Insight Report The Global Human Capital Report 2017
Insight ReportThe GlobalHuman Capital Report2017Preparing people for the future of work
Insight ReportThe GlobalHuman Capital Report2017Preparing people for the future of work
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ContentsvviiPrefaceKey FindingsPart 1: Measuring Global Human Capital3The Global Human Capital Index 20174Measuring Global Human Capital456Underlying ConceptsSubindexesIndex Construction7Global Human Capital Index Results710111617Global OverviewTop TenResults By RegionResults By Income GroupResults By Subindex19Thematic How34Conclusion36Notes36References39Appendix A: Regional and Income Group Classifications, 201741Appendix B: Technical NotesPart 2: Country Profiles49User’s Guide: Exploring the Global Human Capital Index Data57List of Countries58Country Profiles189System Initiative Partners191AcknowledgmentsThe Global Human Capital Report 2017iii
PrefaceKLAUS SCHWABFounder and Executive Chairman, World Economic ForumThe world is endowed with a vast wealth of human talent.The ingenuity and creativity at our collective disposalprovides us with the means not only to address the greatchallenges of our time but also, critically, to build a futurethat is more inclusive and human centric. All too oftenhowever, human potential is not realized, held back eitherby inequality or an unrealistic and outdated faith on thepart of policymakers that investment in small sub sectionsof highly skilled labour alone can drive sustainable,inclusive growth.The Global Human Capital Report 2017 proposes anew benchmark for leaders to build the workforces of thefuture. The approach it advocates, based on the principlethat all people deserve an equal opportunity to developtheir talents, provides leaders with the means and the toolsto navigate the changes we are already witnessing from thecurrent wave of automation and successfully navigate thetransition to the Fourth Industrial Revolution.Underpinning the Report, the Global Human CapitalIndex provides a means of measuring the quantifiableelements of the world’s talent potential so that greaterattention can be focused on delivering it. By measuringcountries’ talent resources holistically according toindividuals’ ability to acquire, develop and deploy skillsthroughout their working life rather than simply duringthe formative years, we hope to foster a true revolution ineducational systems where education is geared to meetingthe needs of the future workforce.Managing this transition towards deeper investment inhuman potential within the context of the Fourth IndustrialRevolution is one of the most important political, societal,economic and moral challenges we are facing today. Ourwork in the World Economic Forum’s System Initiativeon Shaping the Future of Education, Gender and Workprovides a platform for leaders to collaborate on meeting thischallenge. The System Initiative promotes the developmentof education that matches the needs of the future, aworkforce that is better prepared for shifts in labour markets,opportunities for job creation and structures that allow forgains and opportunities to be shared equally, regardlessof gender, age or origin. The Initiative offers the latestknowledge—including this Report—to leaders and the publicfor more informed decision-making, provides an exclusiveplatform for leaders to build consensus and share ideas, andworks with leaders and organizations to take collaborativeand coordinated action.The Global Human Capital Report 2017We would like to express our appreciation to TillLeopold, Vesselina Ratcheva, Richard Samans and SaadiaZahidi for their leadership of this Report, and to the broaderEducation, Gender and Work team for their support of thisproject. We appreciate the unique data collaboration withLinkedIn. Finally, we welcome the leadership and guidanceof the Partners and Stewards of the System Initiative onShaping the Future of Education, Gender and Work.It is our hope that this latest edition of the Reportwill provide a new, ambitious benchmark for countriesand that the platform offered by the Education, Genderand Work System Initiative will serve as a catalyst forunified leadership by business, government and otherstakeholders to positively shape the future of this system,helping unlock a new golden age for human potential andprogress.v
Key FindingsHow nations develop their human capital can be a moreimportant determinant of their long-term success thanvirtually any other factor. By “human capital” we mean theknowledge and skills people possess that enable them tocreate value in the global economic system. Human capitalis not defined solely through formal education and skilling.It can be enhanced over time, growing through use—anddepreciating through lack of use—across people’s lifetimes.The Global Human Capital Index featured in this Reportthus treats human capital as a dynamic rather than fixedconcept.The Global Human Capital Index 2017 ranks 130countries on how well they are developing their humancapital on a scale from 0 (worst) to 100 (best) acrossfour thematic dimensions—capacity, deployment,development and know-how—and five distinct age groupsor generations—0–14 years; 15–24 years; 25–54 years;55–64 years; and 65 years and over—to capture the fullhuman capital potential profile of a country. It can be usedas a tool to assess progress within countries and points toopportunities for cross-country learning and exchange.The Capacity subindex quantifies the existing stock ofeducation across generations; the Deployment subindexcovers skills application and accumulation of skills throughwork; the Development subindex reflects current efforts toeducate, skill and upskill the student body and the workingage population; and the Know-how subindex captures thebreadth and depth of specialized skills use at work.The Report’s key findings are: On average, the world has developed only 62% ofits human capital as measured by this Index. Or,conversely, nations are neglecting or wasting, onaverage, 38% of their talent. Across the Index, there areonly 25 nations that have tapped 70% of their people’shuman capital or more. In addition, 50 countries scorebetween 60% and 70%. A further 41 countries scorebetween 50% and 60%, while 14 countries remainbelow 50%, meaning these nations are currentlyleveraging less than half of their human capital.The Global Human Capital Report 2017 The top ten of this year’s edition of the Human CapitalIndex is headed by smaller European countries—Norway (1), Finland (2), Switzerland (3)—as well as largeeconomies such as the United States (4) and Germany(6). Four countries from the East Asia and the Pacificregion, three countries from the Eastern Europe andCentral Asia region and one country from the MiddleEast and North Africa region are also ranked in theIndex top 20. The leaders of the Index are generally economies with alongstanding commitment to their people’s educationalattainment and that have deployed a broad share oftheir workforce in skill-intensive occupations across abroad range of sectors. Unsurprisingly, they are mainlytoday’s high-income economies. Creating a virtuouscycle of this nature should be the aim of all countries. At a regional level, the human capital developmentgap is smallest in North America, followed by WesternEurope, Eastern Europe and Central Asia, East Asiaand the Pacific, Latin America, and Middle East andNorth Africa. The gap is largest in South Asia and SubSaharan Africa. From North America, the United States (4) ranks in thetop ten and Canada (14) ranks in the top 20. In WesternEurope, the Nordic countries Norway (1), Finland (2),Denmark (5) and Sweden (8)—as well as Switzerland (3)and Germany (6)—dominate the rankings, collectivelytaking the region’s top spots. Twelve countries havecrossed the threshold of developing at least 70% oftheir human capital. The Netherlands (13) and Belgium(15) rank ahead of the United Kingdom (23) and France(26) to make up the mid-range of the regional leaguetable, while three Mediterranean countries—Portugal(43), Spain (44) and Greece (48)—take the bottom ranks. Three countries from the Eastern Europe and CentralAsia region rank in the top 20: Slovenia (9) Estonia (12),and the Russian Federation (16). The Czech Republic(22), Ukraine (24) and Lithuania (25), all score above the70% threshold. The bottom-ranked countries in theregion, Macedonia, FYR (67) and Albania (85), are heldback by high unemployment and underemploymentrates across all age groups.vii
In East Asia, the best-performing countries in theregion, such as Singapore (11), Japan (17), andKorea, Rep. (27) are global strongholds of humancapital success, while countries such as Lao PDR(84), Myanmar (89) and Cambodia (92) trail the regiondespite their very high degree of human capitalutilization across the Deployment subindex. The gap between the best and worst performers inLatin America and the Caribbean is smaller than for anyother region. The two best-performing countries in theregion are Argentina (52) and Chile (53). The region’stwo largest economies, Mexico (69) and Brazil (77), rankin the middle and lower half of the Index overall alongwith Peru (66) and Colombia (68). The bottom ranks ofthe region are made up of Venezuela (94) and CentralAmerican nations such as Honduras (101). Only one country, Israel (18), from the Middle Eastand North Africa makes it into the top 20. Three gulfstates—the United Arab Emirates (45), Bahrain (47) andQatar (55)—outperform the rest of the region’s Arabspeaking countries and score in the mid-range of theIndex overall. Turkey (75) has developed 60% of itshuman capital against the theoretical ideal. Saudi Arabia(82), the region’s largest economy ranks ahead ofEgypt (97), its most populous one. Algeria (112), Tunisia(115) and Morocco (118), make up the lower end of therankings, ahead of Mauritania (129) and Yemen (130). From South Asia, Sri Lanka (70) is the top performer,while Nepal (98), India (103), Bangladesh (111) andPakistan (125) lag behind. With the exception of SriLanka, the rest have yet to reach the 60% thresholdwith regard to developing their human capital. Sub-Saharan Africa is the lowest-ranked region in theIndex. Rwanda (71), Ghana (72), Cameroon (73) andMauritius (74) have developed more than 60% of theirhuman capital. South Africa (87), the region’s secondlargest economy, places towards the middle in theregion. Nigeria (114) ranks in the lower midfield andEthiopia (127) is the lowest performer, fourth from thebottom on the Index overall.viii There are significant opportunities for economies withalready high talent capacity and development, suchas France, Greece, Italy and United Arab Emirates, toboost their human capital performance through a focuson the Know-how subindex, including opportunities forhigh- and medium-skilled work as well as broadeningthe complexity of the economies in question throughsectoral investment. In North America, Western Europe,Middle East and North Africa and Eastern Europeand Central Asia, more can be done to improve thedeployment of their countries’ high capacity talent.Sub-Saharan Africa and South Asia need much betterinvestment in developing their current and futureworkforces in order to expand beyond their relativelylow current capacity. Core to the Index is the concept that investmentin developing talent across the lifecycle—througheducation and employment—enhances humancapital. Even with similar levels of upfront educationalinvestment, on-the-job learning is critical for generatingreturns on the initial investment as well as ensuringthat people’s skills grow and appreciate in value overtime. Data from our research partnership with LinkedInconfirms that individual’s specialization and capacityexpands as they enter the labour market, highlights newopportunities for identifying and analyzing similar talentpools and points to opportunities for stronger designof reskilling and upskilling efforts. More broadly, thisunique data also suggests that there is an opportunityfor policymakers to use dynamic labour marketinformation to enhance their workforce planning anddecision-making.Because human capital is critical not only to theproductivity of society but also the functioning of itspolitical, social and civic institutions, understanding itscurrent state and capacity is valuable to a wide variety ofstakeholders. It is our hope that this Report can supportgovernments, businesses, education providers and civilsociety institutions in identifying key areas for focus andinvestment.The Global Human Capital Report 2017
Part 1MeasuringGlobal Human Capital
The Global Human CapitalIndex 2017Human capital is a key factor for growth, development andcompetitiveness. This link works through multiple pathwaysat the individual, firm and national level. Learning andworking provide people with livelihoods, an opportunityto contribute to their societies and, often, meaning andidentity. Workers’ skills lead to productivity and innovationin companies. At the national level, equality of opportunityin education and employment contribute to economicdevelopment and positive social and political outcomes.The Global Human Capital Index featured in thisReport aims to provide a holistic assessment of a country’shuman capital—both current and expected—acrossits population. It enables effective comparisons acrossregions, generations and income groups. The methodologybehind the rankings is intended to serve as a basis fortime-series analysis that allows countries to track progress,relative to their own performance as well as that of others.By “human capital” we mean the knowledge andskills people possess that enable them to create value inthe global economic system.1 This focus has been chosenspecifically so that the Index quantifies key concepts andprovides a practical tool to policy-makers and businessleaders.There are several distinctive aspects to the notion ofhuman capital as conceptualized and understood in thisReport (Figure 1).First, the Global Human Capital Index regards relevantskills as a dynamic asset people have and develop overtime, not as innate talent that is fixed. This means people’shuman capital in the form of relevant skills is likely toproduce higher returns if invested in optimally, starting earlyin life, and may also experience depreciation if not keptcurrent and developed continuously. Formal educationenhances people’s capacity, and while applying andThe Global Human Capital Report 2017Figure 1: Elements of Human CapitalCAPACITYDEVELOPMENTLevel of formaleducation of youngerand older generationsas a result of pasteducation investmentFormal educationof the next-generationworkforce and continuedupskilling and reskilling ofthe current kills applicationand accumulationamong theadult populationBreadthand depth ofspecialized skillsuse at workacquiring skills through work further develops people’shuman capital. Therefore, maximizing opportunity for allentails lifelong access to acquiring education and skillsand working-age access to deploying and developing skillsthrough work.Second, the Report’s understanding of humancapital—and the scoring criteria of the Index—are basedon the notion that it is neither through “cheap labour”nor through attracting a narrow set of the “best and thebrightest” and winning a “war for talent” that countriescan optimize their long-term human capital potential, but3
through building up deep, diverse and resilient talent poolsand skills ecosystems in their economies that allow forinclusive participation in good quality, skilled jobs by thelargest possible number of people.Too many countries, especially in today’s developingeconomies, are still pursuing pathways to economic valuecreation based on “cheap labour” alone—that is, in theframework of the Index, by solely focusing on maximizingdeployment of their people’s current human capital withlittle regard to skill diversification and acquiring moreadvanced know-how. The technological changes broughtabout by the Fourth Industrial Revolution entail a veryreal possibility of disrupting such economic developmentpathways beyond all viability. Conversely, economic valuecreation in a growing number of advanced economies isbased on highly specialized know-how—but the jobs andsectors driving these trends risk leaving behind a growingshare of the workforce.Third, implicit in the above is an assumption by theReport of the intrinsic value of human productivity andcreativity and a human-centric vision of the future of workthat recognizes people’s knowledge, talents and skills askey drivers of a prosperous and inclusive economy. Even if,in the long term, technological and social changes shouldgive rise to a world in which work and earning are not asclosely tied as in the past through tools such as a basicincome, equipping the largest possible number of people,regardless of age, gender or origin, with the know-how,skills and opportunity to contribute and thrive in such atechnology-enabled, human-centric economy—in short:maximizing their human capital—ought to be, and remain,a top priority for business and policy leaders.This Report consists of two parts. Part 1 of the Reportcontains three sections. Section one introduces the GlobalHuman Capital Index and the core concepts underlying itsmethodology. Section two covers the overarching results ofthe Global Human Capital Index, paying particular attentionto global trends and distinctive features of high-performingcountries. This section also examines the results throughthe prism of regional and income groupings, placingcountries’ performance in context. Section three reviewsthe results across the four thematic subindexes of theIndex—Capacity, Deployment, Development and Knowhow—and considers their variation by age group andgeneration. Specifically, this section explores generationalgaps between the human capital outcomes of younger andolder generations in the workforce and considers differentstrategies for expanding and nurturing human capitalpotential as well as hiring pools. This section of the Reportalso features a range of unique and illuminating data on theglobal human capital landscape obtained in collaborationfrom the Forum’s research partnership with LinkedIn.Part 2 of the Report, provides detailed, indicatorlevel results and information for all countries included inthe Index in the form of individual Country Profiles. TheReport also includes a practical User’s Guide and an4appendix with Technical Notes on the Index methodology.In addition, the Report website eport-2017) features an innovativeData Explorer tool, providing the possibility to comparecountries as well as comprehensive ranking tables by agegroup, region and income group.Because human capital is critical not only to theproductivity of society but also to the functioning of itspolitical, social and civic institutions, understanding itscurrent state and capacity is valuable to a wide variety ofstakeholders. It is our hope that this Report can supportgovernments, businesses, education providers and civilsociety institutions in identifying key areas for focus andinvestment. All of these entities have a stake in humancapital development, whether their primary goal is to powertheir businesses, strengthen their communities or createa population that is better able to contribute to and sharein the rewards of growth and prosperity. The Report alsoaims to foster public-private collaboration between sectors,ultimately reframing the debate around employment, skillsand human capital—from today’s focus on problems andchallenges towards the opportunities for collaborationthat fully leveraging the human capital potential residing inpeople’s skills and capacities can bring.Measuring Global HumanCapitalThe Global Human Capital Index, revised in 2017, assessesthe degree to which countries have optimized their humancapital for the benefit of their economies and of individuals’themselves. It is based on four underlying concepts and isconstructed using four subindexes.Underlying ConceptsThere are four guiding concepts underlying the revisedIndex, forming the basis of how indicators were chosen,how the data is treated and the scale used. For adescription of how these concepts are captured by thechoice of indicators and construction techniques usedin the creation of the Index, please refer to the sectionsbelow.Outcomes vs. inputsThe Global Human Capital Index evaluates countries basedon outcomes rather than inputs or means. Our aim is toprovide a snapshot of a country’s current human capital,current investment in building future human capital andcurrent outcomes in the labour market.Distance to the idealThe Index holds all countries to the same standard,measuring countries’ “distance to the ideal” state, or gapin human capital optimization. To arrive at this score theIndex examines each indicator in relation to a meaningfulmaximum value that represents “the ideal.” EveryThe Global Human Capital Report 2017
indicator’s score is a function of the country’s “distancefrom the ideal” for the specific dimension measured.By establishing an absolute measure of countries’performance, the Global Human Capital Index allows forboth intra- and inter-country comparisons year-to-year.Human capital as a dynamic conceptBy “human capital” we mean not individuals themselvesbut the knowledge and skills they possess that enablethem to create value in the global economic system.2 Thisrequires investment both on the side of individuals and bypublic and private stakeholders across people’s lifetimes.The Index thus treats human capital as a dynamic ratherthan fixed concept. It recognizes that human capital is notdefined solely through formal education and skilling butcan be enhanced over time—growing through use anddepreciating through lack of use.Demographics countWhenever possible and relevant, the Index aims totake a generational view and disaggregates indicatorsaccording to five distinct age groups, highlighting issuesthat are unique or particularly crucial for the human capitaldevelopment of each cohort. This view across age groupsallows for more targeted policy interventions and humanresource planning.3SubindexesFour thematic dimensions form the subindexes of theGlobal Human Capital Index—Capacity, Deployment,Development and Know-how. The Index’s Capacitysubindex quantifies the existing stock of education acrossgenerations, the Deployment subindex covers activeparticipation in the workforce across generations, theDevelopment subindex reflects current efforts to educate,skill and upskill the student body and the working agepopulation, and the Know-how subindex captures thegrowth or depreciation of working-age people’s skillsetsthrough opportunities for higher value-add work. TheGlobal Human Capital Index aims to portray these varieddimensions within the limits of available data and wherepossible and relevant applies a generational lens acrossfive distinct age groups or generations—0–14 years; 15–24years; 25–54 years; 55–64 years; and 65 years and over(Table 1 on page 6).CapacityA more educated population is better prepared to adapt tonew technologies, innovate and compete on a global level.The Capacity subindex features four common measures offormal educational attainment, disaggregated across agegroups in the workforce. These capture the percentageof the population that has achieved at least primary,(lower) secondary or tertiary education, respectively, andthe proportion of the population that has a basic level ofliteracy and numeracy.The Global Human Capital Report 2017DeploymentBeyond formal learning, human capital is enhanced in theworkplace through learning-by-doing, tacit knowledge,exchange with colleagues and formal on-the-job learning.The Deployment subindex measures how many peopleare able to participate actively in the workforce as well ashow successfully particular segments of the population—women, youth and older people, those who tend to beparticularly inefficiently engaged in labour markets—areable to contribute. Including both those currently employedas well as people actively looking for work, a country’slabour force participation rate is the broadest measure ofthe share of its people participating in the labour market.Unemployment rates capture the subset of this groupthat is currently out of a job but would like to work. Theunderemployment rate is the share of those currentlyemployed who would be willing and available to work more.A measure of the gender gap in economic participationis also included as it remains a critical weakness in mostlabour markets around the world.4DevelopmentThis subindex concerns that formal education of thenext-generation workforce and continued upskilling andreskilling of the current workforce. Access to educationfor today’s children and youth—the future workforce—iscaptured using net adjusted enrolment rates for primaryschool and net enrolment rates for secondary school,as well as through gross tertiary enrolment ratios and ameasure of the education gender gap at the secondaryenrolment level, for the under 15 and 15–24 age groups.As young adults with completed secondary educationface a choice between tertiary studies, acquiring furtherspecialized vocational skills or entering the labour market,the Index includes a measure of enrolment in vocationaltraining programmes, without making a value judgementbetween these three options in terms of index scoring.5The Index also includes two qualitative indicators on thequality of primary education and on how well the educationsystem as a whole meets the needs of a competitiveeconomy, as assessed by a country’s business community.The Index includes an assessment of the skill diversityof a country’s recent graduates as a proxy for the rangeof expertise available to a country.6 Finally, outcomes onlifelong learning among the adult workforce are capturedthrough a measure of formal staff training from the WorldEconomic Forum’s Executive Opinion Survey.Know-howKnow-how concerns the breadth and depth of specializedskills use at work. Economic complexity is a measure ofthe degree of sophistication of a country’s “productiveknowledge” as can be empirically observed in the qualityof its export products.7 In addition, the Index measuresthe current level availability of high- and mid-skilledopportunities and, in parallel, employer’s perceptions of theease or difficulty of filling vacancies.5
Table
Jun 10, 2016 · The Global Human Capital Index featured in this Report thus treats human capital as a dynamic rather than fixed concept. The Global Human Capital Index 2017 ranks 130 countries on how well they are developing their human capital on a scale from 0 (worst) to 100 (best) across four thematic dimensions—capacity, deployment,
May 02, 2018 · D. Program Evaluation ͟The organization has provided a description of the framework for how each program will be evaluated. The framework should include all the elements below: ͟The evaluation methods are cost-effective for the organization ͟Quantitative and qualitative data is being collected (at Basics tier, data collection must have begun)
Silat is a combative art of self-defense and survival rooted from Matay archipelago. It was traced at thé early of Langkasuka Kingdom (2nd century CE) till thé reign of Melaka (Malaysia) Sultanate era (13th century). Silat has now evolved to become part of social culture and tradition with thé appearance of a fine physical and spiritual .
On an exceptional basis, Member States may request UNESCO to provide thé candidates with access to thé platform so they can complète thé form by themselves. Thèse requests must be addressed to esd rize unesco. or by 15 A ril 2021 UNESCO will provide thé nomineewith accessto thé platform via their émail address.
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Le genou de Lucy. Odile Jacob. 1999. Coppens Y. Pré-textes. L’homme préhistorique en morceaux. Eds Odile Jacob. 2011. Costentin J., Delaveau P. Café, thé, chocolat, les bons effets sur le cerveau et pour le corps. Editions Odile Jacob. 2010. Crawford M., Marsh D. The driving force : food in human evolution and the future.
Le genou de Lucy. Odile Jacob. 1999. Coppens Y. Pré-textes. L’homme préhistorique en morceaux. Eds Odile Jacob. 2011. Costentin J., Delaveau P. Café, thé, chocolat, les bons effets sur le cerveau et pour le corps. Editions Odile Jacob. 2010. 3 Crawford M., Marsh D. The driving force : food in human evolution and the future.
