Human capital formation refers to the process of acquiring and expanding the number of competent, educated, and experienced people who are essential to a countrys economic, social, and political development. The role of human capital formation is to bring about a change in the productivity of the population of a country, or in other words, increase the productivity of the workforce. Here are some ways in which human capital formation can be achieved:

• Education: Education plays a crucial role in human capital formation. An educated society facilitates better development programs than an illiterate one. Education improves productivity and prosperity, and also contributes towards the growth of the people and the development of society as a whole. Spending money on education is equivalent to companies spending money on capital goods.

• Healthcare: Good health is essential for individuals to engage in productive activities. Poor health can lead to decreased productivity and reduced earnings. Thus, investing in healthcare can lead to a boost in human capital formation.

• Training and development: Human capital is invested in via training, education, and healthcare, making the worker more productive and hence more useful to the economy. People become resources because of the skills they learn, the knowledge they apply, the productivity they offer, and their abilities.

• Research and development: Research and development activities can lead to the creation of new technologies, products, and services, which can increase the productivity of the workforce and contribute to economic growth.

In summary, the role of human capital formation is to increase the productivity of the workforce, which in turn contributes to the economic, social, and political development of a country. Education, healthcare, training and development, and research and development are some of the ways in which human capital formation can be achieved.