Call for new people centric model of growth
The Latest World Economic Forum Human Capital Report finds that a world where “nobody is left behind” remains a distant prospect, even in advanced economies. The index takes a life-course approach to human capital, evaluating the levels of education, skills and employment available to people in five distinct age groups, starting from under 15 years to over 65 years. The aim is to assess the outcome of past and present investments in human capital and offer insight into what a country’s talent base will look like in the future. The Forum hope the report will support business leaders, policy-makers, civil society and the public in taking the informed, data-driven decisions that are needed to unlock human potential. The index shows that all countries – both rich and poor – have yet to optimize their human capital and calls for a new people-centric model of growth,” said Saadia Zahidi, Head of the Employment, Skills and Human Capital Initiative and co-author of the report.
Globally, Finland tops the rankings of the Human Capital Index in 2015, scoring 86% out of a possible 100. Norway (2), Switzerland (3), Canada (4) and Japan (5) make up the rest of the top five. They are among a group of only 14 nations that have crossed the 80% threshold. Among other large advanced economies, France is in 14th position, while the United States is in 17th position, scoring just under 80%. The United Kingdom holds the 19th spot and Germany 22nd. Among the BRICS, The Russian Federation (26) scores highest with a score of 78%, with China next at 64, having optimized 67% of its human capital. Brazil is in 78th place, followed by South Africa (92) and India (100). Sub-Saharan Africa, with the exception of Mauritius (72)the region is characterized by chronically low investment in education and learning, holds the highest position in the region. Seventeen countries from Africa rank below 100 in the index. The region’s most populous country, Nigeria (120) is among the bottom three in the region, while the second most populous country, Ethiopia, is in 115th place.
“Talent, not capital, will be the key factor linking innovation, competitiveness and growth in the 21st century. To make any of the changes necessary to unlock the world’s latent talent – and hence its growth potential – we must look beyond campaign cycles and quarterly reports. Dialogue, collaboration and partnerships between all sectors are crucial for the adaptation of educational institutions, governments and businesses,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.
In addition to the index, the report provides the latest available information on the numbers of current and recent graduates in major fields of study in each country and detailed information on the population’s workforce activity as well as levels of education.
The full report can be downloaded here http://reports.weforum.org/human-capital-report-2015/