Class 9 Economics People as Resource Notes

Introduction: Understanding 'People as Resource'

The term "People as Resource" refers to a nation's population that is productive and capable of generating economic value. When the population is skilled, healthy, and educated, it becomes a valuable asset, contributing to the nation's wealth. This concept focuses on the potential of human beings to produce goods and services, thereby enhancing the economy and improving societal well-being.

Human beings are often viewed as liabilities if they remain unskilled, uneducated, and unhealthy. However, when the population is nurtured through education, skill development, and healthcare, it transforms into a valuable resource, thus leading to economic development.

Population: An Asset or a Liability?

The concept of "People as Resource" counters the conventional perspective that views the growing population as a burden on the economy. Instead, it proposes that population can be an asset, provided there is investment in human capital. Human capital is the sum total of the skills, knowledge, experience, and health embodied in the population, which enhances their productivity.

When a country invests in education and healthcare, it increases its human capital, which in turn increases productivity. Skilled and healthy individuals can contribute significantly to economic growth, leading to a better standard of living for all. On the other hand, an unskilled, uneducated, and unhealthy population can be a drain on the country's resources, leading to poverty and underdevelopment.

Economic Activities and Their Types

Economic activities are those activities that result in the production of goods and services for the satisfaction of human needs. They are broadly categorized into three sectors:

1. Primary Sector: This includes activities that are closely related to natural resources, such as agriculture, fishing, forestry, and mining. These activities form the base of the economy in most developing countries.

2. Secondary Sector: This sector includes activities related to manufacturing and processing. It involves the transformation of raw materials from the primary sector into finished products. Industries like textiles, steel, chemicals, and food processing fall under this sector.

3. Tertiary Sector: Also known as the service sector, this includes activities that provide services rather than goods. It includes trade, transport, communication, education, healthcare, banking, and other services.

Market and Non-Market Activities

Economic activities are further classified into market and non-market activities:

• Market Activities: These activities involve the production of goods and services that are sold in the market for profit. Market activities contribute to the national income and are considered economic activities.

• Non-Market Activities: These include activities performed for self-consumption, such as subsistence farming, housework, and caregiving. Although these activities are essential for the well-being of the family and society, they do not contribute directly to the national income.

Role of Education in Human Capital Formation

Education is a crucial component of human capital formation. It equips individuals with the knowledge, skills, and abilities needed to perform various tasks and jobs. An educated workforce is more productive, innovative, and capable of adapting to new technologies and methods.

The Indian government has implemented several programs to improve the education system, such as the Sarva Shiksha Abhiyan, Mid-Day Meal Scheme, and the Right to Education Act. These initiatives aim to increase literacy rates, reduce dropout rates, and ensure that every child has access to quality education.

Health: A Vital Aspect of Human Capital

Health is another critical aspect of human capital. A healthy population is more productive and capable of contributing effectively to the economy. Good health reduces absenteeism, increases life expectancy, and enhances the quality of life.

The government of India has launched various health programs to improve the overall health of the population. These include the National Health Mission, Ayushman Bharat, and the Pradhan Mantri Swasthya Suraksha Yojana. These programs aim to provide affordable healthcare, improve maternal and child health, and control diseases.

Unemployment: A Major Challenge

Unemployment is a significant issue in India and a major challenge to human capital formation. When people are unable to find jobs, their skills and talents are wasted, leading to economic and social problems. Unemployment also results in lower income, reduced standards of living, and increased poverty.

There are different types of unemployment:

1. Structural Unemployment: This occurs when there is a mismatch between the skills of the workforce and the demands of the job market.

2. Seasonal Unemployment: This is common in agriculture, where people are employed only during certain seasons.

3. Cyclical Unemployment: This occurs during periods of economic downturns when demand for goods and services declines.

4. Disguised Unemployment: This happens when more people are employed than necessary, leading to reduced productivity.

The government has implemented various schemes to tackle unemployment, such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which provides 100 days of guaranteed employment to rural households.

Impact of People as Resource on Economic Development

When a country's population is healthy, educated, and skilled, it leads to economic growth and development. A well-developed human resource base contributes to higher productivity, better quality of goods and services, and innovation. It also leads to higher income levels, better standards of living, and social progress.

Countries like Japan and South Korea, which have limited natural resources, have achieved remarkable economic growth by investing in human capital. These countries have focused on education, healthcare, and skill development, turning their population into a valuable asset.

Government Initiatives to Develop Human Capital

The Indian government has launched various programs and policies to develop human capital:

1. Skill India Mission: Launched in 2015, this mission aims to train over 40 crore people in different skills by 2022. It focuses on skill development in various sectors and creating opportunities for employment.

2. National Skill Development Corporation (NSDC): This public-private partnership organization aims to promote skill development by funding skill training initiatives. It also provides vocational training to youth to make them employable.

3. Atal Innovation Mission (AIM): This initiative aims to promote a culture of innovation and entrepreneurship in India. It provides support to startups, fosters research and development, and encourages creativity among students.

4. National Health Mission (NHM): This program aims to improve the health infrastructure and provide affordable healthcare services to the population. It focuses on maternal and child health, disease control, and health awareness.

5. Right to Education (RTE) Act: Implemented in 2009, this act ensures free and compulsory education for children aged 6 to 14 years. It aims to increase literacy rates, reduce dropout rates, and ensure quality education for all.

6. Mid-Day Meal Scheme: This program provides free meals to children in government schools, aiming to improve nutrition and reduce dropout rates. It also encourages parents to send their children to school.

Challenges in Developing Human Capital

Despite the government's efforts, several challenges hinder the development of human capital in India:

1. Poverty: A significant portion of the population lives in poverty, which limits access to education, healthcare, and skill development. Poverty also leads to malnutrition, which affects physical and cognitive development.

2. Illiteracy: Despite progress, a large number of people, especially in rural areas, remain illiterate. Illiteracy limits job opportunities and hampers economic growth.

3. Unemployment: High unemployment rates, especially among youth, lead to underutilization of human resources. The lack of job opportunities also results in brain drain, where skilled individuals migrate to other countries for better opportunities.

4. Gender Disparities: Women in India face significant challenges in accessing education, healthcare, and employment. Gender disparities limit the full potential of the population and hinder economic growth.

5. Inadequate Infrastructure: The lack of proper infrastructure, especially in rural areas, limits access to education and healthcare. Poor infrastructure also affects the quality of services provided.

6. Regional Disparities: There are significant regional disparities in the development of human capital in India. While some states have made significant progress, others lag, leading to unequal growth and development.

Conclusion: The Way Forward

The concept of "People as Resource" emphasizes the importance of investing in human capital to drive economic growth and development. A healthy, educated, and skilled population can contribute significantly to the nation's wealth and well-being. However, several challenges, such as poverty, unemployment, and regional disparities, must be addressed to fully harness the potential of the population.

The government must continue to invest in education, healthcare, and skill development while also addressing the structural issues that hinder human capital formation. By doing so, India can transform its large population into a valuable resource, driving economic growth and improving the quality of life for all its citizens.