PEOPLE AS RESOURCE
Historically, especially in countries with large populations like India, the sheer numbers have often been viewed as a problem. The challenges of feeding, educating, and ensuring health facilities for everyone seemed overwhelming. If nurtured correctly, a vast population can become an asset rather than a liability.
The term ‘human capital’ is essentially about viewing people as a form of capital, similar to physical assets. When investments are made in improving people’s education, health, and skills, they become more productive. This productive power is termed human capital formation. Just like machinery gets an upgrade, human beings, when provided with quality education and healthcare, can perform at their optimum level.
When resources are pumped into education, healthcare, and training, there are tangible returns. These manifest in the form of higher productivity levels, leading to increased incomes and economic growth. An educated and healthier individual not only earns more but also positively influences their surroundings, benefiting even those who might not have directly received such educational or health advantages.
The unique thing about human capital is its ability to leverage other resources. While land and machinery remain static, it’s the human element that innovates, evolves, and maximises output from these resources. Essentially, while land and machinery are tools, humans are the operators.