Use of Human Capacity:

The use of human capacity depends on the organization of the economy and society, the incentives for employment creation, the relative net returns from using different types of skills and competences, and the general level of confidence the private sector holds in prospects for future growth and development. The use of human capacity differs in a fundamental respect from the generation of human capacity. As a matter of policy, governments can decide to educate and train more children, youth and adults, thereby generating more human capacity. Governments, as a matter of policy, have few means of effectively using that additional capacity in a sustained way. They almost invariably encounter financial, organizational and managerial constraints that block employment expansion. In all societies, the use of human capacity is intimately tied to the population's expectations about the future. Buoyant expectations lead to the expanded use of human capacity; adverse expectations diminish the use of human capacity.