Investment in Human Capital for Inclusive and Green Growth Development Strategy

Abstract

Inclusive growth is a broad term that ensures that economic growth benefits all segments of the society including the poor, near poor with meager incomes, the middle class and even the rich. It ensures everyone participates in the growth process both in terms of decision making for organizing the growth progression as well as in participating in the economic growth itself. Green growthis the re-direction of the economy onto a more sustainable long run growth dimension. It offers real opportunities for more inclusive growth in developing countries while protecting the environment. However,an important source of green growth is the expansion of the knowledge economy which rests on four key pillars, one of which is human capital formation. Thispaper identifies the transmission mechanism through which investment in human capital enhances inclusive and green growth strategies ofeconomic growth and development. Thus, public investment in human capital via education emphasizes the acquisition of skills, technology and capacity building programmes which are crucial for the creation of a productive workforce and competitive economies within the inclusive green growth agenda. It proceeds to suggest policy options for better growth trajectory for the Nigerian economy based on lessons from some emerging nations.