Human capital consists of the knowledge, skills, and health that people accumulate throughout their lives, enabling them to realize their potential as productive members of society. The World Bank believes that extreme poverty can be ended and more inclusive societies can be created by developing human capital. This requires investing in people through nutrition, health care, quality education, jobs and skills.
The World Bank project is underway, with a new Human Capital Index launched on the 11th October 2018, and close to 30 pilot countries are currently working with the World Bank Group on strategic approaches to transform their human capital outcomes.
The Human Capital Index quantifies the contribution of health and education to the productivity of the next generation of workers. Countries can use it to assess how much income they are foregoing because of human capital gaps, and how much faster they can turn these losses into gains if they act now.
The World Bank asserts that credible measurement of education and health outcomes is critical locally, nationally, and globally. Within countries, measurement leads to insights into what works and where to target resources. It also increases policy makers’ awareness of the importance of investing in human capital, creating momentum for action. Globally, comprehensive measurement sheds light on the differences between countries, and spurs demand for investments in people.
The state of Human Capital in the UK according to the Index:
– Productivity. A child born in the United Kingdom today will be 78 percent as productive when she grows up as she could be if she enjoyed complete education and full health.
– Probability of Survival to Age 5. 100 out of 100 children born in the United Kingdom survive to age 5.
– Expected Years of School. In the United Kingdom, a child who starts school at age 4 can expect to complete 13.9 years of school by her 18th birthday.
– Harmonized Test Scores. Students in the United Kingdom score 517 on a scale where 625 represents advanced attainment and 300 represents minimum attainment.
– Learning-adjusted Years of School. Factoring in what children actually learn, expected years of school is only 11.5 years.
– Adult Survival Rate. Across the United Kingdom, 94 percent of 15-year olds will survive until age 60. This statistic is a proxy for the range of fatal and non-fatal health outcomes that a child born today would experience as an adult under current conditions.
The index is explained in The Human Capital Project Booklet downloadable click here: