HUMAN CAPITAL INVESTMENT, CHALLENGES, RETENTION AND THE DIASPORA

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HUMAN CAPITAL INVESTMENT, CHALLENGES,
RETENTION AND THE DIASPORA
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PURPOSE OF PAPER

• How do we meet the challenges of human capital
  development for a modern economy
• Challenges for NEPAD for human capital
  development
• Understanding the three related frameworks, viz
  Human development, Human resources management
  theory, and, Human capital theory
• Look at South Africa as a case study Emphasis
  on accelerated and shared growth initiative for
  South Africa (ASGI-SA)
• Conclude by looking at the Brain Drain and the
  South African Diaspora

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INTRODUCTION

• Prof Ali Mazrui (p2 p22)
• Adam Smith (p2)
• Theodore W Schulz (p2)
• Schumpeter (p13)

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UNPACKING THE CHALLENGES OF NEPAD
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THE CONCEPTUAL FRAMEWORKS

• Human development
• Human resource management theory
• Human capital theory

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THE CASE OF SOUTH AFRICA
Figure 1 Major causes of structural unemployment
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MAJOR COSTS OF UNEMPLOYMENT
FIGURE 2 MAJOR COSTS OF UNEMPLOYMENT
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HISTORY OF ASGI-SA

• Was the centre of President Mbekis State of the
  Nation address
• ASGI-SA is a compilation of growth and
  constraints known for many years to South
  Africans
• Is embedded in the vision of the Reconstruction
  and Development Program

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WHAT ASGI-SA OFFERS

• R370 billion to be invested in public
  infrastructure development
• The drive/effort to acquire the skills our
  economy needs in order to successfully implement
  ASGI-SA
• Both of the above achieved will hopefully foster
  6 growth between 2004-20 14
• The 6 growth if obtained will halve unemployment
• Offers a redistribution of wealth through
  employment creation, infrastructure creation and
  skills development

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OLD ECONOMY VS THE NEW ECONOMY

• The mind is a terrible thing to waste
• The Africa Brain Drain

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CONCLUSION

• Sloan Programme USA
• Investing in community engagement
• How do you fund the diaspora in order to benefit
  from it
• Graduates who are globally competitive
• World class assessments must be introduced
• State funding is more demand driven e.g. ASGI-SA
• Usable knowledge as the pillar

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