Before its reforms, China had built infrastructure in the areas of education and health, which later helped its social indicators. Spending on education and health is described in NCERT as:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Sources of human capital formation
Human capital is the skill and health of a country’s people. Investment in education is one of its main sources, and expenditure on health is another important source, because a healthy, educated person works better.
So China’s early spending on education and health built human capital, which later lifted its social indicators.
This question uses Comparative Development Experiences of India and its Neighbours and Human Capital Formation in India together.
NCERT (2026-27): “8.6 Development Strategies — an Appraisal … It was found that establishment of infrastructure in the areas of education and health, land reforms, long existence of decentralised planning and existence of small enterprises had helped positively in improving the social and income indicators in the post reform period. …” Human Capital Formation in India: “4.3 Sources of Human Capital … Investment in education is considered as one of the main sources of human capital. There are several other sources as well. … Like education, health is also considered as an important input for the development of a nation as much as it is important for the development of an individual. … A sick labourer without access to medical facilities is compelled to abstain from work and there is loss of productivity. Hence, expenditure on health is an important source of human capital formation.” |