How is human capital different from human development? How can the process of human capital formation be accelerated?
Human capital refers to the skills, training, experience, education, knowledge, know-how, and competencies contributed by humans to a business, whereas human development in an economy is decided on the basis of composite statistic of life expectancy, education, and income per capita.
Ways to accelerate human capital formation:
- Proper Manpower Planning: A proper manpower planning is a critical requirement to combat the problem of human resource wastage. The planning needs to focus on both the quantitative and qualitative aspects of human capital.
- Proper educational planning: An effective educational planning that promotes human capital formation must be developed.
- It should provide for adequate health services and nutritive food to the existing population of the country.
- Various short term vocational training programmes should be organized by both government and private institutions to develop better skills and human resource.