Author(s): Karoon Tang
Human capital investment, encompassing education, health, skills training, and capacity building, is a fundamental driver of economic development. Unlike physical capital, human capital enhances productivity, fosters innovation, and builds the foundation for sustainable growth. Countries that prioritize investment in human resources tend to experience higher levels of income, reduced poverty, and improved social welfare. However, disparities in access to quality education and healthcare, along with inadequate policy frameworks, often constrain the potential benefits of human capital. This article explores the intricate relationship between human capital investment and economic development, highlighting theoretical foundations, global experiences, and challenges. It argues that effective human capital investment is not only an economic necessity but also a moral imperative for inclusive development.