Factors of production Human Capital

Population as an asset for the economy rather than a liability.

Population becomes human capital when there is investment

made in the form of education, training and medical care.
Human as resource Explain

Investmnent in human capital yields a return just like investment in phys pital.

Developed human resource: Higher Income, advantages to society, superior to ot

[land, physical capital] How

Introduction:
Population [Asset Liability]
Green
V/S IT Revolution
Revolution

What we are going to study in this chapter?

Story of Sakal and Vilas.
Economic activities by men and women.
Quality of population
Education
Health
Unemployment
A Concluding story

Story of Sakal and Vilas:

Story of both Sakal and Vilas will help us to understand how investment in people can make
them more productive.

Story of Sakal Story of Vilas

Draw out a conclusion from both the stories.

Story of Sakal and Villas:
Investment in human resource (via education and medical care) can give high rates of
return in future.

Two Situations

Virtuous Cycle Vicious Cycle

Countries, like Japan, have invested in human resource. They did not ha
resource. They have invested on people, especially in the field of educatie
These people have made efficient use of other resources, like land

No access to Access to
income data; income data
poor credit

Limited Access to
Struggle to Payments
make Vicious access to
financial
made; credit Virtuous affordable
financial
payments score goes
cycle products up cycle products

Higher APR Lower APR

loans loans

Economic Activities by Men and Women:

Economic activities are classified into three main sectors.

Primary Secondary Tertla

The activities in this sector results in the production of goods and services.

Add value to the National Income (Economic activities]

Economic activities have two parts -

Market Activity Non-Market Activity

Economic Activities by Men and Women:
Pivision of labour between men and women [Historical and cultural reasons]
Women generally look after domestic chores and men work in the fields.
Relate it with the story of Sakal and Vilas.

Is there any difference

Education and skills are the major determinants of the earning of i

Men V/S Women

Quality of Population: Education:

The quality of population depends upon the literacy rate. health ofaperson. The quality of
the population ultimately decides the growth rate of the country.
Importance of education inimproving the quality of population.

Relate it with the story of Sakal.

There is as special emphasis on providing the education to the population.
1. Providing universal access, retention and quality in elementary education with a special emphasis
on girls.
2. Establishment of schools like Navodaya Vidyalaya in each district.
3 Vocational streams have been developed to equip large number of high school students with
occupations related to knowledge and skills.
Increase in expenditure from Rs 151 crore in the first plan to Rs 3766.90 crore in the eleventh plan.
The expenditure on education as a percentage of GDP rose from 0.64% in 1951-52 to 3.0% in
2015-16.

Quality of Population: Education:

Outcomes Challenges

The literacy rates have increased Vast difference in literacy is nc

from 18% in 1951 to 74% in different sections of the por
2010-11. Huge expansion of schools!
The primary school system has by the poor quality of schoo
expanded to over 8.58 lakhs. dropout rates.

Poron
Mele
Female
40
30

10

1951 1971 1981 1991 2001 2011

Quality of Population: Education:
Sarva Sikhsha Abhiyan

Step towards providing elementary education to all children if

the age group of 6 - 14 years by 2010.
Initiative of the Central government, in partnership with the
States, the local government and the community for achieving
the goal of universalisation of elementary education.
3ridge courses and back to school camps have been initiated to
1crease the enrolment in elementary education.
Day Meal Scheme

Mid Day Meal Scheme

Quality of Population: Education:

12" plan endeavouredto raisethe country's Gross Enrolment Ratio (GER)

In higher education in the age group of 18 to 23 years to 25.2% by 2017-18

and to reach the target of 30% by 2020-21.

The strategy focuses on increasing access, quality, adoption of state-specific

curriculum modification, vocationalisation and networking on the use of
information technology.

The plan also focuses on distance education, convergence of formal,

non-formal, distance and IT education institutions.

There has been a significant growth in the number of university and

institutions of higher learning in specialised areas.

Quality of Population: Health

Need of the good health.

at do you understand by a good health

Health is an indispensable basis for realising one's

well-being. Henceforth, improvement in the health
status of the population has been the priority of the
country.

What have been done to achieve this?

Quality of Population: Health
Step taken to improve the health condition of our population

Improving the accessibility of healthcare, family welfare and nutritional service with
focus on the underprivileged segment.
2013 2014 2016 2016 2017

sc/PHC/CHc 181,139 182,709 184,359 185.933 187,505

Dispensarles 29274 29.715 29,957 30044 3,1641 Outcomnes

and Hospttals

Beds (Govn.) 628,708 675.779 754,724 6.34.879 710761

Shallenge
Repstered Doctor n 43.108 33.536 20422 25.282 17.982
i Medcal Councl

Nursing Personnel 2,344,2A1 2.621.981 2,639,2292,778,248 2,878,182

(ANM"RNARM"LHV

Quality of Population: Health

Outcomnes Challenges
1. Increased the life expectancy to over 68.3 years in 1 There are many places in India
2014. which do not have even these
Infant mortalityrate (IMR) has come down from 147 basic facilities.
in 1951 to 34 in 2016. 2. Only 381 medical colleges in the
Crude birth rates have dropped to 20.4. country and 301 dental colleges.
Death rates to 6.4 within the same duration of time. 3. Just four states, like Andhra
Increase in life expectancy and improvement in Pradesh, Karnataka,
childcare. Maharashtra and Tamil Nadu
6. Increase in longevity of life is an indicator of good have the maximum number of
quality of life marked by self-confidence. colleges.
7 Protection of children from infection, ensuring the
nutrition of both the mother and the child, and
childcare.

Unemplovment:
Let us start with the story of Sakal's family.
Who is said to be unemployed?
What is unemployment?

Unemployment is said to exist when people who are

willing to work at the available wages but cannot find jobs.

Nature of unemployment differs in rural and urban area.

Rural area

Seasonal unemployment.
Disguised unemployment.
Unemployment:
Problems of unemployment

Unemployment leads to wastage of manpower resource. Asset for the economy turn into
liability. It impliesa great social waste.
Unemployment tends to increase economic overload.
The quality of life of an individual as well as of society is adversely affected.
Decline in its health status and rising withdrawal from the school system.
Increase in unemployment is an indicator of a depressed economy.

Case in India
People appear to work throughout the year but in terms of their potential and income
not adequate for them.
Disguised unemployment in the agriculture sector. Problem
Employment scenario in three sectors of economy.

Concluding Storv:
Astory showing how people could become an asset for the economy.

village) Families Self reliant.

} Provided education to their children.

Knowledge was used to improve the farming methods.

More income, more opportunities, more employment.

Economic development brought social development. How?

ion to girls, they become self reliant.