Nurturing Nepali Talent to Foster Economic Growth: A Human Capital Review for Nepal

The Nepal Human Capital Review is part of the World Bank Group's Human Capital Project, a global initiative that emphasizes the importance of investing in people. Evidence from around the world shows that building human capital-through better education, health, and nutrition-significantly boosts a country's economic growth and prosperity. By analyzing how human capital accumulates, we can also understand why income inequalities persist and why the average Nepali remains trapped in poverty.

Why Human Capital Matters?

The NHCR uses the World Bank's Human Capital Index (HCI) to assess human capital in Nepal at the national and provincial level. The HCI predicts the future productivity of a child born today, assuming current conditions in education and healthcare stay the same. The HCI contributes to the policy dialogue on human capital issues by offering several key insights:

• A Forward-Looking Measure: The HCI gives a glimpse into the potential productivity of the next generation of workers.

• Straightforward Approach: It focuses on essential aspects of skill formation, making it clear and easy to understand.

• Lifecycle Perspective: The HCI tracks a child's journey from survival at birth to health and education through adulthood.

• Output-Oriented: By combining mortality rates, stunting, years of schooling, learning outcomes, and adult survival rates, the HCI emphasizes results rather than inputs.

• Focused Objective: The HCI isn't about measuring social welfare; it's about estimating future productivity based on today's conditions.

Full Report Coming Soon!

The Nepal Human Capital Review offers a narrative of both challenges and opportunities. It sheds light on the urgent need for investment in human capital and provides policy recommendations on how to address the challenges. This is more than just a report-it's a call to action.

Do look out for the full report to learn more about how Nepal can unlock its lost talent and pave the way for a more prosperous future for all.

Last Updated: Oct 24, 2024