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The citizens of a country can be considered as a liability or an asset.

Citizens as a Liability
When a large population has to be provided with food, shelter, clothing, education and access to health facilities, then they are considered as a liability to the nation.


Citizens as an Asset
When the large population becomes more educated and healthy and contribute to the productive power of the country, then they are considered as an asset to the nation

In this chapter we will learn about citizens as an asset to the Nation.

Population becomes ‘human capital’ as investment is made in the form of education, training and medical care .

‘Human capital’ is the stock of ‘skill and productive knowledge’ found in them.

‘Capital’ is a resource that can be used to generate economic wealth.

So, when people use their skill and knowledge to generate economic wealth, they are known as a Resource.

Now we are going to learn about 'People as Resource' to build a prosperous nation.

When we talk about people as a resource we talk about the working capacity of the people, their productive skills and their contribution to the creation of the Gross National Product. As we know the GNP determines the Status of a nation, the higher the GNP the more prosperous the nation.

Three things have to be invested to develop the Human Resource and build the ‘Human capital’



Investment in human capital through education, training and medical care yields a return just like investment in physical capital.

Human capital paves way for higher incomes earned because of higher productivity.

The more educated, better trained and healthier the people are the productivity is higher.\

Higher productivity means a more prosperous nation.

Human Resource is more superior to other resources like land and physical capital, as

Human resource can make use of land and capital.

Land and capital are useless without Human Capital.

So, a large population need not be a liability, it can be turned into an asset through education, training and better health.

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