2. The Importance of Human Resource Development To understand its objectives, one must first appreciate the evolving importance of HRD. This is evident, for example, in the growing number of organizations looking to HRD for help in developing the capacity to compete in a global economy. Global firms need individuals capable of operating effectively in diverse cultural environments, using increasingly complex organizational structures and communication patterns, and managing change using multiple integrative business strategies with an embedded international perspective. Similarly in developing countries, the opening of internal markets, the adoption of new competitive strategies to meet market challenges, and demands of supplying products to meet the quality requirements of international firms are powerful forces driving organizational change. These changes have led to an expanded emphasis on HRD as a tool to develop the teamwork, problem and process analysis, communication, and other needed capabilities. Drucker has observed that changes in market dynamics, technology, and the structure of labor have created work that is more complex, abstract, and knowledge-based. As a result, an increasing proportion of jobs now require higher levels of reading, math, problem solving, interpersonal, and other work place skills. However, data indicate that many countries throughout the world suffer from a substantial gap between the knowledge and skills needed for economic and social progress and those that are available. The ‘skill gap’ problem has drawn increasing policy attention and financial investment aimed at implementing HRD systems capable of upgrading human resources to meet emerging needs and opportunities. Perhaps the most enduring failure of humankind in the last century is the persistence of poverty. Poverty is a tremendously important personal, social, and economic issue because it deprives people of choices and significantly reduces the level of well being that they can achieve. It limits people’s participation in political and development processes, and is associated with unemployment, underproductivity, poor health, nutrition, housing, and personal security.