Higher Recompense to the Highly Qualified – A Way to Economic Development

The economic growth of any country depends on its natural resources, human intellectual capital, progress in science and technology, and politically stable governments. Improper management of human and natural resources may be one of the key reasons for the underdevelopment. The financial deficit of a country precludes the offering of viable indemnity to the skill-oriented people, which causes brain drain. The brain drain theory is open-ended in developing countries. All the developed countries are utilizing the human intellectual resources of developing and underdeveloped countries. The human development index is low for the countries where human resource management is below par. Related statistics also indicate that low investment in higher education leads to low development in all aspects. All the developed countries spend a higher percentage of their gross domestic product on higher education. The quality and quantity of higher education institutions are the primary factors for development. Doctoral degree holders’ salaries of different countries and their respective gross domestic products have been compared and analyzed in the light of the economic development in these countries. The structural changes that are required in the higher educational institutions for the holistic development of a country have also been suggested.

Keywords: Capacity, CSIR, Development, Economy, GDP, Gross enrollment, HDI, Higher compensation, Higher education, Industrial sector, Intellectual capacity, Quality, Service sector, Skill development, UGC, UNDP.