HOW HUMAN CAPITAL CAN AID REVENUE.

The convoluted concept of inequality flood the center spreads globally especially with the thought and considerations on why some societies have abundance and some want so abundantly without a commensurate fulfillment of their desires. In the past, wealth in the confines of a state have been tightly stringed to the availability of resources valued to better economic transact and maximization. This pattern has not changed as resources when properly channeled form the bedrock of the economic development of societies. However, dependence on this pattern hold sway as results from decades of resources based soleness have shown massive disappointment ranging from lopsided sharing of resource wealth, endemic corrupt practices and procedures, poor technological inputs in the transformation of crude to finished product and the development of a viable value chain, infrastructural and logistics deficiencies and more devastating the continuous change in consumers behavior.

The big question then is: if resources in today’s developmental ideal do not hold the fort, what then can sustain society this century? As we have it today, nation’s strength is measured in sustainable palette of per capital income, standard of living, clean energy status, creativity index and other components. Chief in my concern is the creativity index which explores how well nations develop the most important of all resources available on the earth, Human Capital. Wealth in its definitive forms goes through a designed process of creation, accumulation and distribution. Human capital is the most important source of wealth in the modern world built on the ground that every human is creative and that deliberate attempts enhance productive and novel transformation globally. You can trace back the development in the Industrial age to the increase in human capital that brought about the rise in machinery and energy saving devices and system. Agriculture too has been largely by the rise of creative capital.

Nations that possess huge population in this wise can boost of a measurable stake in the acquisition of the burgeoning dividend of Human capital but as we have noticed overtime it does not play out as simple as that. Nigeria today is Africa’s most populous country and largest economy. Since the fact remain obvious, can Nigeria as a country boast of efficient human capital? Of good importance at this phase is the need to emphasize that Quality must outweigh quantity in the classification of a society with efficient Human capital and the most valuable content must be how creativity is stirred and generated in valuable solutions. How then Creativity does come in the line equation of the development of effective Human capital?

Nigeria is ranked 120 in the global creativity index.17 in sub-Saharan Africa where she stand as the largest economy and 28 spot in countries with low middle income. Subtle thoughts will rise about this reality especially on what this status is built on: a superstructure planted on a flood plain without consideration on disaster. Possibilities exist in quantifiable measures that addressing modalities that will improve Human capital development will in multiple folds increase the economic figures. In the book, Future Wealth, Stan Davis and Christopher Meyer emphasize the need for value. This value must be directed on human capital and not on labour. There could be a misappropriation or misinterpretation of this concept especially with demand from a youthful population meet Foreign Direct investment directed at securing routine manual task that would be threatened and faced out by the evasive option of technology automation and outsourcing down the decade, if it is not already now.

Addressing and improving human capital will require audacious moves especially in area where sectorial allocation have nosedived in the last decade. The crux of this begins with how much we must as a matter of necessity inject into knowledge based institutions. Capital expenditure must be made into education at all level especially in Research and development. The subject of diversifying the economy as a result of the unreliable status of oil revenue and windfalls have beamed attention on agriculture and the extractive industry but before we plunge into this viable paths we must set the marks that will further elongate our dominance. Knowledge institutions must be fashioned to enhance the development of talents and economically relevant skills. As a classic case of reference, increase in research and development spending cannot be overemphasized. The countries that rank top three in the global innovation index; Sweden, Switzerland and the United State respectively have massive infusion of funds in research and development.

Real attempt at innovation will be stirred as critical elements such as x-raying for the strength and weaknesses of our local industries is crucial. This remains the point where the creative capital generated will be injected for a more robust output. If anything is more imminent as a vocal thing to do now, is to transit into a technology driven economy by rise in Human capital development. Imputes at achieving these entail that we set the right environment. Politically, in terms of regulation and a good climate arrived from sound legislation’s that are Eco-friendly for business. Infrastructural elements of ICT and mobility systems, the right market ambiance borne out of access to finance via credit and investment as well as Trade Competition. The effect of this will bring about attraction of global companies who can stimulate spin-offs in the economy. The creative output continues to improve with intangibles asset that emerge as patents, creative goods and services that continue to meet new spectrum of needs.

Recently stumbled on info-graphic analysis of IGR in state across the country and the abysmally low distribution show how much intervention and response we must give to see that revenue increase. Revenues can only improve by Human efficiency. How much attention do state pay to the development of Human capital? Locked in the hinterland is a teaming young and vibrant population that is constantly left at the brink of survival. Richard Florida in the book, Flight of the creative class, account that growth in regions within a state is achieved by designed systems to grow talents and to set the benchmarks that furthers push competition further. A vital rule in business is that Growth is inextricably linked with competition. State must develop talents and facilitate healthy competition. Our outcry has been a deepen migration of talents for greener pastures abroad but in all sincerity migration is a basic human characteristics and the same principle can apply within the country where there is a huge system for development and retainance of talents. Competitive advantage in this age depends on attracting and keeping talents better than the other guy. The technologies to increase revenue are locked in the environment designed to attract and retain talent.

In passing, one of the most significant ways through which this can be done is the quarterly deployment of resourceful youth into state through the National Youth Service Corp (NYSC). State can adopt a lean methodology that can use gainfully of the pool of resource through effective planning and communication, create effective system of tolerance thereby reducing the large back to base migration after the stipulated program period. Many would love to stay and pursue careers or trade but are faced headlong by unfriendly environment and cultural brick walls. Florida also emphasize that since every human has creative potential, the key role of culture is to create a society where talents can be attracted, mobilized and unleashed. Culture should operate not by constraining the range of Human creative possibilities but by facilitating and mobilizing them. Funnily, Lagos with the smallest landmass generates 279 billion in IGR, a somewhat summation of what all other states generate all together. The question is what has Lagos by fate or concerted effort inherited or worked on to come to such a phase.

 

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About OLAWALE OLANREWAJU AKANNI

Passionate about development and how to make it work in all terrain.
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