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human capital is the skill and knowledge level ofthe workforce, as well as their health. The
higher the quality of human capital, the higher the productivity as workers adapt more
effectively to new technologies and learn to perfect their respective specialised jobs. Actual
skill levels, as opposed to education qualifications, are now seen as powerful drivers of
economic growth [www.tutor2u.net/revision. (2007)].
This study accepts the notion that growth occurs because ofan increase in the quantity and/or
quality of factor resources. The research further agrees with this model on the grounds that
innovation is a major determinant of growth and development ofthe study area. Innovation
helps to lower costs and also creates new markets, a source ofdemand, revenue and profits for
businesses in the domestic and international economy.
3.3,6 Dependency tbeory
This theory looks at the ever-widening gap because of the reliance of developing nations on
developed nations. According to this theory the process of international trade and domestic
development made some developing countries economically dependent on developed
countries. The theory sees the solution to this crisis in the break-up of the world capitalist
system and the elimination of world debt. Within this model underdevelopment is attributed
to fwww.mtholyoke.edulacad/intrelldepend.htm. (2008)]:
• Unequal power relationships between rich developed capitalist countries and
poor developing ones;
• The dominance of world economic powers over developing countries via the
capitalist system;
• The technological and industrial advantage of dominant developed countries
which ensures that the developed countries always work in their o\\,n self­
interest (Brett et aI., 2005)
The dependency theory uses political and economic theory to explain ho\\, the process of
international trade and domestic development makes some less developed countries evermore
economically dependent on developed countries [www.tutor2u.netJrevision, (2007)J. What is
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