We have heard a lot of late about the development of human capital, in particular with developing nations. Yet what does it mean to develop human capital, and why is it so vital to a society in achieving its aspirations as a nation?

Simply put, human capital speaks to the competencies, knowledge and personality attributes embodied in the workforce. Some look at this for the simple purpose of creating economic value. A more broadened – and higher – viewpoint would include the ability to generate value for the individual and society, both economic and virtue-centric. For the development of anything through initiative without its necessary complement of a higher set of virtues would prove more than merely short sighted, but rather focusing a blind eye toward a sustainable and progressive future.

China – as with many nations – would like to corner the market on human capital for economic development and prosperity. The nation’s education system has the discipline, structure and respect to potentially leapfrog over its western counterparts – the US included. Of late, the country is demonstrating within a perceived “closed environment” – to those not paying close attention – a spirit of openness to new innovation in education. Once again, the private sector is leading the way as the perennial lab setting for such advancements.

The word of caution to be applied to China, the US and others who seek to be the world’s capital for human capital development resides in the necessary application of a higher set of virtues to go with the initiative of the moment. For only when initiative is aligned properly with the pursuit of a moral excellence that serves as a compass for goodness for all will the formula for a sustainable and higher reality be achieved, both for the GDP of a nation and the goodness of its citizenry. The United States of America has this as its intention through foresight and proclamation. What remains is which country will answer to such a higher calling through action.