Part One: Analytical Framework

II Key issues

III Principles

I. THE CORE CONCEPT

1. The concept of human resources development introduced in the Jakarta Plan of Action presents a human perspective of the development process as a whole. Human resources development is a continuing and iterative process comprising three interdependent components: (a) investment in human resources to enhance productive capabilities; (b) the utilization of those human resources to produce increased output; and (c) the participation of the human beings who embody those human resources in the benefits arising out of that increased output through an enhanced quality of life. The essential interdependence of the components of human resources development is shown in the following diagram.

2. Sustainable human resources development must involve all three components. At the national level, investment in human resources must be translated into the effective utilization of those human resources if national output is to be increased on a sustained basis. At the individual level, investment in human resources to improve earning capabilities through employment or self-employment increases the incentives for individuals (and their families) to undertake further human resources development. It also increases their capability to finance future such development.

3. The concept of human resources development presented in the Jakarta Plan of Action emphasizes the synergistic congruence particularly strong in developing countries between investment in human resources and improvements in the quality of life. Improvements in nutrition, health and education are key elements of an improved quality of life and thus must be considered important investments in human resources. Conversely, the increased job satisfaction and sense of personal worth arising from increased productivity constitute an important contribution to the quality of life.

4. Participation and choice are also key elements of this holistic view of human resources development. The financial reward obtained from participation in productive activity is the principal means by which individuals are able to participate in the quality-of-life benefits that are created by development. The enhanced capabilities created by development enlarge the choices available to both individuals and nations, while the individual nature of many aspects of human resources development makes individual choice a key element in the process of such development.

6. At the individual level, human resources development is a dynamic process that can be described in terms of a modified form of the cost-benefit framework developed in human capital theory. The essential element in that process is the net benefit or return on investment. This provides the incentive that motivates the individual to improve human resources and, over time, provides the increased resources that enable human resource investments to be undertaken and maintained. The cost-benefit framework (benefits - costs = returns) encompasses all three components of human resources development. The costs relate to the investments in improving the productivity of human resources, while the benefits are produced when those investments are subsequently utilized in production. The returns (net benefit) obtained, usually, but by no means solely, identifiable in terms of increased income, provide beneficiaries with an opportunity to improve their quality of life.

7. Any decision to invest in human resources development involves both costs and benefits, both monetary and non-monetary. For instance, most investments in human resources (for example, undertaking a course of education or training) involve not only financial outlays but also considerable time, an important component of the total investment cost being the opportunity cost (that is, the notional income that could have been earned during that time if the individual had not been engaged in the course). Although conventional economic applications of cost-benefit analysis tend to emphasize the monetary costs and benefits, the non-monetary costs and benefits are also important, possibly even more so. Non-monetary costs include social and psychological injury, such as the social disapproval or stress that individuals may experience as a result of particular lifestyle, career or other such decisions. Similarly, non-monetary benefits such as personal satisfaction, prestige or enhanced social status may be important in motivating individuals to invest in human resources development.

8. The cost-benefit framework emphasizes that the critical consideration which motivates the individual's decision to invest is the return on investment. As the poor are generally unaware of or otherwise constrained from realizing the net benefit to be derived from investments in human resources development, their investment incentives are likely to be weaker than those of other social groups. That decision-making weakness implies the need for a demand-oriented approach that focuses on the means of increasing the motivation of the poor to undertake human resources development.

9. Applied at the aggregate or national level, the cost-benefit framework must be modified in two critical respects. Whereas an increase in individual income is a sufficient incentive for an individual to consider a given investment in human resources development to be efficient, at the national level efficiency requires that the total national product be increased. These may not be equivalent conditions. For example, if investments such as higher education do not enhance productivity but merely improve individuals' access to jobs, the net impact of such investments on national income may be zero or even negative.

11. While the critical importance of human resources for development is not a new idea, the concept of human resources development as perceived by the Commission goes further. The Commission has recognized that human resources development is a broad concept encompassing both the means and ends of development and that it is equally essential for both economic and social progress. The interrelationships between human resources development activities within as well as among sectors require sustained attention if their positive potential for development is to be harnessed effectively. Likewise, the opportunities provided by human resources development should facilitate broad-based participation by the people in the development process, with special consideration to the participation of the poor.

II. KEY ISSUES

12. Implementation of a plan of action on human resources development for the ESCAP region requires a common understanding of the key analytical issues to be dealt with by all countries. The basic issues associated with the analytical framework developed for the Jakarta Plan of Action are as follows.

A. Components of human resources development

13. Human resources development is a multidimensional, dynamic concept that encompasses the dual roles of people as inputs into the development process and as the ultimate beneficiaries of that process. The essential elements of human resources development are (a) investment in human resources, (b) utilization of human resources, and (c) enhancement of the quality of life. These three components form a set of complementary, interdependent relationships. No individual component can be fully examined without reference to the others; yet each provides unique insights into the nature of the overall problem of human resources development and the means whereby it can be resolved effectively and efficiently. Together they provide an integrated framework for examining the human resources development process. The priority issues to be considered under each component are as follows.

1. Investment in human resources

14. Investment in human resources focuses on the processes by which the productive capacity of human resources can be increased by upgrading their quality. While better nutrition and health are important means of improving the quality of human resources, particularly in developing countries, it is generally agreed that the most critical processes for increasing the productivity of human beings are education and training. The proposals for action contained in the Plan embody a comprehensive view of education, encompassing the formal education system at all levels as well as lifelong education in the form of adult and continuing education programmes. Training is similarly broadly conceived to include skills development through post-school vocational and technical training, on-the-job training, retraining and community-based training. International economic trends and new technologies make it extremely difficult to predict the kinds of expertise that will be needed in the medium and long terms. Therefore, education and training efforts should be focused on creating broad-based productive capabilities rather than a narrowly skilled workforce. A strong basic education, it is well recognized, can enhance lifelong adaptability, flexibility and mobility and can serve as sound preparation for training in specific skills. It can generate broad social benefits and provide the poor with access to opportunities that would be undreamed of otherwise.

2. Utilization of human resources

15. Effective utilization of labour is vital in order to ensure incentives that are strong enough to elicit initial investments in human resources development and a level of economic growth high enough to provide adequate resources for sustained investment in human resources development. While many countries in the region continue to face strong restructuring pressure that results in high levels of unemployment and underemployment, others that have achieved high levels of economic growth are beginning to experience labour shortages in specific sectors. Past, and in many developing countries continuing, rapid increases in population have resulted in a rapidly growing labour force throughout most of the region. In a number of countries, rapid population growth has also contributed to the generally low prevailing levels of education and skill. Changes in the composition of global demand for goods and services have made it imperative for developing countries to reduce their dependence on the production of labour-intensive primary commodities and emphasize the production of more skills- and capital-intensive modern industries and services. As a result, serious unemployment and underemployment situations have arisen in some cases in the agrarian sector and unskilled labour market. For many developing countries, additional problems have appeared with respect to matching labour demand and supply, associated with unstable or deteriorating domestic and international demand conditions. Under such circumstances, policy changes are required to create an economic environment providing adequate employment opportunities, efficient labour market signals and a structure of incentives that will enhance labour utilization and investment in training. Many countries in the region are also focusing increasingly on the potential of self-employment, entrepreneurship and the expansion of the informal sector, as well as international labour migration, to utilize their human resources better.

3. Enhancement of the quality of life

16. The evident inability of the development process to generate substantial improvement in national and international equity or eradicate poverty in many developing countries has little likelihood of being overcome unless carefully coordinated remedial strategies, policies and programmes are introduced in a number of key sectors, including education, health, population, urbanization and the environment. Tapping the potential of the underutilized human resources represented by the poor would generate significant socio-economic progress while simultaneously enhancing the quality of life of the people in greatest need. Conversely, improvements in the quality of life of the poor would have a significant impact on their productive capability. Practical measures for improving the living conditions of the poor and increasing their level of participation in society will need to be identified and implemented vigorously if those benefits are to be realized.

B. Priority concerns

17. The revised Jakarta Plan of Action identifies four priority areas of special concern for human resources development: targeting the poor, enhancing competitiveness, developing women's human resources, and harnessing science and technology.

1. Targeting the poor

18. The productive capabilities and resilience of individuals, communities and organizations to deal with rapidly changing economic and social circumstances must be strengthened at all levels and among all sections of society if the Plan is to succeed in upgrading the region's human resources. However, no national or regional development plan can hope to have a direct influence on every individual, community and organization, especially in the presence of the severe physical and financial resource constraints prevalent in developing countries throughout Asia and the Pacific. It is therefore necessary that target groups for human resources development be identified.

19. Target groups should be selected on the basis of cost-benefit criteria, including the prospective linkages and multiplier effects, of the human resources development programmes directed at them. The poor form the obvious first-priority target for human resources development, not only because of the egalitarian and humanitarian ideals that would be served thereby but, equally important, because of the high long-term returns on investment that would be achieved.

20. The poor, by no means a homogeneous group, bear different costs and receive benefits depending on the human resources development programme as well as the particular segments of the poor population most directly affected. Targeting is therefore essential for effective programme delivery. Furthermore, in the absence of careful targeting, human resources development programmes intended for the poor are likely to be captured by the non-poor. Targeting requires the identification of specific subgroups among the poor, such as the absolute poor, the unemployed, women, youth, disabled persons, and minority groups, so that programmes can be adapted to the specific characteristics and circumstances of the individual subgroups.

21. The rationale for identifying target groups under the Plan coincides with the Commission's priorities under its revised conference structure as delineated in resolution 48/2 of 23 April 1992. Under that resolution, the Commission established three thematic committees, one of which was to deal with issues specifically related to poverty alleviation. The terms of reference of that thematic committee (contained in annex V to the resolution), which oversees the Commission's activities in support of human resources development, refer specifically to vulnerable and disadvantaged social groups as the focus of its attention.

2. Enhancing competitiveness

22. With the growing importance of international trade, capital flows and technology transfer for national development throughout the region, strategic approaches to the creation of national comparative advantage in specific areas of production are being increasingly sought. Human resources development, which is the most adaptable, energy-efficient and self-sustaining form of capital, is an essential element of such an approach.

23. Efforts to enhance national competitiveness in particular activities require human resources development policies that are compatible with economic growth and promote flexibility and continuous skills development. Human capital formation through formal and informal education and on-the-job training is critical. Investment in improving the education and skill levels of the population is likely to be the most important determinant of long-term national economic performance.

24. The structure of incentives is a key to effective and efficient skill development. The most successful programmes place high priority on the design of incentives that maximize the rewards to individuals for effort, initiative and creative ability in response to market forces. The challenge is to move from rigid and supply-oriented training policies and programmes financed and provided by Governments to more adaptable, demand-oriented, employer-sponsored training, while establishing appropriate, complementary roles for the State. A second priority is to empower the people with the knowledge and skills necessary to take advantage of opportunities for their own economic and social advancement. Paramount among the means of such empowerment is investment in education, complemented by investment in nutrition and health.

3. Developing women's human resources

25. The development record shows a persistent bias against investment in women's human resources. It also reveals a consistent pattern of underutilization of those resources. Furthermore, women throughout the region enjoy a lower quality of life than do their male counterparts. Recognition of the essential interdependence of the three components of human resources development is particularly important in the case of women. Their lower level of human resources development compared with that of men is an important factor in the overall development situation in the region.

26. Women have lower levels of human resources development than men in part because development programmes have failed to take account of the influence of gender on the costs and benefits of human resources development. Therefore, it is essential that gender equity be accepted as a primary consideration in all policy formulation, planning and programming for such development. To achieve that objective, the specific roles, interests and concerns of women should be identified through gender analysis; increased participation of women should be ensured in decision-making; and gender-sensitive data should be used in order to enhance women's human resources development and their participation in development as beneficiaries and agents of change.

4. Harnessing science and technology

27. Rapid accretions to the international fund of science and technology continue to revise the agenda of development opportunities in Asia and the Pacific. Unless vigorous steps are taken to adapt human resources to the new realities, the development potential embodied in modern science and technology may be lost to the region's developing countries. New technologies must also be adapted to the region's labour-dominant factor proportions. Furthermore, the new technologies are also useful for addressing the region's pressing human resources investment needs; attention can be turned to both the generation of skilled personnel for the promotion of science and technology and the utilization of science and technology to upgrade the full range of human resources, including those of the poor.

C. The role of government and other enabler groups

28. Over the past half-century, many countries in the ESCAP region placed considerable reliance on the public sector, confident that government would be able to guide the course of economic and social development. Mounting problems in the application of that development strategy, however, have in recent years generated far-reaching changes throughout the region. Yet, the primary responsibility for human resources development remains the province of government because of externalities of much human resources investment and problems of access for the poor. Increasingly, however, the role of government has come to emphasize the human resources development aspects of macro-policy and the provision of a physical and social environment conducive to individual initiative. The human resources development role of business enterprises, NGOs and other economic and social institutions has expanded correspondingly.

29. The decentralization of political authority which has accompanied the process of liberalization in many countries has provided an opportunity for the people themselves increasingly to influence the economic and social forces that shape their lives. A new configuration of organizations has emerged in that context to complement the role of government as agent of development. The Plan classifies all those actors, including the agents of government, as enablers of human resources development, whose own human resources must be upgraded in order to implement effectively the programmes and projects called for under the Plan.

30. Enablers are drawn from among those which come into direct contact with the disadvantaged sections of society. Particularly important are government agencies responsible for local-level public administration, where the weaknesses of human resources development policy implementation are often most keenly felt; agencies responsible for the delivery of essential services at the local level, including primary schools; local health offices and agricultural extension bureaux; business firms, which are not only responsible for providing employment but are also sources of technological and other expertise; NGOs, whose voluntary efforts play a critical role in encouraging popular participation, developing public understanding, filling gaps and supplementing government efforts at the grass-roots level; and the mass media, which provide the increasingly powerful knowledge, information and communications networks indispensable to modern economic and social life. The personnel staffing these enabler organizations themselves require appropriate education, training, awareness-raising, provision of incentives and other means to ensure that they fulfil their special role.

31. The human resources embodied in enablers are vital to human resources development, and many vital enabler organizations require only minimal budgetary support. Although budgetary and material resources remain critically important, Governments should not overlook the great potential for human resources development inherent in the effective utilization of their own personnel. Human resources, including those available within the family, the community and voluntary groups, are more important than financial resources in dealing with such special social concerns as delinquency, crime, drug abuse and acquired immune deficiency syndrome (AIDS), and health problems such as malnutrition that may seriously undermine human resources development.

D. Change and uncertainty

32. One of the major lessons of past attempts at development planning by countries in the ESCAP region has been that, no matter how refined the analysis of economic and social conditions and no matter how sophisticated the techniques used, the unexpected usually intervenes. Consequently, directive development planning has fallen into disfavour, and even indicative planning is being handled with increasing care.

33. Nowhere has this problem been more evident than in human resources development planning, where the relevant time-span is the medium to long term and where the policy environment is becoming increasingly complex. The numbers of organizations, power groups and kinds of beneficiaries with direct interests in these policies have grown dramatically over the years. The economies of countries in the ESCAP region have become more diversified and market forces are now playing a greater role in the allocation of resources. Economic and social change is accelerating through the forces unleashed by such factors as technological advance, industrialization, urbanization, and increasing international and intercultural interaction.

34. Given the uncertainties and ever-growing complexity of the human resources development environment, as well as the extent of intercountry variation in the region, the revised Jakarta Plan of Action has been formulated to permit application under a broad spectrum of possible scenarios.

35. With these concerns in view, the Plan limits its prescriptive content primarily to the development of human resources at the basic level. In dealing with longer-term issues, it is more indicative in nature. The Plan's proposals for action and the institutional mechanisms for implementing them provide for built-in flexibility to respond to change and to enhance the adaptability and strengthen the resilience of the specified target groups in the presence of evolving development challenges.

E. National issues in the regional and international context

36. The ESCAP region is unique in the heterogeneity of its economic and social situation as well as its political and cultural conditions and geophysical features. Given the broad diversity of the region's national development experience, the Plan seeks to ensure sufficient scope and flexibility to accommodate the full range of national circumstances and feasible human resources development responses. In the final analysis, the Plan must be implemented at the national level.

37. Action at the regional level can play a supportive role. Regional analysis and technical assistance, regional cooperation among developing countries, and regional coordination of responses to emerging economic and social issues all such approaches to human resources development among countries complement and supplement the broad range of programmes and projects that must be undertaken within countries to resolve critical issues relating to the human resources development process.

38. International assistance for financing the necessary investment to support national policies requires a long-term perspective. Donors will need to bring their individual objectives and programme interests together so that national human resources development strategies may receive the coherent and flexible support they require.

39. The international context in which developing countries must pursue their human resources development goals also needs to be recognized and addressed. The debt crisis, declining international commodity prices, dwindling external resource flows and persistent protectionism weaken the developing countries' capacity to embark on necessary investment programmes and socio-economic adjustment and restructuring strategies. Efforts to improve the global setting for human resources development through such means as the North-South dialogue are therefore necessary to complement the internal efforts of individual developing countries.

40. The degree of commitment to human resources development objectives in the implementation of structural adjustment programmes is critical to the pace at which some of the developing countries of the ESCAP region pursue their human resources development goals. Specific human resources development issues, such as the provision of social safety nets for the vulnerable and disadvantaged sections of the population, the maintenance of adequate levels of investment in human resources to ensure sustainability, and the provision of adequate social services to permit a minimum quality of life need to be considered in the context of restructuring. In this context, the role of international financial institutions is again significant, as their sponsorship of human resources development can influence sharply the development policies and strategies adopted by developing countries in the region.

III. PRINCIPLES

41. The Jakarta Plan of Action is founded on the following principles:

(a) The human factor plays a decisive role as a productive agent in development; at the same time, it is the people who are the intended beneficiaries of development. Human resources development thus serves as both an essential means and the ultimate end of development.

(b) The three major dimensions of investment in human resources, utilization of human resources and enhancement of the quality of life constitute a comprehensive framework for the effective planning and execution of human resources development in the ESCAP region.

(c) Human resources development can contribute significantly to the eradication of absolute poverty. In the planning and execution of such development, priority must therefore be placed on poverty alleviation, with particular emphasis on specific disadvantaged sections of society.

(d) The interaction between human resources development and all facets of economic and social progress requires a carefully coordinated approach to the planning and execution of human resources development, involving the active participation of all sectors and groups.

(e) Gender equity should be a primary consideration in policy formulation, planning and programming for human resources development. Women's particular interests and concerns should be mainstreamed in all human resources development policies, plans and programmes in order to increase their access to gainful and productive employment and enhance their participation in national development processes, as both beneficiaries and agents of change.

(f) While primary responsibility for the implementation of human resources development plans and programmes rests with national Governments, much scope exists, especially at the local level, for involving other enabler groups, which can often exert a direct catalytic effect on the human resources development of specific target groups.

(g) Conventional supply-focused human resources development strategies, which emphasize investment in human resources, must be balanced by demand-oriented strategies, which involve the elimination of socio-cultural and other constraints to the productive utilization of human resources.

(h) Uncertainty concerning future economic and social development trends requires that built-in flexibility, including a focus on indicative rather than prescriptive content, be emphasized in human resources development planning and execution.

(i) In designing regional approaches to the planning and execution of human resources development, due attention must be paid to the diversity of national experiences and situations, including the special needs of the least developed, land-locked and island developing countries.

(j) The formulation and implementation of national strategies, policies, plans and programmes for human resources development are the sovereign right and responsibility of each member and associate member of ESCAP, to be carried out within the context of its specific national development needs and objectives.

(k) Regional cooperation and technical assistance in support of national strategies, policies, plans and programmes for human resources development make an important contribution to the enhancement of human resources endowments.

Overview | Background

The Jakarta Plan of Action:
Part I: Analytical Framework
Part II: Framework for Action
Part III: Arrangements for Implementation

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