COMING TOGETHER: The Human Capital Project Ministers’ Conclave On April 11, 2019, the Following the launch of the Human Capital Index (HCI) in Bali, Indonesia in 2018, the Conclave provided an opportunity for the first World Bank hosted the wave of 28 Human Capital Project countries to take stock of their first Human Capital efforts to accelerate human capital outcomes and to welcome new Project (HCP) Ministers members, as the number of HCP countries has more than doubled. The event encouraged sharing of experiences, ideas, good practices, Conclave in Washington, and challenges. DC. Held during the World Bank Vice President for Human Development, Annette Dixon, World Bank/IMF Spring welcomed participants and set the stage for the Conclave in her opening Meetings, the event was remarks by noting that, “Nearly 60 percent of the children born today attended by Ministers on the planet will be half as productive as they could be if they had complete education and full health.” She highlighted several key priority and other high-ranking areas for HCP countries and their development partners to undertake: government officials jobs for women and youth; sustainable financing and improving health and educational outcomes; demographic transition in high fertility and from over 60 countries. in aging societies; the challenges of building human capital in contexts Other key development of fragility and conflict; and customizable approaches for middle-income partners and champions countries. Dixon stressed the need to translate commitment into action and announced the World Bank’s Africa Human Capital Plan, which for human capital were sets ambitious targets supported by $15 billion of new WB financing for also represented. human capital projects in Africa from 2021–2023. Investing in early childhood was also identified as a foundation to improve human capital outcomes. The first 1,000 days of life are particularly meaningful, with enhanced support during this time a key enabler to maximize the growth and development potential of children and increase ANNETTE DIXON the returns to human capital MOEKETSI MAJORO Vice President, WORLD BANK Minister of Finance, LESOTHO investments through better learning outcomes and improved “Nearly 60 percent of “For us the money is productivity. The necessity of the children born today monitoring the quality of education already on the table. It’s on the planet will be was also mentioned as essential to why aren’t we getting half as productive as support the progress of education better results?” they could be if they reforms and ensure that they had complete education translate into tangible results. and full health.” As Georgia’s Minister of Finance, space and ensuring spending Ivane Matchavariani cautioned, efficiency. Indonesia’s Chairman of educational reform is a long-term the Fiscal Policy Agency, Suahasil The two-hour discussion touched process that must withstand changes Nazara noted that securing upon a variety of topics. Ministers in ministers and governments. adequate financing is critical for of Finance often began by Ministries of Finance. Akin to other underscoring the importance of Another key challenge was raised participants, he emphasized the human capital to their nations. by Morocco’s Minister of Public importance of domestic resource As Ukraine’s Minister of Finance, Affairs and Governance, Lahcen mobilization and maintaining Oksana Makarova noted, Daoudi, who noted that developing an effective tax base. He also “Developing human capital is not countries often invest in education raised the issues of quality versus an expenditure in our budget. only to see their well-educated quantity of spending and whether It’s an investment. Investment in youth leave for better jobs in other budget allocations for health education, investment in health care countries. Highlighting the impact and education were achieving and investment in social spheres.” of brain drain, he challenged the measurable impact on human Throughout the conversation, group to devise solutions to allow capital outcomes. participants shared progress made these graduates to stay and work in their home countries and regions. Moeketsi Majoro, Lesotho’s on the human capital agenda since Minister of Finance underscored Bali. Countries noted that they used There was a substantive discussion this point by describing how his the HCP/HCI as a call to action to around the topic of creating fiscal country spends twice as much on improve human capital outcomes education and four times as much and to identify and remove barriers on health as the average sub- to effective investments. Many Saharan African country, however countries emphasized innovative Lesotho’s outcomes remain poorer education programs and reforms, than its regional peers. “For us the including raising teachers’ money is already on the table,” he salaries by 150% (Uzbekistan); explained, “[the question is] why constitutionally allocating a aren’t we getting better results?” percentage of the national budget This theme was picked up by to education (Costa Rica); or several ministers, who expressed developing digital skills by installing OKSANA MAKAROVA a keen interest to learn from their Minister of Finance, UKRAINE computers in every school in the colleagues about ways to improve country (Cabo Verde). Countries service delivery and the efficiency often adopted strategies that “Developing human capital is not an of spending. comprise a whole of government approach that (i) sustains expenditure in Another critical topic was how efforts across political cycles; our budget. It’s an to pursue human capital goals (ii) coordinates across sectoral silos; investment.” against a backdrop of long-term and (iii) relies on available evidence. budget shocks related to climate change and demographic shifts, Social protection was identified as well as sudden shocks like as an integral enabler to build conflict and displaced persons. human capital as it allows Niger, for example, devoted households to afford access to 33 percent of its 2018 budget health and bring kids to schools. to education and health. It also targets the poor. In Benin However, as Minister of Planning the government is implementing Kane Boulama explained, “In a project that provides universal addition to the security and MARY KAWAR coverage and training to both climate challenges, we have Minister of Planning and International the informal and formal sectors. Cooperation, JORDAN a demographic challenge that “We now want to give people weighs down our efforts to who work in the informal sector implement the reforms and “We are thinking of retirement benefits because not financial efforts to improve our innovative approaches… everybody can work in public human capital indicators.” to offset our financing service,” explained Magloire strategies.” Aguessy, Director General in Ato Shide, Ethiopia’s Minister the Ministry of Planning and of Finance and Economic Development. Planning added that, “Issues of been able to increase allocations efficiency and budget spending for health and education Several countries have made and execution are extremely through energy subsidy reforms. human capital the centerpiece of important for service delivery. Others like the Philippines have their development strategies and We need to understand them implemented fiscal policies for are using a whole of government better and learn from other health, including taxes on alcohol, approach to achieve their goals. countries’ experiences.” tobacco, sugar, certain beverages, After holding a broad inter- fuel and cars to create fiscal space ministerial dialogue to identify In terms of effective strategies, national priorities, Uzbekistan’s for investments in human capital. some countries such as Egypt have Several countries proposed public-private sector partnerships as a possible solution. This included Jordan, whose Minister of Planning and International Cooperation, Mary Kawar, spoke about the challenges of improving social protection, education and ATO SHIDE KANE BOULAMA health in a country coping with Minister of Finance and Economic Minister of Planning, NIGER Cooperation, ETHIOPIA an influx of refugees and large external debt. “We are thinking “We have a demographic of innovative approaches in the “Issues of efficiency challenge that weighs areas of health and education and budget spending down our efforts to… and skills development to offset and execution are improve our human our financing strategies,” she extremely important capital indicators.” explained, including public- for service delivery.” private partnerships. Invest in early childhood; provide children access to technology; mitigate brain drain; measure progress using international assessments; broaden the tax base; ensure quality spending; prepare for budget shocks; involve the private sector; employ social protection schemes; use a whole of government approach. each budget cycle, with ministers responsible for working together to jointly achieve these targets. “By prioritizing across the [four] capitals we create fiscal space for things that may not have traditionally been seen as being important in a budget,” he explained. The Wellbeing MAGLOIRE AGUESSY budgetary framework is viewed as HENRIETTA FORE Director General, Ministry of Planning Executive Director, UNICEF and Development, BENIN an innovative, useful mechanism to fully embed human capital “An absolutely “We now want to give development across the entire remarkable gathering in people who work in government. its depth and breadth.” the informal sector retirement benefits From the inaugural HCP Conclave, because not everybody it is clear that many countries can work in public are making significant efforts the efficiency of their spending service.” to accelerate human capital and improving the quality and outcomes. They have focused on coverage of the services delivered. creating additional fiscal space They have often adopted a whole for health, education and social of government approach. There national development strategy protection, including through is also an urgent need for more was prepared using human growing the tax base, increasing and better data and evidence to capital investment as a core inform policies and programs. approach. And the HCP aligns Important themes that featured in with Jordan’s national priorities the Conclave discussion included focused on expanding early the need to invest in the earliest childhood education, growing years of children’s lives, to utilize health insurance coverage, technological solutions, and to reforming vocational and training solve the special challenges education, and exploring job and constraints to human capital creation programs. development faced in fragile and conflict-affected settings. Epitomizing the whole of GRANT ROBERTSON After declaring that the Conclave government approach, Grant Minister of Finance, NEW ZEALAND was “an absolutely remarkable Robertson, Minister of Finance, gathering in its depth and breadth New Zealand spoke about his “By prioritizing across and the numbers of people since country’s new ‘Wellbeing Budget’, the [four] capitals we Bali,” Henrietta Fore, Executive which focuses on the country’s create fiscal space for Director, UNICEF, underscored financial, social, natural, and things that may not the crucial point that, “behind the human capitals. Launched by the have traditionally been Human Capital Index are people government in May, the budget seen as being important and a life cycle. It is a life cycle of features indicators across all in a budget.” investment within a country. And four capitals that are measured we need to think of it that way.” The Human Capital Project is a global effort to accelerate more and better investments in people for greater equity and economic growth. The Project is helping create the political space for national leaders to prioritize transformational investments in health, education, and social protection. The objective is rapid progress toward a world in which all children are healthy, well-nourished and worldbank.org/humancapital ready to learn, can attain real learning in the classroom, and can enter the job market as healthy, skilled, and productive adults. humancapital@worldbank.org