Unit 2: Economic growth and development
In this unit you will find out ❯❯
Developing human resources
• The difference between human resources and physical resources
• The characteristics of human resources
Factors influencing human resources
• The factors that influence human resources:
❍ quality
❍ quantity
❍ composition
❍ skills development
❍ creativity
The importance of human resources to the economy
• The importance of human resources to a country’s economic development:
❍ variety of skills
❍ innovation
❍ manufacturing and agricultural practices
❍ creativity
❍ high levels of production
The role of education in the development of human resources
• The importance of education in developing human resources
• Building your nation
The role of health in the development of human resources
• Health benefits and concerns
• How health issues affect the workplace
• Lifestyle diseases
• How health issues can be addressed
Unit 2: Economic growth and development
What are human resources?
We are learning to:
• define and use correctly the terms resource, human resource, human capital, physical resources, skills, talent, knowledge, ability
• look at the characteristics of human resources
• explain the difference between human and physical resources.
Developing human resources
An economy is made up of businesses that provide goods and services to meet people’s needs. In order to provide goods and services, we use capital.
Traditionally, there were three kinds of capital: resources, land (or natural resources) and labour.
• A resource is defined as anything natural or physical that can be used to create wealth or improve the standard of living of people. For example, people use land to grow crops or to mine metals and minerals.
• Natural resources come from the natural environment, for example, wood, water and soil. Physical resources are other tangible resources made by people, such as buildings and equipment.
• Human resources are people and their various skills, talents and abilities. People such as teachers, doctors, farmers, office workers, engineers, scientists and shop keepers all have skills that they use to provide goods or services.
Characteristics of human resources
Human resources (HR) has several meanings:
• workers or employees who work for an employer
• talents, skills, knowledge and experience that can only be found in people.
Training and education are aspects of human resource development.
Activity
For each of the following, brainstorm the physical and human resources that it requires:
a) a school
b) a restaurant
Studies: What are human resources?
Similarities and differences
Today, economists talk about two kinds of capital – physical capital (including land, which is a physical resource) and human capital
• Physical capital, including land, is a physical resource that cannot make or provide anything by itself. Physical capital refers to assets that have been made or found that we use to produce goods and services.
• Human capital refers to people, skills, training, experience, education and knowledge. It can only be found in people.
An economy needs human capital and physical capital to run smoothly. Skills are special abilities people have. They have been learned or developed.
Who makes up a country’s human resources?
Think about the population of your country. The young and old people in the country are not able to work. Children and teenagers are still at school.
The working-age population is made up of people between the ages of around 17 or 18 up to about 65.
However, younger people are part of the next generation’s human resources. For this reason, education is also considered an important part of human resources.
Exercise
1. Choose the correct term to complete each sentence.
resource
human
natural skill
a) A ____________ is something that we use.
b) Wood is an example of a ____________ resource that we use to make different products.
c) Someone who has a special ____________ for music or dance may go on to become an artist.
d) The ____________ resources of a country lie in its people.
2. List two main differences between human and physical resources.
3. Look at the picture of the people making up the word ‘resources’ on the opposite page. What does this picture tell you about human resources?
Project
Create a concept map to show how skills, talent, knowledge and ability relate to human resources.
Choose a working person you know. Collect and present information about the person’s skills, talents, knowledge and ability.
Key vocabulary economy
goods services
capital resources
labour
physical resources
human resources
skill talent
ability knowledge
physical capital
human capital
Factors influencing human resources
There are several factors that influence the development of human resources:
• quality
• quantity
• composition
• skills development/enhancement
• creativity.
Quality
We are learning to:
• explain factors that influence the development of human resources.
Quality is a measure of excellence. The quality of a country’s human resources is directly linked to its skills development and education. Education includes schools, colleges, universities, training centres and programmes that help adults increase their skills.
Quantity
In a very small country with a very small population, there is likely to be a smaller quantity of people making up its human resources. A bigger country is likely to have a bigger pool of human resources.
Composition
Population composition refers to the make-up or characteristics of people in a population, such as gender, age, ethnicity, occupation or religion.
A population pyramid shows the age and sex distribution of a population. The x-axis (along the bottom) gives us population numbers in thousands and is numbered in both directions from the middle. The y-axis (up the side) is divided into age groups.
Age pyramids change over time. As a population becomes more educated, the younger population gets smaller. With more health care available, the older population increases.
These age pyramids show how the population of Barbados has changed over time and how researchers expect it to change in the future.
Skills development/enhancement
A skill is an area of expertise or an ability to carry out activities or job functions involving ideas, things and/or people.
Skills development is where a country, economy or firm provides education and training for its workers so they can improve their existing skills and develop new ones. We also talk about skills enhancement, which is the improvement of existing skills.
• Unskilled workers are people who want work, but they do not have any special skills. Their job options are limited to work such as cleaning or labourer jobs.
• Semi-skilled workers have some training in using tools or machinery. For example, a labourer who has learned to drive a tractor is a semi-skilled worker.
• A skilled worker has some training in a particular field and can work independently.
• Highly skilled workers have very specialised skills and knowledge, and can also usually supervise others.
If the people in a country are constantly developing their skills, the human resources of the country get stronger and more able to provide goods and services for the country’s population.
Creativity
Creativity is a person’s capacity to use their imagination to come up with original or new ideas and solutions. We often associate creativity with artistic work such as drawing, painting, music or dance. However, people may be creative in the ways they solve problems, from real-life problems to maths and science.
Exercise
1. Why do all the pyramids get narrower at the top?
2. Look at the graphs on page 52. Which age group made up the biggest part of the population in 2015? How will this change in 2050?
3. Describe the main changes to the population over time, from 1950 to 2100.
4. For each of the following jobs, say whether it is unskilled, semi-skilled, skilled or highly skilled. Give reasons for your answers.
a) doctor d) farm labourer
b) secretary e) machinist
c) pilot f) painter
Research
Choose one of the factors from these pages. Research a product, or industry, in your country and find out how that factor influences the development of human resources in that product/industry.
Activity
Create a mind map showing the factors that influence the development of a country’s human resources. Add to the mind map using the information on these pages.
quantity composition
gender
population
pyramid
skills development
skills enhancement
unskilled
semi-skilled
skilled
highly skilled
creativity
Human resources and economic development
Human resources and economic development
We are learning to:
• discuss the term economic development
• assess the importance of human resources to a country’s economic development.
Economic development is the activity of improving a country’s standard of living by creating jobs, supporting innovation and new ideas, creating wealth or making improvements to people’s quality of life
When a country has a high standard of education and training, with investment in human resources, there are many benefits to the economy. Skilled, educated people can offer:
• a variety of skills, which in turn offer a range of goods and services
• creative innovations
• expertise that can lead to better planning and use of resources
• new manufacturing and agricultural practices, which can provide for the country’s needs more efficiently
• an increase in the wealth generated for the country
• improved creativity, allowing people to solve problems facing the country
• increased levels of production so that more goods and services become available
• improved standard of living
• more jobs and opportunities
• drops in poverty and crime levels.
Exercise
1. Write your own definition of economic development.
2. Using your definition, research the types of economic development that you can find in your country.
3. Brainstorm ways that human resources are important to the development of a country.
4. Outline five benefits to a country’s economy that skilled people can offer.
Activity
Write two paragraphs of approximately 250 words on what skilled and educated people can give to a country’s economy.
Attracting investment
Hospitals Schools
Building and maintaining amenities
Roads
Highways
Parks
Exercise
Providing infrastructure
Communication
Creating jobs
Economic development
Incentive programmes
Investing in growth industries
Investing in education
Mining
Tourism
Skills development programmes
Business development programmes
5. Look at the mind map on this page. For each of the following aspects of economic development, list at least five skilled jobs it involves:
a) building a hospital
b) establishing a school
c) providing communication infrastructure
6. How do you think each of the following could help economic development?
a) A government offers a free computer training course for 500 school-leavers.
b) A business offers internships to 20 students.
c) A bank offers training bursaries for students studying economics and finance, on condition that the students work at the bank for at least one year after qualifying.
Key vocabulary
economic development standard of living
innovation
wealth
quality of life
skills (variety)
manufacturing practices
agricultural practices
creativity
production
Building our nation
We are learning to:
• define and use correctly the terms responsibility, patriotism and nation building
• explore the contribution individuals can make to a country’s development.
Our contribution to our nation
It is the responsibility of all citizens to take part in nation building. The feeling of belonging, pride and responsibility that citizens feel towards their country is known as patriotism
The significance of independence
Knowing about our national heroes gives us a sense of joy and pride because they helped to pave the way for the future. They become our role models and create the way for new history. They show us things like courage, honour and justice. Our heroes are symbols for all of us, with qualities we all would like to have.
Dr Simeon Daniel
Dr Simeon Daniel, known as the ‘Father of Modern Nevis’ made a huge contribution to the nation of Nevis. Some of his achievements include the following:
• He was one of the founding members of the Nevis Reformation Party in 1970.
• He established the Nevis Sixth Form College in 1981.
• He was the first Premier of Nevis 1983–1992.
• He founded the Bank of Nevis in 1985. During his time as Premier he helped to improve the quality of services for Nevisians:
• He set up the Nevis Housing and Land Development Corporation (NHLDC), which allowed Nevisians to own their own land.
• He built new infrastructure, including improvements in housing, healthcare and electricity.
• He created job opportunities in tourism with the establishment of the world-renowned Four Seasons Resort. As a result of his achievements, Nevis began to play a greater part in the governing of the twin island state of Saint Kitts and Nevis. He had a major role in framing the Independence Constitution of Saint Kitts and Nevis in 1983.
Discuss why it is important to take part in the building of your nation.
Case study
Sir John Compton
John Compton was born on Canouan, Saint Vincent and the Grenadines in 1925, but moved to Saint Lucia when he was 13 years old. He became the first (and only) Premier of Saint Lucia in 1967 while it was still a colony and led the country to Associated Statehood and Independence in 1979. Following this he became Saint Lucia’s first Prime Minister in 1979. He was deeply committed to regional unity. He is well-known for his role in the establishment of CARICOM, the Caribbean Development Bank, the Organisation of Eastern Caribbean States (OECS) and the Eastern Caribbean Common Market (ECCM). Like all Caribbean leaders emerging out of the colonial era, Sir John Compton fought strenuously for the rights of the working classes and the poor. He is credited with modernising his adopted homeland. He introduced bananas as the main income earner to assist with the development of Saint Lucia.
Questions
1. What contributions did Sir John Compton make to his adopted country?
2. Create a list of the major Caribbean institutions that Sir John Compton helped to establish.
Exercise
1. What contributions did Dr Daniel make to the island of Nevis?
2. Why do you think this earned him the title of ‘Father of Modern Nevis’?
3. Research the following terms:
a) responsibility
b) patriotism
c) nation building
4. Find at least three different definitions of each term. Discuss which definitions make the most sense to you. Write a paragraph explaining each of the terms in your own words.
5. As a citizen of your country, why is it important that you help to build it? Should the development of your country be the responsibility of the government?
Activity
Write two paragraphs of approximately 250 words on how you can contribute to nation building.
Key vocabulary responsibility nation building patriotism nation
Health and health concerns
Health benefits and concerns
We are learning to:
• define and use correctly the terms health, health concerns, health indicator
• examine health issues faced by human resources – maternal care.
When a population takes care of its health, there are many benefits for the country as a whole:
• Working-age adults can work, be productive and support their families.
• People live longer and enjoy a better quality of life.
• The economy does not lose many days or hours of work because workers are ill.
• Working people have the strength and energy to be creative and proactive.
• Government reduces spending on treatments. There are a wide range of factors relating to each other that affect the health of individuals and communities. Problems or lack of any of these factors can lead to health concerns for people in that community.
Health indicators
Health indicators are data measures that help researchers to understand the levels of health of a population and what that population’s health concerns are. In any country, the main health indicators are:
• life expectancy – the average number of years that people in a country are expected to live
• maternal care – care available for mothers during pregnancy, childbirth and while they are caring for a newborn
• infant mortality rate (IMR) – the number of deaths per thousand infants under the age of one in a given year. Although our IMR has come down in the Caribbean, it is still high in comparison with other industrialised countries. In addition to these three indicators, each country faces its own specific health issues.
Exercise
1. Give three reasons why it is important for your country that we take care of our health.
SOCIO–ECONOMIC FACTORS
clean
safe
BEHAVIOURS
hospitals
HEALTH