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Improving the Human Capital Index (HCI) of the Philippines:
What can you do right now?
2
Current HCI of the Philippines
3
How does the Philippines
compare vs. its neighbors?
5
What should we push our
government to do?
6
What should we do for
ourselves?
7
What can we do for others?
8
The Future of
Work
HOW PRODUCTIVE WILL WE BE?
55%
A child born in the Philippines today will only reach half of
his or her potential upon reaching working age. The World
Bank estimates the Human Capital Index of the country to
be at 55%, pulled down mostly by quality of education
(64%) and health (88%).
In light of Industry 4.0, it is even more important for the
country to invest in its human capital – higher level cognitive
skills (critical thinking, problem solving, learning to learn) will
be of greater importance in the jobs of tomorrow.
A
55%
Human Capital
Index
B
97%
Survival
• Based on a child’s
probability of
surviving to age
5.
C
64%
School
• Based on
harmonized test
scores and years
in school
6.7
8.4
3.3
4.4
Stunting Years
Adjusted
Learning
C
88%
Health
• Based on stunting
and probability of
surviving to age
60.
3 of every 10 Filipino
children are stunted.
This can have lifelong
effects on a person’s
cognitive development.
While a typical child is
expected to be in
school for 12.8 years,
when adjusted for
quality this is only
equivalent to 8.4 years
of Learning Adjusted
School Years.
The Philippines lags
behind its Asian
neighbors in terms of
quality of education.
While a typical Filipino is expected
to spend 12.8 years in school (parity
versus most other Asian countries),
the Learning Adjusted Years of
School is only at 8.4. This is almost 4
years behind the more developed
Asian countries.
In particular, Vietnam whose GDP
PC is not far from the Philippines,
has Learning Adjusted Years of
School that is 2 years more.
HOW DOES THE PHILIPPINES
COMPARE VS. ITS NEIGHBORS
Stunting appears to be a
prevalent issue among
the lower middle income
countries in Asia.
Nearly 30% of children in most of the lower
middle income countries (including the
Philippines) are stunted.
Stunting needs to be addressed urgently, as
this puts a child at a significant lifelong
disadvantage. Beyond the physical
manifestation (shorter height for their age),
brain development is also impaired.
Because of the resulting lower cognitive ability,
a stunted child’s future job potential is
negatively affected.
As stunting is prevalent among the
disadvantaged sectors, then this puts them
further behind particularly in light of higher
cognitive demands of the jobs of tomorrow.
HOW DOES THE PHILIPPINES
COMPARE VS. ITS NEIGHBORS
WHAT’S YOUR TIME WORTH?
$70Mper day lost due to traffic
Typical commuter in Metro Manila would
spend 2-6 hours commuting covering 10-
20kms one way. Being stuck in traffic is
one of the most unproductive use of time.
A key metric that a city like Metro
Manila should capture is average
commuter time per person (NOT cars)
per km. Time wasted in traffic is time lost
for developing human capital.
That extra hour or two a day could be
spent mostly to either improve one’s health
(rest, working out) or improve one’s
knowledge (reading, taking classes, doing
online courses) or improving parent child
interactions.
A
41%
Work
• We spend most of
our time at work
(8-10 hours)
B
21%
Sleep
• If you’re lucky,
you get around 5
hours of sleep.
C
17%
Personal
• A few hours
perhaps to spend
time with family
C
21%
Commute
• Daily commute
would take 3-6
hours per day.
What should we demand
from our government?
What can you do for
yourself?
The Future of Work requires lifelong learning. As
AI and Automation begin to take on tasks that
humans used to do, workers of tomorrow need to
upskills themselves in order to remain competitive.
What can you do now?
While taking up a full masters course is something
that would be very difficult, various digital courses
have made higher learning within reach of most
people.
Most are free. Most are taught by professors in top
universities globally. Most you can take in just a
few hours per week.
“One hour a day withdrawn from frivolous pursuits and profitably employed would enable any man of
ordinary capacity to master a complete science …. An hour a day might make all the difference
between existence and useful, happy living.”- Vincent Egoro, Just One Hour
Activity Tool Cost Time
Online Classes Edx, Coursera,
Datacamp
Free, around $100 if
getting a certificate
Self-paced, 2-5
hours per week
Working Out Nike Training,
Fitbit Coach
Free Self-paced, 1-2
hours per week
Reading
(Audiobook)
Kindle, Spotify $15 / month Self paced, 1-2
hours per week
Podcasts Spotify, Podcasts
App
Free Self paced, 1-2
hours per week
What can you
do for others? • Go online and volunteer. Digital technology has made looking
for volunteer work easier (e.g. iVolunteer Philippines).
• Studies have show that the first 1,000 days is the most crucial
for a child’s development. What happens in the first 1,000 days
of a child’s life has lifelong implications.
• This is something you can do now. Early Childhood
Development (ECD) will not only benefit the child, but society
as a whole. With the stunting affecting a large number of
Filipino kids, helping with ECD is one concrete, high impact
step all of us can do right now.
The Future of Work
• Demand better from our
government
• Demand better from
yourself
• Demand better for others
The face of the future is below. It’s a standard RPA (Robotic Process
Automation) code using Workfusion. It’s supposed to open an excel file,
refresh its contents, copy a table, send to a Viber group chat - tasks that
before you’d ask a human to do.
In 15 minutes, with absolutely no coding experience, anyone can use the RPA
model below. It is essentially a robot. It has become much easier to copy what
humans do.
More importantly, the technology is here. Now.
In the face of this, we humans need to evolve. We need to be better. We need
to demand better from our government, demand better from ourselves,
demand better for others.

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Future of Work - Call to Action

  • 1. Improving the Human Capital Index (HCI) of the Philippines: What can you do right now? 2 Current HCI of the Philippines 3 How does the Philippines compare vs. its neighbors? 5 What should we push our government to do? 6 What should we do for ourselves? 7 What can we do for others? 8 The Future of Work
  • 2. HOW PRODUCTIVE WILL WE BE? 55% A child born in the Philippines today will only reach half of his or her potential upon reaching working age. The World Bank estimates the Human Capital Index of the country to be at 55%, pulled down mostly by quality of education (64%) and health (88%). In light of Industry 4.0, it is even more important for the country to invest in its human capital – higher level cognitive skills (critical thinking, problem solving, learning to learn) will be of greater importance in the jobs of tomorrow. A 55% Human Capital Index B 97% Survival • Based on a child’s probability of surviving to age 5. C 64% School • Based on harmonized test scores and years in school 6.7 8.4 3.3 4.4 Stunting Years Adjusted Learning C 88% Health • Based on stunting and probability of surviving to age 60. 3 of every 10 Filipino children are stunted. This can have lifelong effects on a person’s cognitive development. While a typical child is expected to be in school for 12.8 years, when adjusted for quality this is only equivalent to 8.4 years of Learning Adjusted School Years.
  • 3. The Philippines lags behind its Asian neighbors in terms of quality of education. While a typical Filipino is expected to spend 12.8 years in school (parity versus most other Asian countries), the Learning Adjusted Years of School is only at 8.4. This is almost 4 years behind the more developed Asian countries. In particular, Vietnam whose GDP PC is not far from the Philippines, has Learning Adjusted Years of School that is 2 years more. HOW DOES THE PHILIPPINES COMPARE VS. ITS NEIGHBORS
  • 4. Stunting appears to be a prevalent issue among the lower middle income countries in Asia. Nearly 30% of children in most of the lower middle income countries (including the Philippines) are stunted. Stunting needs to be addressed urgently, as this puts a child at a significant lifelong disadvantage. Beyond the physical manifestation (shorter height for their age), brain development is also impaired. Because of the resulting lower cognitive ability, a stunted child’s future job potential is negatively affected. As stunting is prevalent among the disadvantaged sectors, then this puts them further behind particularly in light of higher cognitive demands of the jobs of tomorrow. HOW DOES THE PHILIPPINES COMPARE VS. ITS NEIGHBORS
  • 5. WHAT’S YOUR TIME WORTH? $70Mper day lost due to traffic Typical commuter in Metro Manila would spend 2-6 hours commuting covering 10- 20kms one way. Being stuck in traffic is one of the most unproductive use of time. A key metric that a city like Metro Manila should capture is average commuter time per person (NOT cars) per km. Time wasted in traffic is time lost for developing human capital. That extra hour or two a day could be spent mostly to either improve one’s health (rest, working out) or improve one’s knowledge (reading, taking classes, doing online courses) or improving parent child interactions. A 41% Work • We spend most of our time at work (8-10 hours) B 21% Sleep • If you’re lucky, you get around 5 hours of sleep. C 17% Personal • A few hours perhaps to spend time with family C 21% Commute • Daily commute would take 3-6 hours per day. What should we demand from our government?
  • 6. What can you do for yourself? The Future of Work requires lifelong learning. As AI and Automation begin to take on tasks that humans used to do, workers of tomorrow need to upskills themselves in order to remain competitive. What can you do now? While taking up a full masters course is something that would be very difficult, various digital courses have made higher learning within reach of most people. Most are free. Most are taught by professors in top universities globally. Most you can take in just a few hours per week. “One hour a day withdrawn from frivolous pursuits and profitably employed would enable any man of ordinary capacity to master a complete science …. An hour a day might make all the difference between existence and useful, happy living.”- Vincent Egoro, Just One Hour Activity Tool Cost Time Online Classes Edx, Coursera, Datacamp Free, around $100 if getting a certificate Self-paced, 2-5 hours per week Working Out Nike Training, Fitbit Coach Free Self-paced, 1-2 hours per week Reading (Audiobook) Kindle, Spotify $15 / month Self paced, 1-2 hours per week Podcasts Spotify, Podcasts App Free Self paced, 1-2 hours per week
  • 7. What can you do for others? • Go online and volunteer. Digital technology has made looking for volunteer work easier (e.g. iVolunteer Philippines). • Studies have show that the first 1,000 days is the most crucial for a child’s development. What happens in the first 1,000 days of a child’s life has lifelong implications. • This is something you can do now. Early Childhood Development (ECD) will not only benefit the child, but society as a whole. With the stunting affecting a large number of Filipino kids, helping with ECD is one concrete, high impact step all of us can do right now.
  • 8. The Future of Work • Demand better from our government • Demand better from yourself • Demand better for others The face of the future is below. It’s a standard RPA (Robotic Process Automation) code using Workfusion. It’s supposed to open an excel file, refresh its contents, copy a table, send to a Viber group chat - tasks that before you’d ask a human to do. In 15 minutes, with absolutely no coding experience, anyone can use the RPA model below. It is essentially a robot. It has become much easier to copy what humans do. More importantly, the technology is here. Now. In the face of this, we humans need to evolve. We need to be better. We need to demand better from our government, demand better from ourselves, demand better for others.