Introduction to Economic Development in Global Perspective
It is significantly true that human capital and income runs in both direction. With the higher income of individuals, it will lead towards more spending on education and health and with the better educational activity and health it genuinely increases the income earned. It signifies a direct relationship and individual focuses on achieving it in a significant and effective manner (Becker, 2009). People work in the organization to get a stable life and they perform their task and duties to achieve their individual as well as organizational goals and objectives. This report will focus on the above mentioned scenario only and it will show the fruitful result which a person can get and also the different ways through which he/she can increase their earning.
Education and health plays a crucial role in the life expectancy level of a person. With more of education, individual will reach to a desired position so that they can live a stable life and able to carry out their own as well as family expenses. However, everyone wants big and it significantly depends on one's caliber and potential. Reputed degree from recognized university along with the knowledge and skills plays a crucial role.
In this context, human capital further defined as a stock of knowledge, habits, personality and attributes which an individual possess so that they can contribute effectively in developing the economic value. This concept of human capital having much more importance in the labour-surplus countries so that they can pool out the best of the individual who can contribute their best in nation development (Florida, Mellander and Stolarick, 2008). Further, human capital also depends upon the education, health and quality of standard of living.
Estimation of this capital is done with the help of the Human Development Index (HDI). Further, this HDI consists of the Life Expectancy Index, Education Index and Income Index. Life expectancy index generally emphasise on standard of health of the person in the country. On the other side, education index reveals the educational standard along with the literacy ratio of the population in the country. Income level on the other side depends on the standard of living of people.
These all attributes are necessary for a person maturity and growth. Standard of living having their own significance and with more of income, people will tend to spend more so that they get quality of standard in them (Juwei, 2006). However, individuals who have low earning spends each and everything very cautiously so that they can avoid extra or unuseful expenses.
Education of Individual
Moreover, the interest of individual in the field of research also set their way to have higher income in the future. Individual eventually make their decision at the time of their graduation program that in which field they need to go and with the right selection with right attitude, person will get his destiny at the end of the course. Field of interest differ from one person to another and a person always focuses on doing right thing so that he/she can get more of the wealth (Beine, Docquier and Rapoport, 2008). Some top universities conduct campus recruitment program where students get selected before the end of the course only. This generally motivates them and also avoids them to roam for jobs around the country. With best of the package at the start-up, person is motivated and try to get more in coming time period.
However, families who have low earning and are in the category of middle class or lower class tends to spend less on their children education because they do not have that much of earnings as compared with the rich class people. Further, these people earns a reasonable amount of salary which only helps them in running their daily life activities. With education from government based schools, or lower educational institutes, they do not get that much of development and the same process goes till the graduation level as well. However, if a person possess some desired skills apart from the educational qualification, then surely he/ she can do something extravagant which will lead towards a higher package for him as well as for his family.
Education level also differ as nowadays business organization focusing on selecting muti talented and multi skilled candidates so that business venture can reduce their administration cost and with that they are focusing on getting best of the candidates (Grochulski and Piskorski, 2010). With effect of that, organization are not focusing on selecting lower class people as they feel that this might hinder their corporate performance and also lot more expense will be there in order to train them.
Apart from it, as the case scenario revolves on education perspective, with more spending of capital; person will be highly trained and he will be getting higher package in future time lag. As the key focus on education,individuals used to go for higher studies so that they get best of the knowledge along with some practical implications for the same. Moreover, by completing the education program from outside some countries, more preference is given to that person as compared to the nativ person. For instance, students from India and China, used to go for higher studies and this ratio is significantly increasing year by year.
However, the trend of education has been boost up in recent decades as earlier, person who possess necessary skills were the master in their field and have a good reputation in the market too. Further, personality traits and characteristics were not emphasised that much as it is considered nowadays. Although, people were hard working too as they used to cover a good amount of distance for their work by foot. With the development of infrastructure has made person lazy but all the components have their own pros and cons.
Apart from all this, education level is also high in UK as there are many recognized universities namely University of Oxford, University of Cambridge, University of Manchester Imperial college of London, and various others. Education level in UK is high as well as compared to other countries. Although as the case study revolves that income and education having a cost and effect relationship as with increase in income, more will be spent on education level and with that person will earn higher in the future (Corbett, 2005). Apart from it, some individuals also used to have some part-time job along with their studies so that they can implement the knowledge what they are getting in the university. Further, it also allows them to have an earning to run their routine life.
This description showcases that the education plays a significant role in one's life and in order to get higher salary, person have to get higher education so that they can royally live their routine life. However, it is difficult for the one whose family earning is low and as compared to the rich class people, they generally don't get that much higher package and comfortness as well (Rizvi and Lingard, 2009).
Health of Individual
Health of individual plays a crucial role as if the body of person will be fit, he will contribute best to the work he/she is doing. Further, there also exists a direct relationship between the health and income. With better health, person will perform his task in effective manner and will lead to more of earning. On the contrary side, if the health of a person is always ill then he might not be able to give his best at work and at times it might also result into no promotions or terminations (Ball, 2005).
Further, health is treated as an input to the economic growth and with better health, person will be able to improve their living standard which will significantly result into development of society or country. Along with it, person with better health also contribute their best in the production and output of the organization. Further, with higher income, individual will be able to purchase essential components like nutrition, sanitation, medical care and other necessary items which are important to stay fit and fine.
However, health also differ from person to person and its one perspective that how one take care of its health. Proper food, digestion, exercising help one to stay fit and fresh whole of the day. But some people do laziness in taking care of such activities and with the passage of time, it makes them dull and unfit. Further, nourishment of one also plays a significant role as it truly depends upon the care given by the parents at an early age (Bennion, Scesa and Williams, 2011). As from a recent study, mother’s ability to nourish her baby is established during her own life which also includes the fetal stage.
If we talk about past then it is clearly evident that person were more fit and healthy as compared with today's time. Long working hours and travelling has made people dull and rest of the time they wish to spend with their family and sleep. No extra curricular activities is present in their life (Whitchurch, 2008). As compared to the people of late 90,s individual use to work for long hours and still at the end of the day they used to be energetic and fresh.
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Health of individuals have also impacted by the fast food and other types of cuisines which results into obesity and indigestion. Further, other fast food also have its impact on person health and which generally make them ill and inefficient to perform their task and duties. Contradictory, with ill body no one can work in a better state which significantly results into low earning and income.
Further, as per the report from the WHO, poor health has a pernicious impact on the economic development which slowly and steadily resulting into high fever, disease and poverty. Health and disease also having an casual effect on the economic growth of the country. Nations suffering from ill health as well as short life expectancy are generally disadvantaged in order to have development (Thomson, 2005). Life expectancy is generally the maximum life which a person going to survive. This is conducted by taking an assumption and for calculating this, a formula exists:
Life Expectancy Index (LEI) = LE-20/85-20
LEI is 1 when Life expectancy at birth is 85 and 0 when Life expectancy at birth is 20.
Further, people have different bad habits which can also affect their health and body functioning. Many persons and nowadays teenagers used to chew tobacco, consume cigarettes and alcohol at an access amount. This slowly and steadily affecting their organisms and making them dull with the passage of time. Losing of concentration and forgetting things are the oral impact and majorly it results into cancer which cause to death at an early age. This also reduces the amount of working of person within the organization and he does not work efficiently to achieve the organizational goals and objectives.
Further, competition has also been increased upto a great extent and organization recruits talented personnel who can help the venture to achieve their goals and objectives (Wang and et.al., 2011). Moreover, their focus is also on to have fit body within the business enterprise so that they can work with best of their capabilities to achieve the aims and objectives of the venture. Moreover, nowadays organization also used to conduct a medical test of their employee which generally tells them that whether the recruit person is fit or not. If he possesses some disease then it might affect his recruitment as well.
Theories and views about the health standards have been changed a lot with the change in time. Lot of changes can be witnessed between the earlier and the existing time period. At the early days, people remains to be fit and healthy. The level of diseases was not higher. The conditions were very warm and pleasant (Ham, 2009). There was no adulteration in the food items and there was a presence of hygienic conditions. People remain to be healthy because there used to lead a very simple life. The level of expectations was not higher at all. They were ready to live a simple healthy life. However the health facilities have also not been developed properly at that time period.
People used to face different types of health issues due to lack of prevention facilities. With the change in the time, the standards have also changed. Now the human beings are faced with many health troubles. The surrounding environment has become very worse due to things like pollution, global warming etc. It is causing different types of diseases in the human bodies. This has reduced the strength and power of the individuals. Desire to remain in luxury and comfort is affecting their life expectancy (Higgins and Green, 2008).
Further, in today's generation those who have higher income are focusing on spending on health as they have been also aware of the fact that with fit body they can increase their earning from different sources. Moreover, people are emphasizing on diet foods and other eating stuff which are fat free which will result into low cholesterol problem to persons. They are also focusing on taking health capsules so that they can get away from tensions and other problems. These capsules are anti-biotic types which does not lead into any side effects.
Further, different other suggestions do exists which can make them fit and fine. These are gyming, swimming, prior sleep times, etc. With tension in mind, one cannot sleep well and it will result into inefficiency in working for the next day (Hart, Larson and Lishner, 2005). This will significantly make a person tired and dull to perform its given task and duties.
Regular consultation with the family doctors also adds to the growth of a person and make him to earn good for coming time period. With fit body, a person can get effective promotions, recognition, fame, etc. Resulting the same person will also be able to get higher pay which will help them to balance his personal life. Moreover, with the completion of work on time, he can contribute his valuable time for the family. This will significantly result into matching their personal and professional life upto a great extent.
As report already revolves at higher income which results to spending on health. But it contradictory not possible for everyone as in UK still many individuals are living at the base of the poverty line. They do not have that much of amount so that they can spend on their health. At times people don't even have money to get the treatment and prescription from the doctor. Recession at times also lead into inefficiency of person to get salary for the month and simultaneously it impacts their routine life.
In order to solve the above mentioned problem, government in UK taking significant steps regarding development of government hospital where these poor people can have treatment (Blank and Burau, 2013). The cost of operations and surgery is also minimal which not lead into burden for them.
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As per the above description it is clearly evaluated that everyone prefers to have a fit body which tentatively results into higher income and more of the income they can contradictory spent on health (Wang and et.al., 2011). So there exists and direct relationship between the health and income of a person.
From the above report it is clearly evident that the human capital and income of the person depends on their education and health. With better education in a specific field, a person can increase more of his earning which significantly results into increase in grad pay for them. Same concept applies for the health as well where a fit body consider as a sign of success. A person with fit body can perform their task and duties effectively which will consequently result into increase in pay and incentives for people.
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Beine, M., Docquier, F. and Rapoport, H., 2008. Brain drain and human capital formation in developing countries: Winners and losers*. The Economic Journal. 118(528). pp.631-652.
Bennion, A., Scesa, A. and Williams, R., 2011. The Benefits of Part‐Time Undergraduate Study and UK Higher Education Policy: a Literature Review.Higher Education Quarterly. 65(2). pp.145-163.
Blank, R.H. and Burau, V., 2013. Comparative health policy. Palgrave Macmillan.
Checchi, D., 2006. The economics of education: Human capital, family background and inequality. Cambridge University Press.
Corbett, A., 2005. Universities and the Europe of knowledge: ideas, institutions and policy entrepreneurship in European Community higher education policy. 1955-2005. Palgrave Macmillan.
Florida, R., Mellander, C. and Stolarick, K., 2008. Inside the black box of regional development—human capital, the creative class and tolerance. Journal of economic geography. 8(5). pp.615-649.
Grochulski, B. and Piskorski, T., 2010. Risky human capital and deferred capital income taxation. Journal of Economic Theory. 145(3). pp.908-943.
Ham, C., 2009. Health policy in Britain. Palgrave Macmillan.
Hart, L.G., Larson, E.H. and Lishner, D.M., 2005. Rural definitions for health policy and research. American Journal of Public Health. 95(7). pp.1149-1155.
Higgins, J.P. and Green, S., 2008. Cochrane handbook for systematic reviews of interventions. Chichester: Wiley-Blackwell.
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