Human Capability Analysis

1156 Words5 Pages
DEFINITION OF TERMS Human Capabilities Human capability refers to an individual’s capability of achieving a kind of life they consider valuable such as good health, being in loving safe environments and relationships (Sen, 1997). Human Capital Human capital can be defined as knowledge and skills that can be used to create economic value of individuals or their community, which also assists in creating a better social life for the population as large. For example education is an investment in human capital that pays off in terms of higher productivity (human capital, dictionary; Sen, 1997). Local systems of innovation According to Cooke et al (1997), Local systems of innovation refers to institutions and organizations that are involved in…show more content…
the concept of human capability is based on the ability to generate an outcome, it can be through education as being the main aspect for human beings to flourish and increase their productivity (Deneulin & Shahani, 2009). The stability of Human capabilities is achieved through family structures and basic provisions such as education, housing, nutrition and security. Human capability also plays a role in making education a tool to ensure economic growth, individual development as well as empowering citizens and ensuring that resources and employment opportunities are equally distributed. Even though human capability is proven to be effective there are setbacks that can be experienced for example an uneducated or disabled individual may be limited when it comes to job opportunities or making decision because of their inabilities(Deneulin & Shahani, 2009; (Tridico,2009; yilmazer&…show more content…
The concept of humans capital originated early in the 1960s,the main purpose of the concept was to study how education helps to develop personality traits through capital investment as well as how traits contributes to the national economic growth and productivity. The ability of a human being to be effective when educated through the production of commodity is a clear indication of human capital. The importance of human capital is to ensure that the government invest in people to achieve economic growth as well as social aspirations. (Deneulin & Shahani, 2009:208). Furthermore Becker (1964),classify human capital and neoclassical economics as interrelated because investing in human beings as means of production may yield results in a particular firm or area, the results may be in the form of positive returns on investments. For example educational institution such as universities produce education as inputs and receive graduates as outputs this is a form of investment, resulting to more people acquiring knowledge and improving the levels of growth and development. Human capital is assumes that when schooling is developed the markets will efficiently allocate occupations which are appropriate to their skills, experience as well as knowledge. However,

More about Human Capability Analysis

Open Document