Till the late 1800s and in most of the 1900 economist only rely on the physical capital and regard this factor as the most important factor in the development of the business and if seen at much larger scale also regard very important for the economic development of the countries. Moreover, in the past even to measure the economic performance of the entity or of the country, economist thinks that the physical capital a company or country possess regard as the most economically grown country or business.
This practice, however, predates in the modern era and the most important thing now in the modern world seems important is the educated human resource of the country. More the citizen of the country is educated and specialized more will they be able to contribute to the development of the country, this also includes the process of nation building. While we see this factor at smaller scale i.e. in a company, the more its employees are educated and learned about their jobs more will be the assurance for the entity to grow. The most important thing while progressing economically is the direction on which a company or company should proceed towards.
For instance, if the company has enough capital resources, good working place, office at a prime location, but do not have educated and skilled human resource they will fail in their operations. The educated human resource is very important for directing and controlling other production factors like land and capital. This is the reason why most if the economic well-being countries have much higher literacy rate than underdeveloped country. The most important measure the world should need to take is to take measures in educating the world population. This will automatically resolve many issues of the world which also include harmony and peace.
Education enlightens the person from their heart and then there will be more accepting of others beliefs, opinions, and ideas. Moreover, if we analyze the importance of education to the economic development, if we do not have highly educated accountants in business, we will then be stuck in old manual practices, and we can realize that substantial amount of our time will be wasted which could be utilized for other productive tasks. Furthermore, the planning for the best utilization of resources could not be done by physical capital it should be done by a specialized strategist who knows which resource have the best utilization and how and where it should be used.
Conclusively, it is very important for the world to realize the importance of education in the economic development of the country on a much bigger scale. More we invest in education today; more we get the best economic results in future.