People as Resources Detailed Chapter Notes - Social Studies (SST) Class 9

Introduction

People as Resource aims to illustrate how the population serves as an economic asset, not a liability. Through investments in education, training, and medical care, the population is transformed into human capital—a reservoir of skills and productive knowledge.  

Human Capital Formation

Human capital formation is the development of existing human resources through education and health improvements.

It is likened to physical capital formation (through education, training, medical care) and yields return in the form of higher incomes due to increased productivity.

Formation of human capital

1. It increases the productivity of the workers.
2. Educated, trained, and healthy people can use natural resources in a better way.
3. It adds to the quality of labor.
4. A country can earn foreign exchange by exporting services.

Examples: The Green Revolution and IT Revolution in India illustrate how knowledge input significantly enhances productivity, showcasing the pivotal role of human capital over material and machinery. 

Sakal's Story

Sakal, a twelve-year-old from Semapur, faced financial challenges but had supportive parents who valued education.

Educational Journey:

• Sakal joined the village school.
• Completed higher secondary education.
• Pursued vocational training in computers with a loan.
• Secured a job in a private firm.
• Designed innovative software, boosting sales.
• Received recognition and promotion.

Impact of Education:

• Enhanced productivity and total economic growth.
• Higher-income due to education and innovation.

Stories of Vilas and Sakal

Vilas's Story

Vilas, living in the same village, had a different reality with financial struggles and limited opportunities.

Economic Struggles:

• Single-parent household, earning meager income from selling fish.
• Vilas developed arthritis; no access to healthcare.

Lack of Educational Opportunities:

• Unable to attend school due to financial constraints.
• He continued low-skilled work like his mother.

Contrasting Outcomes:

• Economic hardships and limited opportunities for Vilas.
• Lack of investment led to a cycle of low productivity.

Comparison

Sakal's education and skills led to economic success where as Vilas faced economic challenges due to the absence of education and health care.

Economic Activities by Men and Women

People, like Vilas and Sakal, engage in various economic activities classified into three sectors: primary, secondary, and tertiary.

Classification of Economic Activities

• Primary Sector: Involves agriculture, forestry, animal husbandry, fishing, poultry farming, mining, and quarrying.
• Secondary Sector: Encompasses manufacturing activities.
• Tertiary Sector: Includes trade, transport, communication, banking, education, health, tourism, services, insurance, etc. Contributes to the production of goods and services, adding value to national income.

Market and Non-Market Activities

• Market Activities: Involve remuneration for services performed, such as the production of goods or services.
• Non-Market Activities: Include production for self-consumption, like processing primary products or own account production of fixed assets.

Gender Roles and Economic Activities

Historical Division of Labour

• The traditional division between men and women in economic activities due to historical and cultural reasons.
• Women are often responsible for domestic chores, while men engage in fieldwork.

Unpaid Contributions

• Women's domestic work is not recognized in the National Income.
• Example: Sakal's mother, Sheela, handles household duties without remuneration.

Market Entry

• Women are paid when they enter the labor market, with earnings determined by education and skills.
• Disparities exist; women with lower education often earn less and face job insecurity.

Challenges in Women's Employment:

• Employment sectors lack legal protection, maternity leave, childcare, and social security.
• High education and skill formation enable women to achieve pay parity with men, especially in fields like teaching and medicine.

Quality of Population

• The quality of the population depends on literacy rate, life expectancy, and skill formation.
• Literate and healthy populations are considered assets for a country.

Education

Education enhances national income, cultural richness, and governance efficiency.

• Efforts include universal access, retention, and quality in elementary education, with special emphasis on girls.
• Establishment of pace-setting schools like Navodaya Vidyalaya in each district.
• Development of vocational streams for high school students.

Budgetary Allocations and Expenditure

• Plan outlay on education increased from Rs 151 crore in the first plan to Rs 99,300 crore in 2020–21.
• Expenditure on education as a percentage of GDP rose from 0.64% in 1951–52 to 3.1% in 2019–20 (B.E.).
• However, there is a decline to 2.8% in 2020–21 (B.E.), as per the Budget Documents of Union State Governments and the Reserve Bank of India.

Trends in Literacy Rates In Post-Independent India

Literacy Rates and Disparities

Over the years, literacy rates have shown a commendable upward trend, reaching 85% in 2018. Literacy is acknowledged not just as a fundamental right but also as a prerequisite for citizens to effectively fulfill their duties and enjoy their rights. However, gender and regional disparities persist, with males exhibiting a 16.1% higher literacy rate than females. Urban areas also show a 14.2% advantage over rural areas, emphasizing the need for targeted interventions to bridge these gaps.

Challenges in Primary Education

While the expansion of the primary school system to over 7,78,842 lakh in 2019–20 reflects a positive stride, concerns arise over the dilution of educational quality and high dropout rates. The implementation of initiatives like Sarva Siksha Abhiyan, with elements such as bridge courses, back-to-school camps, and the mid-day meal scheme, aims to counter these challenges, striving for universal elementary education.

Higher Education Scenario

In the realm of higher education, the Gross Enrolment Ratio (GER) for the age group of 18 to 23 years reached 27% in 2019–20, aligning broadly with the world average. The strategic focus revolves around increasing access, ensuring quality, modifying curricula to suit state-specific needs, encouraging vocationalization, and embracing information technology. Noteworthy is the emphasis on distance education and the convergence of various education formats, encompassing formal, non-formal, distance, and IT education institutions.

Health

In the pursuit of profit maximization, firms place a significant emphasis on workforce efficiency. The selection of employees with optimal health is crucial for ensuring productivity and achieving organizational goals. The premise is that individuals in good health are better positioned to contribute effectively to the overall growth and success of the organization.

Significance of Health

• Good health enables individuals to realize their potential and effectively contribute to organizational growth.
• Healthy individuals can maximize their output, positively impacting overall organizational performance.

Health Infrastructure in India

• National Policy Focus: The national policy emphasizes improving healthcare access and services, focusing on the underprivileged.
• Infrastructure Development: Over the last five decades, India has built extensive health infrastructure in the government and private sectors. Manpower development spans primary, secondary, and tertiary sectors.

Health Progress Indicators

• Life Expectancy: Increased life expectancy to over 69.4 years in 2016.
• Infant Mortality Rate (IMR): IMR reduced from 147 in 1951 to 36 in 2020.
• Crude Birth Rates: Dropped to 20.0 (2018).
• Death Rates: Reduced to 6.2 (2018).

Healthcare Disparities and Infrastructure Gaps

Despite progress, healthcare disparities persist in various regions of India. Many areas lack even basic healthcare facilities. The availability of medical and dental colleges is unevenly distributed, with only 542 medical colleges and 313 dental colleges nationwide. States such as Andhra Pradesh, Karnataka, Maharashtra, and Tamil Nadu host a concentration of medical colleges, revealing regional imbalances in healthcare infrastructure.

Unemployment

Unemployment is characterized by the inability of willing individuals to secure jobs at prevailing wages. It is crucial to differentiate between those not seeking employment and those facing challenges in finding suitable opportunities. In India, both rural and city areas face unemployment, but the reasons differ. 

Impact of Unemployment

• Wastage of Manpower Resource: Converts potential assets into liabilities for the economy. Creates a feeling of hopelessness and despair among the youth.
• Economic Overload: Increases dependence on the working population. Adversely affects the quality of life for individuals and society.
• Social Consequences: Decline in health status, withdrawal from the school system, and general despair.
• Indicator of a Depressed Economy: An increase in unemployment signals economic challenges.

Types of Unemployment

• Seasonal Unemployment: In rural areas, seasonal unemployment is prevalent, particularly among those dependent on agriculture. Certain months witness reduced agricultural activities, leading to temporary job scarcity for these individuals.

• Disguised Unemployment: Disguised unemployment, common in family-based agricultural settings, gives the appearance of employment. However, surplus workers engage in activities that do not significantly contribute to productivity, highlighting the inefficiencies in resource utilization.

• Educated Unemployment (Urban): Urban areas witness a paradoxical situation where educated individuals, even with matriculation, graduation, or post-graduate degrees, struggle to find suitable employment. This creates a coexistence of surplus manpower in certain categories and a shortage in others.

While official statistics may indicate low unemployment rates, many individuals with low income and productivity are considered employed. Forced work for subsistence rather than by choice is prevalent, contributing to the statistical landscape.

The agriculture sector in India experiences disguised unemployment, with self-employment characterized by surplus labor. Despite shared work and produce among family members, surplus labor eventually migrates from villages in search of alternative job opportunities.

Story of a Village

Transformation through Education: A family's decision to send a son to an agriculture college becomes a catalyst for change. Improved agricultural technology, education, and training in tailoring create new jobs, contributing to a prosperous village with diverse economic activities.

Positive Economic Impact: Investments in education lead to positive economic outcomes, job creation, and overall community well-being. The story of the village exemplifies the transformative power of education in elevating local economies.