Role of Human Resource in Economic Development of Country - Economics Notes Grade XI

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Role of Human Resource in Economic Development of Country

In an ordinary sense, human resource refers to the population of the country but in economics, the healthy, educated, and skilled manpower is known as human resource. So, human resource is the process of improving the quality and efficiency of the people.

According to the National planning commission, “Human resource is the knowledge, skill, efficiency and physical and mental capacity to do work inherent in the people of the country”.

Role of Human Resource in Economic Development
Human resources play an important role in the overall development of a country. Capital, natural resources, as well as other productive resources remain inactive in nature. Human resources are necessary to mobilize them. Nepal has sufficient natural resources and utilization of these resources is necessary for economic development. The role of human resource can be explained with the help of the following points.

1. Utilization of Natural resources:
Human resources are necessary for the utilization of natural resources like mineral, water, forest, etc. Utilization of these resources is necessary for economic development. Thus, only human resources mobilize and utilize them properly.

2. Compensate for the deficiency of natural resources:
The utilization of human resource compensates the deficiency of natural resources. Many countries are poor in natural resources like Japan, Hong Kong, Singapore, etc. but they are able to achieve high economic growth by properly utilizing the human resource.

3. Utilization of physical capital:
Only the existence of physical capital can’t do anything for economic development. They should be properly utilized. To, operate machinery & equipment and to run factories and industries is impossible without the involvement of human resource.

4. Increase in production:
The human resources of a country help to increase the production of different goods and services. By using skilled human resources, a country can produce a variety of goods and services having high quality.

5. Changes in technology:
Human resources of a country can bring new technology. Advance technology is necessary to bring development in the country.

There are other roles of human resources such as the development of transportation and communication, the supply of labour, etc.

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