Human capital approach
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The document discusses adopting a human capital approach in Nigeria to improve its economic potential and standards of living. It notes that Nigeria currently ranks poorly on human capital indexes due to low spending on education and healthcare, being at only 34% of its productive potential. Adopting a human capital approach, which focuses on health, education, and workforce readiness, could boost Nigeria's GDP by 2.5 times by ensuring its people are fully educated and healthy. However, most African governments prioritize becoming rich before investing in people, despite evidence that investing in health and education has significant economic benefits.
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Examining Human Capital. a case study on Nigeria.
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Human capital refers to the skills, knowledge, and experience that contribute to productivity. In Nigeria, human capital is underdeveloped due to deficiencies in education and healthcare. Only 20.1% of the population has access to education, and over 10 million children are out of school. Healthcare also faces challenges, as doctors often misdiagnose conditions. According to the Human Capital Index, a child born in Nigeria will attain only 34% of their potential productivity, ranking Nigeria 152nd out of 157 countries. To improve, Nigeria must invest more in early childhood development, education, healthcare, and social protection.
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Human capital approach
- 1. Human capital approach: How will Nigeria fare if this approach is adopted
- 2. • YOU CANNOT HOPE TO BUILD A BETTER WORLD WITHOUT IMPROVING THE INDIVIDUALS. • NIGERIA CANNOT IMPROVE WITHOUT IMPROVING THE HEALTH AND EDUCATION OF ITS PEOPLE
- 3. FACTS • Africa’s Human Capital Index score of 0.40 puts the region at 40% of its potential: - GDP per worker could be 2.5 higher if everyone reached the benchmark of complete education and full health. • Nigeria ranks 152 out of 157 countries with a human capital index of 0.34 which is very poor and indeed worrisome because the country is at only 34% of its productive potential • It is an oil rich nation with very poor outcomes because it spends less than 4% of its GDP on education and on health
- 4. Why Africa is where it is? • “ We are working hard to get rich first, then we will spend on health and education”……………………. Similar statements from governments of most African countries. • 56 per cent of children born today across the world will lose more than half their potential lifetime earnings because governments are not currently making effective investments in their people to ensure a healthy, educated, and resilient population ready for the workplace of the future………………… World bank development report (2019)
- 5. Human Capital Approach This looks at three components which are also measurable
- 6. Benefits of using the Human Capital approach in Nigeria
- 7. Bibliography • Jim Yong Kim (2018). The Human Capital gap. Getting Governments to invest in people. • World Development Report (2019). The Changing nature of work. http://documents.worldbank.org/curated/en/816281518818814423/ pdf/2019-WDR-Report.pdf