13 Sep 2017 - 9:06
Qatar outperforms Saudi in Human Capital Index
Satish Kanady | The Peninsula
World Economic Forum’s (WEF) Human Capital Index has ranked Qatar as one of the best in the region. The Middle East and North Africa has an overall average score of 55.91. Qatar, with a score of 55, outperformed Saudi Arabia, the largest economy in the region. Saudi’s 82 score reflects the country stands several notches lower than Qatar in human capital development.
With only 62 percent of the world’s human capital stock fully developed, the United States and Germany feature in a top ten which is otherwise dominated by smaller European
Qatar ranking shows that its performance was stellar in terms of human capital development, benefitting significantly from the strong perceived quality of their education systems.
According to the WEF’s Human Capital Index, 62 percent of human capital has been developed globally at present. Only 25 nations have developed 70 percent of their people’s human capital or more. With the majority of countries leveraging between 50 percent and 70 percent of their human capital, 14 countries nevertheless remain below 50 percent.
A fundamental tenet of the report is that accumulation of skills does not end at a formal education, and the continuous application and accumulation of skills through work is part of human capital development. All too often economies already possess the required talent, but fail to deploy it.
While much is often made of inter-generational inequalities when it comes to the realization of human capital, the Report actually finds that every generation faces considerable challenges when it comes to realizing individual potential. For example, while younger people are consistently better off than older generations when it comes to the initial investment in their education, their skills are not always deployed effectively and too many employers continue to look for ready-made talent. The problem of under-deployment of skills among the young also affects those coming towards the end of their working life. Meanwhile, few among those currently in employment – across all age groups – are gaining access to higher skilled work and opportunities to enhance know-how.
“The Fourth Industrial Revolution does not just disrupt employment, it creates a shortfall of newly required skills. Therefore, we are facing a global talent crisis. We need a new mind-set and a true revolution to adapt our educational systems to the education needed for the future work force,” said Klaus Schwab, Founder and Executive Chairman, World Economic Forum.