What does the term “human capital” mean to you? Describe the relationship between the creation of human capital and economic development.
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The concept of “human capital” describes the monetary worth of a workforce’s qualifications, expertise, and attributes, such as their health, education, and training. The efficiency and output of employees are improved by these qualities. Growth in the economy and the development of human capital are closely related. Health and education improvements provide a workforce that is more capable and productive, which promotes creativity and technical breakthroughs. The resources required for additional investments in human capital are provided by economic development. Growing economies can boost healthcare, education, and training initiatives, starting a never-ending cycle of improvement. Economic development, in turn, maintains and improves human capital, resulting in a trained and effective labour force. Put simply, economic growth is driven by human capital.