The famous quote of Jean Bodinprovide us with an important visualization about the human capital in developing countries, in order to achieve the millennium development goals.
However, these goals remain challenge that must be realized despite in this epidemiological crisis which created an economic and social threat around the world, it destroyed the pillars of human development such as: education, health and income, so the Index of Human Development has declined to 1,8%.
In fact, the Covid 19 pandemic has put developing countries in a state of emergency to confront this disaster, by strengthening the intangible resources of which human capital is a part.
This article aims to demonstrate the importance of human capital in development process relying on the experience of National Initiative for Human Development, as a pioneer reference that place people at the center of public policies.
The human capital: from conception to process
The concept of human capital is not newly. Yet, it was previously introduced by Adam Smithin his theory. The latter believes «human capital includes the set of skills and abilities that individuals acquired through family education, study and learning. This acquisition result in real expenses that correspond to fixed and integrated capital in the individual which capital is self part of his fortune as the society to which he belongs”.
Furthermore, Adam Smith’s theory was extensively reformulated by economist Gary Beckerin 1964, in his book entitled ‘’Human Capital’’, Becker placed humans at the center of economics and emphasized the important role of investment in human capital, he worked to show that human capital corresponds to all the productive capacities that an individual can acquire through the accumulation of general or specific knowledge and another forms of skills.
The idea raised by Becker reflects the thought of the Greek philosopher Aristotle’s who said : “any one can discover his talents and develop his potential, in the face of the danger of neglecting his humanity and that happiness comes through the realization of the potential of each one ”
These theories devoted to human capital have been developed over the past decades by many international researches and studies as World Bank and The Organisation for Economic Co-operation and Development reports.
According to the World Bank report, Human capital consists of the knowledge, skills, and health that people accumulate throughout their lives, allowing them to realize their potential as productive members of society.
The report point’s out three main components of human capital index as “survival, education, and health”. This indicator was recently created by the World Bank Group as part of the “ Human Capital Project”, so countries can use it as measure productivity for future generation based on what it would be like if this generation benefits from optimal education and health conditions.
In addition, HCI contains three main criteria: the infant mortality rate (rate of survival to age 5), the quality of education (number of school years and quality of education) and health (developmental delay in children and survival rates to adulthood). Otherwise, the combination of these criteria gives a value between 0 and 1, if the index approaches to 1, the country offers good education and health to its citizens, so thus its new generation become more productive, and if the HCI is 0.6, it means that the economic productivity of the younger generation will be 60% of what it could have achieved under optimal education and health conditions, so the country will lose 40% of the economic potential of this generation.
Therefore, without human capital, a nation cannot maintain sustainable economic growth, prepare its workforce for skilled jobs of future the possibility of competition in the globalized economy. Thus, this capital was considered as an interlunar factor of the country’s wealth. Knowing that total wealth consists mainly of intangible capital, add into to produced capital and natural capital.
Consequently, it appears that these human, natural and produced capitals constitute the basic elements of intangible capital. This capital resides in the interaction that takes place between the different types of assets, by adding the tangible assets “ produced capital ”, which are the result of human activity, financial assets, buildings, infrastructure, urban equipment and land, as well as natural assets“natural capital”, such as fossil fuels, minerals, agricultural land, cultivated land, pastures, forests, protected areas, materials raw materials, farmland, forests and protected areas, and human capital.
Moreover, in 1986 the concept of intangible capital appeared by the French specialist in niche markets “ Bruno Bizalion ”, this economist pointed out that the company’s capital also include intangible factors, and then he developed a method which evaluate this intangible potential.
Five years later, the Swedish organization theorist “Leif Edvinsson” used this term in his study of evolution of group management practices. This research was contacted in collaboration with American writer ‘Michæl Malone’, and published in 1997 when they learned about the company hidden wealth, either we say everything you use to create value which one cannot necessarily discover by reading its balance sheet (not all the values of the synergies of the organization are shown). Therefore, intangible capital is related to definition the difference between the real value of the market or the firm and book value.
For the World Bank, the concept of intangible capital is differs from its previous theories. it indicates that the wealth and geopolitical strength of a nation can be built not only with natural resources and built wealth, but also with its capacity for innovation, level of education of its citizens and social cohesion that reigns there.
In its report entitled “Where is the wealth of nations” the World Bank devised a new method of evaluating the wealth of nations, called intangible capital. This capital consists the sum of human capital (all the skills and knowledge available in a country), social capital (the ability of individuals to work together to achieve set goals) and institutional capital (the quality of legal, educational and health systems in place in a country).
As a result, human capital remains an essential element in this process of wealth accumulation and progress which determines earning capacity, and brooding employment horizons of individuals to evaluate the level of income and distribution in the community. Knowthat the development of human capital is not limited to the economic dimensions only, but take in consideration political, social and cultural elements.
The promotion of human capital: A development approach
The promotion of human capital has been a decisive importance in public policies for many developing countries, so there is no strategy or program initiated by the State, local authorities or private sector that mention it.
In this regard, since 1960, Morocco has developed various strategies and programs that fall within the framework of national programs to universal school education and fight illiteracy; social development strategy (SDS) in 1993 to improve social indicators such as education, health and priority equipment; drinking water supply program for the benefits of the rural populations (PAGER) in 1995; social priorities program (BAJ1 ) in 1996 focused on basic education, especially for girls, health care, and employment promotion; rural electrification program (PERG) in 1996; rural development (1997); special decentralized development program (2001).
Nevertheless, these programs and strategies did not succeeded in evolution the level of social indicators in various areas of development. Therefore, the country’s index of human development ranges in position 126.
To remedy this situation, the public authorities have proposed a new approach to struggle poverty and social exclusion in collaboration with the United Nations Development Program.
This approach give significant increase in the gains on consolidation of democracy in the area of freedom (protection of human rights, public freedoms, justice and gender equality) illustrated by social projects such as the educational reform with education as the second priority after territorial integrity, the entry into force of the Compulsory Health Insurance (AMO) and the measures taken to maintain the continuity of the main pension schemes, the social housing programs have mobilized additional resources, in particularly extra-budgetary, from outside the budget which witnessed new renewed mobilization of all actors involved in the unemployment problem, the national program to support the creation of a business by adapting training to the changing needs of the national productive system and managing the labor market.
In 2005, these realizations has supported with an innovative strategy named National Initiative for Human Development. This initiative aims to change the social work in the country by opening up a new horizon and an exceptional coherence centred on the development of human capacities.
For 15 years ago, this social project has permitted the realization of countless projects and actions of rising future generations as enhancing health and education services, improving income and economic inclusion of youth people, promoting entrepreneurship & employment, and supporting social & solidarity economy.
In this context, the National Initiative for Human Development has established an arsenal process at the national and territorial level in order to achieve these projects for benefits of society and citizens, to involve panoply of actors present in each territory to participate in the program process, through creation the local, provincial and regional committees which bring together the various stakeholders (local population, associations, regional authorities, experts, and representatives of ministerial departments …). These actors have contributed to implementing within framework of these programs and have taking into consideration issue of citizens’ standard of living at the local level.
These aforementioned mechanisms have been straightened approve of integrated approach to enhance human capital, to develop new structures named “youth platforms”, this space considered as forums for interaction between various programs adopted by different stakeholders in the public and private sectors which work for economic inclusion of youth people and rural women by listening, directing them to support and develop their personal skills so that they can bring their ideas and turn them into real projects that constitute sources of local intangible wealth.
In general, this participatory approach demonstrates the importance of human capital as source of wealth creation if it is properly valued.
So, the promotion of human capital has appeared essential in the recent epidemiological crisis, For that reason, the Moroccan development model must be based on expansion of capacities & freedoms as well as working to stimulate human possibilities & potentialities, taking into account the social and cultural heritage, customs, governance, new information and communication technologies.
To invest in human capital, it is important to promote a systematic foundation for long-term plan that respect the specifics of issues related to education and health, based on the following facts:
– Consolidation of citizenship and human rights (make it possible to release the capacities and potentials of citizens so that they can fully contribute to the achievement of development).
– The importance role of the civil society and its synergy in development process (because development cannot be envisaged without involving civil society).
– Awareness of proximity factor, made on the intangible resource of each territory in order to give an identity or an image for each “city”, each “village” and each “douar”, as taking into the national context in which we operate.
Eventually, the promotion of human capital is not just a goal that must be achieved but rather development approach conditioned on participation and inclusion of human being in this process as an actor regardless of his gender and age.
- Jean Bodin was a French jurist and political philosopher (1529 -1596).
- Adam Smith, is a Scottish econimist and philosopher (1723-1790).
- Adam Smith, The Wealth of Nations, 1776.
- Daanoune Rachid and El arfaoui Marouane, ‘’ the concept of intangible capital: the ambiguity of a terminology, Journal of Academic Finance, Vol 9- N ° 1, Spring 2018.
- Gary Stanley Becker was an American economist who received the 1992 Nobel Memorial Prize in Economic Sciences.
- G. S. Becker, Human Capital, A Theoretical and Empirical Analysis, Columbia University Press for the National Bureau of Economic Research, New York, 1964.
- Leif Edvinson et Michæl Malone, Intellectual Capital : Realizing Your Company’s True Value by Finding Its Hidden Brainpower, Collins 1997.
- Michael Shawn Malone, Publisher, investor, businessman, author of numerous books on business and high technology such as “The Virtual Corporation”.
- Michel Vernières “the notion of human development” in institutions and development seminar, December 2004, p 2.
- Rapport mondial sur le développement humain, PNUD 2005.
- Resche, Catherine, 2007. «Human Capital : l’avers et le revers d’un texte métaphorique.», LSP and Professional Communication, 7-2 , 23-4.
- Sen Amartya,‘’ a new economic model: development, justice, freedom ’, 2nd edition, Odile Jacob, 2003, p 15.
- Stéphanie Fraisse-D’olimpio, ’the foundations of human capital theory’, SES-ENS, 2009.
- Stiglitz Joseph, Towards a new development paradigm, political economy, 5, 2000, p.5-3
- World Bank. 2005. Where is the Wealth of Nations? Measuring Capital for the 21st Century. https://openknowledge.worldbank.org/handle/10986/7505
KP’s Education Reforms – Heading Towards Right Path
The first word revealed in the holy Quran was “Iqra” which means “to read”. This first verse of Holy Quran shows us the importance of pen, greatness of knowledge and importance of education in Islam. Article 25-A of Pakistan’s constitution obliges the state to provide free and compulsory education to all children between the ages of five and sixteen. Education is the reason behind rise and fall of any nation. After the 18th amendment, on April 19th 2010, the education sector was assigned to the provinces, with a hope that provinces would focus on providing quality education, as previously; there was a lack of comprehensive planning and strategy in this sector.
During its second stint in KP, PTI-led government declared an education emergency in the province. As part of election manifesto, PM Imran Khan reiterated his firm resolve to upgrade education system across KP. Consequently, during past three years, KP government has focused on the neglected education sector and introduced various revolutionary steps to improve the quality of education.
The provincial government is spending heavily on building infrastructure and basic facilities. The number of non-functional schools have been reduced massively due to effective policies. A real time focus is given to the lack of facilities like boundary walls, water supply, electricity, and toilets. To get rid of load shedding issues, the government installed thousands of solar panels in schools to have an un-interrupted supply of electricity at daytime. Simultaneously, increased annual budget for education.
The present age is known as an era of Information Technology (IT) and a nation cannot progress without making full use of it. Therefore, the provincial government has established thousands of state of the art IT labs across KP. It is pertinent to mention here that Microsoft has also endorsed this effort and offered to train above 15000 IT teachers with free certification.
The major five-year revolutionary educational reform plan (2019-2023) was brought by department of Elementary and Secondary Education as a flagship project of KP government in this tenure. The four core aspects of this innovative plan includes teachers’ training, curriculum reforms, establishment and up-gradation of schools and the appointment of new teaching staff.
In order to reduce teacher to student ratio it has been decided to hire 65,000 new teachers well versed with modern education techniques, including 11,000 primary teachers under this five years’ plan. So far, more than 40,000 teachers have been recruited on merit bases through NTS. After the merger of tribal districts in KP, the education Ministry has approved a handsome amount for the restructuring the current education system. In order to modernize the current education system, KP government has established 138 Data Collection Monitoring Assistants (DCMAs) in tribal districts.
Taleemi Islahi Jirga (TIJs) are converted into Parent-Teacher Councils (PTCs) and connected them with education ministry with an aim to keep a check and balance. Government has introduced a new concept of school leaders and aims to train about 3,000 leaders who will be responsible for monitoring the classrooms, lesson management, implementation, and daily school life.
The process of expanding teachers’ training program to all districts of the province is also in process. Furthermore, the education department has almost completed its working on the development of high-quality script lessons for different subjects. Textbooks for classes 1 to 10, will also be revised according to modern standards by 2023.
Another milestone achieved by KP government is the establishment of Independent Monitoring Unit (IMU). This vigilant monitoring system has reduced teachers’ absenteeism by 17% to 20%. It also constantly collects reliable data which is helpful for realistic planning.
Previously, teachers used to take salaries without performing any duties; however, with the advent of biometric attendance system, those ghost servants have been captured. Enrollment drives have been organized every year. Government is giving free books to the children including drawing and coloring books to enhance their creative thinking. Government is also stressing on female education through its new policy of building classrooms with a ratio of 2 for female and 1 for male.
To impart the true teachings of Islam, Quranic education and Nazira is made compulsory up to class 12th. In a refreshing development, students of private schools are migrating to government schools due to student-friendly policies.
Nevertheless, there is room for improvement in the education sector like linking promotions of teaching and administrative staff with performance. Government teachers should be made bound to enroll their children in public sector. The concept of uniform curriculum will create national thinking. Another important aspect which needs attention is to address the growing role of tuition and coaching centers. Technical education should also be focused from the base. Experiences of others successful educational models like Finland model may be studied to improve the sector.
Eurasian Forum: Empowering Women in the Changing World
Women play an increasingly important role in resolving issues that society and the state encounter and in the modern world, they should not face the choice between family and self-fulfillment, Russian President Vladimir Putin said at the third Eurasian Women’s Forum held in St. Petersburg on October 13-15.
“It is completely obvious that in modern conditions a woman should not face the choice between children and family or professional fulfillment. That is why in Russia the conditions are consistently created for a woman after childbirth to begin or resume her professional career at any moment, to become accomplished, to achieve growth in what she enjoys,” Putin stressed.
The Eurasian Women’s Forum, held since 2015, is one of the largest international platforms uniting female leaders from all continents to examine and discuss the role of women in the modern world and work out new approaches to solving global problems.
The forum was organized by the Federation Council of the Federal Assembly of the Russian Federation and Interparliamentary Assembly of the Commonwealth of Independent States (IPA CIS). This forum has won wide recognition as an effective mechanism of interaction and dialogue for women who are influencing social, political and economic decisions. It facilitates the growing participation of women’s movements in resolving global challenges.
The chosen theme of the third forum “Women: A Global Mission in a New Reality” has much significance for today’s world. Boosting international cooperation to enhance the role of women in order to meet the goals of sustainable development, forming women’s agenda and new approaches to solving global problems in the new reality – these are the main objectives for participants and organizers.
The participants, indeed, devoted key debates to the role of women in ensuring global security, the transition to new models of economic growth and social progress, overcoming the adverse consequences of the coronavirus pandemic, developing healthcare, balancing universal digitization, and addressing global environmental and climate problems.
For the first time, the forum feature meeting of the International Working Group of the Organization for Economic Co-operation and Development’s Nuclear Energy Agency on improving gender balance in the nuclear energy industry.
Expert sessions featured prominently for international organizations and associations. Those include field sessions of Women 20, the UN session on industrial development (UNIDO), the World Bank session, the BRICS Women’s Business Alliance meeting, international club of APEC BEST AWARD winners and participants, and International Club of Women Regional Leaders.
Throughout the world, there is a growing demand for female leadership. Research has shown that companies with women on their boards of directors enjoy better results. As new skills requirements are emerging, so educational programmes for female leaders are becoming critical. The ability to share experience at an international level of implementing such programmes help foster joint initiatives. This shows a turn for women in political sphere.
In the face of global challenges, there is an increasing need for a new paradigm, along with a renewed focus on changing attitudes to women. Women have made an enormous contribution to efforts to improve health, raise life expectancy, and improve quality of life. These are the first role as women in the family, and this is unchangeable fact in the world.
Previously there had been some innovations. The BRICS Women’s Business Alliance was first presented at the 2nd Eurasian Women’s Forum. The leaders of Brazil, India, China, Russia, and South Africa gave their unanimous support to the initiative, and adopted the declaration on the establishment of the alliance. Last year (2020) saw the official launch of the BRICS Women’s Business Alliance.
The alliance seeks to implement multilateral cooperation projects aimed at consolidating and strengthening its role in the global economic agenda. The alliance’s areas of focus include the development of innovation, healthcare, food and environmental security, an inclusive economy, the creative industries, and tourism.
Women have been forging alliances and ahead of this forum for instance, the Women’s Business Association of the Federation of Indian Chambers of Commerce and Industry (FLO FICCI), considered as the largest women’s business association in India, signed a memorandum of understanding with Russia. This collaboration aims at developing women’s entrepreneurship, social communications and at creating favourable conditions for cooperation between business circles in Russia and India.
It plans promoting entrepreneurship and professional excellence through seminars, conferences, lectures, trainings, and other events aimed at encouraging and stimulating the involvement of the skills, experience, and energy of women in all sectors and at all levels of economic activity.
The Eurasian Women Association has so many programmes and projects with other women’s groups and associations in the Eurasian region, in Asia, Africa, and Europe. Obviously, women have come a long way throughout the world, since their first conference held 1986 in Beijing, China and resultantly declared March 8 – as International Women’s Day marks annually throughout the world. Women have taken up the fight, sometimes collaborating with women-conscious men and thus paving the way up to the top echelon in all economic and social spheres. Women now have a structured organization from the grassroots, in all countries, and up to regional organizations and to the United Nations.
Speaker of the Federation Council, Valentina Matviyenko, in her opening speech at the plenary session, highly stressed that the main goals of the global women’s community as that directed towards improving people’s quality of life as well as building mutual understanding and trust between countries and peoples in the name of peace and sustainable development.
Russian Deputy Prime Minister, Viktoria Abramchenko, similarly noted in her speech that women are directly involved in implementing broad scope of development tasks in Russia and beyond on international platforms.
Vietnamese Vice President, Vo Thi Anh Xuan, made a video conference presentation. She said that the forum is bringing together the majority of women around the world. “The role of women today is extremely important. We can make the world more just and help fight global challenges,” she said.
Chairwoman of the National Assembly of Azerbaijan Sahiba Ali gizi Gafarova believes that the topics discussed at the Eurasian Women’s Forum provide an opportunity to consider the most pressing issues of modern life and enhance women’s status around the world. Gafarova unreservedly stated that fully unleashing women’s potential would be the foundation for building a healthy society.
Chairwoman of the Senate of Uzbekistan Tanzila Narbaeva noted that the forum once again demonstrated women’s growing role in resolving the socioeconomic issues facing their countries, and demonstrates new approaches to the women’s agenda.
Narbaeva stressed that Uzbekistan, for instance, is ready to share its experience in various areas and is open for multifaceted cooperation. She invited the participants to take part in the women’s forum during the Shanghai Cooperation Organization summit in 2022, planned in Samarkand, the second largest city in Uzbekistan.
Chairwoman of the Lower Chamber of Parliament of Turkmenistan, Gulshat Mammedova, said the forum is an important platform for interaction between women and helps to harmonize efforts in addressing various issues of our time as well as exchange views and experience in promoting women’s rights.
Participation of African women was modest, that included for example President of the Senate of Gabon Lucie Milebou Aubusson, Liberian Dr. Jewel Howard-Taylor and Zimbabwean First Lady Auxillia Mnangagwa among a few others. President of the Assembly of Mozambique, Esperança Laurinda Francisco Nhiuane Bias, delivered a speech at the forum.
Zimbabwean First Lady, Auxillia Mnangagwa, on the sidelines held a special working discussion with the Speaker of the Federation Council of the Federal Assembly of the Russian Federation, Valentina Matviyenko, focusing on developing inter-parliamentary relations, women in sustainable development, education and charity.
The First Lady and the Speaker snapshotted on the possibility of greater participation of Russian economic operators in the development process in southern African region. Both women have expressed an appreciation cooperating on various questions on international platforms. Diplomatic relations between the two marked its 40th year.
On October 15, the participating African women took part an exclusive discussion solely on “the Role of Women in the Integrated Development of the African Continent” at the Tauride Palace. It was attended by women from international organizations, business circles, scientific or academic community and non-governmental organizations.
The entire third forum, organized primarily to review how women have performed in men-dominated world, identify challenges and roadblocks on their way to gender equality and fight for higher social status and, of course, outline new strategic goals for the future. It was held offline using modern formats such as video conferencing and online broadcast, intended to ensure extended outreach and provide audience engagement. The rules and regulations for physical presence was in strict accordance with safety measures aimed at preventing the spread of COVID-19.
Inequalities between ethnic groups are stark -UN report
Differences in so-called multidimensional poverty among ethnic groups are consistently high across many countries, according to a new analysis released this Thursday.
The global Multidimensional Poverty Index (MPI), produced by the UN Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative, also found that in nine specific ethnic groups surveyed, more than 90 per cent of the population is trapped in poverty.
In some cases, disparities across ethnic and racial groups are greater than across regions within a country. More than that, the disparities across the Index for ethnicity, is greater than that across all 109 countries, and all other variables tested.
Besides income, the Index measures poverty using various indicators, including poor health, insufficient education and a low standard of living.
The research for the report was conducted across 109 countries, covering 5.9 billion people, and presents an ethnicity/race/caste disaggregation, for 41 nations.
Within a country, multidimensional poverty among different ethnic groups can vary immensely.
For example, in Latin America, indigenous peoples are among the poorest. In Bolivia, indigenous communities account for about 44 per cent of the population, but represent 75 per cent of multidimensionally poor people.
The figures are also stark in India, where five out of six people in this situation were from “lower tribes or castes”, according to UNDP.
Proposing solutions for this problem, the authors point out the example of the two poorest ethnic groups in Gambia, that have roughly the same value in the Index, but have different deprivations, to show that different policy actions are needed to find effective solutions for different cases.
Focusing on gender, the report shows that, worldwide, about two-thirds of multidimensionally poor people, or 836 million, live in households where no woman or girl has completed at least six years of schooling.
Besides that, one-sixth of all people in this situation, about 215 million, live in households in which at least one boy or man has completed six or more years of schooling, but no girl or woman has.
The report also finds that these women and girls are at higher risk of suffering intimate partner violence.
Across the 109 countries studied, a total of 1.3 billion people are multidimensionally poor.
About half of them, 644 million, are children under age 18; and nearly 85 percent live in Sub-Saharan Africa or South Asia. More than 67 percent live in middle-income countries.
Living in multidimensionally poverty can mean very different things.
Around 1 billion people, for example, are exposed to health risks due to solid cooking fuels, another billion live with inadequate sanitation, and another billion have substandard housing.
Around 788 million live in a household with at least one undernourished person, and about 568 million lack improved drinking water within a 30-minute roundtrip walk.
For UNDP Administrator, Achim Steiner, this is a reminder “of the need for a complete picture of how people are being affected by poverty, who they are and where they live.”
Mr. Steiner also highlighted the COVID-19 pandemic factor, saying the international community is “still grappling to understand its full impacts.”
Even though multidimensional poverty remains high, there were signs of progress in some countries, at least until the beginning of the pandemic.
Of the 80 nations and five billion people for which there is data over time, 70 reduced their Multidimensional Poverty Index in at least one period. The fastest changes happened in Sierra Leone and Togo.
The director of OPHI at the University of Oxford, Sabina Alkire, stressed the need to fix the structural inequalities that oppress and hinder progress.
For her, disaggregating multidimensional poverty data by ethnicity, race, caste and gender “unmasks disparities and forms a vital guide to policymakers to leave no one behind in the last decade for action.”
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