What Human Capital Development Is

Introduction

With a population of 148 million, making 47 per cent of West Africa’s population, Nigeria is the largest country in Africa. The second largest economy in Sub-Saharan Africa, it accounts for 41 per cent of the region’s Gross Domestic Product. Nigeria continues to be a leading player in the African Union, the New Partnership for Africa’s Development (NEPAD), and the Economic Community of West African States (ECOWAS) but a 35-page report published by the National Planning Commission titled "A Review of Official Development Assistance to Nigeria: 1999 to 2007" has shown that Nigeria received $6billion as Development Assistance from 1999 to 2007 (Abdulhamid, 2008). (It however stated that only about 50 per cent of the pledged $6billion has been disbursed.) The report, stating that Nigeria is yet to see the fruits of the vast sums spent, described it as "an aid orphan".

Development difficulties and challenges remain disheartening as Nigeria is emerging from decades of corruption and mismanagement, particularly under military rule. The educational system is dysfunctional, as graduates of many institutions cannot meet the nation’s present needs. Unemployment and underemployment rate is estimated at over 15 per cent of the labour force, with a very high rate of that among university graduates. Adult illiteracy rate is around 50 per cent. About 76 per cent of children of primary school age attend school, falling to less than 30 per cent for those of secondary school age.

Amidst all these, on May the 29th, 2007, Umaru Musa Yar’Adua was sworn in as the third democratically elected President of the Federal Republic of Nigeria. He has committed his government to reform and his “7-Point Agenda” identifies the development of human capital; economic reforms; transport; power; rule of law; the Niger Delta and electoral reform as key priorities. The president stated that human capital development is critical to the successful implementation of his programme. He noted that if the nation’s universities were mired in confusion, crises, and a lack of institutional vision, there could be no meaningful human capital development.

Human Capital Development

Many early economic theories referring to human capital simply as labour, consider it homogeneous and easily interchangeable. Human capital was defined by Adam Smith (1723-1790) in his work “An Inquiry into the Nature and Causes of the Wealth of Nations, Book 2” as the acquired and useful abilities of all the inhabitants or members of the society. Human capital, avers Igun (2006), is the total stock of knowledge, skills, competencies and innovative abilities possessed by the population.

The United Nations Educational, Scientific and Cultural Organisation (UNESCO) stated that development is growth plus change which involves material, mental, psychological, physical, institutional and organisational innovations.

Alani (2008), giving a broad view of development, opines that it is a multi-dimensional process involving changes in structures, attitudes and institutions. Development, according to him, comprises rising per capita incomes, reduction of absolute poverty, lessening of income inequality, promotion of employment opportunities, self-esteem and freedom from servitude or freedom of choice.

This writer, considering these, concludes that human capital development, or HCD, is the multifaceted process which entails needed changes in the useful knowledge, skills and competencies embodied in people such that there is increasing evidence of innovations, rising per capita income, promotion of employment opportunities, a feeling of self-worth and freedom from slavery be it economic or social.

HCD is an index of and earns a nation significant industrial and economic growth and development which in turn increase Gross Domestic Product (GDP) and Gross National Product (GNP) as the manufacturing sector no longer stays dominated by foreign content. Education and professional advancement are critical. One can not but agree with Adeyemo and Oni (2007) that improving HCD can be seen as improving: 

v     the quality of graduates being produced;

v     the quality of product of the manufacturing industries; and

v     the quality of experience gained and hence better professional development.