HUMAN CAPITAL AND SKILLS DEVELOPMENT Prof Sibusiso VilNkomo Executive Director University of Pretori

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HUMAN CAPITAL AND SKILLS DEVELOPMENT Prof
Sibusiso Vil-NkomoExecutive DirectorUniversity
of Pretoria
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INTRODUCTION

• The analyses of the New Partnership for Africas
  Development (NEPAD) have not taken into
  consideration the important economic aspect of
  the human capital model for development.

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Four essential components of the human
development paradigm

• Productivity. People must be able to increase
  their productivity and participate fully in the
  process of income generation and remunerative
  employment
• Equity. People must be able to access equal
  opportunities. All barriers to economic and
  political opportunities must be eliminated so
  that people can participate in them

• Sustainability. Access to opportunities must be
  ensured for present and future generations. All
  forms of capital physical, human and
  environmental must be replenished.
• Empowerment. Development must be by the people
  for the people. People must participate fully in
  the decisions and processed that shape their
  lives.

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HUMAN CAPITAL INVESTMENT AND FORMATION

• Human capital theory advocates the treatment of
  labour as a factor of production in which one can
  invest just as one would in physical or natural
  capital. Human capital is defined as the
  acquired capacities, which are developed through
  formal and informal education and at home and
  through training, experience and mobility in the
  labour market (Mincer 1993286).

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HUMAN CAPITAL INVESTMENT AND FORMATION

• The corollary of this is that one can also
  experience a depreciation in human capital
  through ill health and the erosion or
  obsolescence of skills, a condition which, can be
  mitigated through skills maintanance and lifelong
  learning, retraining and maintaining good health.

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HUMAN DEVELOPMENT
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HUMAN RESOURCE MANAGEMENT
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SKILLS AND THE NEW ECONOMY

• In the old economy, success depended on raw
  materials, on location and capital. In the new
  economy, where raw materials and capital can be
  brought from anywhere at any time, national
  economic prosperity will definitely depend on
  skills, creativity and ideas.

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THINK TANKS FOR DEVELOPMENT

• The knowledge economy and Think Tanks
• Debating the brain drain
• Global competition for human capital

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THE CORNERSTONE OF THE NEW ECONOMY

• The new economy has as its cornerstone, knowledge
  and the creative skills of people. The main
  source of value and competitive advantage in the
  modern economy is human and intellectual capital

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CONCLUSION