Back to: ECONOMICS SS3
Welcome to class!
In today’s class, we will be talking about human capital development. Enjoy the class!
Human Capital Development
- Factors affecting the efficiency of Human capital
- Differences between Human and physical capital
- Brain Drain and its effect on the Nigerian Economy
- Arresting Brain Drain
Human Capital refers to the skills, training, experience, education, knowledge, technical know-how and competencies contributed by humans to the production process.
Human capital is an important factor of production. It is the value that is added into a company by an employee which can be measured by the employee’s skills and competencies of Human capital.
Characteristics of human capital
- Human capital is mobile
- Human capital is skilful
- Human capital has feelings
- It requires innovation
- Human capital is not predictable
- Human capital is perishable
- Human capital is not fixed
Physical Capital refers to an asset which themselves have manufactured and are used for the production of goods and services. Examples include machinery, equipment, buildings etc.
DIFFERENCES BETWEEN HUMAN CAPITAL AND PHYSICAL CAPITAL
|Human Capital||Physical Capital|
|1. It is a human asset||It is a non-human asset|
|2. It includes skills, training, education etc.||It includes asset manufactured and used in the production process.|
|3. It is controlled by humans||It cannot be controlled by itself|
|4. It can appreciate through training, education, experience etc.||It cannot appreciate in value|
|5. The reward is wages and salaries||Its reward is interest|
FACTORS AFFECTING EFFICIENCY OF HUMAN CAPITAL
As an intangible asset, human capital the workforce a company employs. The following factors affect the efficiency of human capital;
- Personal attribute
- Increase in innovation
It is also known as Human capital flight. It may be defined as the departure or emigration of individuals with technical skills or knowledge from organizations, industries or geographical region to another.
Brain drain is common among developing nations.
HOW TO ARREST BRAIN DRAIN
Brain drain is taking place at a very fast rate in developing countries. Nigeria is no exception. If we want to arrest Brain drain the following should be done;
- Provision of better job opportunities.
- Provision of attractive salaries.
- Promotion on merit.
- Improvement on adequate research facilities.
- Abolition of the quota system.
- Improvement of power supply.
- Protection of the lives and property of citizens.
- Improvements on the universities.
- What is Economic planning?
- Outline the problems associated with planning.
- Differentiate between Economic growth and economic development
- Give five Reasons for the continued existence of OPEC.
- State five positive and negative contribution of crude oil to the Nigerian Economy
In our next class, we will be talking about Petroleum and the Nigerian Economy. We hope you enjoyed the class.
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