World Bank: Best Ways to Increase Human Capital
World Bank: Best Ways to Increase Human Capital-the World Bank Group yesterday exhorted Nigeria to put more effort in well being and instruction to fortify human capital advancement.Its President, Jim Yong Kim, said at the opening ceremony of the World Bank / International Monetary Fund (IMF) Spring Meetings in Washington DC, that the bank would release an index to rank countries in the capital, next year being 2019.
The measurement, he said, would provide information that heads of state and finance ministers need to know in order to invest in building human capital. The index will make those things hard to ignore.
Kim said: “There is no need to get away from the need to invest more effectively in health and education. And I think, you know, if you look at all the difficulties in terms of infrastructure, things like roads and energy, and also the need to increase seriously at how it improves its own domestic resource mobilization.
“So in other words, they should be better at collecting taxes to provide basic services. We think at least 15 per cent of Gross Domestic Product (GDP) in taxes. “
Kim said the global economy was solid, adding that it is expected to rise to 3.1 percent in 2018, which would be strong its performance since 2011. The growth, he said, would be driven by recovery in investment, manufacturing, and as commodity -exporting developing economies benefit from firming commodity prices.
He said the challenge would be to ensure that strong growth translates into inclusive growth, so that the benefits of global economic integration are enjoyed by all members of society.
“This period of robust growth is a great opportunity to invest in human and physical capital. Filling infrastructure gaps, improving education and health outcomes, and increasing female labor force participation could continue to drive growth. If they increase their countries’ productivity, boosting workforce participation, and moving closer to the goals of ending extreme poverty and increasing prosperity, Kim said.
He said the bank is dedicated to ending poverty, it exists in its customer-countries, adding that it is always looking for the potential to meet its clients’ immense challenges.
Kim advised African leaders to be focused on their debts and where they were taking loans from.
Be very focused on the conditions, the interest rate, among others. So that’s one that you have to look at very carefully. “
The bank, he said, was concerned that many African countries were not prepared to compete in a digitized economy. “We also see lots of things that will be taken over by technology. Now, there’s also tremendous hope for technology. I think there is tremendous hope that this technology could help some African countries, many African countries we hope, will leapfrog and go forward, “he said.
He said: “Also, there are some fossil fuel subsidies that are often very regressive, in other words, they help the poor. Even agriculture subsidies, there are many agricultural subsidies that are also very regressive. They do not help the farmers, but they help others in the value chain. And things like tobacco taxes. Tobacco taxes have been shown to be very effective at raising revenue and decreasing smoking and can be used to finance all kinds of things.
Kim said there were so many things that could be done to help countries invest in physical infrastructure and human capital, but it requires reform and courage.”And so I know that I’m talking about it is difficult, but it’s all about the African leaders know that the World Bank Group is ready to help them,” Kim said.
On corruption, he said the bank had adopted strict measures to ensure that it was not used for other purposes. “Now, I think our methods of detecting corruption have gotten better, but corruption still exists everywhere. And there’s no country in the world that’s exempt from it. So we would just encourage leaders to work with corruption, “he said.
On education, Kim said the bank has been able to learn it, but how much is learned in those years of school.