Human Resources and Human Development Indicator

Subject: Economics

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Human resources indicate there those people who have a high level of knowledge, ability, experienced, and willingness to perform a particular work.
Human Resources and Human Development Indicator

Human Resources


Human resources indicate those people who have a high level of knowledge, ability, experience and willingness to perform a particular work. In our common understanding we consider human resources and human being as the same but from an economic perspective, there is a difference in human resources and human beings. All the people of a nation are human beings but they all are not human resources. The human resources indicate the active age group people who can economically contribute in the country. The human resources have better knowledge, skill, efficiency, experience to perform the work. Therefore, the importance of human resource is increasing in the modern age.

Role and Importance of human resource in the economic development

The active human resources of a country play an important role in economic development of a nation. Especially in the modern age, the importance of skill human resources is increasing every day. Some of the importance or roles of human resources is discussed below:

1) Agricultural development
Development of agriculture in the context of Nepal is the primary goal of the country. Still, the agriculture in Nepal is labour intensive so the manpower that is needed to work in agriculture must be skilled or highly qualified. The development of agriculture depends upon the use of scientific tools, new ideas, scientific method which needs active human resources. In order to change the agriculture profession from subsistence level (livelihood) to the business oriented professions skill human resources is necessary.

2) Optimum use of resources
The development of any nation is determined by the availability and optimum use of resources. There is always need of active human resources to have the optimum use of resources. The natural resources such as water, forest, minerals can be sustainably used with the active human power only.

3) Development of industries
In this modern age of industrialization, the development of any country is accelerated by the establishment of industries. In order to develop the other sectors industrial development is very necessary. Industrialization of any nation depends on the use of modern technology, new ideas, productive machinery, regular supply of raw materials and energy. These all basic things for industrialization are not possible without skilled, trained and active human resources.

4) Large scale production
Human resource is one of the active factors of production. It is only that factor which uses another factor such as capital, land and organization for the production. With the optimum use of resources the large scale production can be made with the human resources. It can produce the large quantity of the goods which are used for different purpose. In economics, we believe that the village scale production always helps for the economic development.

5) Social reforms
In the context of Nepal the social hazards such as: Early marriage, caste system, dowry system etc are the major of obstruction for the development of a nation. The development of a country is not possible without reforming such social hazards. In order to change the mind of the people along with time solving this kind of social problem, human resources are necessary. Only the skill human resources have ideas about causes and consequences of such social problems. Therefore only the skill human resources can reform the society slowing such social problems.

6) Sustainable development
The concept of sustainable development can be effectively implemented with the help of skilled and active human resources. Mobilization of active human resources in the different fields of production helps to achieve the faster economic growth and sustainable development. The use of the human resources in the developed nations is an example to justify that sustainable development is possible only with the active human resources.

7) Invention of new technology and its use
In this modern age of science and technology everytime a country needs to invent new technology to continue the development. A development of the technology only does not help to determine the development of a nation. That means such technology must be brought in use. Without skill human resources neither the invention of new technology is possible nor it can be used. So, in order to use the latest tools and technique to maximize the production, there should be the skilled human resources.

8) Right use of the time
In order to accelerate the development, there is the need for right use of the time in different sectors of production. Only the active human resource can understand the value of time and use it properly in the process of development. Such people have the abilities and ideas about when and how to work for the development of a country.

9) Economic development
Human resource is considered as one of the most important infrastructures of development. Every time we want the change for us and a better life for the purpose the human resources is considered as an agent of development. The development of another infrastructure for the economic development of a country is not possible without active human resources.

10) Agent of foreign Trade
Active human resources are considered as an agent of foreign trade. Such people have a better idea about the expansion of foreign trade. How to get the benefit from the foreign trade, minimizing the trading loss, the skilled manpower generates the ideas.

Indicators of Human Development

Human development is the process of making the living standard of human beings better. Its objective is to make each and every individual physically healthy, mentally alert economically sound and socially civilized. Some major indicators of different criterion of human development are:

  1. Economic indicators
    It includes per capita income, basic needs, employment opportunities, dependency ratio, national income etc. They help to judge the standard of the people.

  2. Demographic indicators
    It mentions population growth rate, total fertility rate, infant mortality rate, etc. They examine the condition of human being of the country.

  3. Health indicators
    It includes life expectancy rate, safe drinking water, health worker-consumer ratio, the number of health workers, a number of health post and hospitals etc. It reflects the real condition of the people.

  4. Educational indicators
    We can examine human development condition of the country through the academic indicators like literacy rate, student- teacher ratio etc.


Adhikari, Ramesh Prasad, Economics-XI, Asmita Pustak Prakashan, Kathmandu

Kanel, Navaraj, Principles of Economics-XI, Buddha Prakashan, Kathmandu

Kharel, Khom Raj, Economics In English Medium-XI, Sukunda Pustak Bhawan, Kathmandu

Things to remember
  • Human resources indicate those people who have a high level of knowledge, ability, experienced, and willingness to perform a particular work.

Role/ Importance of human resource in the economic development

  1. Agricultural development
  2. Optimum use of resources
  3. Development of industries
  4. Large scale production
  5. Social reforms
  6. Sustainable development
  7. Invention of new technology and its use
  8. Right use of the time
  9. Economic development
  10. Agent of foreign Trade

Indicators of Human Development

  1. Economic indicators
  2. Demographic indicators
  3. Health indicators
  4. Educational indicators 
  • It includes every relationship which established among the people.
  • There can be more than one community in a society. Community smaller than society.
  • It is a network of social relationships which cannot see or touched.
  • common interests and common objectives are not necessary for society.

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