Friday, October 31, 2008


Human capital is a measure of the economic value of an employees skill set. This measure builds on the production input of labor where all labor is thought to be equal. The Concept of human capital recognizes that no all labor is equal and that the quality of employees can be improved by invest in them. The education, experience and abilities of employees have an economic value for employers and for the economy as a whole. Economist Theodore Schultz invented the term in the 1960s to reflect the value of human capacities. He believed human capital was like any other type of capital it could be invested in through education, training and enhanced benefits that will lead to an improvement in the quality and level of production.

Tanzania is facing a human development crisis with the majority unable to access health, education and productive resources to contribute to a thriving economy. HIV/AIDS is ravaging the country and is undermining the foundations of development, namely economic growth, good governance, development of human capital, the investment climate and labor productivity. In today’s world human capacity is becoming even more important for development, with the world economy increasingly being driven by knowledge and technology.

The report of the first session of the Working Party of Human Capacity Development originated by Fisheries and Aquaculture Department (FAO) elaborate a Vision Statement for human capacity development in fisheries as follows: “A society that has the ability, means and conditions to achieve the sustainable development of fisheries, at local to global levels, for the benefit of all, and to meet the target of the World Summit of Sustainable Development (DSSD) Plan of implementations as well as the Millennium Goals” As an overcharging principle, the Working Party agreed that human capacity development is a national responsibility that should be supported by global, intergovernmental, regional and non governmental organizations. The Working Party define Human Capital Development is a process by which individuals, groups, organizations, institutions, and societies develop their abilities both individually and collectively to set and achieves objectives, perform functions, solve problems and to develop the means and conditions required to enable this process.

Two important attributes of Human Capacity development, first Human Capacity development should address at least four levels i) individuals, ii) organizations, iii) sector/network and iv) the broader enabling environment. Secondly Human Capacity development is a process where by individual development becomes embedded in a sustainable shift in performance and collective behavior. This process includes identifying needs, building knowledge, understanding skills and attitudes that can be implemented through practice and experience of individuals that leads to sustainable changes in the collective performance of institutions sector, society and the enabling environment. Is a process acquired over time and is a two way process between individual’s capacity development needs and requirements of the institutions.
The U.S President’s Emergency Plan for AIDS Relief (Emergency Plan/ PEPFAR) recognizes that the quality and sustainability in HIV/AIDS prevention, treatment and care require skilled providers of health services and strong health system to support them. Priorities for building sustainable human capacity are developing workforce management strategies, including support for workforce planning, sustained performance/ quality assurance, and expanded roles and retention of qualified staff, improving training coordination through the development of country strategic plans and assessing and documenting strategies for building sustainable human and institutional capacity. Emergency Plan is working under national strategies and in partnership with host nations to strengthen health systems and human resource capacity to deliver preventions treatment and care for people living with and affected by HIV/AIDS.

WHO in building Human Capacity for 3 by 5 (Treat Three million people living with HIV/AIDS by 2005) realized that globally up to 100,000 people need to be trained for their contribution to making 3 by 5 possible including those involved in the management and delivery of anti-retroviral treatment (ART) service, those working on testing and counseling and other entry points to (ART) and many community treatment supporters assessing people living with HIV/AIDS who are receiving medication. The World Health Organization has developed a “Human Capacity – Building Plan” that propose a set of unprecedented steps by which WHO, together with partners countries to develop and sustain the workforce necessary to achieve 3 by 5.

Japanese Aid for Human Capacity Development by giving grant for example grant of US $ 88,569 for the project for construction for Human Development Organization Training Centre at Gournadi Upazilla, Barisa. This infrastructure would help HDO and other local NGOs to conduct quality and effective training among grass-root beneficiaries on agriculture, poultry livestock, human rights, awareness, life skills, sanitation, saving and credit, staff development and leadership training.

Development of Human Capacity Policy depends on the organization/ institutions. Each institution has its own policy about the way they promote human capacity within the organization depending on structure of an organization, job performed by an organization. The United Republic of Tanzania as nation under the Ministry of Science, Technology and High Education for example April 1996 had a Technical Education and Training Policy in Tanzania. The policy covered the Demand for Technical Educational and Training Management, Curriculum and Certification of Technical education Training, the role of technical education and training in promoting the informal sector and financing of technical education and training.

Human capacity development in Community Economic development is one among the most important component which enable the community to participate in finding out their problems and propose solution to that problem. Human capacity is a link between other capital used to promote community development social, economically, environmental, health. Without a Human Capacity development other assets or opportunities can remain idle without being exploited for the benefits of a community. For an Institution or an organization to develop and enjoy maximum level of performance it must invest more on Human capacity. Some organization fail to understand the important of human capacity development. Evidence show that most of developed countries realized the role of human capital in their economic development, transmission of knowledge from one organization to another bring a competition which result efficient in production and distribution for the benefit of a community. Experience shows that innovation is widely regarded as the key to economic growth in industrialized countries. Firms invest in R&D to develop new products or new processes. They acquire existing technology through licensing contracts, cooperation agreements, mergers and acquisitions. They train their workers, invest in new technologies such as in information and communication technology or introduce new ways of operating like selling and buying on the internet. From the experience above Tanzania as one of the poorest country in the world must put together all type of Capital required for development, more effort must be made upon the Human capacity which at the end could be a link chain to the other types of capital.

i) Human capital financial definition by free online dictionary.html

ii) The report of the first session of the Working Party of Human Capacity Development originated by Fisheries and Agriculture Department (FAO).

iii) Human Capacity Development (April 2007). Html

iv) Press Release HDO Japanese Aid for Human Capacity Development on March 28, 2006.

v) Speech by Minister of Agriculture and Rural Development Dr. Cao Duc Phat at the Scaling up Program Regional Conference for Joint Japan World Bank Graduate Scholarship Program. Hilton Opera Hanoi Hotel 26 May 2006.

vi) Technology and Training Policy in Tanzania. April 1996.

vii) What drives productivity in Tanzanian Manufacturing firms: technology or institutions. Micheline Goedhuys, Nobert Janzi & Pierre Mohnem. Sep 4, 2006.

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