Business Standard Underinvesting in health, education is now risking India's economic future Human capital is a measure of the education and health levels in a population, expressed as the number of expected years lived between the age of 20 and 64
Poor quality education and the relatively high prevalence of certain diseases amongst the population means India is risking its future economic growth by underinvesting in two key areas important for workforce productivity, according to a new study.Indians work for just six-and-a-half years at peak productivity (compared to 20 years in China, 16 in Brazil and 13 in Sri Lanka), ranking 158th out of 195 countries in an international ranking of human capital in the study by the Institute of Health Metrics and Evaluation, published in The Lancet, a global journal.
Human capital is a measure of the education and health levels in a population, expressed as the number of expected years lived between the age of 20 and 64. It is considered an important determinant of economic growth.By taking into account life expectancy, functional health, years of schooling and education quality, the quality of labour generated within a country can be estimated, compared with other nations and areas for increased investment focus identified.Finland retains its top ranking with 27 years of human capital, while Niger, South Sudan and Chad feature at the bottom with no more than two years each, showing vast levels of inequality globally. The US, a formerly high ranking nation, has fallen 21 places from sixth to 27th position, due partly to a lack of improvement in years of education attained, the study showed. “Our findings show the association between investments in education and health and improved human capital and GDP (gross domestic product)--which policymakers ignore at their own peril,” said Christopher Murray, director of the Institute for Health Metrics and Evaluation (IHME) at the University of Washington. “As the world economy grows increasingly dependent on digital technology, from agriculture to manufacturing to the service industry, human capital grows increasingly important for stimulating local and national economies.” Though Indians are spending an extra four more years in school compared to almost two decades earlier in 1990, the country had the second lowest score for education quality in South Asia in 2016 (66 out of a possible 100, just ahead of Afghanistan’s 64).Equally, while the number of years that Indians work between the age of 20 and 64 has increased by seven years (from 36 to 43), the workforce is the unhealthiest in South Asia, with the lowest functional health score in the region (43 out of a possible 100, behind Afghanistan with 45).
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ARTICLE SOURCE- BS