This Video of the Week provides an introduction to the World Bank’s newly released Human Capital Index (HCI); it explains what the Human Capital Index is, how it works, and why it is important.
The HCI measures investment in human capital in countries around the world. It highlights the necessity of basic human rights for children of the next generation of workers, such as: social and economic equality, good health, proper nutrition, and access to education. Proper investment in human capital is essential to facilitate economic development and prosperity on the national level. At the individual level, investment in human capital works to help people reach their true potential, provide for their future families, and improve overall quality of life.
This index also calls attention to existing disparities between glacier countries. The United States, Switzerland, Norway, Austria, Iceland, and New Zealand have HCIs ranking in the top (fourth) quartile of countries; Peru, Ecuador, Chile, and Kyrgyzstan rank in the third HCI quartile; Tajikistan and Nepal rank in the second HCI quartile. Bolivia and Bhutan both lacked data to calculate HCI values.
Watch the video below, and explore the World Bank’s Human Capital Project webpage for more information.