Human capital means people can act as capital assets which yield a stream of economic benefits over their working life. An improvement in the mental capability, human resource development essay, and physical capacity of the people constitutes an increase in the human capital because this enables the human factor to produce more.
Two types of expenditure can be called as investment in human capital. One is expenditure on education i. For optimum utilization of existing physical capital, investment in human resources or capital is essential, as because technical, professional and administrative people are required to make effective use of material resources. The basic objective behind development of human resources is to increase the productivity of labour.
Macaulay under the British regime gave a system of education to India which produced only clerks. But for improving the pace of capital formation, human resource development was essential, in the form of change in existing educational structure and system and by more expenditure on education. The Planning Commission during the Eighth Plan approved an expenditure of Rs 21,217 crore for education which was 4. 9 per cent of total plan of public sector outlay. The Ninth Plan however does not specify allocation to education. According to 1991 census, the literacy rate in our country is 52. 11 per cent while in 1951 it was 16.
2000 adult male illiteracy rate was 33 per cent in India in 1997 as against 9 per cent in China, 6 per cent in Sri Lanka, 5 per cent in Philippines and 3 per cent in Thailand. Elementary education especially universalization of free and compulsory education up to the age of 14, received a priority in the Eighth Plan. August 1995 to promote access, retention and nutritional care of primary school children. P, Gujarat and Karnataka etc.
For the realization of the goal of universalization of elementary education, the National Policy on Education had stressed on retention, participation and achievement rather than mere enrolment which is a necessary but not a sufficient condition for achieving the goal of universalization of education. Elementary education is a major thrust area during the Ninth-Plan. In the Eight Plan the thrust was on consolidation and improvement. The plan proposed to regulate expansion, with new facilities being created for deprived sections like girl, SCs and STs in rural areas.
National and State Open Schools, utilizing multi-media packages and contact centres. 84,076 in 1992- 93 to 1, 02,183 in 1996-97. The enrolment increased from 20. By the end of 1995-96, the programme of vocationalisation had been expanded to 6476 schools with intake capacity of 9.
5 per cent of students were in vocational stream. Rs 146 crore was provided for maintaining the programme »n 1,598 schools and covering an additional 2,290 schools. For giving thrust to vocationalisation of secondary education a centrally sponsored scheme was launched in February, 1998. Faculty development through Academic Staff Colleges prescribing minimum qualification for teachers, teacher fellowships, travel grants and career awards were initiated during eighth Plan.
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