If Countries Act Now, Children Born Today Could Be Healthier, Wealthier, More Productive- World Bank
Jim Yong Kim, World Bank President
New World Bank Human Capital Index measures how much countries lose in economic productivity by under investing in their people
New World Bank research released today gives policymakers compelling evidence that delivering better outcomes in children’s health and learning can significantly boost the incomes of people and of countries with returns far into the future.
A Human Capital Index, launched today at the World Bank-IMF Annual Meetings, which measures how much countries lose in economic productivity by under investing in their people shows that 56 percent of children born today across the world will lose more than half their potential lifetime earnings because governments are not currently making effective investments in their people to ensure a healthy, educated, and resilient population ready for the workplace of the future.
Human capital—the knowledge, skills, and health that people accumulate over their lives has been a key factor behind the sustained economic growth and poverty reduction rates of many countries in the 20th century, especially East Asia.
“For the poorest people, human capital is often the only capital they have,” World Bank Group President Jim Yong Kim said. “Human capital is a key driver of sustainable, inclusive economic growth, but investing in health and education has not gotten the attention it deserves. This index creates a direct line between improving outcomes in health and education, productivity, and economic growth. I hope that it drives countries to take urgent action and invest more and more effectively in their people.”
“The bar is rising for everyone,” Kim added. “Building human capital is critical for all countries, at all income levels, to compete in the economy of the future.”