ABSTRACT
This chapter introduces the debate about the nature of competitive advantage, insecurity and skill formation and focuses on the economic rationale for the High Skill Society starting with the human capital and the human capability approach. It examines alternative measures of the benefits of education and training and presents evidence with reference to the impact of restructuring and the resulting insecurity on skill formation. The chapter reviews the studies from the United Kingdom, United States of America, OECD, and UNDP and presents a critique of the conventional human capital approach. It focuses on the political economy emerging from these changes and presents different models of skill formation from some of the success stories in Germany, Singapore, Korea and Ireland. The chapter presents Indian scene with an appraisal of the skill development system, status of skills and empirical evidence in terms of skill data and case studies from India to show the deprived condition of skill formation and demand for skills.
