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Human Capital Investment Is a Continuous Proposition: A Study of North East African States

Author

Listed:
  • Ghirmai Kefela
  • Ravinder Rena

    (Eritrea Institute of Technology– Mai Nefhi, Asmara, The State of Eritrea)

Abstract

Human development is the beginning of economic growth. The main purpose of wealth should be to enrich people’s lives, to broaden people’s choices and to enable every citizen, every child, every woman and every man to reach her or his full potential. Yet, as the experience of many countries has shown, economic growth does not automatically translate into human development. Human capital refers to the stock of productive skills and technical knowledge embodied in country’s population. A well-educated, innovative and skilled population is the foundation as well as the goal of development. It is also the surest way to eradicate poverty. The education and training systems of all the nations jeopardizes the future of millions of children and of the nation itself. This paper analyses the importance of human being resources in general and economic development in North East African States (NEAS) in particular. The study focuses that the Human capital as both the goal and the engine of economic growth, because 40 to 60 per cent of growth rates in per capita GDP can be attributed to investment in human capital and the increased productivity that results. Sustainable development cannot occur in the absence of human resource. It is also concluded that major portion of means goes for middle man and upper classed families.

Suggested Citation

  • Ghirmai Kefela & Ravinder Rena, 2008. "Human Capital Investment Is a Continuous Proposition: A Study of North East African States," Indus Journal of Management & Social Science (IJMSS), Department of Business Administration, vol. 2(1), pages 50-65, June.
    • Handle: RePEc:iih:journl:v:2:y:2008:i:1:p:50-65
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    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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    3. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
    4. Rena, Ravinder, 2004. "Financing Of Education In Eritrea - A Case Study Of Zoba Maekel," MPRA Paper 10314, University Library of Munich, Germany, revised Jan 2005.
    5. Thomas, Vinod & Wang, Yan & Fan, Xibo, 2001. "Measuring education inequality - Gini coefficients of education," Policy Research Working Paper Series 2525, The World Bank.
    6. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
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    8. Mr. Desmond Lachman & Mr. Kenneth Bercuson, 1992. "Economic Policies for a New South Africa," IMF Occasional Papers 1992/003, International Monetary Fund.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Education; Human Capital; Skilled Manpower; Economic Growth and Development; North East African States; Poverty; etc.;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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