Given the effect of human capital on national productive and development capacities, developing countries should be placing a high priority on boosting human capital. The experience of East Asia’s prosperous economies holds valuable lessons.
Unlike the 2008 global financial crisis, which was mostly a large negative aggregate demand shock, the next recession is likely to be caused by permanent negative supply shocks from the Sino-American trade and technology war. And trying to undo the damage through never-ending monetary and fiscal stimulus will not be an option.
The Communist Party of China would like the mainland Chinese population and the rest of the world to believe that the ongoing, sometimes violent protests in Hong Kong pose a threat of "terrorism." But the truth is that China has only itself to blame for pushing the city's idealistic youth into the streets once again.
We use cookies to improve your experience on our website. To find out more, read our updated Cookie policy, Privacy policy and Terms & Conditions
SEOUL – Nelson Mandela once said, “Education is the most powerful weapon which you can use to change the world.” Education does not just enable individuals to improve their lot in life; it enriches an economy’s human capital, which is vital to prosperity and social progress.
Nowhere is the value of human capital to development more apparent than in East Asia. The top four (of 157) spots in the World Bank’s recently introduced “Human Capital Index” – a composite measure of survival, learning-adjusted years of schooling, and health – are occupied by East Asian economies: Singapore, South Korea, Japan, and Hong Kong.
The new index estimates that a child born today in Singapore will be 88% as productive when she grows up as she could be if she enjoyed complete education and full health. In Sub-Saharan Africa, by contrast, a child will be only 40% as productive. Globally, 57% of all children born today will grow up to be, at best, half as productive as they could be.
We hope you're enjoying Project Syndicate.
To continue reading, subscribe now.
Subscribe
Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.
Already have an account or want to create one? Log in