Impact of Human Capital on GNP Level

It is possible to achieve faster rates of social growth, greater developement, a better standard of living and narrow the gap between rich and poor countries by changing a government's economic policies so that they emphasize investments in the developement of human potential. An increase in motivation, knowledge, levels of education and team organization, as well as a strengthening of citizens' moral, intellectual and social potential will, as the results of investigations quoted in this article show, bring faster growth of the Gross National Product (GNP). There is still a paradigm prevailing in south-eastern European countries to invest more in physical capital than in human capital. This paradigm is the reason that these countries continue to fall behind the most developed countries in the world.