Productivity is fundamental to Economic Development.
Human capital is a key factor to productivity.
Schooling is the most important factor of human capital formation.
Is Human Capital creation more important in developing countries than others? Why, or why not?
Please, share your opinion.
Yes I agree. Also, in developed nations, productivity is high because both men and women have the opportunity to work and actively participate in economic and business development.
Dedicated and honest Human resource is the primary ingredient.
The rules of the game have changed. Relying on traditional competitive advantages is no longer a guarantee for economic success. The Nobel Prize winner Gary Becker explained a phenomena of human capital as knowledge, information, ideas, skills and health of individuals. Accordingly, it is than obvious than time and space are no longer obstacles for human knowledge and abilities ...
According to OECD, in developing countries, especially the poorest ones, the challenges of human capital are profound and complex. Policy makers acknowledge the critical role of a strong human resource base in complementing other investments and policies to boost productivity and economic progress. Yet while these countries report lower average levels of educational attainment than industrialised countries, in some countries significant numbers of those with high levels of formal qualifications end up unemployed, working in jobs that under-utilise their skills or emigrating to other countries.
Would not overstress the value of human capital, the very educated labor force, so to speak .Economic productivity is based on energy resources; if you have access to energy, you can grow productivity. Capital, in its classical meaning as stock of infrastructure, is decisive. I prefer to follow Ludwig Lachmann: Capital and its Structure (see:pdf).The prerequisite of this is an educated labor force; all this is based on natural energy resources. The economic gains flow in a too high % to the rentier groups , who own the land (natural resources). To gain economic productivity means to tax economic rent and to make it public revenue.
Yes, School and Student's education is the most important factor in the formation of human capital. However, this is not enough to increase productivity and improve the quality of life of people in developing countries. A wise policy of the authorities is needed, which would be interested in using this capital. For example, the Soviet Union had the best education system in the world. However, this did not guarantee the disappearance of the country in 1991. Why? Because the stupid and short-sighted policy of the authorities after Stalin's death led the country to economic collapse. A stupid arms race ruined the country, which led to the impoverishment of people when money depreciated, as personal consumption goods disappeared. This led to people's discontent, than the enemies of Russia took advantage in the person of the so-called democrats, but in fact they were traitors. Today, education in the world is falling sharply and this factor must also be taken into account. Children stopped reading books, which means that they stopped analyzing and in the end can turn into obedient robots from the technologies.That is, they will be at best good consumers, but not creators. However, the ultimate goal of good education is to train smart people to create new technologies that will overcome poverty and make people happy.
Dear Dr. Fedulov,
Very interesting point of view. In fact, what you say is happening in my country too " Children stopped reading books, which means that they stopped analyzing and in the end can turn into obedient robots from the technologies.That is, they will be at best good consumers, but not creators. However, the ultimate goal of good education is to train smart people to create new technologies that will overcome poverty and make people happy".
Thanks for sharing your valuable opinion.
Prof. Hess
Thank you very much for the kind insights, fellow scientists.
All the best for all of you.
Prof. A. Hess
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