Notes Human Capital, Science, Technology and Development

Abstract

There was a renaissance of the economics of education and indeed of human resources in general in the late 1950s and early 1960s according to Louis Emmerij, the president of the Organization of Economic Cooperation and Development (OECD). He noted that Irvin Fisher in his classic work on Capital and Income, had drawn an explicit link between physical and human capital and the foundations of a generalized capital accumulation approach to development. However long before economists started taking interest in human resources as factor in economic development J. D. Bernal, a British scientist, impressed by the rapid transformation of Russian society through planned development of human resources, science and technology and their use in economic development had advocated the planned use of science and technology for development in his book, Social Function of Science. This book published in 1939 greatly influenced political leaders like Nehru struggling against colonial rule. He used its prescriptions soon after gaining independence, while laying down guidelines for planning for development in independent India. After the Second World War (193945) economists also noted the important role of human capital in the extremely rapid recovery of Germany despite her destroyed capital stock. The importance of scientific research and development (R & D) had already been proved during the war when atomic bomb, radar and many other inventions had been developed. Besides the use in war, the importance of R & D in innovation and production of new goods and services well established among the industrial and business circles also gained acceptance among governments in developed countries. UNESCO has also promoted the development of education, science and R & D among the developing countries.