World Bank launches first Human Capital Index,India lower than Bangladesh & Singapore tops list

What is Important?
UPSC perspective:
Prelims: HCI Report and its findings & performance of various countries.
Mains Paper 2: improvements & ways to achieve it
Non-UPSC perspective:India's Rank & Who Release it?
Why in News
The World Bank released today a Human Capital Index (HCI) as part of the World Development Report 2019.Theme for the World Development Report (WDR) 2018: “The Changing Nature of Work”.
Human Capital Index

About Human Capital Index (HCI)
*The human capital index, which has been modeled on the World Bank's existing doing business index that assesses national business conditions, aims to create a similar ranking for countries based on how well they look after their people.
*The index claims to seek to measure the amount of human capital that a child born today can expect to attain by age 18.
*The HCI index values are contended to convey the productivity of the next generation of workers, compared to a benchmark of complete standard education and full health.
Key observations in HCI for India 
*Human Capital Index: A child born in India today will be only 44 per cent as productive when she grows up as she could be if she enjoyed complete education and full health.
*Probability of Survival to Age 5: 96 out of 100 children born in India survive to age 5.
*Expected Years of School: In India, a child who starts school at age 4 can expect to complete 10.2 years of school by her 18th
*Harmonized Test Scores: Students in India score 355 on a scale where 625 represents advanced attainment and 300 represents minimum attainment.
*Learning-adjusted Years of School: Factoring in what children actually learn, expected years of school is only 5.8 years.
*Adult Survival Rate: Across India, 83 per cent of 15-year olds will survive until age 60.
*Healthy Growth (Not Stunted Rate): 62 out of 100 children are not stunted. 38 out of 100 children are stunted, and so at risk of cognitive and physical limitations that can last a lifetime.
*Gender Differences: In India, HCI for girls is marginally higher than for boys.
The three main components of HCP include:
1. Cross-country human capital measurement metric called the Human Capital Index (HCI)
2. Programme of measurement and research to inform policy action
3. Programme of support for country strategies to accelerate investment in human capital
India has decided to ignore the HCI
Discontent with the Methodology.
Assessment lacking Global Standard.
Gross negligence of important measures
Way Forward
*The qualitative aspects of improved governance that have a strong correlation with human capital development have not been captured by the way the HCI has been constructed.
*The gap in data and methodology overlook the initiatives taken by a country and, in turn, portray an incomplete and pre-determined picture.
*This infact makes the case for an adoption of the Index by more countries somewhat remote.
*With the emphasis on country scores and rankings, the HCI could trivialize the importance of the Human Capital Project.
*Hence the Government of India has decided to ignore the HCI and will continue to undertake its path breaking programme for human capital development

World Bank launches first Human Capital Index,India lower than Bangladesh & Singapore tops list World Bank launches first Human Capital Index,India lower than Bangladesh & Singapore tops list Reviewed by The Hindu Current Affairs on October 12, 2018 Rating: 5

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