That is the theme of my presentation. The term human capital may not be familiar to all of you.
Human capital refers to the skills, education, health, and training of individuals.
It is capital because these skills or education are an integral part of us that is long-lasting, in the way a machine, plant, or factory lasts. Prior to the nineteenth century, systematic investment in human capital was not important in any country. This began to change radically during that century with the application of science to the development of new goods and more efficient methods of production, first in Great Britain, and then gradually spreading to other countries. During this century, education, skills, and other knowledge have become crucial determinants of a person's and a nation's productivity. One can even call the twentieth century the Age of Human Capital in the sense that the primary determinant of a country's standard of living is how well it succeeds in developing and utilizing the skills, knowledge, health, and habits of its population.