Today, we launch the Human Capital Index, which ranks countries on how effectively they are preparing their citizens for the future. We did this knowing that countries find rankings uncomfortable, but we are certain that this is a discussion that cannot wait. An index puts crucial information squarely in front of leaders — especially heads of state and ministers of finance — and makes it hard to ignore.
Investing in human capital is an urgent task. Over the years, countless development reports and academic studies have made the case for investing in people. We now know more than we ever have about how to build human capital, and World Bank Group research shows a strong correlation with economic growth. In the complex, increasingly digital future, those correlations will grow even stronger.
Over many years, governments have chosen to build hard infrastructure — roads, bridges and airports — ahead of investing in their people. The economic and political benefits of physical capital are often apparent straight away, while the positive impact of investments in human capital can take years or even decades to become apparent. Neither the appropriate incentives nor the clear evidence that we are providing now have been in place.