People As A Resource: Notes Class 9 Economics Chapter 2. Click here for other chapter-notes and study materials.
People as a Resource: Notes
1. Human Resource
(i) People as resource is a way of referring to a country’s working people, in terms of their existing productive skills and abilities.
(ii) When the existing ‘human resource’ is further developed by becoming more educated and healthier, we call it human capital formation. It adds to the productive power of the country.
(iii) Investment in human capital (through education, training, medical care) yields a return just like investment in physical capital.
(iv) Human capital is superior to other resources like land and physical capital because human resource can make use of land and capital.
(v) Land and capital cannot become useful on their own.
(vi) For many decades in India, a large population has been considered a liability rather than an asset.
(vii) A large population can be turned into a productive asset by investment in human capital, i.e., by spending resources on education and health for all.
(viii) Educated parents invest in the education of their children. They are also conscious of proper nutrition and hygiene.
(ix) As a result of the investment in children, a virtuous cycle is created.
(x) A vicious cycle may be created by disadvantaged parents who, themselves being uneducated, keep their children in a similarly disadvantaged state.
2. Economic Activities by Men and Women
- Primary Sector: Includes agriculture, forestry, animal husbandry, fishing, poultry farming, and mining.
- Secondary Sector: Involves manufacturing and construction.
- Tertiary Sector: Encompasses trade, transport, communication, banking, education, health, tourism, insurance, etc.
3. Defining Economic Activities
- Market Activities involve remuneration for work done, including production of goods and services and government service.
- Non-Market Activities involve self-consumption, primary product processing, and own account production of fixed assets.
4. Division of Labour Between Men and Women
- Historical Division: Due to historical and cultural reasons, a division of labour exists between men and women in the family.
- Domestic vs. Outside Work: Women manage domestic work while men work in fields; women’s domestic work goes unpaid, while men’s work earns wages.
- Paid Work for Women: Women receive payment when entering the labour market.
- Earnings Determinants: Women’s earnings linked to education and skill.
- Impact of Education and Skill: Education and skill influence market earnings.
- Gender Disparity: Women’s lower education and skill lead to lower pay compared to men.
5. Quality of Population
(i) Population quality depends on literacy rate, health, and skill formation.
(ii) Health is indicated by life expectancy.
(iii) Population quality affects the country’s growth rate.
(iv) Illiterate and unhealthy populations are a liability for the country.
(i) Advantages of education include societal growth, increased national income, cultural richness, efficient governance, job opportunities, and income increase.
(ii) Literacy rates have improved from 18% in 1951 to 65% in 2001.
(iii) Steps to spread education include initiatives like Sarva Siksha Abhiyan, Midday Meal scheme, and focus on higher education enrolment and distance education.
(i) Health helps individuals realize potential and fight illness.
(ii) Unhealthy individuals are liabilities; health is essential for well-being.
(iii) National Health Policy aims to improve healthcare accessibility, family welfare, and nutrition for weaker sections.
(a) Seasonal Unemployment occurs due to the seasonal nature of work.
(b) Disguised Unemployment involves apparent employment without full potential utilization.
(c) Educated Unemployment is prevalent in urban areas, especially among graduates.
9. Negative Effects/Impact of Unemployment
(i) Wastage of manpower occurs.
(ii) Assets become liabilities.
(iii) Youth experience helplessness and despair.
(iv) Insufficient family support due to lack of income.
(v) Increased dependence on the working population.
(vi) Decreased quality of life for individuals and society.
(vii) Health decline and increased school dropouts.
(viii) Detrimental impact on overall economic growth.
10. Sectors and Unemployment
(i) Agriculture is the most labour-intensive sector.
(ii) Small-scale manufacturing in the secondary sector is labour-intensive.
(iii) Tertiary sector includes emerging services like biotechnology and IT.
(iv) Surplus labour from agriculture moves to secondary or tertiary sectors.