Human resource development, structural transformation, employment generation and innovation: India, China, Japan and South Korea, 1990-2016

Abstract

The speed at which the economy transforms is the crucial factor that determines the convergence or divergence of any country. In this connection, the present study aims to highlight the role of human development, productivity through innovation and structural transformation among the successful East Asian nations of China, Japan, South Korea and the Indian case for that of development. It is the vast gaps in productivity between the traditional agriculture sector and modern manufacturing sector responsible for the creating gaps among the successful East Asian nations and developing India. Such gaps may be minimized only through the investment in Human development, innovation, and technology. Increase in labor productivity will create jobs in the manufacturing sector, allow an increase in real labour incomes which is necessary for the poverty reduction and human development and crucial way of enhancing the standard of living as well. Furthermore, to improve the high tech exports, it is imperative to invest in skill development, technological advancement as done so far by the mentioned East Asian nations and is the sure way of enhancing productivity. India needs to foster its productivity measures for desirable structural change to create jobs through experimental and pragmatic policies as also claimed by Professor Dani Rodrik. The employment-oriented growth strategy is essential for harnessing the potential of demographic dividend in the growing working-age population of China and India. Furthermore creating jobs in small industries for which two-thirds of total employment in the Asia Pacific is vital for the inclusive growth especially in India.