Chapter - 2 People as Resource

 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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