Chapter - 2 People as Resource
1. What is Meant by 'People as Resource'?
- It refers to the working population (men and women) of a country in terms of their existing productive skills and abilities.
- The concept emphasizes investing in education, health, and skills to develop human capital.
2. Human Capital
- Definition: The knowledge and skills that people possess which help in producing goods and services.
- Importance: Just like physical capital (tools, machines), human capital also contributes to economic development.
Story of Sakal and Vilas
Sakal’s Life (Educated & Skilled)
- He was sent to school and later completed college.
- He received technical education in computers.
- After completing his studies, he got a good job in the city.
- He was skilled, healthy, and earning well.
- His education and skills made him a valuable human resource.
Vilas’s Life (Uneducated & Unskilled)
- His father was ill and died early.
- Vilas could not go to school and had to work at a very young age.
- He did not get proper education or training.
- He remained unskilled and could only do low-paying, unsteady jobs.
- He also suffered from poor health due to lack of awareness and facilities.
Conclusion of the Story:
- Investment in people (through education, health, and training) helps develop human capital.
- Sakal became a productive part of the economy.
- Vilas remained a burden due to lack of opportunities.
- This story shows the importance of education, skill development, and health care.
3. Economic Activities :- Divided into two types:
a) Market Activities (Economic)
- Activities that result in remuneration (payment).
- Examples: Working in a factory, farming, shopkeeping.
b) Non-market Activities (Non-economic)
- Activities that do not earn money.
- Examples: Household work, caring for family members.
4. Types of Economic Activities
a) Primary Activities
- Direct use of natural resources.
- Example: Agriculture, fishing, mining.
b) Secondary Activities
- Processing of primary goods.
- Example: Manufacturing industries.
c) Tertiary Activities
- Providing services.
- Example: Teachers, doctors, transport.
Why Do Women Get Less Salary Than Men?
- 1. Lack of Education and Skills
- 2. Type of Work
- 3. Social Norms and Gender Discrimination
- 4. Less Participation in High-Paying Jobs
- 5. Double Burden
Why Are Household Chores Not Recognised in the National Income?
1. No Payment Involved
- Household chores like cooking, cleaning, taking care of children or elders do not involve any salary or wage.
- Since national income includes only paid work, these unpaid activities are not counted.
2. Non-Market Activity
3. Difficult to Measure
- It is very hard to put a money value on household work.
- There is no fixed rate or proper system to calculate its worth.
4. Traditional Thinking
- Society has traditionally undervalued the role of women and domestic work.
5. Quality of Population :- Depends on:
- Education
- Health
- Training A better quality population contributes more effectively to the economy.
6. Education
- Enhances literacy, skill, and efficiency.
- Reduces dependence on others and improves decision-making ability.
- Government schemes like Sarva Shiksha Abhiyan promote education.
7. Health
- A healthy person contributes more actively.
- Investments in health care = improved productivity.
8. Unemployment
- When people are willing to work at the prevailing wage but cannot find jobs.
- Types of Unemployment in India:
- Seasonal: Common in agriculture; workers are unemployed in off-seasons.
- Disguised: More people employed than necessary; common in rural India.
9. Consequences of Unemployment
- Wastage of human resources.
- Increased poverty and dependence.
- Hinders economic development.
How Does Unemployment Create Problems for a Nation?
1. Wastage of Human Resources
- When people who are willing to work do not get jobs, their talent and skills go to waste.
- It reduces the country’s ability to produce goods and services.
2. Increase in Poverty
- Unemployed people have no regular income.
- They cannot afford basic needs like food, clothes, education, and healthcare.
- This increases poverty in the country.
3. Social Problems
- Unemployment can lead to frustration, crime, drug abuse, and violence, especially among the youth.
- It creates instability in society.
4. Low Economic Growth
- Fewer people working means less production, less income, and less development.
- The nation’s GDP (Gross Domestic Product) goes down.
5. Dependence on Others
- Unemployed people become dependent on family, friends, or government for help.
- This puts pressure on others and increases the government’s burden.
10. Women as Resource
- Women's participation in economic activities is often underreported.
- With education and opportunities, women contribute significantly to development.
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