The recent unveiling of the Human Capital Index (HCI) 2020 report by the World Bank has positioned India at 116 out of 174 countries. The index serves as a benchmark for key components of human capital globally and provides substantial insights into the development of nations.
Understanding Human Capital
Human capital comprises the accumulated knowledge, skills, and health individuals acquire over their lifetime. These components contribute to their productivity, making them valuable members of society. Furthermore, the improvement of these aspects is critical to the progress of countries.
The Parameters of Human Capital Index
The HCI report for this year includes health and education data for children across 174 countries, up until March 2020. Covering about 98% of the world’s population, the report furnishes a pre-pandemic baseline to understand the global state of human capital before the currently ongoing crisis.
An Overview of the 2020 HCI Findings
According to the 2020 HCI, countries worldwide, especially low-income ones, made significant strides in improving children’s human capital before the pandemic. However, despite this progress, a child in an average country could only achieve 56% of their potential human capital, compared to a full-education and full-health benchmark.
The Impact of the Pandemic on Human Capital
The Covid-19 pandemic has threatened the progress made in the last decade in terms of human capital. Over a billion children are missing school, potentially losing half a year of education. It has disrupted essential health services for women and children, resulting in missed vaccinations. Moreover, the pandemic has exacerbated income inequality, affecting women and disadvantaged families disproportionately and increasing the risk of food insecurity and poverty.
A Look at India’s Performance
India’s ranking has dropped slightly from 115 in 2019 to 116 this year, but its HCI score improved from 0.44 in 2018 to 0.49 in 2020. This mixed outcome indicates some progress in human capital development despite challenges.
India’s Recent Initiatives
Several recent initiatives have been launched to bolster India’s human capital. These include schemes like Ayushman Bharat Yojana for healthcare, National Education Policy and Samagra Shiksha for education, and Atmanirbhar Bharat Yojana and The Urban Learning Internship Program (TULIP) for skills development.
Other Key World Bank Reports
The World Bank releases a variety of reports that showcase global economic conditions, including the Global Economic Prospects and the World Development Report. These publications, along with HCI, provide comprehensive insights into global socio-economic trends.
The Future of Human Capital Investment
For India, the HCI offers a reference point for prioritizing and supporting human capital. As part of these efforts, the World Bank is collaborating with the country to assist livelihoods for the poor. This partnership is crucial, particularly in light of the Covid-19 pandemic. To ensure sustainable and inclusive future growth, countries must prioritize protecting and investing in their citizens.
