greatly on the existing level of economic development. Do you think IT - based services in rural areas will lead to human development? Discuss. Work This Out Ø If a construction worker, maid-servant, dhobi or a peon in school has absented herself/himself for long due to ill health, find out how it has affected her/his (i) job security (ii) wage/salary What could be the possible reasons?
every individual has a right to get basic education and basic health care, that is, every individual has a right to be literate and lead a healthy life. . S TATE OF H UMAN C APITAL F ORMATION IN I NDIA In this section we are going to analyse human capital formation in India. We have already learnt that human capital formation is the outcome of investments in education, health, on-the-job training, migration and information.
Of these education and health are very important sources of human capital formation. We know that ours is a federal country with a union government, state governments and local governments (Municipal Corporations, Municipalities and Village Panchayats). The Constitution of India mentions the functions to be carried out by each level of government. Accordingly, expendi- tures on both education and health are to be carried out simultaneously by all the three tiers of the government.
Analysis of health sector is taken up in Chapter ; hence, we will analyse only the education sector here. Do you know who takes care of education and health in India? Before we take up the analysis of the education sector in India, we will look into the need for government intervention in education and health sectors. We do understand that education and health care services create both private and social benefits and this is the reason for the existence of both private and public institutions in the education and health service markets.
Expenditures on education and health make substantial long-term impact and they cannot be easily reversed; hence, government intervention is essential. For instance, once a child is admitted to a school or health care centre where the required services are not provided,