Human Development with Human Capital - Essay Example

This paper reflects the relationship between human capital, income inequality, and poverty, and how it affects development in the context of EG and HD linkages.

Correlation of Human Capital and Human Development

            Human capital defines the growth rate of a nation as evident in the context of Sierra Leone’s economic growth. The absence of subsequent investment in human capital and low level of investment in physical capital affect the rates of return in form human capital, especially education (Todaro & Stephen, 2009). If human and physical capitals mutually affect each other, then the policy problem enables both to increase rapidly. Acute shortages of medicine, skilled healthcare professionals, robust power system, hygienic water, and such basic amenities as sterilized gloves; Sierra Leone finds the adequate strategy to resolve the health issues of inhabitants. The poor health and education of Sierra Leone’s workers explain the low income of the citizen as statistics of pregnancy death showing one in every eight cases in comparison to the United States figure of one in 4,800 and life expectancy of 41 years in not welcome figure (Scott Craft). The coverage of health services remains a cause of concern. Transportation difficulties to avail public services increase the opportunity cost. Cultural barriers further add to the woes in accessing health services, especially for women, the lower class, and other vulnerable groups. Infrastructure development and government policies for basic health services will pay substantial dividends as better health will contribute to the growth of Sierra Leone. The country depends on sixty percent of its public expenditure from foreign governments and nonprofit organizations approximately exceeding the figure of $1 billion in aid (Scott Craft). The complex relationship between human capital and economic development needs an option mistic approach of investment in human capital to define the growth pattern of poor countries (Todaro & Stephen, 2009).

Correlation of Income Equality, Poverty, and Corruption with Human Development

            Education and health affect economic growth through even distribution of income, as improvement in these areas, empowers low-income people to explore job opportunities (Todaro & Stephen, 2009). Poverty is on the top of the agenda for economic reforms in Sierra Leone for the UN as the meager salary of doctors in the range of $100-$200 and $80 for nurses depicts the picture of extreme poverty (Scott Craft). Corruption increases the difficulties of a stable economy as aids of 6,200-ton shipment of rice from Japan and $10,000 allocated for child poverty project disappears without notice (Scott Craft). Stealing is the way of survival for youths as the formation of rebel groups possessing military skills threatens the political stability of the nation. But some sign of recovery in form of democratic government raises the hope for the UN to establish the equal distribution of income necessary to bring equilibrium in economic and political status.

Conclusion

            The policies including the higher levels of investment, the infrastructure supporting education, health, technology change, and better GDP for income equality can transform human development into sustainable economic growth. Although human development underpins long-term growth, threshold criteria to achieve a basic HD level are necessary for economic growth. Endogenous growth theory explains the difference between human capital and levels of human development. The leverage of human capital and labor skills remains a cornerstone for endogenous growth, but the level of human development propels the growth curve of the action as reflected in a case study of Sierra Leone.