Human capital is the stock of competences, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker
through education and experience. Many early economic theories refer to it simply as workforce, one
of three factors of production, and consider it to be a fungible resource -- homogeneous and easily
interchangeable. Other conceptions of this labor dispense with these assumptions.
In most games, as the difficulty of the challenge increases, the experience rewarded for overcoming
it also increases. As players gain more experience points, the amount of experience needed to gain
new abilities typically increases. Alternatively, games keep the amount of experience points per level
constant, but progressively lower the experience gained for the same tasks as the character's level
increases. Thus, as the player character strengthens from gaining experience, they are encouraged to
accept tasks that are commensurate with their improved abilities in order to advance.
The concept of Human capital has relatively more importance in labour-surplus countries. These
countries are naturally endowed with more of labour due to high birth rate under the given climatic
conditions. The surplus labour in these countries is the human resource available in more abundance
than the tangible capital resource. This human resource can be transformed into Human capital with
effective inputs of education, health and moral values. The transformation of raw human resource into
highly productive human resource with these inputs is the process of human capital formation. The
problem of scarcity of tangible capital in the labour surplus countries can be resolved by accelerating the
rate of human capital formation with both private and public investment in education and health sectors
of their National economies. The tangible financial capital is an effective instrument of promoting
economic growth of the nation. The intangible human capital, on the other hand, is an instrument of
promoting comprehensive development of the nation because human capital is directly related to
human development, and when there is human development, the qualitative and quantitative progress
of the nation is inevitable on human development in different nations with the objective of evaluating
the rate of human capital formation in these nations. The statistical indicator of estimating Human
Development in each nation is Human Development Index (HDI).
It is the combination of "Life Expectancy Index", "Education Index" and "Income Index".
The Life expectancy index reveals the standard of health of the population in the country; education
index reveals the educational standard and the literacy ratio of the population; and the income index
reveals the standard of living of the population. If all these indices have the rising trend over a long
period of time, it is reflected into rising trend in HDI. The Human Capital is developed by health,
education and quality of Standard of living. Therefore, the components of HDI viz, Life Expectancy Index,
Education Index and Income Index are directly related to Human Capital formation within the nation.
HDI is indicator of positive correlation between human capital formation and economic development.
If HDI increases, there is higher rate of human capital formation in response to higher standard of
education and health. Similarly, if HDI increases, per capita income of the nation also increases.
Implicitly, HDI reveals that higher the human capital formation due to good standard of health and
education, higher is the per capita income of the nation. This process of human development is the
strong foundation of a continuous process of economic development of the nation for a long period of
time. This significance of the concept of Human capital in generating long-term economic development
of the nation cannot be neglected. It is expected that the Macroeconomic policies of all the nations are
focused towards promotion of human development and subsequently economic development. Human
Capital is the backbone of Human Development and economic development in every nation.
through education and experience. Many early economic theories refer to it simply as workforce, one
of three factors of production, and consider it to be a fungible resource -- homogeneous and easily
interchangeable. Other conceptions of this labor dispense with these assumptions.
In most games, as the difficulty of the challenge increases, the experience rewarded for overcoming
it also increases. As players gain more experience points, the amount of experience needed to gain
new abilities typically increases. Alternatively, games keep the amount of experience points per level
constant, but progressively lower the experience gained for the same tasks as the character's level
increases. Thus, as the player character strengthens from gaining experience, they are encouraged to
accept tasks that are commensurate with their improved abilities in order to advance.
The concept of Human capital has relatively more importance in labour-surplus countries. These
countries are naturally endowed with more of labour due to high birth rate under the given climatic
conditions. The surplus labour in these countries is the human resource available in more abundance
than the tangible capital resource. This human resource can be transformed into Human capital with
effective inputs of education, health and moral values. The transformation of raw human resource into
highly productive human resource with these inputs is the process of human capital formation. The
problem of scarcity of tangible capital in the labour surplus countries can be resolved by accelerating the
rate of human capital formation with both private and public investment in education and health sectors
of their National economies. The tangible financial capital is an effective instrument of promoting
economic growth of the nation. The intangible human capital, on the other hand, is an instrument of
promoting comprehensive development of the nation because human capital is directly related to
human development, and when there is human development, the qualitative and quantitative progress
of the nation is inevitable on human development in different nations with the objective of evaluating
the rate of human capital formation in these nations. The statistical indicator of estimating Human
Development in each nation is Human Development Index (HDI).
It is the combination of "Life Expectancy Index", "Education Index" and "Income Index".
The Life expectancy index reveals the standard of health of the population in the country; education
index reveals the educational standard and the literacy ratio of the population; and the income index
reveals the standard of living of the population. If all these indices have the rising trend over a long
period of time, it is reflected into rising trend in HDI. The Human Capital is developed by health,
education and quality of Standard of living. Therefore, the components of HDI viz, Life Expectancy Index,
Education Index and Income Index are directly related to Human Capital formation within the nation.
HDI is indicator of positive correlation between human capital formation and economic development.
If HDI increases, there is higher rate of human capital formation in response to higher standard of
education and health. Similarly, if HDI increases, per capita income of the nation also increases.
Implicitly, HDI reveals that higher the human capital formation due to good standard of health and
education, higher is the per capita income of the nation. This process of human development is the
strong foundation of a continuous process of economic development of the nation for a long period of
time. This significance of the concept of Human capital in generating long-term economic development
of the nation cannot be neglected. It is expected that the Macroeconomic policies of all the nations are
focused towards promotion of human development and subsequently economic development. Human
Capital is the backbone of Human Development and economic development in every nation.
