Education and Economic Well eing A Study of In..DOCVIP

Education and Economic Well being A study of inter linkages Arpita Bhattacharjee Economic development is a process of progressive change in the economy--changes which improve the level of living of the people. Economic development requires persistent increase in real income along with technical and institutional changes that register progress. Technical and institutional changes bring qualitative transformation of the whole society. And in this transformation the most important role is played by capital—both human and physical. Physical capital refers to the non-human assets such as buildings, equipments, machinery etc., that is, something which is tangible. It was believed in early years that physical capital is the most important factor for economic development. Physical capital is no doubt important for increase in the quality and quantity of production. As we acquire more sophisticated physical capital, it will certainly give us better result. In every sector of an economy we find that use of machinery or modern equipments increases production capacity. Use of physical capital helps to produce huge amount of product at a short time. Economic development is closely related with the volume of physical capital. If we use tractors in place of plough it will certainly help us to save labour and time in agricultural field and produce more goods. Same way in the industrial sector also we find that computer and other modern technology help us to do things more quickly and efficiently. Development and use of sophisticated physical capital save resources which can be used for other alternative production purposes. However, growth of physical capital alone is not sufficient for economic development of a nation. Utilizing these resources effectively is more important for the rise in productivity and capital value. However, it is the human resource which plays the most crucial role and without which it is not possible to innovate, use and upgrade physical capit