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WEF’s Global Human Capital Index
Sep 19, 2017

[GS Paper II: (Important international institutions, agencies and fora - their structure, mandate)]

Why in News?

India has been placed at a low 103 rank, the lowest among BRICS economies, on the recently released World Economic Forum’s (WEF) Global Human Capital Index. Norway topped the list, followed by Finland and Switzerland in the second and third place respectively.

  • The report takes into account "the knowledge and skills people possess that enable them to create value in the global economic system" to measure the 'human capital' rank of a country.
  • It aims to be used as a tool to assess progress within countries and point to opportunities for cross-country learning and exchange.
  • The report measures 130 countries against four key areas of human capital development.

1. Capacity (determined by past investment in formal education), 
2. Deployment (accumulation of skills through work), 
3. Development (continued upskilling and reskilling of existing workers) 
4. Know-how (specialised skills-use at work).

Key findings

  • According to the report, 62% of human capital has now been developed globally.
  • India is ranked lower than its BRICS peers, with Russian Federation placed at 16th place, followed by China at 34th, Brazil at 77th and South Africa at 87th place.
  • Among the South Asian countries also, India is ranked lower than Sri Lanka and Nepal, although higher than neighbouring Bangladesh and Pakistan.

Factors behind India’s low ranking

  • India is held back by a number of factors, including low educational attainment and low deployment of its human capital, meaning the skills available are not getting put to good use.
  • India ranks 118 for labour force participation among the key 35-54 year old demographic, suggesting far too many Indians are engaged in informal or subsistent employment.

World Economic Forum (WEF)

  •  The World Economic Forum is the International Organization for Public-Private Cooperation.
  •  The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas. 
  • It was established in 1971 as a not-for-profit foundation and is headquartered in Geneva, Switzerland.
  • Founder and Executive Chairman - Klaus Schwab 

Other Reports published by WEF

  • The Global Competitiveness Report
  • The Global Risks Report
  • The Global Gender Gap Report
  • Global Information Technology Report
  • Travel and Tourism Competitiveness Report
  • Inclusive Growth and Development Report

 


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