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Human capital doesn't automatically indicate economic prowess; you have to remember there's around 700M in China that still lives in rural areas with under $1 a
by coumygen 9y ago
Human capital doesn't automatically indicate economic prowess; you have to remember there's around 700M in China that still lives in rural areas with under $1 a day, and they can't get the jobs in urban cities because those jobs are going away due to moving to cheaper SE asia countries, robots, and lack of skillsets.
- pcnonpc 9y agoThe current statistics in 2017 is around 600 million in rural area. Their monthly income is 3300 yuan or around 500 USD, more than $15 a day. According to World Bank, a country with $6000 USD a year is upper-middle income. If you count their rural areas as a nation, its GDP is $3.6 trillion around the same size as Germany, 4th largest in the world.
- Cyph0n 9y agoBut it does indicate potential for economic growth... South Korea is a good example of an economy that has outgrown the available human capital.
- visarga 9y agoYes, but among many poor students there can be plenty of very smart and talented ones. When you have 1.4 billion people, you got a lot of chances. The prospect of a better life and the parenting culture geared towards education are powerful motivators as well.
- kercker 9y agoFrom Word Bank: "According to China’s current poverty standard (per capita rural net income of RMB 2,300 per year in 2010 constant prices), there were 55 million poor in rural areas in 2015." Your statement "there's around 700M in China that still lives in rural areas with under $1 a day" is simply wrong. [1] http://www.worldbank.org/en/country/china/overview http://www.worldbank.org/en/country/china/overview