Syndicate content

Human Capital Project

How to diversify Bhutan’s economy?

Yoichiro Ishihara's picture
Bhutan has made tremdendous progress in reducing poverty. But it needs to do a better job at diversifying its economy by improving its physical and human capital by using resource rents from hydropower.
Bhutan has made tremendous progress in reducing poverty. But it needs to do a better job at diversifying its economy by improving its physical and human capital by using resource rents from hydropower.

Will diversifying its economy help Bhutan address its youth unemployment, let alone its macroeconomic volatility and vulnerability?

With the right approach, yes.

And to that end, the latest World Bank Bhutan Development Report: A Path to Inclusive and Sustainable Development proposes solutions relevant to Bhutan’s context.

For more than ten years, developing the private sector through greater economic diversification has been Bhutan’s top policy as described in the 10th and 11th five-year plans.

Yet, youth unemployment, especially for educated Bhutanese, has remained high: 67 percent of bachelor’s degrees holders were jobless in 2016.

Diversifying the economy is touted as a standard prescription to cure such development ailments as joblessness, low productivity, and macroeconomic volatility.

However, international experience shows that this prescription does not always work.

Case in point: A World Bank’s analysis Diversified Development concludes that in resource-rich countries, investing in physical capital, human capital and economic institution are the best ways to sustain growth in the private sector.

Further to that, the development of specific sectors, which is often a common ingredient of diversification strategies in certain countries, is neither necessary nor sufficient for private-sector-led growth.

The main driver of Bhutan’s high growth and poverty reduction, hydropower has led the country’s development and will remain the backbone of its economy.

However, Bhutan needs to do a better job at diversifying its economy by improving its physical and human capital by using resource rents from hydropower.

Bhutan ranks 149 out of 160 countries on the 2018 Logistics Performance Index and 121 out of 176 countries on the 2017 ICT index.

Bhutan falls in the bottom half of the Human Capital Project rankings on critical indicators such as expected years of schooling.

Afghanistan’s prosperity rests on investing in its people

Shubham Chaudhuri's picture
Also available in: دری | پښتو
Afghanistan’s prosperity rests on investing in its people
Primary school students are attending their class in northern Balkh Province. Photo credit: Rumi Consultancy/ World Bank

Today, the World Bank Group released the first Human Capital Index (HCI), a new global indicator to measure the extent to which human capital in each country measures up to its full potential.
 
The HCI is part of the World Bank Group’s Human Capital Project intended to raise awareness about the critical role human capital plays in a country’s long-term growth and to galvanize the country’s will and resources to accelerate investments in its people as its most important asset.
 
Afghanistan’s overall HCI indicates it fulfills only 39 percent of its full potential, conceptualized as 14 years of quality education and survival until age 60
 
As dire as this may sound, the overall HCI score places Afghanistan just around a place where it is expected given its income level—in fact, slightly higher than an average low-income country.

د افغانستان سوکالي پر خلکو پانګونې سره تړلې ده

Shubham Chaudhuri's picture
Also available in: English | دری
Afghanistan’s prosperity rests on investing in its people
د بلخ ولایت په یو ښوونځی کې د زده کوونکو حضور. انځور: د رومي مشورتي شرکت/ نړیوال بانک

د نړيوال بانک ګروپ، پر خلکو د پانګونې څرنګوالي په تړاو نن خپل لومړنی راپور خپور کړ، دا نوی راپور په نړۍ کې د هر تن له وړتيا څخه په بشپړ ډول د استفادې پر بنسټ د پانګونې د نړيوالې ځانګړنې کچه ښيي.

پر وګړو د پانګونې ځانګړنى راپور(HCI)، پر وګړو د پانګونې پروژې يوه برخه ده چې د نړۍ په هر هېواد کې د نړيوال بانک ګروپ له لوري د پانګونې د اوږدمهالو پرمختګونو په اړه د خلکو پوهاوي او عامه ذهنيتونو روښانتيا لپاره ترسره کېږي.
د دې پروژې پر بنسټ به هر هېواد و هڅول شي، چې له شته سرچينو څخه ګټه واخلي او دا ګام  به پرخلکو د پانګونې  برخه کې مهم نقش ولوبوي.

د دې راپور د موندونو له مخې، افغانستان پر خپلو وګړو د پانګونې د ځانګړتيا له اړخه يوازې ۳۹ سلنې وړتيا ته رسېدلی دی، چې تر ۱۴ پورې د نيمه لوړو زده کړو تحصيلي درجه او تر ۶۰ کلونو پورې د ژوند کچه ښيي.

پر وګړو د پانګونې ځانګړتيا راپور له مخې، افغانستان په داسې موقعيت کې ځای لري، چې د دې هېواد اقتصادي وضعيت سره اړخ لګوي، دا په داسې حال کې ده، چې افغانستان د نورو لږ عايد لرونکو هېوادونو په پرتله څه ناڅه لوړه درجه کې ځای لري.

رفاه افغانستان مستلزم سرمایه گذاری بالای مردم است

Shubham Chaudhuri's picture
Also available in: English | پښتو
Afghanistan’s prosperity rests on investing in its people
حضورشاگردان در یکی از مکاتب ابتدایی ولایت بلخ.  عکس: شرکت مشورتی رومی/ بانک جهانی

گروپ بانک جهانی، امروز نخستین گزارش شاخص سرمایه گذاری بالای مردم را منتشرنمود. این گزارش جدید شاخص بین المللی میزان سرمایه گذاری را نظر به استفاده مکمل ظرفیت هر فرد در کشور های جهان نشان میدهد.

گزارش شاخص سرمایه گذاری بالای مردم (HCI) بخش از پروژه سرمایه گذاری بالای مردم میباشد، که توسط گروپ بانک جهانی بمنظور اگاهی دهی و روشن ساختن اذهان عامه درمورد نقش پیشرفتهای طویل المدت سرمایه گذاری بالای مردم در هر کشور رویدست گرفته شده است. این پروژه در راستای ایجاد تحرک در هر کشور بخاطر استفاده ازمنابع موجوده برای تسریع روند سرمایه گذاری ها بالای مردم نقش مهم ایفا خواهد نمود.

براساس یافته های این گزارش افغانستان صرف به ۳۹ در صد ظرفیت بل القوه خود در شاخص سرمایه گذاری بالای مردم رسیده، که نشاندهنده ۱۴ سال تعلیم و زنده گی تا سن ۶۰ سالگی میباشد.
 
افغانستان در گزارش شاخص سرمایه گذاری بالای مردم تقریبا در رده (جایگاه) قرار گرفته که کاملاً مطابقت به وضعیت عینی اقتصادی این کشور دارد. این در حالیست که این کشور در جایگای کمی بالا تر در مقایسه با سایر کشور های داری عاید پایین همچون افغانستان قرار گرفته است.

Investing in people of South Asia for prosperity and quality of life

Hartwig Schafer's picture
A little girl in Balochistan, Pakistan, who now receives a quality education thanks to World Bank support. 
A little girl in Balochistan, Pakistan, who now receives a quality education thanks to World Bank support. Credit: World Bank 

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.

Just look around the world: Technology is reshaping every industry and setting new demands for skills in every profession. The frontier for skills is moving faster than ever before.

To meet that challenge and be able to compete in the global economy, countries need to prepare their workforces now for the tremendous challenges and opportunities driven by technological change.  

To that end, the World Bank will launch next week its highly anticipated Human Capital Index to measure countries’ contribution of health and education to the productivity of the next generation of their workers.

The Index will be released on October 11 at the Bank’s Annual Meetings in Bali as part of the Human Capital Project, a global effort led by the Bank to accelerate investments in people for greater equity and economic growth.

No doubt, any country ranking gets high visibility and, sometimes, meets controversy. But I hope it triggers a dialogue about policies to promote investments in people.

To be clear, the important purpose of the Human Capital Index is to measure the distance of each country to the highest standard of complete education and full health—or the “frontier”.

The index, irrespective of whether it is high or low, is not an indication of a country’s current policies or initiatives, but rather reflects where it has emerged over years and decades.

Put simply, the index measures what the productivity of a generation is, compared to what it could be, if they had benefitted from complete education and good health.

The index ranges from 0 to 1 and takes the highest value of 1 only if a child born today can expect to achieve full health (defined as no stunting and survival up to at least age 60) and complete her education potential (defined as 14 years of high-quality school by age 18).