Scientific and technological advances are transforming lives: they are even helping poorer countries close the gap with rich countries in life expectancy. But, poorer countries still face tremendous challenges, as almost a quarter of children under five are malnourished, and 60 percent of primary school students are failing to achieve even a rudimentary education. In fact, more than 260 million children and youth in poorer countries are receiving no education at all.
There is a moral case to be made, of course, for investing in the health and education of all people. But there is an economic one as well: to be ready to compete and thrive in a rapidly changing environment. “Human capital” – the potential of individuals – is going to be the most important long-term investment any country can make for its people’s future prosperity and quality of life.
The new Human Capital Index, to be released at the World Bank’s Annual Meetings in October, will support all three objectives and offer a crucial resource for both governments and citizens. It will help measure productivity-related human capital outcomes such as child survival, early hardwiring of children for success, student learning, and adult health.
The index will measure the health of children, youth, and adults, as well as the quantity and quality of education that a child born today can expect to achieve by the age of 18. This will help strengthen transparency, which strong evidence suggests can move people and policymakers to demand and create better services. The data is intended to jumpstart a conversation in each country about what matters for tomorrow, led at the highest levels of government.
“The new measurements will encourage countries to invest in human capital with a fierce sense of urgency. That will help prepare everyone to compete and thrive in the economy of the future – whatever that may turn out to be,” President Kim said. “And it will help make the global system work for everyone.”
No country can afford to under-invest in its human capital. While the context varies, a focus on human capital is essential for countries at all income levels, since the frontier for skills is continuously moving and the demand for better education and health is increasing everywhere.
The Human Capital Project should deliver progress toward a world in which all children arrive in school well-nourished and ready to learn; can expect to attain real learning in the classroom; and are able to enter the job market as healthy, skilled, and productive adults.
Original source: World Bank
Published on 9 August 2018
