Global human capital, the combination of education, experience, personal attributes, and skills of the worldwide workforce, is important for economic development. The Human Development Index measures the rate of human capital formation, which can be achieved through investments in education, health, and civil and family life. International labor law aims to prevent a permanent underclass and human development mismatches.
Global human capital is the combination of education, experience, personal attributes and skills that are represented in the worldwide workforce that contributes to world economies. The notion of workers as important commodities that have measurable economic value guides the development policies used by international organizations in less developed countries. Much of international law revolves around workers’ rights and the recognition of the importance of creating human capital of high value for a country’s health and stability.
Analysts and international economic development organizations measure a developing country’s potential and investment success through economic indicators, such as the rate of human capital formation. While it appears difficult to measure, economists have discovered that the elusive concept of global human capital formation is actually a function of the development of more easily measurable factors. The relevant index determining the rate of human capital formation is the Human Development Index (HDI) which includes information on life expectancy, educational performance and average individual income.
As the world becomes a smaller place and companies are able to draw on workforces in developing countries with lower living standards, the concept of global human capital becomes more and more important. Much of the philosophy that shapes international labor law revolves around the rights of workers to grow and improve their lives, increase their skills, and benefit adequately from the use of their talents. What international law seeks to prevent is the establishment of a permanent underclass, where workers in one country receive a pittance to support the extravagant lifestyles of people in other countries. It also seeks to avoid permanent human development mismatches, where some countries can afford to invest in the education and health of their workforce while those investments are beyond the capabilities of other countries.
Basically, the concept of global human capital attempts to place a quantitative value on the workforce in various countries so that they can be compared and evaluated against each other. This information is also gathered to determine the rate of global change and whether our civilization is progressing or remaining stagnant. The formation of human capital in any country can be achieved through investments in education, in the health system or in strengthening the fabric of civil and family life. Many international non-governmental organizations have a mission to educate and train people to increase the opportunities people have to work. This can happen because people have more advanced skills or a greater ability to do things that generate economic value.
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