HUMAN CAPITAL complex tasks and make more informed

decisions.
Human capital is a crucial component in
determining a country's economic growth and Health and education are not only inputs, but
development. It refers to the knowledge, skills, also outputs of economic development.
and abilities possessed by the workforce, which Improved economic conditions lead to better
are the result of investments in education, access to healthcare and education, resulting in
training, and healthcare. healthier and more educated populations. This,
in turn, creates a positive feedback loop, as
Education is one of the primary ways in which healthier and more educated individuals are
human capital is developed and improved. better equipped to contribute to economic
Access to quality education can equip development and growth.
individuals with the knowledge and skills
needed to succeed in the workforce. This, in Their dual role as both inputs and outputs gives
turn, can lead to higher productivity, increased health and education their central importance
earnings, and more opportunities for career in economic development.
advancement.
It is hard to overstate how truly dramatic the
Investments in healthcare can also contribute improvements in world health and education
to the development of human capital. By have been. In 1950, some 280 of every 1,000
providing access to medical care, individuals children in the developing world as a whole
are better able to maintain their health and died before their fifth birthday. By 2011, that
well-being, which can lead to increased number had fallen to 95 per 1,000 in low-
productivity and a higher quality of life. income countries and 46 per 1,000 in middle-
income countries. Some important killers have
In conclusion, human capital is a critical factor been completely or nearly eradicated. Smallpox
in determining a country's economic success. used to kill more than 5 million people every
Investments in education, on-the-job training year; the virus no longer exists outside a few
programs, and healthcare can all contribute to laboratory samples. Major childhood illnesses
the development of human capital, leading to such as rubella and polio have been largely
increased productivity and higher standards of controlled through the use of vaccines. In
living. addition, access to education has improved
significantly in developing countries, with a
QUOTE EXPLANATION
majority of people receiving basic education
The statement above underscores the and achieving higher literacy rates.
importance of investing in human capital
The impact of these improvements is reflected
development as a means of achieving
in the increased life expectancies and well-
sustainable economic growth, reducing poverty
being of people across the globe. However,
and promoting shared prosperity. It highlights
there is still much work to be done to ensure
the need for countries to prioritize the health,
that everyone has access to quality health care
education, and social protection of their citizens
and education.
as a critical foundation for economic progress.
Despite such outstanding achievements,
Health and education are important
developing countries continue to face great
objectives of development.
challenges as they seek to continue to improve
Education and health are basic objectives of the health and education of their people. The
development. Health is central to well-being, distribution of health and education within
and education is essential for satisfying and countries is as important as income
rewarding life. Both are fundamental to distribution; life expectancy may be quite high
enhancing the quality of human life and for better-off people in developing countries but
ensuring economic progress. far lower for the poor. Child mortality rates in
developing countries remain more than 10
Health and education are also important times higher than those found in the rich
components of growth and development – countries. Chronic illness, diarrhea,
inputs in the aggregate production malnutrition, parasitic infections and various
function. other recurrent illnesses are causes of such
contrasting data. These conditions are easily
Education plays a key role in the ability of a treatable in developed countries but lack of
developing country to absorb modern resources and development hinders progress in
technology and to develop the capacity for self- underdeveloped and developing countries.
sustaining growth and development. Moreover, Same are the finding for education status also.
health is a prerequisite for increases in
productivity, and successful education relies on Join Investments
adequate health as well. This means that
individuals who are healthy and educated are Health and education are investments made in
more productive and can contribute more to the same individual.
the economy. Healthy individuals are less likely
Greater health capital may improve the
to miss work due to illness, and educated
return to investments in education
individuals are better equipped to handle
- Health is an important factor in school makes them more receptive to modern medical
attendance. facilities.
- Healthier children are more successful in
school and learn more efficiently. Health Status also affects a child school
- Deaths of school-age children also increase performance. Better health and nutrition leads
the cost of education per worker. to earlier and longer school enrollments, better
- Longer life spans raise the return to school attendance, and more effective learning.
investments in education. Thus to improve effectiveness of schooling, one
- Healthier individuals are more able to must improve the health of children in
productively use education at any point in developing countries.
life.
Finally, the spillover benefits to an individual's
Greater education capital may improve investment. An educated person proves to be
the return to investments in health beneficial to society. Moreover a healthy person
may not be just less contagious but will benefit
- Many health programs rely on skills learned the society in more ways than a sick person can
in school (including literacy and numeracy). ever.
- Schools teach basic personal hygiene and
sanitation. WHO
- Education is needed for the formation and
This means that it is the government's
training of health personnel.
responsibility to ensure that its citizens have
- Education leads to delayed childbearing,
access to high-quality healthcare services. The
which improves health.
government must take measures to establish a
- Improvements in productive efficiency from
healthcare system that is accessible,
investment in education raise the return on
affordable, and effective for all its citizens.
a lifesaving investment in health.
INVESTING IN EDDUCATION AND HEALTH
Because of these relationships, development
policy needs to focus on income, health, and Investing in health and education is a wise
education simultaneously. decision that can bring significant benefits in
the long run. By investing in these areas,
People will spend more on human capital when
individuals can create a stream of future
income is higher. But the evidence shows
income that is higher than what they would
clearly that even if we were able to raise
have earned without such investments. The
incomes without a large improvement in health
present discounted value of this stream of
and education, we could not count on that
income is then compared to the costs of the
income increase being used to adequately
investment to determine if it is worthwhile.
invest in children’s education and health.
In particular, investing in education can yield
Household choices of consumption may lead to
high returns, both for individuals and for society
this small linkage between income and
as a whole. Private returns to education are
nutrition:
typically high, which means that individuals
1. Income is spent on other goods than food who invest in their own education can expect to
2. Part of food expenditure includes increasing earn more money over their lifetimes than
food variety, than nutrition/calories. those who do not. However, the social returns
to education may be even higher, especially at
Thus, policies aiming at increasing incomes for higher educational levels. This is because
poor, like credit for microenterprise, may not education can lead to increased productivity,
lead to desired increase in health level and innovation, and economic growth, which benefit
successful development in general. society as a whole.

Even if income elasticity’s for calories are Similarly, investing in health can also lead to
higher than traditional, calories are not the significant returns. By maintaining good health,
same as nutrition; and nutrition of earners are individuals can avoid costly medical bills and
not the same as that of their children. Income lost income due to illness or disability. In
elasticity of convenience food is greater than addition, good health can increase productivity
unity. Increasing income allows family to switch and improve overall quality of life, leading to
consumption from nutritious to junk/canned higher levels of happiness and well-being.
food which might be perceived as modern and
a symbol of economic success. Parents may Overall, investing in health and education is a
then fail to put a check on children's food smart choice that can pay dividends in the long
consumption. run. While the costs of these investments may
be high initially, the returns can be even higher,
The better education of the mother, the better leading to a better quality of life and greater
the health of her children. Formal education financial stability.
teaches health knowledge to future mothers,
literacy and numeracy skills help them in CHILD LABOR
diagnosing and assessing their child's health
Child labor is a widespread problem in
problems, and exposure to modern society
developing countries. When children under age
15 work, their labor time disrupts their
schooling and, in a majority of cases, prevents poverty that often leads to child labor. Not only
them from attending school altogether. The does education provide children with
health suffers, poverty alleviates, and knowledge and skills, but it also empowers
exploitative working conditions become them to make informed decisions about their
common. lives and become active members of their
communities.
Nevertheless, it’s not obvious that an
immediate ban on child labor will make them To achieve this goal, governments, non-
better off. Work provides them with funds for governmental organizations, and individuals
betters schooling, health care and nutrition. must work together to ensure that all children
have access to quality education. This includes
MULTIPLE EQUILIBRIA is a model which shows providing free and compulsory education,
how ban on child labor can help this issue investing in school infrastructure and
whereby banning child labor would prove resources, and removing any barriers that
beneficial. prevent children from attending school, such as
poverty, discrimination, and gender inequality.
Moving from a bad equilibrium to a better one
often requires government intervention. This approach is most commonly associated
Governments can enact laws and regulations with UNICEF, which has prepared a checklist of
that prohibit child labor and ensure that regulatory and social approaches that could
children have access to education and other meet the “best interest of the child.” The
opportunities. In some cases, this shift can be regulations included on UNICEF’s checklist
self-enforcing. When a critical mass of people in include expanding educational opportunities
a society begins to reject child labor, it can through “time off” for standard or workplace
become socially unacceptable and eventually schooling, encouraging stricter law
disappear on its own. enforcement against illegal child labor
trafficking, providing support services for
However, active intervention may be necessary
parents and for children working on the streets,
at first to jumpstart this process. Governments
and working to develop social norms against
can provide incentives for businesses to hire
the economic exploitation of children.
adult workers instead of children, and they can
also provide financial assistance to families so It is important for governments and
that they do not have to rely on their children organizations to take action and ban child labor
for income. in its most abusive forms.
A household with a sufficiently high The most abusive forms of child labor include
income would not send its children to forced labor, human trafficking, and hazardous
work. work. Children in these situations are often
subjected to physical, emotional, and
When a household has a higher income, it is
psychological abuse. They are denied access to
less likely to rely on the income earned by their
education and are forced to work long hours in
children to support the family. Instead, they can
dangerous conditions. This can have a
afford to invest in their children's education and
detrimental impact on their physical and
provide them with opportunities to develop
mental health, and can even result in death.
their skills and talents, which in turn can lead to
higher paying jobs in the future. It is the responsibility of governments and
organizations to protect children from these
Child and adult labor are substitutes.
abusive forms of labor. They must work
In fact, children are not as productive as adults, together to create laws and policies that ban
and adults can do any work that children can child labor and provide support to families and
do. This assertion is not an assumption; it is a communities to prevent children from being
finding of many studies of the productivity of forced into labor. Additionally, they must
child laborers in many countries. provide education and training programs for
children to help them escape the cycle of
Approaches to child labor policy poverty and exploitation.

Instead of directly addressing child labor, it is The Gender Gap:

important to recognize it as an expression of
poverty. Addressing the root cause of the issue There are many reasons for this gender gap in
is crucial in creating long-term solutions. This education. One of the primary reasons is
can involve providing education, job training, poverty. Families living in poverty cannot afford
and financial assistance to families in need. By to send all their children, especially girls, to
improving economic conditions and offering school. Young girls are often expected to help
alternatives to child labor, we can help break with household chores and take care of
the cycle of poverty and ultimately reduce the younger siblings, leaving little time for their
prevalence of child labor. education.

Getting more children into school is crucial for Another reason is cultural beliefs and practices.
preventing child labor. When children have Some societies believe that educating girls is a
access to education, they are more likely to waste of resources, as they will eventually get
have a brighter future and break the cycle of
married and leave their family. Thus, they health services, or having their choices about
prioritize boys' education over girls'. their health and bodies overruled. It is essential
that efforts are made to address this issue and
Furthermore, gender-based violence, early ensure that women are able to make informed
marriages, and teenage pregnancies also decisions about their own health care and
contribute to the low level of education among reproductive rights. By doing so, we can help to
young females. These issues not only affect the ensure that women and girls receive the care
girls' physical and emotional health but also and support they need to lead healthy and
limit their educational opportunities. fulfilling lives.
Empirical evidence shows that educational CONSEQUENCES
discrimination against women hinders
economic development in addition to Studies show that expansion of basic education
reinforcing social inequality. of girls earns high rates of return of any
investment. This is one reason why
Closing the educational gender is discrimination against girls is not just
economically desirable: inequitable, but very costly from standpoint of
achieving development goals.
Education has been identified as a significant
factor in improving the quality of life for people, Investing in the education of girls is not only
especially women. Research has shown that the right thing to do, but it is also the most
there is a higher rate of return on women's cost-effective way of improving local health
education compared to men's. This is because standards. By supporting girls' education, we
educated women tend to be more productive, can create healthier, more prosperous
have better job opportunities, and earn higher communities for everyone.
wages. Additionally, increasing women's
education has been linked to an increase in Inferior education and health care access
their productivity, which can lead to an for girls shows the interlinked nature of
improvement in their overall quality of life. economic incentives and the cultural
setting. In many parts of Asia, a boy provides
Another significant impact of educating women future economic benefits, such as support of
is the multiplier effect it has on future parents in their old age and possible receipt of
generations. Educated mothers are more likely a dowry upon marriage, and often continues to
to invest in their children's education and work on the farm into adulthood. A girl, in
health, which can lead to a cycle of increased contrast, may require a dowry upon marriage,
prosperity and wellbeing in the family. This, in often at a young age, and will then move to the
turn, can have a positive impact on the village of her husband’s family, becoming
community and the country as a whole. responsible for the welfare of her husband’s
parents rather than her own. A girl from a poor
Furthermore, education can break the vicious
rural family in South Asia will in many cases
cycle of poverty and inadequate schooling for
perceive no suitable alternatives in life than
women. When women are educated, they
serving a husband and his family; indeed, a
become more aware of their rights and are
more educated girl may be considered “less
empowered to make informed decisions about
marriageable.”
their lives. This can lead to a reduction in
poverty and inequality, as educated women are The bias toward boys helps explain the
more likely to participate in the workforce and “missing women” mystery. In Asia, the United
contribute to economic growth. Nations has found that there are far fewer
females as a share of the population than
HEALTH AND GENDER
would be predicted by demographic norms.
Gender discrimination is a persistent problem
It is a well-established fact that a mother's
that affects women and girls all around the
education has a significant impact on the
world, particularly in developing countries. One
health and education of her children. Studies
area where this is evident is in health care,
have shown that when a mother has a higher
where girls and women frequently receive
level of education, her children are more likely
lower quality care than their male counterparts.
to have better health outcomes and
This can lead to poor health outcomes and even
educational opportunities.
death in some cases. Unfortunately, women are
also often denied their reproductive right, The evidence shows that increases in family
which means that they are unable to make income do not automatically result in improved
choices about their own bodies and health. This health status or educational attainment. If
can have a profound impact on a woman's higher income cannot be expected to
overall well-being and can limit her ability to necessarily lead to higher health and
participate fully in society. education, as we will show in subsequent
sections, there are no guarantees that higher
In Nigeria, health care decisions affecting wives
health or education will lead to higher
are often made by their husbands, which can
productivities and incomes. Much depends on
further exacerbate the issue of gender
the context, on whether gains from income
discrimination in health care. This can lead to
growth and also the benefits of public
women being denied access to important
investments in health and education and other
infrastructure are shared equitably.