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World Bank's Human Capital Index

12 Oct, 2018 RBI General Studies

Summary of the report and India's performance

The World Bank released a Human Capital Index (HCI) as part of the World Development Report 2019 on 11th October 2018.
Theme -  “The Changing Nature of Work”.
Total Countries that are ranked – 157
India’s Rank – 115

India and other Neighbors - Comparison

What is the Human Capital Index?

Measures the human capital that a child born today can expect to attain by her 18th birthday, given the risks of poor health and poor education in the country where she lives. Units represent productivity relative to a benchmark of complete education and full health, on a scale of 0 to 1.

Human Capital Project

As part of this report, the World Bank has launched a Human Capital Project (HCP). The HCP programme is claimed to be a program of advocacy, measurement, and analytical work to raise awareness and increase demand for interventions to build human capital. There are three components of HCP- a cross-country human capital measurement metric called the Human Capital Index (HCI), a programme of measurement and research to inform policy action, and a programme of support for country strategies to accelerate investment in human capital.

Pillars of the Human Capital Project
  • The Human Capital Index
  • Measurement & Research
  • Country Engagement

KEY INDICATORS –

1. Probability of Survival to Age 5

Represents the unfortunate reality that not all children born today will survive until the age of 5, when the process of human capital accumulation through formal education begins. It is measured using under-5 mortality rates.

2. Expected Years of School

Number of years of school that a child can expect to attain by her 18th birthday if she starts preschool at age 4 and given enrollment rates in the country where she lives, for a maximum of 14 years.

3. Harmonized Test Scores

Harmonized test scores combine data from major international student achievement testing programs into common units, where 300 represents minimal attainment, and 625 represents advanced attainment.

4. Learning-Adjusted Years of School

This indicator discounts time spent in school by a factor measuring how much children learn. It is calculated by multiplying Expected Years of School by Harmonized Test Scores as a fraction of the advanced attainment benchmark score of 625.

5. Fraction of Children Under 5 Not Stunted

The fraction of children under 5 who are not stunted and are experiencing normal healthy growth. Stunting summarizes the adverse health shocks experienced by children in their early years, with important consequences for adult health and well-being.

6. Adult Survival Rate

Defined as the fraction of 15-year-olds that survive until age 60. In the context of the HCI, this serves as a summary indicator of the overall health environment.

 

Indicator
Girls
Boys
Overall
India’s Performance

Human Capital Index

0.45

0.43

0.44

A child born in India today will be 44 percent as productive when she grows up as she could be if she enjoyed complete education and full health.

Probability of Survival to Age 5

0.96

0.96

0.96

 

96 out of 100 children born in India survive to age 5.

Expected Years of School

10.3

10.

10.2

In India, a child who starts school at age 4 can expect to complete 10.2 years of school by her 18th birthday.

Harmonized Test Scores

362

347

355

Students in India score 355 on a scale where 625 represents advanced attainment and 300 represents minimum attainment.

Learning-Adjusted Years of School

5.9

5.6

5.8

 

Factoring in what children actually learn, expected years of school is only 5.8 years.

Fraction of Children Under 5 Not Stunted

0.63

0.62

0.62

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.

Adult Survival Rate

0.86

0.79

0.83

83 percent of 15-year olds will survive until age 60.

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