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Human capital formation – no panacea

Investment in Human Capital Formation is no panacea. It is one of the vital necessary conditions for economic growth and development. But it is not, by any means, a sufficient condition. There are many examples of nations who made large and continuing investments in Human Capital who have prospered mightily since 1950: South Korea, Malaysia, Ireland, Chile, etc.

But, there are nations who have stressed investment in primary and secondary education, and who have achieved high literacy rates etc., but have enjoyed very limited, or no economic growth over long periods. Examples from the past fifty years include North Korea, Russia, Bulgaria from 1950-1990, and China from 1950-1982. The latter were communist governments were rather successful in spreading education, especially primary and secondary. By 1990 just before the collapse of communism in Europe adult literacy rates in most communist states were nearly as high as Europe and the U.S.: This should have been a great platform upon which to build.

Consider literacy rates in 2009:
U.S. 99%, Italy 97%, Spain 96%, rest of Europe 99%
Hungary 99%, Czechoslovakia 99%, Poland 90%, China 68%

The economies of the communist Bloc nations, including China, grew slowly from 1950-1990. However after 1991 when markets were reintroduced, the formerly Eastern and Central European communist nations began to grow fairly rapidly, largely because the Human Capital base was already there, and it could now be used in combination with new types of investment in Physical Capital, new trade opportunities etc.

The Human Capital base by 2000 was wide and deep in Czechoslovakia, Hungary, and Poland. So much so that the author made special trips there to recruit scientists to come to Duke University.

Consider china

In China in 1985, literacy rates were 68%. By 2006, the male literacy rate in China was 96%, a 50% increase in only 20 years.

And Chinese economic growth? From 1990 through 2008, Chinese economic growth later averaged more than 10% per year. At growth rate of 10%, how long to double income? (Answer: about 71/2 years).

The Human Capital story is heartening, but there are some thorns among the roses.

One example. Although gross enrollment ratios for grades 1-5 in India reached 100% in India by 2008.

Jadgish Bhagwati&Arvind Panagariya, (2013), Why Growth Matters, Washington, DC: Council on Foreign Relations, p.190.

A government of India report Source: says that the percent of fifth graders who read on at least a second grade level has dropped from 58% in 2007 to 54% in 2011. (Half cann ot read at second grade level. And university education, the percent of population enrolled in college or university in 2007 was 13%, far lower than Brazil (30%) or China (22%).

Jadgish Bhagwati&Arvind Panagariya, (2013), Why Growth Matters, Washington, DC: Council on Foreign Relations, p.136.

A digression: technology, internet, cell phones and human capital

As we have noted, ordinarily a nation must have made sizeable previous investments in Human Capital Formation before experiencing any notable growth from technological progress.

Questions & Answers

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s. Reply
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s.
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s. Reply
Yeah, it is a pain to say the least. You basically have to heat the substarte up to around 1000 degrees celcius then pass phosphene gas over top of it, which is explosive and toxic by the way, under very low pressure.
Harper
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SUYASH
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s. Reply
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Ebrahim
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Ebrahim
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s.
Graphene has a hexagonal structure
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Cied
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I start with an easy one. carbon nanotubes woven into a long filament like a string
Porter
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Porter
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what is system testing?
AMJAD
preparation of nanomaterial
Victor Reply
Yes, Nanotechnology has a very fast field of applications and their is always something new to do with it...
Himanshu Reply
good afternoon madam
AMJAD
what is system testing
AMJAD
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Stotaw
In this morden time nanotechnology used in many field . 1-Electronics-manufacturad IC ,RAM,MRAM,solar panel etc 2-Helth and Medical-Nanomedicine,Drug Dilivery for cancer treatment etc 3- Atomobile -MEMS, Coating on car etc. and may other field for details you can check at Google
Azam
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Prasenjit
after 100 year this will be not nanotechnology maybe this technology name will be change . maybe aftet 100 year . we work on electron lable practically about its properties and behaviour by the different instruments
Azam
name doesn't matter , whatever it will be change... I'm taking about effect on circumstances of the microscopic world
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this technology will not going on for the long time , so I'm thinking about femtotechnology 10^-15
Prasenjit
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Prasenjit Reply
At high concentrations (>0.01 M), the relation between absorptivity coefficient and absorbance is no longer linear. This is due to the electrostatic interactions between the quantum dots in close proximity. If the concentration of the solution is high, another effect that is seen is the scattering of light from the large number of quantum dots. This assumption only works at low concentrations of the analyte. Presence of stray light.
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Source:  OpenStax, Economic development for the 21st century. OpenStax CNX. Jun 05, 2015 Download for free at http://legacy.cnx.org/content/col11747/1.12
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