It brings greater efficiency in the goods market and encourages foreign as well as local investors to invest more towards skills development of their employees. Eventually the knowledge and skills paradigm defines the competitiveness levels across firms and countries. Theoretically labour productivity can be enhanced by investing in education, health, vocational trainings and through prudent labour market laws and policies. Equally important is to have institutional reforms, in place that help in curtailing the brain drain in the developing economies like South Asia.
  • 14. SAARC Journal of Human Resource Development 2013 44 22 24 26 28 30 Agriculture 0 20 40 60 80 Manufacturing 0 500 1000 1500 2000 Mining 0 5 10 15 20 25 Construction Figure 3:Labour Productivity "per hours" Worked, by all Sectors (constant factor cost in PKR) Labour Productivity "per hours" Worked, in DifferentSectors (constant factor cost in PKR) 38 40 42 44 46 48 50 52 2000 2002 2004 2006 2007 2008 2009 2010 2011 All sectors
  • 15. HRD Government Spending and Productivity 45 35 40 45 50 55 Wholesales and retail trade 0 1 2 3 4 Public Spending on Education (% of GDP) Linear (Public Spending on Education (% of GDP)) Source: Pakistan Labour Force Survey, 2013 Figure 4 shows that over the last one decade there is declining trend in education and health expenditures which results in declining labour productivity in all the sectors of the economy. Declining trends in labour productivity push the country toward low economic growth equilibrium. Figure 4: Investment in HRD (as Percentage of GDP) 0 100 200 300 2000 2002 2004 2006 2007 2008 2009 2010 2011 Electricity, gas and water
  • 16. SAARC Journal of Human Resource Development 2013 46 Conclusion Pakistan economic growth is dwindling over the time which may be attributed to global financial crisis of 2008, floods of 2010, poor law and order situation due to front line ally in war against terrorism, declining trend in FDI, growing debt to GDP ratio and low tax base. Study has highlighted the fundamental need of HRD for fast growing population of the country. Over the period, Pakistan has performed poor in human capital development in comparison with regional economies like Bangladesh, India, Sri Lanka and Nepal. Pakistan's poor performance in HRD indicators are due to decline in investment in human capital over the time. The skills development programs must cater to the demands of employers in value added agriculture, industry and services sectors. The vocational institutions also need to carefully look at their syllabi in the light of developments overseas, where, Pakistani Diaspora has potential for employment. Greater coordination is required between Federal and Provincial Governments for eliminating fragmentation of HRD programs across the country. The Governance of public sector education and skills development institutions may be improved through allowing private management, as seen in the Punjab province. Apart from the above, there are major governance reforms required in HRD. After the 18th Constitutional Amendment (in 2011) education, health and vocational training have become provincial subjects to the extent of funds management and actual implementation on-ground. However, it is important to note that this devolution does not excuse the Federal Government from its policy and planning role in HRD. Since2011, the Federal 0 1 2 3 4 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Health Expenditure (% of GDP) Linear (Health Expenditure (% of GDP))
  • 17. HRD Government Spending and Productivity 47 Government has not been able to engage the Provincial Governments pro-actively on HRD promotion. It is of utmost importance that the Council of Common Interests, a constitutional body that has responsibility of overseeing implementation of economy-wide national level reforms, should put forward a consensus based plan for HRD uplift in a manner that it becomes binding on all provincial Governments. The National Planning Commission can be designated as the coordinator for this purpose. References Aftab, T. and Nazir, M. (2007). Economic Competitiveness and Human Resource Development: An FDI perspective, Pakistan Economic and Social Review, Vol. 45, No. 2 (Winter 2007), pp. 167-180. Andries de Grip, Sieben, I. (2003). The Effects of Human Resource Management on Workers' Wages and Firm Productivity, Research Centre for Education and the Labour Market, ROA-RM-2003/9E. Arthur, J. B. (1994). Effects of Human Resource Systems on Manufacturing Performance and Turnover, Academy of Management Journal, Vol. 37, pp. 670-687. Bartel, A. P. (1994). Productivity Gains from the Implementation of Employee Training Programs, Industrial Relations, Vol. 33, pp. 411-425. Batt, R. (2002).Managing Customer Services: Human Resource Practices, Quit Rates, and Sales Growth, Academy of Management Journal, Vol. 45, pp. 587-597. Cheong, W. (2012).Human Resource Development for Knowledge-Based Economies and ItsImplementation for Macao, Monetary Authority of Macao, Quarterly Publication. Debrah, Y. and Budwar, P. (2000). Complementarily or Competition: The Development of Human Resources in a South-East Asian Growth Triangle: Indonesia, Malaysia
  • 18. SAARC Journal of Human Resource Development 2013 48 and Singapore, The International Journal of Human Resource Management, Vol. 11, Issue 2. Government of Pakistan.(Various Issues). Economic Survey of Pakistan, Issue 2010, 2011, 2012 and 2013. Horwitz, F. (1996). Human Resource Development and Managing Diversity in SouthAfrica, International Journal of Manpower, Vol. 17, Issue 4/5, pp. 134 โ€“ 151. Ichniowski, C., Shaw, K. and Prennushi, G. (1997). The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines, American Economic Review, Vol. 87, pp. 291-312. Wahab, M., Vaqar, A. and Hamid, M. (2013). Human Resource Development and Foreign Remittances, the Case of South Asia, Journal of World Economics, Vol. 14(4), pp. 29-56. OECD.(2012). Policy Framework for Investment Userโ€™s Toolkit, Chapter 8.Human Resource Development. Ranis, G. (2004).Human Development and Economic Growth, Economic Growth Centre, Yale University, Centre Discussion Paper No. 887, Yale University. Sharif, T., Ahmed, J. and Abdullah, S. (2013). Human Resource Development and EconomicGrowth in Bangladesh: An Econometric Analysis, European Journal of Business and Management, Vol. 5(7). Silva, S. (1997). Human Resources Development for Competitiveness: A Priority for Employers, International Labour Organization, ACT/EMP Publications, Paper presented at the ILO Workshop on Employers' Organizations. Wolf, E. and Zwick, T. (2002). Reassessing the Impact of High Performance Workplaces,Discussion Paper No. 02-07, Mannheim. Wood, S. (1999). Human Resource Management and Performance, International Journal ofManagement Reviews, Vol. 1, pp. 367-413.
  • 19. VOLUME9NUMBER1DECEMBER2013 SAARC HUMAN RESOURCE DEVELOPMENT CENTRE ISLAMABAD, PAKISTAN