PEOPLE AS RESOURCE

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The Significance of People as a Resource

• People are not just mouths to feed; they are assets for our economy.
• When we invest in them through education, training, and healthcare, they become even more valuable.

The Birth of Human Capital

• Human capital is like a bank of skills and knowledge that people carry with them.
• It’s not money in the bank; it’s the skills and knowledge in their minds and hands.

Productive Skills and Abilities

• “People as Resource” sees a country’s working population as a collection of skills and abilities.
• This viewpoint highlights their potential to contribute to the country’s economy, similar to other resources.

Positive side of a Large Population

• We often focus on the challenges of feeding, educating, and providing healthcare to a large population.
• But there’s a bright side: a large population can also be a valuable resource.

Human Resource and Power

• Think of the population as a “human resource” – an asset for the country.
• It’s not just about numbers; it’s about the potential within those numbers.

Transfering People into Capital

• When we invest in making people more educated and healthier, we’re shaping “human capital.”
• It’s like upgrading our workforce, just as we invest in building physical assets.

Returns on Investment

• Just like investing in machines or buildings, investing in human capital yields returns.
• Higher incomes are one tangible result, thanks to the increased productivity of educated and trained individuals.

Healthier People,Better Productivity

• Healthy individuals are more productive.
• When people are healthy, they can contribute more to the economy.

Real-Life Examples

• Imagine two individuals: one with a good education and the other without.
• The educated one can secure a high-paying job, contributing more to the economy.

The Bigger Picture

• “People as Resource” is about seeing the bigger picture.
• It’s about recognizing that our population can be a source of strength, not just challenges.
• In conclusion, understanding “People as Resource” is like realizing that you have a gold mine in your backyard. When we invest in our people, we unlock their potential, boost the economy, and create a brighter future for everyone. So, let’s nurture our human capital and watch our nation prosper!

The Benefits of Education and Health

• Educated and healthier people not only earn higher incomes, but their advantages also benefit society in indirect ways.
• Even those who weren’t directly educated or given healthcare benefit from having educated and healthy people around.

Human Capital’s Superiority

• Human capital, which includes skills and knowledge, has an edge over other resources like land and physical capital.
• Unlike land and capital, human resources can actively utilize land and capital for productivity.

Turning Population into Asset

• In India, for many years, having a large population was seen as a problem rather than an advantage.
• However, a large population can be transformed into a valuable asset.
• This transformation happens through investment in human capital, such as providing education, healthcare, training in modern technology, and supporting scientific research.

Investing in Human Resources for Higher Returns

• Investing in human resources through education and medical care offers promising future returns.
• This investment is comparable to investing in land and capital.

The Example of Japan and other Developed Countries

• Countries like Japan faced a scarcity of natural resources.
• Despite this limitation, they achieved development and prosperity.
• Their secret? They heavily invested in their people, particularly in education and healthcare.

The Path to Riches and Development

• By prioritizing education and health, these countries equipped their citizens with the skills and knowledge needed to make efficient use of other resources.
• Efficiency and technological advancements, driven by educated and healthy populations, played a pivotal role in making these nations rich and developed.

Economic Activities

• These are activities that help us make money or involve buying and selling things.
• Examples:
  • Selling Ice Cream: When someone sells ice cream at a shop, it’s an economic activity. They earn money by selling a tasty treat!
  • Working at a Store: When your parents work at a store and get paid for it, that’s an economic activity too. They’re helping the store run, and in return, they earn money.
  • Farmers Growing Crops: Farmers grow food like rice or vegetables and sell them. It’s their job, and it’s also an economic activity because they make money from it.

Non-Economic Activities

• These are activities where we don’t make money. They’re about doing things for fun, love, or just to help others.
• Examples:
• Playing with Friends: When you play games with your friends, like hide and seek, that’s non-economic. You’re having fun, but you’re not earning money.
• Helping Grandma Garden: When you help your grandma take care of her garden because you love spending time with her, it’s non-economic. You’re doing it out of love and not for money.
• Feeding Birds: If you put out birdseed in your backyard to feed the birds, that’s non-economic. You’re doing something kind for nature, not to make money.

Comparing Economic Activities: Men and Women in India

• In India, economic activities vary between men and women due to traditional roles and societal factors. Let’s explore these differences:

Men’s Economic Activities

• Formal Employment: Historically, men have been more involved in formal employment, such as working in offices, factories, and businesses. This includes jobs like engineers, doctors, or managers.
• Entrepreneurship: Many Indian men aspire to become entrepreneurs and start their businesses, contributing to the economy. They establish and manage enterprises in various sectors.
• Agriculture: In rural areas, men often dominate agriculture. They engage in activities like farming and animal husbandry, which are vital for India’s food production.

Women’s Economic Activities

• Unpaid Domestic Work: Women in India often bear the responsibility of unpaid domestic work, including cooking, cleaning, and childcare. While essential, this work is generally not considered part of the formal economy.
• Informal Labor: A significant number of Indian women are engaged in the informal labor sector. This includes activities like cottage industries, handicrafts, and small-scale businesses, often from home.
• Education and Health: Women’s participation in formal education and healthcare sectors is increasing. They take on roles as teachers, nurses, and healthcare workers, contributing significantly to these fields.

Quality of Population

• The quality of population depends upon the literacy rate, health of a person indicated by life expectancy and skill formation acquired by the people of the country. The quality of the population ultimately decides the growth rate of the country. Literate and healthy population are an asset.

Education

• Knowledge and Skills: Education equips people with knowledge and skills. When more citizens are educated, they can contribute to various sectors like technology, science, and business. This, in turn, can drive innovation and economic growth.
• Workforce Productivity: An educated workforce tends to be more productive. They can perform tasks efficiently, use modern technology, and adapt to changing work environments, boosting overall productivity.
• Reduced Inequality: Education can help reduce income inequality. When more people have access to quality education, it opens up opportunities for them to improve their socio-economic status, narrowing the wealth gap.

Health

• Healthy Workforce: A healthy population is essential for a country’s development. Healthy people can work more, be productive, and contribute to the economy. They are also less likely to require costly healthcare services.
• Reduced Healthcare Costs: Good public health practices can lower the burden on the healthcare system, reducing public spending on medical services. This money can then be allocated to other development initiatives.
• Human Capital: Healthier individuals can invest more in education and skills development. They are also more likely to participate in the workforce, creating a more robust human capital base.

Unemployment

• Economic Stability: Low unemployment rates contribute to economic stability. When more people have jobs, they can support themselves and their families, reducing poverty and social unrest.
• Increased Consumer Spending: Employed individuals have income to spend on goods and services. This increased consumer spending can stimulate economic growth and support local businesses.
• Higher Tax Revenue: Governments benefit from lower unemployment rates as they collect more taxes from employed individuals. These funds can be reinvested in public infrastructure and services.

Seasonal Employment

• Definition: Seasonal unemployment occurs when people are temporarily unemployed during specific times of the year due to seasonal changes in economic activity or demand for labor.
• Example in India: Agriculture is a significant sector in India, and it often experiences seasonal unemployment.
• Rice Farming: In many parts of India, rice cultivation is a major agricultural activity. During the planting and harvesting seasons, there is a high demand for labor in the rice fields. However, this demand is seasonal, and once the planting or harvesting is done, many agricultural laborers are temporarily unemployed until the next season.
  

Disguised Unemployment

• Definition: Disguised unemployment occurs when more people are engaged in an activity or job than necessary, and the additional labor does not contribute significantly to the output. In other words, it’s a situation where people appear to be employed but are not making a meaningful contribution to the work.
• Example in India: Disguised unemployment can often be found in the agricultural sector and in certain rural activities.
• Family Farming: In many Indian villages, family-based agriculture is prevalent. Multiple family members work on the same small plot of land, even if the work could be accomplished by fewer people. This means that some family members might not be contributing significantly to the farm’s productivity.

Educated Unemployment

• Definition: Educated unemployment occurs when individuals with a high level of education and qualifications are unable to find suitable employment opportunities matching their skills and education.
• Example:
  • Engineering Graduates in India: In India, there is a significant issue of educated unemployment among engineering graduates.