THE IMPORTANCE OF INVESTMENT IN HUMAN CAPITAL

Abstract

Investment in human capital is one of the basic components for development and one of the fundamental rights enjoyed by human beings. It is considered the core of the sustain able development process. This investment is linked to a set of direct and indirect personal and social gains that make it essential in achieving all three dimensions of sustainable development: economic, social and environmental. Healthy people and people who have access to quality education are better able to contribute to their communities, as they are more able to work, produce, innovate, tackle crises, or solve or adapt to problems compared to people who are less healthy and have not had access to quality education. In addition, they are more aware of and more like to follow the sustainable production and consumption patterns that are needed to address environmental and climate challenges. They are also able to achieve higher levels of income, enabling them to break out of the cycle of poverty and achieve an acceptable standard of living. Investment in human capital has therefore been a key focus for decision makers around the world, and likewise is among the spending priorities for governments in developed countries.