Friday, May 1, 2009

HUMAN CAPITAL - How what you know shapes your life

Economic success crucially relies on human capital – the knowledge, skills, competencies and attributes that allow people to contribute to their personal and social well-being, as well as that of their countries.

Education is the key factor in forming human capital. People with better education tend to enjoy higher incomes – a benefit that is also reflected in improved economic growth. But the impact of human capital goes beyond economics. Raising human capital raises health levels, community involvement and employment prospects. Indeed, as globalisation increases the need for technological skills and adaptation, the importance of human capital will only grow in the years to come.

Sadly, too many people today are not being given the opportunity to fully develop their abilities. Even in developed countries, as many as one-fifth of young people fail to finish secondary school, which severely limits their subsequent employment prospects. Such failure is frequently concentrated in particular communities, leading to their marginalisation from the economic and social mainstream.

Today's children are growing up in a changing world. Globalisation is opening up economies and creating opportunities. Economic foundations have shifted, too, with the rise of the knowledge economy. Coupled with major social change, such as the ageing of populations, societies must find solutions to new challenges.

Investing for Change !

No comments: