3.3 HUMAN CAPITAL THEORY
3.3.3 THE THREE ELEMENTS OF HUMAN CAPITAL THEORY
3.3.3.3 ADVANCEMENT OF POPULATION
The third element of HCT pertains to the advancement of the population. Biddle and Holden (2016:1) postulate that HCT promotes the advancement of the population through investment in education which first leads to faster economic growth and then poverty reduction. According
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to Le Grange (2011:1039) Human Capital Theory holds that economic growth depends on investment in education and that economic growth is the basis for improving the quality of human life. Consequently, Le Grange (2011:1039) further argues that the increasing inequalities between rich and poor, as well as the increasing poverty levels globally and also within nations such as South Africa, can be addressed through economic growth in poorer countries where there are sharp inequalities. Hence, exponents of Human Capital Theory hold the view that economic growth depends on investment in education (Le Grange, 2011:1040).
This view is supported by Laroche, Merette and Ruggeri (1998:5) who assert that human capital is represented by the aggregation of investments in activities, such as education, health, on-the- job training and migration that enhance an individual’s productivity in the labour market. Le Grange (2011:1039) further argues that Human Capable Theory shifts the focus away from economic growth as a measure of how the quality of life of a nation is improving, but instead, it underscores what people are able to do and can be, and the real opportunities available to them as well as their capabilities as more important. Similarly, according to Saima et al (2012:1), investment in education to increase economic growth is one form of human development strategy that contributes to skilled labour which leads to increased development and improved quality of life. In addition, Alam (2009:1262) citing Hallak (1990) asserts that investment in education contributes to the following aspects of the population:
individual originality, meaninful contribution to the socio-economic and cultural development of society;
better understanding of individuals and their admiration of fellow citizens, thereby strengthening social cohesion;
good nutrition and physical health condition;
enhanced prospects of commercial prosperity and growth;
improvement in advancement of technology;
facilitation of cultural and social transformation;
promoting equality and democracy; and
conscientising citizens about the value of their immediate environment.
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With regard to the Edendale community, it cannot be said that all of the above-mentioned aspects apply to its population for reasons mentioned below: Firstly, the rate of unemployment of the Greater Edendale area is about 33% (Census 2011) as cited in the Municipal IDP Document (2016). Secondly, in the greater Edendale area, the rate of illiteracy is about 5.5%
and residents with qualifications higher than a matric is only 33.7% (Census 2011) as cited in the Msunduzi Municipal IDP Document (2016). The 5.5% illiterate rate of the greater Edendale community means that a large number of people cannot read nor write. The fact that 33.7% of the Edendale residents have post-matric qualifications means that about 66.3% of the Edendale population do not have any formal post-matric education and thus, no training and skills necessary for an individual to participate and contribute meaningfully to economic activities and the economic growth of South Africa. The 33.7% unemployment rate of Greater Edendale is in fact higher than the current South African National unemployment rate of 27.7% (Lehohla, 2017:1). The high rate of unemployment within the greater Edendale community, coupled with the high number of residents without post-matric qualifications and the 5.5% of illiteracy rate, imply that the community of Edendale is likely to experience:
a low quality of life;
high levels of poverty;
higher inequalities between the rich and poor;
lagging behind in terms of technological advancement; inability to contribute to South Africa’s economic growth; and
perpetual dependency on state-grants for survival.
Lehohla (2017:1) correctly argues that jobs, and not state grants, are the only way out of poverty. Furthermore, Lehohla (2017) argues that unemployment and poverty are intertwined and people can only escape the poverty trap if they find work and become economically active and productive.
To mitigate the above-mentioned challenges relating to high unemployment levels and illiteracy rate within the Edendale community, the KZN-DAC needs to consider initiating certain interventions at policy level in line with National Policy Frameworks discussed in detail in Chapter Two. The KZN-DAC should make funds available for investment in education and skills development geared towards equipping public librarians with the relevant skills and knowledge for promoting a culture of reading in communities.
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A strong culture of reading would strengthen other literacy initiatives of Government such as ABET (1995); SANLI (2000); the Kha Ri Gude Literacy Campaign (2008); the Book Club Initiative (2008); the NBW (2010); the Ithuteng “Ready to Learn Campaign” (1996); the Skills Education and Training Authorities (Setas) (2005) as well as the National School of Government NSG (2013) training programmes which seek to address the systemic challenges of public service delivery through the learning and development of public officials; etc. The success of these literacy campaigns coupled with a strong culture of reading in communities would ensure that citizens are able to access information and knowledge which is necessary for economic participation; entrepreneurship; personal development; and a better quality of life.
The promotion of a culture of reading in the Edendale community could be achieved if the KZN-DAC HRD Unit policy makers could view this campaign from the point of view of HCT.
According to the principles of HCT, investment in education and training leads to the efficiency and productivity of employees which in turn results in the advancement of the population (Saima et al, 2015:61). In terms of the study, this view implies that making funds available for the training of public librarians to equip them with the appropriate skills for promoting a culture of reading would make them more successful in making reading fun and enjoyable in communities and in the end, the society will be able to access information and experience a better life.
The KZN-DAC HRD Unit should not regard investment in the skills development of public librarians only as one form of consumption, but also as a way that will ultimately contribute to economic growth. Investing in skills development of public librarians towards the promotion of the culture of reading would put communities like the Edendale community, in a position to reduce the high unemployment levels and illiteracy rate in order to enjoy an improved quality of life. For this reason, the KZN-DAC has to set aside a budget for initiatives geared towards the promotion of a culture of reading in communities.