The people of a country are the most important resource for any economy. Not only does it play an important role in the growth and development of the country, but it also plays a significant role in optimizing other resources in the best possible way. With a high level of education and a better quality of health, a country can achieve a high level of growth along with an improved standard of living.
People as Resources
Human resource development is a program that enhances the productivity of a company and enhances the productivity and satisfaction of employees. Human resource development is very important for workers and very beneficial for the country and the economy as a whole. It improves worker productivity by providing facilities such as education, health care, and formal and informal training. Healthy workers are significantly more productive than workers who are absent due to illness. Similarly, through training, workers can acquire new skills that help increase production. It helps in achieving a better pay scale which brings people out of poverty and reduces the population belonging to the vulnerable and underserved section of society.
Economic and Non-Economic Activities
People as resources and economic activities refer to activities carried out by people to benefit their economy. These activities are carried out by people for financial gain. In most cases, the people engaged in economic activity are businessmen, lawyers, doctors, engineers, drivers, and so on. Any action taken to financially support a beneficiary can be classified as an economic activity.
On the other hand, non-economic activities are those which are done without the intention of acquiring monetary benefits. For example, a student taught by his parents is a non-economic activity.
Classification of Economic Activity
To better understand people as resources, we need to understand the classification of economic activity. Economic activity is generally categorized as follows:
- Primary Sector (Agriculture): This sector includes economic activities such as agriculture, forestry, fish farming, livestock, cultivation, poultry farming, poultry farming, and mining.
- Secondary Sector (Manufacturing): This category, is the manufacture of all small and large items. The secondary industry also includes construction activities.
- Tertiary Industry (Service Sector): All service providers are classified as Tertiary industries. This includes economic activities such as transportation, banking, restaurants, telecommunications, health, and tourism.
Apart from the above three two new sectors have come to light which is mainly focused on human resources development. These sectors are:
- Quaternary sector: The quaternary sector of the economy is based on economic activities related to either the intellectual economy or the knowledge economy. It consists of information technology, media; research and development; and information-based services such as information generation and information sharing. Knowledge-based services such as consulting, education, financial planning, blogging, and design. These intellectual services and activities drive technological progress and can have a significant impact on economic growth in the short and long term.
- Quinary Sector: The Quinary sector is the segment of the economy that makes the highest-level decisions. This sector includes top executives and officials from areas such as government, academia, universities, nonprofits, healthcare, culture, and media. It may also include police and fire services, which are public services rather than commercial enterprises.
People as resource
The human capital of any country is the most important tool for growth and development. With the advancement of education and health, the human capital formation can be increased which can provide a significant boost to the development of a country.
It’s evident from the fact that while advanced countries have a high level of human capital formation, it is being neglected or is negligible in developing and underdeveloped countries. Only by improving its human capital formation, a country can achieve its desired goals.
Challenges associated with human capital formation
If we look at the many developing and underdeveloped countries are the world, unemployment is the biggest concern of these countries. As their human capital growth is low, a major part of these countries is employed in the agriculture sector, which consists the disguised unemployment.
The major reasons behind this unemployment are the poor level of education and health. Even educated youths are not formally trained or lack the skills to acquire employment.
- Seasonal unemployment: People are unemployed for several months of the year and find employment in a particular month season. This phenomenon is especially seen in agriculture.
- Disguised Unemployment: This happens when people appear to be employed but are unemployed. This happens in situations where many are hired for work, but the real need is for a few. Urban unemployment can be described as a phenomenon that defines “uneducated”. If skilled and educated people cannot find a job, people as a resource are wasted.
FAQs on People as Resource
Q 1.How are human resources different from other resources such as land and physical capital?
Answer-
Human resources can use land and physical capital while land and physical capital cannot become useful by itself. Land and other resources are fixed, limited, and well-defined, while human resources can be nourished by education and health.
Q 2. Write the role of education in the formation of human capital.
Answer-
People with education find jobs in private companies while those without training continue to work like their families. They earn a meager income like their parents, not enough to support the family. Several years of education are added to the job, thus improving total productivity. Total productivity contributes to the growth of the economy.
Q 3. How can we use people as resources?
Answer-
Investments in human capital are made through training, education and healthcare, which makes the workforce more productive and therefore more beneficial to the economy. This is how we define people as a resource.