The Concept of Human Capital

Abstract

A key factor in China's economic success over the past 70 years has been the rapid and qualitative growth of human capital. The article examines the concept of human capital, the related elements of ancient Chinese culture, and explains the historical reasons why the Chinese Communist Party (CCP) has paid special attention to education and human capital. The findings show that the PRC's great achievements in human capital development and economic growth are due, on the one hand, to the CCP's emphasis on education, especially during the period of reform and opening up, and on the other hand, to the long-term influence of Chinese ancient Confucianism philosophy. In the past, academia attempted to explain the brief decline in the mid-nineteenth and first half of the twentieth centuries by the negative influence of Chinese traditional culture, while ignoring its role in providing high potential human capital, which in turn contributed to long-term economic growth. The ideas of China's leaders echo the theory of human capital put forward by European scholars. China is placing increasing emphasis on the economic function of education. The education sector is now seen as an important sector for raising scientific and cultural standards. Xi Jinping, the current leader of China, also attaches great importance to the inheritance and development of Confucian educational thought. In his speeches he repeatedly calls on young people to strengthen moral education and self-education. The priority of education is stressed, as well as the separate importance of the educational function of higher education. At a time when science and technology are developing rapidly without any constraints, they reduce the role of the human factor in the development of civilization to a certain extent. In this context, it may be appropriate to consider the value of the human being and the importance of education in the context of traditional oriental culture. Confucianism not only played a key role in the educational and economic development of Chinese society, but also had a wide impact on the countries of Southeast Asia.