How far a country can change its ranking by changing its human capital scores? What would happen if a country made such drastic policy changes as to change its scores on human capital to be the best among all the economies covered by the WEF competitiveness report, all other things remaining constant?
And what would happen if the education and training system collapsed to the level of the worst country in the world? Which indicators we can use proxy to human capital ?
Is this way examine the role of human capital in enhancing GCI ?
thanks for cooperation
Your question that countries if they can raise human capital scores can they improve their ranking letting other things remaining constant is very challenging to answer. Human capital is not only enhanced by 'education and training' but it is enhanced by the overall ecosystem that provides the necessary environment 'to perform labor and produce economic value'. There is not one factor (education and training) but all its inter-relationships that need to improved to deliver higher GCR ranking for a country.
We need to look at what is human capital. The definition of human capital is - Human capital is the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value (Claudia Goldin, Department of Economics Harvard University and National Bureau of Economic Research. "Human Capital" (PDF)). If this human capital is to be related then it can relate to 3 indicators on the GCR - 5th pillar, 9th pillar and 12th pillar. But does it actually relate to only these three is subject of deliberation and investigation.
Thank you very much for this precious and valuable information,
We can also, add for the pillars that you mentioned 4th pillar: Education and Primary Education which has weight 15 % of the final score of GCI in the first stage Factor-driven. and 10 % of GCI in the second stage of development: Efficiency-Factors. And 5 % of GCI in the third stage: Innovation-Driven.
But i want to ask, can we do simulation through change the score of human capital for developing countries to ideal or idealistic country which has a highest score in human capital
enclosed article which use this methodology
thank you very much for you reply
Yes, you can do simulation (by scoring a country on different pillars which may not be in the rankings, or benchmarking a country that is on the rankings with other better ranked countries) on each of the pillars and then identifying and implementing initiatives (strategic economic development projects) that can lift the country up the rankings (this exercise actively undertaken by many country's ministry of economic development for identifying and implementing economic development programs/projects). So the methodology is - identify the relevant pillar that apply for human capital, score your country on these pillars, benchmark the scores against the best country on these pillars in your region and internationally, identify the initiatives in these best ranked countries that make them the best (best practices) and accordingly synthesize or customize the initiatives for your country.
Find attached a revised methodology note on GCI for 2017-18.
If you want to something on similar lines you can check out the report i did with AfDB whereby we converted the PwC energy transformation framework to apply it for West African countries and applied different indices to understand the macro-economic environment in these countries, which helped in identifying difference macro-economic initiatives that can applied to invigorate the entrepreneurial ecosystem for energy based entrepreneurs.
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