Human Capital: Education and Health in Economic  Development
I‐Specificity and role of human capital in economic development  
Specificity and the role of human capital in economic development
Modernization increases the valorization of human capital:
II-2-Why is human capital not a magic bullet

II-2-Why is human capital not a magic bullet

A-Incentives are crucialHuman capital investment is the result of a cost/benefit analysis.-Even if costs are zero, need to have positive benefits‐in some circumstances benefits are negative and so is employment: frustration-in some circumstances private benefits are positive but social benefits are negative:- corruption;-international;-emigrationB-Benefits of human capital spending depend on complementary elementsIn the health and education system: quality versus quantity-Availability of books, medicine and beds-Presence and quality of professors and doctors-Even if free, there are hidden costs-Opportunity cost of time-Transportation costs-Cultural distanceIn the economy-job opportunity: unemployment is preferred to downgrading-O-Ring effects-Institutions: corruption can divert resources targeted to human capitalC-Inappropriate human capital investment systems in LDCs [A: Over-investment](see diagram)