Global Human Capital Indexes and Introduction to Part 2

This chapter is focused on some global human capital indexes and the different indicators that have been used for its measure by the indexes. Indicators range from school enrolment rates, years of schooling, survival rates, mortality rates, and unemployment rates. These indicators relate to knowledge and education and health dimensions of human capital. Clearly, it is quite difficult for any one indicator to fully capture a multidimensional construct such as human capital. However, the indexes have attempted to reflect as much as possible the prevailing state of countries’ human capital. The indexes, using different data and methodologies, have ranked each country to an ideal rather than mere comparisons among countries. All indexes have their utility. However, while some may be more suited for academic research and analysis, others may be more suitable for business decision-making and guidance for policy formulation. Although African countries generally rank poorly in all the indexes, there is still an opportunity to realize the potential in Africa’s greatest resource—the youthful population.