Generation of Human Capacity:

The generation of human capacity includes activities and processes that improve skills, enhance talents, broaden the knowledge base, and augment the competences and information flows at all levels of the economy and society. The generation of human capacity is related to but is not equivalent to the supply of education services. It is more closely related to (but, again, is not equivalent to) the demand for education. It is important to distinguish n ominal and effective demand. The nominal demand for education is the education that each family would desire if its members were not constrained by wealth, or income, or time from expressing that demand. In principle, one can imagine that every family would desire (i.e., nominally demand) a complete formal education for its members. By contracts, the effective demand for education is what families given their resources can afford to provide for their children. It is reflected in the number of children enrolled in classes, the period they are enrolled, the books purchased, the transport provided to bring children to school, the effort and time parents devote to school-related activities, and the extra-curricular activities in which families allow their children to participate. Understanding the distinction between nominal and effective demand helps explain why many families do not send their children to school or keep them there even if the state or private sector provides additional facilities.