Anyone who visits Malaysia will quickly come to realize that Malaysians are blessed with enormous talent, ranging from the myriad of entrepreneurs creating new businesses online to those active in the creative industries including music, culture and sports. But there is also still a widespread sense that Malaysia is not making the most of its human capital, with concerns that despite large investments in education and health, the returns are not as high as they should be, and that a large share of Malaysians are still being left behind.
Human Capital Index
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.
as described in the 10th and 11th five-year plans.
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.
- Jobs and Development; Skills; Human Capital
- Human Capital Project
- Human Capital Index
- human capital accumulation
- Human Capital
- Social Development
- Public Sector and Governance
- Private Sector Development
- Law and Regulation
- Financial Sector
- Climate Change
- South Asia
Just three weeks after becoming Minister of Education in Peru, my team and I received the results from the 2012 round of PISA. Peru was ranked last. Not next to last, not bottom 10%. It was last.
Education, which never made headlines in the country, was on the front pages. For some people in the media, the fact that PISA was only administered to a subset of rich and middle-income countries around the world was not important, that was just a footnote. For them, Peruvian students were the worst in the world.
Whew, it’s out!
On October 11, 2018, the World Bank Group released its inaugural Human Capital Index (HCI), a tool that quantifies the contribution of health and education to the productivity of a country’s next generation of workers. The question underpinning the HCI asks, “ ” Globally, 56 percent of children born today will lose more than half their potential lifetime earnings because governments and other stakeholders are not currently making effective investments to ensure a healthy, educated, and resilient population ready for the workplace of the future.
To drive urgent action on human capital development, the Bank Group’s Human Capital Project (HCP) is working on two other fronts beyond the Human Capital Index. These are Measurement & Research and Country Engagement.
At a press conference in Kigali, I took a question: is the country’s Vision 2050 is achievable?
We had just launched a new study, The Future Drivers of Growth Report, that was jointly produced by the World Bank and the Government of Rwanda. The question was well-asked, since the study explores Rwanda’s goal to become an Upper-Middle Income country by 2035, and a High-Income Country by 2050.
On 11 October 2018, the World Bank launched its Human Capital Index, which quantifies the contribution of health and education to the productivity of the next generation of workers. The Index is part of the Human Capital Project, a global effort to accelerate more and better investments in people. Belarus didn’t participate in the Index this year.
Back in 1440, King Henry VI of England founded a college for poor scholars, providing a free education for boys whose families couldn’t afford to pay. At that time, the young students learned to read and write so that they could later work as administrators in the royal court.
A few centuries later, in 1977, I became one of “King Henry’s scholars”. I’m not working for a king, of course, but I recognize how lucky I am to have benefited from Henry’s medieval investment in human capital. One could perhaps call him a “very early adopter”.
These days, investing in people makes more economic sense than ever. Human capital – the knowledge, skills, and health that people accumulate throughout their lives – accounts for up to 68% of a country’s overall wealth, on average. In the case of Belarus, where I now live, the share of human capital in the country’s total wealth is somewhat lower, at 49.2%.