A Study On The Human Capital Investment Of Rural Areas

"Three Agriculture Problems" refers to the problems related to "agriculture, farmers and the rural area". It is a critical social issue that has to be solved in today's fast growing China, a bottleneck of establishing a balanced Chinese economy. To properly address this issue, it is critical to increase the level of investment in rural area's human capital. Based on the current investment, to seek the efficient way of increasing the human capital investment of the rural areas from the perspective of the theories and the practice has both important theoretical value and vital meaning for implementing the strategy of overall development of urban and rural as a whole and solving "Three Agriculture Problems".This article strives to discuss and analyze impact factor that constrain and affect investments in rural human capital from different perspective; And seek the emollient point and the efficient way to overcome the human capital investment of the rural areas which to face in new situation descends. It provides knowledge base and basis of decision for basically improving the shortage for the human capital investment of the rural areas and solving the "Three Agriculture Problems".The article has six sections, in the first section, from the perspective of investing in rural human capital investment, the main findings by other scholars in this field since 1960s are summarized. In the second section, rural human capital and investment in rural human capital are given with a theoretical definition. Benefits of investment in rural human capital, such as improvement in resource equipment, productivity, and functions of farmer's income, are discussed. Methods and factors of improving rural human capital, such as investing in former and informer rural education, rural healthy care, and mitigate extra labour resources are also addressed. In the third section, a framework of investing in rural human capital is provided. The framework analyzed the behaviours of both the government and the farmers, and the outcome of investment in rural human capital so the importance of having such investments can be noticed. In the fourth section, we discussed the practical understanding of current problems associated with investment in rural human capital, and the causes for these problems. In the fifth section, a macro-plan for the implementation of investing in rural human capital that facilitates the social economic development is provided. The plan addresses the importance of proper government positioning so it can effectively establish incentives for investing in human capital, and accomplish the goal of expanding channels of investments. In the sixth section, the main findings and areas for improvement are summarized.The major research results (conclusion) of the dissertation are as follows:1. Base on the theoretical analysis, investment in rural human assets is the solution for rural economic development. "Three Agriculture Problems" has become a fundamental social problem in today's Chinese society. It is a bottleneck for China's balanced economic development. The most effective way to address this issue is to increase the level of investment in rural human assets.2. Our analysis has showed that, some investments in rural human assets are seen as rural government's public product, or partial public product. Farmers themselves are not willing or don't have an established channel to do any investments; hence, support from the government is greatly needed. However, since the government funding is limited, and most of the farmers have a relatively low income, resources of investment in rural human assets are very short handed.2. Our analysis has showed that, some investments in rural human assets are seen as rural government's public product, or partial public product. Farmers themselves are not willing or don't have an established channel to do any investments; hence, support from the government is greatly needed. However, since the government funding is limited, and most of the farmers have a relatively low income, resources of investment in rural human assets are very short handed.4. Based on the theoretical and practical analyses, we believe that a good investment system is necessary to improve the investments in rural human assets. There has to be a good incentive system to fully utilize the government, other organizations, and the farmers so a multi-facet rural human assets investment system can be formed.