Human Capital

Why it matters

• It acts as a primary driver of long-term economic growth and innovation by enhancing labor productivity.
• Investment in human capital through education and healthcare reduces socio-economic inequality and promotes social mobility.
• It enables a workforce to adapt to technological advancements and structural changes in the global economy.
• High levels of human capital are essential for transitioning from a resource-based economy to a knowledge-based economy.

How it is asked

Questions often focus on the nexus between human capital formation and economic development, specifically regarding the role of public expenditure in health and education as outlined in the Human Development Index (HDI) and the World Bank's Human Capital Index.