Human Capital and Economic Development Notes

Human Capital: Health, Education, and Economic Development

Central Roles of Education and Health

• Education and Health

  • Vital components of economic growth and development.
  • Serve dual roles as inputs and outputs in production functions.
  • Essential for rewarding life and modern technology absorption.
  • Education fosters self-sustaining growth capabilities.

• Health

  • Prerequisite for productivity increases.
  • Success in education is contingent on sufficient health.
  • Example: In the 1950s, 280 out of 1,000 children in developing countries died before five due to conditions like smallpox, polio.
  • Recent improvements in literacy and basic education noteworthy.

• Disparities

  • Child mortality rates in developing countries are ten times higher than in richer countries, due to easily treatable conditions.
  • Developed countries average 12 years in school; developing countries average less than 5.
  • Human Capital: Investments in skills, health, and education enhance productivity.