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By Wang Hui, Member of theResearch Team on “The Waxing and Waning of a State and the Role of Human Capital” of DRC，

Research Report No 5, 2016 (Total NO 1480) 2016-2-26

Abstract: The United Kingdom was the first to realize industrialization in the world with global influence in the true sense. Human capital played an important role in the rising of the UK. On the one hand, and viewing fromthe supply side, adequate labor force and gradual improvement of labor market had constituted a forceful support to industrialization. On the other hand, what is much more critical is the UK had formed a set of incentive institutional environmentin the fields of politics, economy, social affairs and culture,which was conducive for maximizing human capital value. However, the UK lacked systematic human capital strategy with some institutional defects, leading to the decreasing of power. It inspires us that we should take a dialectical view to look at the role of human capital in the rising of big powers. We should make a scientific human capital strategy and create an institutional environment for stimulating human potential. We need to constantly propel the institutional innovation of human capital and enhance social equality and liquidity inorder to lay a solid foundation for the rising of China.

Key words: human capital, the rising of big powers, the UK