The World Bank has released a report highlighting the alarming decline in health, education, and training in numerous developing countries, significantly impacting the future earning potential of children born today. In the document titled “Building Human Capital Where it Matters,” the Bank urges policymakers to prioritize improvements in three critical areas: homes, neighborhoods, and workplaces.
Between 2010 and 2025, the analysis indicates that health, education, or workplace learning deteriorated in **86 of 129** low and middle-income countries. The World Bank estimates that if human capital in these nations matched that of the best-performing countries at similar income levels, children born now could earn **51% more** over their lifetimes.
Mamta Murthi, the World Bank’s Vice President for People, stated, “The prosperity of low- and middle-income countries depends on their ability to build and protect human capital. Right now, we see that many countries are struggling to improve nutrition, learning, and skills of their current and future workforce, which raises concerns about labour productivity and the types of jobs their economies can sustain in the future.”
The report reveals troubling evidence of this decline. In several sub-Saharan African countries, adults are now, on average, shorter than they were **25 years ago**, indicating a deterioration in underlying health. Furthermore, children across low and middle-income countries are achieving lower learning outcomes than they did **15 years ago**, with the most pronounced decline observed in sub-Saharan Africa.
Factors Affecting Human Capital Development
The **140-page** analysis draws on recent research to examine various factors influencing human capital. It highlights the impact of childhood stunting due to malnutrition and the presence of criminal gangs in local neighborhoods. Research indicates that the quality of care families provide has lasting effects on children’s development. The World Bank references millions of children in **China** who are cared for by relatives while their parents seek work. This situation leads to these “left-behind children” living in homes with higher household income but performing worse on mathematics and language tests and exhibiting increased levels of depression.
Crime in neighborhoods also plays a significant role in shaping human capital. The report points to research showing that in **San Salvador**, individuals living in gang-controlled areas have fewer resources, lower income, and reduced educational attainment compared to those living just **50 meters** away.
In the workplace, the report emphasizes that **40%** of women in low and middle-income countries are not in employment. Among those who do work, as many as **70%** are engaged in small-scale agriculture, low-quality self-employment, or microfirms, which offer limited formal training and few on-the-job learning opportunities.
Recommendations for Improvement
To address these significant shortfalls, the World Bank recommends a diverse range of policies. These include enhancing parenting support, providing clean water, and creating incentives to encourage apprenticeships. The report also illustrates that countries with similar income levels can have vastly different human capital outcomes, showcasing **Jamaica**, **Kenya**, the **Kyrgyz Republic**, and **Vietnam** as notable success stories.
As skepticism grows regarding the value of international aid from the **U.S. administration**, the President of the World Bank, **Ajay Banga**, has redefined the institution’s focus to prioritize job creation and economic growth. The findings of this report serve as a critical call to action for governments to invest in human capital, ensuring a more prosperous future for the next generation.
