JOURNAL ON HUMAN CAPACITY:BUILDING HUMAN CAPACITY FOR POVERTY REDUCTION IN TANZANIA

1. INTRODUCTION
This paper discusses the importance of building the human capital/capacity for development and poverty reduction. It includes the introduction, theoretical literature review, empirical literature review, policy review and conclusion.

2. THEORETICAL LITERATURE REVIEW
Building human capital or capacity is essential component in poverty reduction and achievement of Millennium Development Goals (MDGs). One of its strategies is to improve the quality of life of poor and those vulnerable to poverty through building human capital.

2.1 What is human Capacity?
Human capital or capacity sometimes it is called labour, and it can be described as human resource. It is person energy, body or physical, psychological resource (Brain) used to create variable services for best full, useful services, something which create value or economic value. Human capital means people. There are key principles that are central to the human capital idea. First, people are assets whose value can be enhanced through investment. As with any investment, the goal is to maximize value while managing risk. As the value of people increases, performance capacity of the organization also increases, and therefore its value clients and other stakeholders. Second as organization’s human capital policies should aligned to support the organization’s shared vision. All human capital policies and practices should be designed, implemented and assessed by the standard of how well they help the organization purse its shared vision. (GAO, 2000)

2.2 Original concept of Human capital
Refers to the stock of productive skills and technical knowledge embodied in labour many early economic theories refer to it simply as labor, one of three factors of production and consider it to be a fungible resource homogeneous and easily interchangeable. Other conceptions of labor dispense with these assumptions (Wikipedia, the free encyclopedia)
Adam Smith defined four types of fixed capital (which is characterized as that which affords a revenue or profit without circulating or changing masters). The four types were:-
1) Useful machines, instruments of the trade
2) Buildings as the means of procuring renew
3) Improvement of land and Human capital.
4) Acquired and useful abilities of all the inhabitants or members of the society.

The acquisition of such talents, by the maintenance of the acquirer during his education, study, or apprenticeship, always costs a real expense, which is a capital fixed and realized, as it were, in his person. The improved dexterity of a workman may be considered in the same light as a machine or instrument of trade which facilitate a bridges labour, and which though it costs a certain expense, repays that expense with a profit.

Therefore, human capital (as defined by Smith) and the productive power of labour are both dependent on the division of labour – The greatest improvement in the productive powers of labour, and the greater part of the skill, dexterity, and judgment with which it is any where directed, or applied, seem to have been the effects of the division of labour. There is a complex relationship between the division of labour and human capital; they are likewise that of the society to which he belongs. The improved dexterity of a workman may be considered in the same light as a machine or instrument of trade which facilitates and abridges labour, and which, though it costs a certain expense, repays that expense with profit.

Therefore, human capital (as defined by Smith) and the productive power of labour are both dependent on the division of labour – The greatest improvement in the productive powers of labour, and the greater part of the skill, dexterity, and judgment with which it is any where directed, or applied, seem to have been the effects of the division of labour. There is a complex relationship between the division of labour and human capital.
In short, Smith saw human capital as skills, dexterity (physical, intellectual, psychological) and judgment.

Lewis is said to have begun the field of Economic Development and consequently the idea of human capital when he wrote in 1954 the "Economic Development with Unlimited Supplies of Labour." The term 'Human Capital' was not used due to its negative undertones until it was first discussed by Arthur Cecil Pigou,: "There is such a thing as investment in human capital as well as investment in material capital. So soon as this is recognized, the distinction between economy in consumption and economy in investment becomes blurred. For, up to a point, consumption is investment in personal productive capacity.

This is especially important in connection with children: to reduce unduly expenditure on their consumption may greatly lower their efficiency in after-life. Even for adults, after we have descended a certain distance along the scale of wealth, so that we are beyond the region of luxuries and "unnecessary" comforts, check person consumption is also a check to investment. The use of the term in the modern neoclassical economic literature dates back to Jacob Mincer's pioneering article "Investment in Human Capital and Personal Income Distribution" in The Journal of Political Economy in 1958. The best-known application of the idea of "human capital" in economics is that of Mincer and Gary Becker of the "Chicago School" of economics. Becker's book entitled Human Capital, published in 1964, became a standard reference for many years. In this view, human capital is similar to "physical means of production", e.g., factories and machines: one can invest in human capital (via education, training, medical treatment) and one's outputs depend partly on the rate of return on the human capital one owns. Thus, human capital is a means of production, into which additional investment yields additional output. Human capital is substitutable, but not transferable like land, labor, or fixed capital.


2.3 Human capital and labor power
In some way, the idea of "human capital" is similar to Karl Marx's concept of labor power: to him, under capitalism workers had to sell their labor power in order to receive income (wages and salaries). But long before Mincer or Becker wrote, Marx pointed to "two disagreeably frustrating facts" with theories that equate wages or salaries with the interest on human capital.
The worker must actually work; exert his or her mind and body, to earn this "interest." Marx strongly distinguished between one's capacity to work, Labour power, and one's very human activity of working.

A free worker cannot sell his human capital to receive money revenues; it is far from being a liquid asset. He does not sell his skills, but contracts to utilize those skills. Even a slave, whose human capital can be sold, does not earn an income him- or herself; instead, the slave-owner gets the income. Under capitalism, to earn income, a worker must agree to the labor conditions (including obedience to the rules and directives) of an employer who wants to hire for a specific period of time.

The latter means that the employer must be receiving an adequate rate of profit from his or her operations, so that workers must be producing surplus-value, i.e., doing work beyond that necessary to maintain their labor power. [2] Though having "human capital" gives workers some benefits, they are still dependent on the owners of non-human wealth for their live hood.

2.4 Human capital mobility.
There is a global debate regarding the fair distribution of human capital. This is most pointed with respect to educated individuals, who typically migrate from poorer places to richer places seeking opportunity, making 'the rich richer and the poor poorer'. When workers migrate, their early care and education generally benefit the country where they move to work. And, when they have health problems or retire, their care and retirement pension will typically be paid in the new country.

African nations have invoked this argument with respect to slavery, other colonized peoples have invoked it with respect to the "brain drain" or "human capital flight" which occurs when the most talented individuals (those with the most individual capital) depart for education or opportunity to the colonizing country (historically, Britain and France and the U.S.A.). Even in Canada and other developed nations, the loss of human capital is considered a problem that can only be offset by further draws on the human capital of poorer nations via immigration. However, the economic impact of immigration to Canada can be described as mixed at best.

During the late 19th and early 20th centuries, human capital in the United States became considerably more valuable as the need for skilled labor came with newfound technological advancement. New techniques and processes required further education than the norm of primary schooling, which thus led to the creation of more formalized schooling across the nation. This early insight into the need for education allowed for a significant jump in US productivity and economic prosperity, when compared to other world leaders at time.

The rights and freedom of individuals to travel and opportunity, despite some historical exceptions such as the Soviet bloc and its "Iron Curtain", seem to consistently outweigh the rights of nation-states that nurture and educate them. One must also remember that the ability to have mobility with regards to where people want to move and work is a part of their human capital. Being able to move from one area to the next is ability and a benefit of having human capital. To restrict people from doing so would be to inherently lower their human capital

2.5 Investing in Human labor
Investment in education, training, and other development opportunities to help people or employees build the competencies needed to achieve the best result is crucial. There is need of planning for individuals development at all levels. Adequate opportunities for career advancement, an equitable promotion system, professional rewarding, is an important for human development provision of friendly working environment for the employees. The employers should provide feasibilities, facilities, services and work life programs to be conducive for the employees to share talents, enhance satisfactions and commitment to work. The empowerment, and motivation of the employee while ensuring the accountability and fairness in workplace is also important for human labour investment as well as high performance of the organization it fosters a work environment and mission accomplishment.

Nutritional food, for the quality products, i.e balanced diet for body building, energy and body immunity or defense against diseases. Good health (Spiritual, mentally and physically) is party of human investment, Healthy individuals can do better work than poor health people. Investing in the brain through different training methodologies, i.e psychological approach, scientific approach, and discovery methods, cognitive and psychomotor approach are useful methods to enhance or facilitate learning (change of behavior),

3. EMPIRICAL LITERATURE REVIEW
3.1 Movement in developing human capital in Tanzania.
Mwl. Nyerere emphasized on education for liberation and development of self confidence and self reliance. The budgeting for the education of our children should emphasize in policy which develop human capacity, and good food investment and priorities on the training of engineers, doctors and other technical personnel various position. We have to look at the human capacity in the international level and global level. We also have to train people who can work in all levels.

Nyerere put into concrete form about education in the Arusha Declaration and education for self- reliance (1967). According to mwalimu Nyerere the aim of education for self reliance was advocated that education should be given to every individual in nation so to transmit accumulated wisdom and knowledge from one generation to the other. In this way the younger generation would be prepared for their future membership of their society.

Related to this Nyerere’s idea that education is for services it should aim at producing workers, farmers, technicians, and other categories of workers. These people should not be robots; they should be able to judge, to interpret and to implement whatever they are called upon to do.

Education should develop an individuals an inquiring mind, an ability to learn from others with discrimination and a basic confidence in their own positions as free and equal members of the society, so as to enable them to judge social issues themselves. Moreover education should increase man’s power himself and his environment. Nyerere says the function of learning is the development of men and of mankind, a man in his natural setting is destructive to him and surrounding. Education should enlighten and show him how and why he should limit his desires.

Lastly the aim of education is related to the one we have just mentioned, is that education should liberate man. He said the primary purpose of education is liberation of man. Education has to make a human being in the sense that his potentials have o be revealed to him through this agency. The education should prepare people to work in all sectors, agriculture, in rural areas, professionals in other sectors such as engineering, health, education e.t.c. Therefore it is important for the government should increase the production of Labour force using its institutions and Universities. The human development index (2000) attempted to profile current condition in Tanzania education sector and expended the discussion be about human development. The private role of formal education in that effort and the role of all types of learning in building the country future The Tanzania government and donors are properly concerning about investing in human capacity, has a multiple effect e.g. in preventive health measures and agriculture projects. Building human capacity is the key solution for HIV/AIDS prevention and AIDS management as well as poverty reduction.

4. POLICY REVIEW
The paper expose you to two national policies related to human capacity which include:-
The National policy for youth development
Objectives are:
Ø To improve the life of youths, men and women by developing them in sectors of economy, culture, politics, up-bringing, education and health.
Ø To sensitize youths and society awareness, promotion and defending youth rights according to the national constitution.
Ø To associate departments, institutions and various organizations in implementing youth development programs with the aim of mitigating economic, social, political and culture negative effects.
Ø To prepare youth physically, mentally, economical, politically and culturally so that they can take over various responsibilities as good citizens, parents and leaders in a society.
Ø To enable youths participate in the struggle to bring social and national development.

The National employment policy
The objectives are:
Ø To prepare a conducive environment for the unemployed to employ themselves by directing more resources to the self employment sectors.
Ø To identify potential areas for employment and to lay down strategies of how to utilize such areas in promoting employment in the country.
Ø To prepare special procedure for coordination and development of sources of employment including creation of a body that will supervise implementation of the employment policy.
Ø Continuous application of simple and appropriate technology in order to increase labor productivity.
Ø To imitate a special system whereby employers and job seekers will be made aware of the existing supply and demand of labor.
Ø To strengthen (through removal of legal bottlenecks) the relationship between formal sector and that of self employment.
Ø To develop the self employment sector in rural areas so as to reduce the rate of migration to urban areas.
Ø To involve various groups/organizations of people in all employment programs including women, youths, people with disabilities, retired people and retrenches.
Ø To encourage self employment activities in the informal sector because this sector has abundant wealth this has not been exploited significantly.
Ø To see to it that initiation of self employment activities will be based on the awareness that there are industries which will be linked to such activities in terms of inputs and outputs.
Ø To direct most of the labor force to the currently unattractively sectors in order to make them attractive for production. Such sectors are agriculture, livestock and cooperatives. There is also need to promote use of existing rural wealth which would be sold to earn money which would be used to strengthen small scale activities. These small activities are intended to grow into large scale activities which will stimulate agriculture production through use of its raw materials or processing of its products at primary and secondary level.

Referring to the objectives of the two policies above, the government of Tanzania indicate that has put more effort to allow enabling environment for human capacity to grow. The government of Tanzania has put more effort to stabilize the economy of the country through encouraging private sector to engage in economic growth. This opportunity has helped many people including women and youth to acquire entrepreneurship skills through private sector and start small scale business and improve agricultural practices.

CONCLUSION
We cannot remove poverty without development of human capacity/ man power. People should have confidence, self – reliance and men should work hard themselves for poverty eradication. There was need of developing the policies which will enhance the efficiency of the work of our people, formulating the anti- corruption units, the need of accountability and transparency which is offered through good governance.
Need of giving priority in education in education sector, the government should value education in all levels and allocate enough budget to avoid the linkage of human capacity.