In role of human capital formation what is emotional and material environment of growth.explain in brief with example.
Emotional environment of growth implies the degree of aspirations and the outlook of human beings towards their standard of living. For example, if people of a country only look forward to survive with basic necessities i.e food, shelter & clothing then the country is said to be low on the scale of emotional environment to grow in its citizens. On the other hand, if the people of a country look forward to improve their standard of living by aspiring for higher level of income, consumption and luxuries, then that country would be having a much better emotional environment for the growth process.
Material environment implies the availability of skill sets and educational qualifications prevailing in the population to undertake the process of growth. For example, a country with highly skilled and qualified work-force can undertake the growth process in a much better and faster manner that the economy having workforce with no specific skill sets.
Human capital formation helps an economy to improve on both of these environments as it provides the workforce with skill sets and education to undertake economic growth and generations aspirations in them to improve their standard of living.
Material environment implies the availability of skill sets and educational qualifications prevailing in the population to undertake the process of growth. For example, a country with highly skilled and qualified work-force can undertake the growth process in a much better and faster manner that the economy having workforce with no specific skill sets.
Human capital formation helps an economy to improve on both of these environments as it provides the workforce with skill sets and education to undertake economic growth and generations aspirations in them to improve their standard of living.