INVESTMENT IN HUMAN CAPITAL A NECESSARY CONDITION FOR ECONOMIC DEVELOPMENT

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1.0. Introduction

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1.1. Background of the Study

According to Cullson (1983), investment in human capital has been with us. It is the other, in other to improve in whatever they do in their different occupations and things they do through education on the job training study programmes to mention a few.

According to classical economist, investment in human capital refers to those expenditures made to man in other to increase his skills expenditure made to knowledge and education so that he would be resourceful. This goes ahead to many individuals that have certain capacities or skills of physical, social or psychological nature, with which they earn a living. It has also been observed that the level of skills possessed by an individual is partly determined by genetic inheritances and partly acquired from the family, friends, formal education.

Indeed, investment in human capital is seen as prerequisite for economies development of any nation or state. This is a view of the fact that a certain reasonable magnitude together and produce a reasonable quality of output.

According to the development economist, the quality and quantity of human and natural resources available in a given nation, it determines the level economic development to be attained in the nation. Prior to the political dependency, it had been widely recognized that man power problems, such as shortage of managerial skills were among the serious constraints in development efforts.

Over the years, there have been concentrated efforts in a material and physical investment as a necessary tool for economic development, this phase investment focused on machines, plants, factories building, etc as a pre-requisite of economic development, it encourages the importation of sophisticated machine, gadgets and technological equipment truly available statistics has shown that the continued investment in material capacity has not represented the continued.

Indeed positively to the much expected rapid development in Nigeria, economy has not occurred as a result of the fact that less effort have been made on the improvement of the skill of those who operate the machine and coordinate the activities of others.

Since economic concept is a broad concept, there could be development as per increase in the standard of living, rate of production, culturally, socially, politically and physically. Now developed then of course there will be increase in gross national product (GNP) when mentioned in national income (NI) at the point there could be investment in human capital which would facilitate economic development.

The vital role which education plays the national development of Nigeria and other third world countries cannot be over-emphasized. In recent times, there had been a great significant expansion of educational system at all levels in Nigeria, with a view to meeting up with the challenges of national development with reference to Imo state, which has education as her large industry.

By virtue of this, the Imo state ministry of education has been getting the largest share of the state's annual budget. This is sequel to the fact that Imo state appreciates, that education via investment in human capital, plays an effects economic development. Hence, it serves as a per-requisites for economic development of a given state or nation.

In point of fact, according to the national development plan (1970), education has been powerful and instrumental to social changes in the process of dynamic nation-building. In view of this, the federal government of Nigeria is making it a necessary priority to give equal and opportunity to everyone, in order to develop the intellectual and working capacities of the people of the nation. Now, an important question arises, what kind of education should Nigeria adopt as to achieving her national objectives and development and at the same time ensure a high, contribution of human capital towards national development? Also have Nigeria benefited enough from the input of her human resources, based on the types of education they have received?

Therefore, the concept of education, as a process, attaches high premium to human skills as a factor of production in the development process, the process of improvement in finance national wealth and physical plan. in the absence of human capital, our national resources, which are the free gift of human capital, our natural resources which are the free or over-utilize as a result of deficiency in basic skill knowledge, experience, etc then, the economic effect of which have been that the production capacity in terms of gross domestic product (GDP) of our country would have been low, little or no growth rate, understanding of living low per capital income (LPCL) which will in turn, lead to backward economy.

Education has been given different definitions by different authors. According to Okonkwo etal (1991:110) education is defined as the process of establishing the present and improving the future. The role of education towards economic development invariably implies the contribution of education in economic development. In economic development, resources are the basic agents who exploit and utilize the national resources accumulates wealth and build social economic and political organization. However these human resources should develop power to the building socio-economic and political organization, then all human resources could be developed via following ways.

1. Through provision of health facilities and services now, when these facilities and services and provided to man to increase his skills, energies and vitality, then of course, there will be development of human resources. Then the resultant economic effect will be that there will be large size of labour force characterized by efficiency, increase in productivity and profit change. To know if the economic development has taken place or has been automatically attained.
2. On the job training, human resources could be developed when an employee is being subjected to certain training in an organization for a particular reason, under the supervision of a supervisor in the unity.
3. Through family organized education system. This means that as one received primary, secondary and tertiary education, he receives different kinds of lecture at different levels which helps to develop his skills, energy and experience etc. in the case, at the tertiary level the mental horizon of the student will be developed.

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1.2 Statement of the Problems

Investment in human resources is seen as a necessary condition for economic development. Therefore suggests that the moment the factor is fully developed, economic progress in most likely to take place. Again, the skill determines the level of production and development of a country.

From the analysis so far, it stand to reason that productivity and development of activities or efforts, revolve around capital, and it is via education that the skills and knowledge are acquired as an important agent of national development.

Although is unfortunates that some are skilled while some are not skilled some areas of economy and establishment have better and adequate human capital supply, while some do not have. There exists the problem of putting these abundant nature resources, but recently in some sensitive area or sector of the economy, especially the oil and gas sector.

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1.3 Objectives of the Study

The intended purpose of this study includes the following;

1. To examine critically the role of human capital on economic development, with a view to establishing a relationship between the two variables.
2. Also intended to know, is the extent which education has gone in producing and developing our abundant potential human resources, in terms of skill acquisition, training capacity, knowledge up date.
3. In addition, it will find out if there are provisions of opportunities for in-service training, training the job and adult education for workers in order to improve upon their jobs.
4. It is equally intended to find out, or ascertain the contribution of importance of human capital in economic growth and development in the state.
5. Finally, this research study is aimed at identifying the constraints facing human capital development and at the same time refers some measures of solving them.

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1.4 Research Questions

1. What are the needs for human capital development in Imo state?
2. To what extent will invest in human capital development helps in developing Imo state economically?
3. Why is it necessary to investment human capital development?

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1.5 Significance of the Study

In the light of the economic and unparallel roles of education towards economic growth and development project research study would be immense important to human resource managers, man-power planners, administration, private and corporate bodies in different economic, employee of labour, policy maker in general studies and literatures in institutions of higher learning.

This is in view of the fact that they appreciate the contribution of education towards economic development. Also, this project study would be of great relevance to employee and personnel, who would appreciate the need for them to update their skills and knowledge and effective performance. It is also important in that, it will project human development and factors towards national development.

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1.6 Scope of the Study

This project study will be limited to the following institutions of both private and public sectors in Imo state ministry of commerce and ministry of finance, limited resources and time constraints. This project will be based on the institution found in Obowo LGA and it's environs in Imo state.

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1.7 Limitation of the Study

The items of the research work are concerned with human capital as a necessary condition for the economic development in Nigeria, in Imo state in particular. But due to time constraints and other factors such as limited resource in it's terms of finance, it will not be possible for the research to go round the entire state of the federation, and possibly to carryout the interview in all the institution concerned. Owing to the above mentioned problems this research study will be based on particularly on institution found in Obowo LGA and it's environs in Imo state and their other co-operation.

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1.8 Definition of Terms

Expenditure:

This can be referred to the payment of cash equivalent for good or services. It can also be a charge against available funds in statement of an obligation as evidence by am invoice.

Prerequisites:

This is a qualification required as a necessary condition for something to follow, such as admission, award, benefit etc.

Output:

This is the amount of energy, work, goods or services produced by a machine factory, company or an individual in a period of time.

Sequel:

It is referred to an event or circumstance following something. It is also the subject course of affairs.

Intellectual:

This is a person who primarily uses intense in either a professional or individual capacity. It is also a speciation of the investment which unlike the federal prosperity is strictly associated with reason.

Facilitate:

This is an act to make something less difficult to assess. It can also be said to assess the process of a person.