This is apropos a Business Recorder op-ed “Rewiring the investment model” carried by the newspaper the other day. The writer, Tabish Gauhar, has presented an informed perspective on the subject.

The writer has argued, among other things, that “In any case, the State should neither stifle the market (while protecting the consumer interest) nor backstop the commercial risk and reward of investors regardless of who they are. Instead, its limited balance sheet should be employed to fund social investment in basic education and vocational training that the private sector won’t do other than as a “corporate social responsibility” sideshow.

Human capital development is where a national emergency ought to be declared rather than leaving most of it to philanthropists and NGOs.” While endorsing his point of view wholeheartedly, I would like to say that the imperative of national capital development has not been part of any government’s agenda. No government has ever appreciated the fact that knowledge, intelligence, education, skills and health of human constitute human capital that people accumulate throughout their lives.

It is this capital that enables people to exploit their potential for the overall good of society or nation. There is a strong relationship between human capital investment and economic development. Needless to say, economic development does improve quality of life and reduce poverty levels. Hence the need for promoting the concept of human capital investment in an effective and meaningful manner. This will require the government, among othe things, to increase spending in social sector.

Sanaullah Qadri,

Karachi

Copyright Business Recorder, 2023