HUMAN CAPITAL DEVELOPMENT

 

Subject: 

ECONOMICS

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Term:

FIRST TERM

Week:

WEEK 2

Class:

SS 3

Topic:

HUMAN CAPITAL DEVELOPMENT

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Previous lesson: 

The pupils have previous knowledge of

ECONOMIC LESSONS FROM THE ASIAN TIGERS, JAPAN, EUROPE AND AMERICA

that was taught as a topic in the previous lesson

 

Behavioural objectives:

At the end of the lesson, the learners will be able to

• EXPLAIN THE MEANING OF HUMAN CAPITAL DEVELOPMENT
• LIST FACTORS THAT AFFECT HUMAN CAPITAL DEVELOPMENT
• DISCUSS HOW BRAIN DRAIN CAN BE CURTAILED

 

Instructional Materials:

• Wall charts
• Pictures
• Related Online Video
• Flash Cards

 

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Methods of Teaching:

• Class Discussion
• Group Discussion
• Asking Questions
• Explanation
• Role Modelling
• Role Delegation

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Reference Materials:

• Scheme of Work
• Online Information
• Textbooks
• Workbooks

 

Content:

 

HUMAN CAPITAL DEVELOPMENT

CONTENT

1. Introduction to Human Capital Development
2. Meaning and Definition of Human Capital Development
3. Factors Affecting the Efficiency of Human Capital
4. Brain Drain and its Effect on the Nigeria Economy
5. Reasons for Human Capital Flight
6. Effects Brain Drain on Nigeria Economy
7. Effects of Brain Drain on the Destination Country
8. How to Arrest Brain Drain

 

Introduction to Human Capital Development

According to modern growth theory, the accumulation of human capital is an important contributor to economic growth. Numerous cross-country studies extensively explore whether educational attainment can contribute significantly to the production of overall output in an economy. Although macro studies have produced inconsistent and controversial results (Pritchett 1996), several micro studies that look into the same problem have shown a consistently positive relationship between the education of the workforce and their labor productivity and earnings. General finding is that individuals with more education tend to have better employment opportunities, greater earnings, and produce more output than those who are less educated. These findings provide a strong rationale for governments and households to invest substantial portions of their resources on education, with the expectation that higher benefits will accrue over time.

Human capital development refers to the process of investing in and developing the skills, knowledge, and abilities of workers in order to increase their productivity and overall economic performance. Factors that affect human capital efficiency can include education and training programs, availability of resources and support networks, working conditions, pay levels, job security, and access to opportunities for career advancement and skill development. One possible strategy for addressing brain drain and encouraging more people to stay in their home countries is through the establishment of policies and programs that promote human capital development, such as educational grants or scholarships, training initiatives, support networks for entrepreneurs, and other incentives designed to foster a culture of innovation and growth within the country. Other potential solutions may include targeted efforts to improve the economic conditions and living standards in developing nations, as well as programs that promote civic engagement and community building. While no single approach is likely to be effective on its own, a combination of strategies may help to mitigate the negative effects of brain drain and foster greater human capital development within countries around the world.

Meaning and Definition of Human Capital Development

Human capital is the total stock or value of competencies, skills, knowledge, social and personality attributes, including creativity, embodied in the ability to perform labour in order to produce economic value.

Factors Affecting the Efficiency of Human Capital

1. Increased level of education: Provision of higher and specialized education increases the efficiency of human capital.
2. On-the job training: Provision of formal and informal training programmes while employed, increase the skill of the workers and enhance the efficiency of human capital
3. Improved health condition: Provision of better health facilities improve the health of the providers of labour, thereby enhancing their efficiency.
4. Standard of living: An increase in the standard of living increases the efficiency of human capital.
5. Job security: Workers with better job security will be more motivated to perform optimally, which increases the efficiency of human capital.
6. Access to opportunities for career advancement and skill development: Programs that provide access to training initiatives, mentorship programs, or other opportunities for professional growth can enhance the efficiency of human capital by providing workers with resources and support networks that help them to advance on the job.

While no single approach to addressing brain drain is likely to be effective on its own, a combination of strategies can help to mitigate the negative effects of this phenomenon and foster greater human capital development within countries around the world. In particular, efforts that focus on increasing educational opportunities, improving access to economic resources and health facilities or care must be provided by the government .

Brain Drain and its Effect on the Nigeria Economy

Brain drain is the large scale emigration, over a comparatively short period, of a large number of highly skilled intellectuals and technical labour to more favourable geographic, economic and professional environment. E.g. large scale movement of Nigerians health-care professionals to India, America and other high income countries. It is also referred to as “capital flight”.

Reasons for Human Capital Flight

1. Poor social environment in the source countries: The fewer life opportunities, political and social instability, economic depression and health risk cause the movement of labour in large scale from less developed countries to those countries with better opportunities.
2. Better social environment in host countries: Owing to rich opportunities for profitable employment, political stability, better living conditions, developed economy, intellectual freedom, etc, there is large scale movement of labour to these countries.
3. Individual reasons: These include family influence such as presence of overseas relatives, personal preference and ambition for an improved career.

There are a number of factors that contribute to human capital flight from less developed countries, including poor social conditions, lack of economic opportunity and access to resources, and individual factors such as personal preference or ambition. Efforts to address brain drain must focus on addressing these underlying causes by providing better educational opportunities, improving access to employment and health care resources.

Effects Brain Drain on Nigeria Economy

1. Loss of professional skills and talents: The nation is denied the services and expertise they would otherwise have provided in various areas of the economy such as institutions of higher learning, health institutions, industries, etc, leading to low level of production and development.
2. Capital waste: The resources used in training them, either in the forms of scholarships, loans, etc. are lost to the advanced countries which may have contributed little.
3. Increased level of poverty: This is due to general low level of productivity arising from scarcity of highly productive labour.
4. Decrease in wealth creation, employment and tax revenue: More entrepreneurs taking their investments abroad contribute to the high rate of unemployment and decreased wealth creation within the country, with a consequent reduction of tax revenue.
5. Encourages Individuals to acquire greater education and skills: They do this in order to meet the demands of the advanced countries that are in demand of their services.

Effects of Brain Drain on the Destination Country

1. Higher labour skills are available for services and production in other sectors of the destination country
2. There is influx of illegal aliens who wish to take advantage of the greater opportunities available

How to Arrest Brain Drain

1. Committed and selfless leadership with a mission and vision: Highly skilled labour will stay in the country if they discover that leaders are committed and are making genuine efforts at development.
2. Provision of adequate working and living conditions: These would encourage highly skilled labour to remain in the country to contribute their quotas.
3. Value re-orientation: Nigerians should be taught to believe that our collective hopes and aspirations can be met within the country.
4. Setting up a national commission to handle the issue of brain-drain: This body would help to formulate policies and proper solutions to the challenges of brain-drain.

 

 

 

Presentation

 

The topic is presented step by step

 

Step 1:

The class teacher revises the previous topics

 

Step 2.

He introduces the new topic

 

Step 3:

The class teacher allows the pupils to give their own examples and he corrects them when the needs arise

EVALUATION

1. What is human capital development?
2. List five factors that affect the efficiency of human capital.
3. How can brain drain be arrested?

Conclusion

The class teacher wraps up or concludes the lesson by giving out short notes to summarize the topic that he or she has just taught.

The class teacher also goes round to make sure that the notes are well copied or well written by the pupils.

He or she makes the necessary corrections when and where the needs arise.

 

Assignment 

Read about Petroleum and the Nigerian Economy in preparation for the next lesson

 

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