IX Economics Chapter 2 People as resource

 

 

IX Economics Chapter 2

People as resource

 

Economic activities

Economic activities are those activities which add value to the national income. These activities generate income .

There can be two types of Economic activities:

(i) Market activities.

(ii) Non-market activities

Market Activities and Non-Market Activities.

v Economic activities can be classified into market activities and non-market activities

v Market activities involve remuneration to anyone who performs the activity.

v These include production of goods and services for sale in the market.

v On the other hand, non-market activities are the production activities performed for self-consumption.

v These include consumption and processing of primary products and own account production of fixed assets

 

Types of Economic Activities

Economic Activities undertaken in Primary, Secondary and Tertiary sectors :

(i) Primary Sector : Activities concerned with collecting or making available material provided by nature are included in primary sector like agriculture, poultry farming, mining, fishing etc.

(ii) Secondary Sector : The activities which are associated with transforming raw material or primary products into commodities useful to man such as manufacturing etc.

(iii) Tertiary Sector: The activities which are essential for running modern factories in a big way are termed as tertiary sector. Activities like trading, banking, health, education, insurance etc. are included in tertiary sector.

Human Resource and Human Capital

The population of a country available for the production activities is called human resource.

v Human resource becomes human capital when there is investment made in the form of education, training and medical care. When the existing 'human resource' is further developed by becoming more educated and healthy, we call it 'human capital formation'.

v Human capital adds to the productive power of the country. It is the stock of skills and productive knowledge embodied in them.

 

Role of Human Resource

(i) Higher Productivity.

Investment in human capital yields a return just like investment in physical capital. This can be seen directly in form of higher incomes earned because of higher productivity of the more educated or the better trained persons as well as the higher productivity of healthier people. India’s Green Revolution and IT Revolution are good examples of human resources development.

(ii) Better Utilisation of Resources.

Countries like Japan have invested in human resource. They did not have any natural resource. They could become rich/developed because of investments in people specially in the fields of education and health. These people have made efficient use of other resources like land and capital. Efficient technology developed by people have made these countries developed.

(iii) Source of Demand.

Human beings make demand for the output of goods and services produced in the country. Expansion of market for various types of foods and services further leads to increase in production.

Ways to transform population load into an asset

 (i) To improve literacy rate :Education provides new aspirations and developed values of life. Education helps in enhancing the national income, cultural richness nad increases the efficiency of governance.

(ii) Health :The health of a person helps him to realise his potential and the ability to fight illness. Increase in longevity of life in an indicator of good quality of life marked by self confidence. It involves protection of children from infection, ensuring nutrition and along with mother and child care.

(iii) Formation of skills :Providing vocational and skilled based education helps the people to get employment and therefore they contribute to the national income later on.

 

Role of Health in Human Capital Formation.

Unhealthy persons become a liability and healthy persons prove an asset for the economy.

Therefore, improvement in the health status of the population is regarded very essential.

Improved health contributes to economic growth in the following ways :

(i) It reduces production loss caused by worker’s illness.

(ii) It increases the efficiency of workers.

(iii) It permits the use of natural and other resources.

(iv) It increases the enrolment of children in schools and makes them better able to learn.

 

Role of education in human capital formation

Education is the most important component of human resource development. The role of

education in human capital formation can be judged from the following facts :

(i) Education increases labour productivity.

(ii) Education modifies /improves human behaviour.

(iii) It develops personality and sense of national consciousness among the people which are important for rapid economic growth.

(iv) It promotes science and technology.’

 

Measures taken by government to improve literacy condition in India

(i) Opening of Navodaya Vidyalayas :Government has started to estabish Navodaya Vidyalayas  in each district vocational streams have been developed to equip large number of high school students with occupations related to knowledge and skills.

(ii) Sarva Shiksha Abhiyan : It is a significant step towards providing elementary education to all the children of age group 6-14 years. It is an initiative of the central government in partnership with states, local government and the community for achieving the goal of universalisation of elementary education.

(iii) Mid-day Meal Scheme : It is a programme aimed to encourage attendance and retention of children in schools and improve their nutritional status.

 

Unemployment: Meaning

*Unemployment is said to exist when people who are willing to work at the prevailing wages

rates cannot find jobs. When we talk of unemployed people, we refer to those in the age group of 15-59 years.

 Children below 15 years of age and the old people above 60 are not considered while counting the number of unemployed.

 

Types of Unemployment

In India, unemployment is found both in rural and urban areas. In rural areas there is seasonal and disguised unemployment. In urban areas there is educated unemployment.

Unemployment in rural areas :

(i) Disguised unemployment :When more persons are working in a job than actually required, the situation is termed as disguised unemployment.

For example, if in an agricultural activity eight people are engaged but this work activity actually requires the services of five people, then three persons are extra. It these three people out of eight are withdrawn, total production will remain unaffected.

(ii) Seasonal Unemployment : Seasonal unemployment occurs when people are able to find jobs only during some months of the year. This kind of unemployment is generally found in agricultural sector.

Unemployment in urban sector:

Educated unemployment: Many people who are unable to get employment even after having academic and professional qualification are called educated unemployed.

 

 

Unemployment — A Serious Problem

v Today, unemployment is considered one of the most threatening problems before the country.

v The society is deprived of the goods and services that the unemployed people could have produced. Unemployment among the educated persons is more serious. This is due to investments made in them.

v Unemployment is not only an economic evil, it is a social problem too.

v Unemployment spreads social unrest and tension as unemployed people are a frustrated class of the society.

 

Effect of unemployment

Wastage of manpower resource : In case of unemployment, manpower who is an asset for an economy turns into liability because utilisation of manpower becomes nil.

 Economic overload : Unemployment tends to increase economic overload becausedependence of unemployed on the working population increases. So the quality of life is m adversely affected.

 Unemployment leads to social waste : Inability of educated people who are willing to work to find gainful employment implies a great social waste. Increase in employment in an indicator of a depressed economy.

*It affects the overall growth of an economy. It indicates a depressed economy and wastage of resources which could have been gain fully employed.

*leads to poverty and migration.

Causes of migration from rural areas to Urban Areas

(i) Education facilities: Urban areas have more organised and better quality education facilities opportunities vocational education and education in specialized areas has increased in urban areas. In urban areas focus is on increasing access, quality, vocationalisation and networking on the use of information technology.

(ii) Health facilities :Availability of better hospitals and medical facilities make people move from rural to urban areas. States like Bihar and Uttar Pradesh has poor health indices.

Therefore, in search of proper medical assistance people often move from rural to urban sectors.

 

(iii) Employment facilities: Disguised unemployment in primary sector and rise of employment opportunities in secondary and tertiary sector has given rise to migration of people from rural areas to urban areas. In order to increase the income of family, people move from one occupation to another and one area to another.

Government Steps to reduce Unemployment

( Refer Book and previous Note)

·      Swarna Jayanti Gram-Sewa Rozgar Yojana (SGSY)

·      Jawahar Gram Samridhi Yojana (JGSY)

·      Prime Minister Rozgar Yojana PMRY)

·      Swarn Jayanti Shahri Rozgar Yojana (SJSRY)

·      NREGA