China's Investment In Human Capital And Its System Research

AbstractWith the progress of science and technology, especially that of high-tech represented by information technology, human beings are stepping into a brand-new era in which the development of economy is mainly based on knowledge. The impending knowledge economy has made human capital, which has the ability of knowledge application and creation the core in creating fortune. In China, the human capital is short but left unused seriously, and the comprehensive national power centered by scientific competitive power is relatively weak. In this situation, increasing the investment in human capital became a pressing task. Nowadays, Chinese individuals and enterprises invest more and more in human capital, the multi-dimensional pattern of the investing main bodies of human capital is coming into being. Nevertheless, as a result of the existing contorted income distribution system and backward education system, the investing capability of the investment main bodies is so poor that great conflicts arise between the strong demands for investing in human capital and the limited supply ability. Thus, the investment in human capital was restricted enormously, and the forming of the multi-dimensional pattern of the investment main bodies in human capital was also blocked to a great extent. Therefore, we need to make effective system arrangements, that is, to set up the market-oriented human capital investment systems that are mainly the income distribution system and the education system, at the same time, to restore favorable system environment for the investment in human capital. In macroscopical aspects, we should establish practical population policies, and create self-contained legal safeguarding system for those policies; in microcosmic aspects, we need to erect stimulative mechanism that combines stimulus and restriction in enterprises under the modern enterprises system. If we can further strengthen the investment in human capital and create a favorable system environment, the era of knowledge economy would not merely be an expectancy and demand for us anymore.