Human Capital Investment

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<p align=”center” style=”text-align:center;line-height:200%”>I am in agreement to a great extent with the statement that &ldquo;investment in human capital is the primary determinant of sustainable economic growth in the UK.&rdquo; That is because it is the workers who initiate ideas and come up with the activities that led to economic growth. Besides, it enhanced the growth in the economy of UK in several aspects. Nevertheless, there is minimal reservation given the drawbacks of such efforts. The concept of human capital investment and development is one of the major concerns of most governments across the world (Wolla, 2013). In The United Kingdom, the issue remains a concern to the government and other industrial players such as manufacturers.&nbsp; Having a well-trained and qualified human capital base by a government immensely contributes to the economic, political, and social balance of a country. It is also important in controlling the levels of inflation, economic balance and, general development. This paper seeks to determine the extent to which investing in the human capital by the UK government can impact on the economic status of the country and its people.</p>
<p style=”text-indent:.5in;line-height:200%”>Human capital investments increase the much-needed research and development that is imperative for the continued growth of the UK. In order to make informed decisions on its economic, legal, political and social feature, the government must train its people who can undertake crucial research and come up with viable suggested solutions (Amidon, 2006). The government will possibly increase its capital structures by making informed decisions on its economic feature.</p>
<p style=”text-indent:.5in;line-height:200%”>The UK government has also enhanced the production of quality goods and provision of efficient and reliable services as a result of investing in its human capital.&nbsp; By training its citizens on technology-driven production, the people are empowered to produce quality products that have facilitated effective competition in the world market (Clifton, Thompson &amp;Thorley, 2014). Human capital investments are important in enhancing economic revolution through business consultative forums that bring together investment specialist within the UK and beyond. According to London School of Economics (2017), the experts always play a major role in developing and coming up with business policies and guidelines that when followed will enhance the economic sustainability of the government and its people.</p>
<p style=”text-indent:.5in;line-height:200%”>The investment in human capital development has also played a major role in the running of government operations and agenda. The government departments which are charged with enhancing economic growth of the country are successfully managed and run by competently trained and experienced personnel (Amidon, 2006). In order to improve this kind of professional efficiency and development in future, the government has continued to invest and promote the training of its human capital.</p>
<p style=”text-indent:.5in;line-height:200%”>The economic activity is also critical in influencing international investments in the UK that have seen the country&rsquo;s GDP maintain at relatively high level. Notably, international investors have readily set up their businesses in the country with the aim of finding efficient, reliable, and experienced labor in the market (Baron &amp; Armstrong, 2007). Since the success of a business majorly relies on the efficiency and business management strategies put in place by the human factor in the organization, the owners of such businesses as assured of tremendous levels of success in their business.</p>
<p style=”text-indent:.5in;line-height:200%”>The process enhances skilled labor productivity which is important in promoting technological growth across the UK.&nbsp; Through strategic investment in individual training and development, the government is in a position to accomplish jobs in the various sectors of the economy (Baron &amp; Armstrong, 2007). Additionally, the government has realized industrial growth through efficient management structures and has thus earned income that resulted from trade activities.</p>
<p style=”text-indent:.5in;line-height:200%”>By investing in its human capital, the UK government can exert its economic and human capital dominance in the industrial market. The country can gain trust in the international business field since their trade partners will either buy the UK products or sources for their service. The inter-trade activities have increased the economic sustainability of the government and its people. Additionally, the approach has proved to be the key force behind industrial growth.&nbsp; The government in the UK needs a well-structured industrial strategy which can be critical in helping in bridging the gap in the monetary and fiscal policies (Baron &amp; Armstrong, 2007). The human capital will, therefore, be necessary for specifically implementing the strategies of infrastructural development, innovation technology, and trying to focus on improving the general economic status of the country. The human capital will then be important in closing the skill gap that exists in many sectors of the economy.</p>
<p style=”text-indent:.5in;line-height:200%”>Unlike paying the price for poor infrastructural development or inadequate health structures, investing in human capital is relatively less costly in the long-run (Baron &amp; Armstrong, 2007). The UK government portends to have much more gain compared to the cost that it will incur.&nbsp; The economic growth of the government, the financial stability, and the sound investment decisions are some of the major benefits that the UK government is likely to gain, and this compared to the cost, is much more beneficial.</p>
<p style=”text-indent:.5in;line-height:200%”>Skilled workers enhance efficient and beneficial cross-border trade which promotes the economic well-being of the UK. The coordination of trade between the UK and major business partners such as The US is enhanced mainly through the government&rsquo;s personnel (Clifton, Thompson &amp;Thorley, 2014). It is important that the government maintains good international relationships, especially through trade and it is the efforts of the human resource personnel that seek to enhance the good bilateral relationship.</p>
<p style=”text-indent:.5in;line-height:200%”>Investment in human capital acts as a form of motivation to the individuals and corporations and increases their involvement and morale in improving economic growth (Baron &amp; Armstrong, 2007). By offering constant training and skills improvement, the UK government employees will feel motivated to do more work to develop the general economic future of the country. In the process of working, the people will be promoting the economic growth of the country by offering efficient service and goods and generating financial gains from the process.</p>
<p style=”text-indent:.5in;line-height:200%”>Effective employees are also necessary for maintaining the developmental and growth culture of the UK government and its people. The long time growth and development that the UK has achieved over the years has been as a result of the previous human resource investments (Wolla, 2013). The government has the responsibility to continually increase that growth structures by continually investing in its human resource through training and development.</p>
<p style=”text-indent:.5in;line-height:200%”>Despite the factors that point out at human capital investment as the primary initiator of economic growth in the UK, the government has also suffered by incurring a lot of funds in training. That has seen it allocate minimal resources to areas such as road infrastructure and health which are also critical. For instance, the human activities still require adequate road network given the trading movements. Also, the workers have to be in good health for them to deliver effectively (Baron &amp; Armstrong, 2007). Besides, the investments in the training could sometimes go to waste as some of the human resource personnel may not become as productive as expected, while others may not offer efficient and expected level of service.</p>
<p style=”text-indent:.5in;line-height:200%”>Investing in human capital by the UK government can only be fruitful for a short period, but in the long run, the government may lose its competent and well-trained employees to multinational organizations and governments (Baron &amp; Armstrong, 2007). Some of the major organizations which offer better compensation to the employees could easily absorb the competent, well trained and experienced skills that the government had invested in. Therefore, the government might end up not realizing the full benefits of its trained individuals.&nbsp;</p>
<p style=”text-indent:.5in;line-height:200%”>Overall, the UK government stands to initiate its economic growth by prioritizing investment in its human capital as the primary concern. It enhances research and development, increased production quality and service delivery, positive economic revolution, enhancement of management business, increased international trade, and enhancement of technological growth. Additionally, the investment could enhance industrial growth, increase cross-border commerce and, promote the general growth in culture of a country. On the downside, however, by investing in international investment, the government may end up spending a lot of money but only loose the competently trained human personnel to international and well-paying firms. Moreover, it could neglect other critical factors such as infrastructure and health.</p>

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