Thanks for this insight. I have often used both human capacity development and human capital development interchangeably without knowing they mean two different things. Considering the differences now, I think both are still very necessary for a country's economic growth. If an individual develops himself to be useful to himself, it is also a plus to the country.
Consider that human capacity development can also be in a negative or positive line, so whenever someone engages in capacity development for their personal gain, it is not always to the benefit of the country because that person may have decided to develop themselves in a negative line and then they become a problem to the country.
So, perhaps we can also draw the inference that human capital development is always for positive outcomes that have benefits, while human capacity development may not always be for the purpose of positive benefits but selfish interests that have negative effect on society.