World Bank launched first Human Capital Index

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The World Bank launched its first human capital index in Bali, Indonesia as part of it annual meetings with the International Monetary Fund. The index ranks countries based on their success in developing human capital.’ The index ranks 157 countries based on their education and health outcomes and the impact they are having on productivity. While Singapore tops the rankings, African countries occupying the bottom spots.

The human capital index, which has been modeled on the World Bank’s existing doing business index that assesses national business conditions, aims to create a similar ranking for countries based on how well they look after their people.

Singapore topped the rankings list, followed by South Korea, Japan and Hong Kong.

• On the other hand, poor African countries fared the worst in the rankings, with Chad and South Sudan taking up the two lowest spots. The United States was ranked 24th and the United Kingdom was ranked 15th. 

 The index found that on average 56 percent of children born today will forego more than half their potential lifetime earnings because governments were not investing adequately to ensure their people are healthy, educated and ready for an evolving workplace.

 Besides, the index measures the mortality rate for children under five, early childhood stunting rates due to malnutrition and other factors and health outcomes based on the proportion of 15-year-olds who survive until age 60. 

• It also measures a country’s educational achievement based on the years of schooling a child can expect to obtain by age 18, combined with a country’s relative performance on international student achievement tests.