Original Source: Worldbank
Human capital, that is the set of skills, health and knowledge possessed by an individual, is an important contributor to productivity growth and ultimately to poverty reduction and shared prosperity. Investments in human capital are becoming increasingly important as the nature of work evolves in response to technological change. Yet despite its importance for economic and social development, countries often underinvest in health and education ─ the building blocks of human capital ─ depriving themselves of an essential source of prosperity.
It is in responses to the risks to stability and prosperity posed by this underinvestment that the World Bank Group has recently launched the Human Capital Project. This involves a set of three combined actions: (i) the construction of an index ─ the Human Capital Index, a measure of the human capital a child born today could expect to attain by the age of 18 ─ to track and monitor progress; (ii) data, analytics and research, to refine measurement and better understand human capital formation; and (iii) country engagement, to support client countries in identifying obstacles and pushing the human capital agenda.
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