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Products and industries are always dependent on the labor class of society, in order to meet the needs of the society and country's dimension and, finally, to play an important role in international relations. It is human abilities and talents in the countries which can differentiate the comparative advantage, as well as economics, developed and underdeveloped countries. So, with expert and healthy human resources, can trend the economy of a country in the first place independently and finally at the level of developed countries.

To summarize the principles of human capital and its impact on the growth of the economy in several items.

Educational Development and Economic Growth

There are underdeveloped countries which, fortunately, has been able to work on education quantity in recent one and a half decade and to create more public and private education centers. However, there are shortcomings in the quality of the citizen's education as much as it should be.

The government must work with long-run economic plans to help prevent the migration and human capital from the country by providing better technical training and high wages of expert labors and encouraging them.

High-quality human capital is an asset which plays a key role On Agriculture industries, growth domestic production, GNP, industrial enterprises and etc... Governments simply cannot afford without investment on human capital in economic growth and development.

Importance of Human Resources on Economic Development:

Proper Utilization of Resources:

Human capital is considered the important type of resources for attaining economic development of a country. Among various types of resources, human resources are the most active type of resources. Qualitative and quantitative development of human capital is very much required for the proper utilization of natural resources of the country.

Some countries are one of the richest natural resources countries in the world, which has a dire need for the human capital and foreign direct investment, which to can use appropriate from the human capital into the use of limit natural resources.

Increased Productivity:

According to some economists, one of the major factors of production is labor or human capital. The establishment of industries is required labor to produce more quality products more efficiently. Certain countries cannot use maximum from its human capital with lack of unproductive investment management. And that is why this country has been the records of the upward curve in poverty, unemployment, and immigration.

Development of Skills:

One of the reasons for the lack of developing countries is the lack of investment in human capital and social considerations. Our country consists of a traditional and classical ideology that cannot provide the necessary skills for all types of people in rural areas. Hence the agricultural industries and labor activities are faced with the lack of skills in technological developing. Therefore, investment in human capacities is required for developing of economics in underdeveloped countries.

An inflow of technology from foreign countries can pave the way for adoption of modern technology into production and thereby can improve the productive capacities. Moreover, the human capital formation can promote the higher growth of the economy by adding physical stock of capital of the country.

Raises Per capita Income:

More qualitative human resources will help in the rapid growth of production, as well as the creation of commercial transactions, to make more exchanges, to produce more goods and services. And export to other countries. With increases in production and establishment of industrial enterprises, per capita income of the people rises and continues to increase national capital.

Improving the standard of life welfare:

Human resource development can pave the way for improving people's overall quality of life in general. This can be achieved by improving the three components of the Human Development Index (HDI), namely increasing per capita income, educational achievements and increasing life expectancy.

Education as a major important issue in a community and is one of the basic human needs for the betterment of skills. The relationship between education and the development of a country's economy is based on increasing labor -class skills and competing for per capita income. People invest in their own personal income in order to gain useful skills and knowledge. There are differences in wages in a competitive economy that reflects the difference in levels of human resource development.

Poverty, unemployment, inequality, downward in gross domestic investment, budget deficit, in some countries are factors that were considered with lack of investment in education and human developing capacity

More Information:

The story of human civilization is the story of human resource development. The societies that were able to develop and progress were the societies that succeeded in developing and harnessing human resources. Those unable to develop human resources remained backward and oftentimes became dominated by those with developed human resources. Initially the stress was on brawn, the brute strength that enables hard laborious work to be done. Intelligence was not at a premium. Moving huge boulders to build the pyramids in the end depended on large numbers of well-built workers. On their own, the workers would not have been able to accomplish what they did, but the supervisors and the engineers applied the brute strength of the workers to achieve the wonders that we still see today. The societies that developed themselves based on human resources became stratified with manual workers at the bottom and the others above, graded according to their level of skill and intelligence. Those able to manage human resources would attain the highest level. In themselves, they constituted the highest level of human resource. In many societies, the stratification became institutionalized and embedded in the culture. It became even a part of their beliefs and religions. This is what we have to this day. In most societies, a very complex system of castes based on the specialization of labour and occupation tends to make an appearance. Once this happens, the upward mobility of the lower castes is hindered. Much potential is lost. But in some societies, the stratification is not very rigid and it is possible for skills to be developed by the lower caste to the extent that upward mobility is attained. The more upwardly mobile the human resources, the greater will the availability of developed human resources be. Today, outwardly at least, we do not believe in castes or stratification. Members of any stratum can move up or down as they are able, and society benefits because the potential of all can be exploited to the maximum. It is this realization that has made human resource development an important matter for any society wishing to progress.

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