Question

In your words, explain why is investment in human capital good for both individuals and fostering growth for the economy as a whole?

Answer 1

investments on knowledge , education,labour management ,job creation, communication services etc come under human capital investments.these are intended to develop the individual productivity which in turn help country develop its economic growth.investment in education facilitate growth in terms of technology,people who are highly educated render quality services that fetch them high incomes and help organisation grow economically where as with illiteracy the government policies and beneficiary schemes will not be delivered to everyone owing to lack of awareness .investment in health sector improves public health and they can be used to their optimum potential because of which collective growth can be obtained.investments in agriculture help farmers use sophisticated machines with which their productivity will be enhanced as a result country's exports can see growth.investments in labour management such as providing conducive facilities at work place, increasing salaries , providing new machines can be effective in the growth of the company as its production will rise(this can be seen in mining , construction sector as they are higher risks can be observed ,so skilled labour prove to be effective here). Countries like Japan, Singapore, Israel etc had no resources once but they are developed nations today because​ they invested and in fact depended on human capital that proved to be the pillar of economic growth in these countries.if you see developed countries, contribution of human capital in economic growth is immense and vital which was observed in England,Germany,America like countries where as developing countries we see fewer investments in human capital owing to their large population and poverty but if countries like India and other south Asian countries where per capita income and countries gdps are medium can increase their investments in human capital we can see them as developed nations within no time .