Human resource is a crucial issue of economic development. As opined by the economic experts the prosperity of a country is decided by the skill, potency, and attitude of the labor employed by that country. Many countries are able to develop themselves because of the will, capability, and talent of their human resources. As an example, the countries like Japan, Singapore, Germany, and Hong Kong are able to attain an economic miracle by mobilizing their human resource. Here we are discussing the role of HR in nation’s economic development:
Utilization of natural resources:
The natural resources like minerals, oil, water, and forest are used by the human resource. The employment of natural resources is capable of increasing the national income of the country. The per capita income and living standards of the folk’s increase. The death of the correct human resource is one among the causes of non-utilisation of natural resources within the world.
The compensation of the deficiency of natural resources:
The use of human resource pays the deficiency of natural resources. Many countries that are poor in natural resources are able to succeed high economic and human development on the premises of the human resources.
Utilization of physical capital:
The mere existence of physical capital is secured of development. They should be properly used. They are used by the human resource. Human resources are essential to control machinery and instrumentation and to run factories and industry.
The educated, experienced, and healthy human resources increase the productivity and production. The production could also be done even by the utilization of unskilled and semi-skilled work force. But the assembly of products quality and a range of products need skilled men.
Reform in ancient cultures and attitude:
The traditional culture, values, intestines, and attitude are hostile to the development of developing countries together with the globe. The educated work force reforms the traditional culture and attitude.
Development of agriculture and business:
The modern and superior technologies ought to be used for the improvement of agriculture and fast industrializations.
This is made attainable only by human resource. Theodore Schultz observes “It is solely impossible to possess the fruits of a modern agriculture and also the abundance of modern trade without creating an outsized investment in a person.
Remove economic background:
Human resource helps on to take away the economic retardation. It will increase labor with efficiency and specialization. It will increase labor quality from which the executing resources are often made a lot of product. The event of human resources will increase the knowledge of natural resources. New production technique, market, and opportunities for economic activities. The human resource additionally helps within the proper employment of foreign capital. These all result in the rise in production, employment opportunities and levels of living of individuals. This is the perfect role of HR in nation’s economic development.
The solution of Capital Shortage:
The poor countries face the matter of capital shortage. they cannot import the heavy machinery. Thus by using the labor in factories, we can solve the problem.
Population and Savings:
If the rate of growth is high then the rate of saving is going to be low and owing to this rate of investment are going to be low. The low rate of investment causes low production.
In those countries where a size of the population is massive specialization process is adopted within the factories. It will increase the assembly on large scale and conjointly improves the standard of the product.
Population and Employment:
A fast increase in population increases the rate of unemployment within the country. Whereas in those countries where the birth rate is low the rate of unemployment is also low.