SALAGUBANG, AILEEN D.

MWF 2:00-3:00

BSAC2- AAF

ACTIVITY 1

A. Describe the present economy

Global economy is defined as an economic interdependence established between the most

influential countries that drives the worldwide economic environment. During the past economic
strength, it was largely dependent on hard, physical asset. But at these days, a major source of growth
comes not from physical objects but something quite intangible: information, especially when it comes
to technology. Wherein that information technologies are felt in every aspects of business life. But
importantly, it takes people – people with the skills and knowledge to make it work and transform into
economic growth.

B. What is Theodore Schultz concept of human development?

An American economist named Theodore Schultz introduces theory of human capital. He

observed that “economist have long known that people are important part of the wealth of the
nations”. Schultz also pointed out, is that individuals consciously invest in themselves to improve their
own, personal economic returns. Both knowledge and skills are a form of capital and that this capital a
product of “deliberate investment”.

The investments by individuals in themselves, most commonly improving their education, yields
real improvements in personal income and well-being. Essentially, what Schultz and other economist
were saying was, a modern economy can’t grow without an educated workforce.

ACTIVITY 2

HUMAN CAPITAL

Economic Benefits of Human Capital Relationship between Education

1. Increase Earnings and Human Capital

2. Due to higher labor, economic growth 1. Create well-educated workers that can
potential help economic growth

2. The quality of work can be improved by

investing in people’s education
Explain the meaning of the diagram below.

ECONOMIC

HUMAN DEVELOPMENT

CAPITAL

Education

GENDER BIASES

Health

Human capital affect economic growth and can help to develop an economy by expanding the
knowledge and skills of its people. The concept of human capital is the realization that not everyone has
the same skill sets or knowledge. Also, the quality of work can be improved by investing in people’s
education. But human capital and economic growth is affected by the gender bias set under education
and health. Wherein girls face discrimination. They have less priority over the boys because they believe
that boys are the one who work for their family and more inclined for work forces in achieving economic
development.

ACTIVITY 3: EDUCATIONAL SYSTEM AND DEVELOPMENT

Education is analyzed as being important role in the society, where the structure of
learning, teaching and environment is frequently debated as main factor responsible for the
development of the people. Education enriches people’s understanding of themselves and
world. No country can achieve sustainable economic development without substantial
investment in human capital. This is why education system, and the structure for teaching shall
be considered seriously.
Education in the Philippines is managed and regulated by the DepEd. The department of
education controls the Philippine educational system, including the curriculum used in schools
and the collection of funds. There are lot of problems regarding the Philippine educational
system that we need to face. Wherein DepEd has already taken several measures in order to
solve these problems. There is the mother tongue-base multilingual education which aims to
use the native language of children, and K-12 program which aims to produce graduates that
are globally competitive. The incumbent government is taking big leaps in our education system
which may dictate the future of our country. We must not forget to remind them that above
everything else, we must prioritize the quality of education that every Filipinos will get. And the
government and its constituents must help each other hand-in-hand to achieve the best kind of
education we can get.
References: Asis, JC. 2014 Quality of Philippine Education.
Ozturk, I. 2001. February. The Role of Education in Economic Development: A
Theoretical Perspective