Johannesburg - The World Economic Forum’s 2016 Human Capital Report shows that SA’s ranking has dropped four places, from 92 in 2015 to 88 this year out of 130 countries covered in the report.
The WEF notes in a statement that a cluster of countries in sub-Saharan Africa, including Mauritius (76), Ghana (84), South Africa (88) and Zambia (90) score in the 60–70 percent range — placing them ahead of the Middle East and North Africa regional average and on a par with the lower half of the Latin American and East Asia and the Pacific regions.
Other economies, however, such as Ethiopia (119) and Nigeria (127) face a range of human capital challenges, including low survival rates for basic education. With an overall average score of 55.44, the Sub-Saharan African region is the lowest-ranked region in the Index. In total, the Index covers 26 countries from the region, it explains.
The WEF adds the global economy is failing 35 percent of the world’s talent.
“Rich and poor countries alike are missing huge opportunities when it comes to making the most of their populations’ economic potential, with only 65 percent on average of the world’s talent being optimised during all stages of the working life time,” it says.
The purpose of the report is to help countries assess the outcomes of past and present policies and investments in education and skills and provide guidance on how to prepare the workforce for the future demands of the global economy. In addition to measuring the 130 countries that comprise the Report’s Human Capital Index, it also analyses a mix of public and private data from online platforms such as Care.com, LinkedIn, Uber and Upwork to generate insights on skills gaps and the potential of the online gig economy.
“Today’s transition to the Fourth Industrial Revolution, combined with a crisis of governance, creates an urgent need for the world’s educators and employers to fundamentally rethink human capital through dialogue and partnerships. The adaptation of educational institutions, labour market policy and workplaces are crucial to growth, equality and social stability,” says Klaus Schwab, founder and executive chairman of the World Economic Forum.
Across the Index, a total of 19 nations that have tapped 80% of their human capital potential or more. In addition to these 19 countries, 40 countries score between 70 percent and 80 percent. A further 38 countries score between 60 percent and 70 percent, while 28 countries score between 50 percent and 60 percent.
It is dominated by Finalnd, Norway and Switzerland.
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