HUMAN CAPITAL PROJECT MINISTERIAL CONCLAVE PROMOTING JOBS AND ECONOMIC TRANSFORMATION On October 17, 2019, as part of the World Bank Group / IMF Annual Meetings, ministers and high-level representatives from more than 70 countries and organizations came together for the third Human Capital Project (HCP) Conclave. Since its launch in 2018, the HCP’s core message on the long-term economic benefits of investing in human capital has gained widespread global attention. In her welcoming remarks, World Bank Vice President for Human Development, Annette Dixon, emphasized the goal of the Conclave: “to keep up the momentum of learning from one another and motivate our collective commitment to improving human capital.” While speaking to the overarching ‘Jobs and Economic Transformation’ theme of the event, Ceyla Pazarbasioglu, World Bank Vice President for Equitable Growth, Finance and Institutions, noted AXEL VAN TROTSENBURG ZAINAB AHMED that “over the next 15 years, nearly 600 World Bank Managing Finance Minister, Nigeria million people will be entering the labor Director for Operations force, mostly in poor countries.” This requires a concerted effort for more and This was followed by a rich conversation better investments in human capital, to among the 40 ministers, partners, and One of my priorities prepare people for the jobs of the future. other high-level representatives at the is to ensure we build table. They highlighted the importance of The event opened with keynote education from the earliest years of life on the Human Capital speeches from Nigeria, Ireland and through secondary school, as well as the Project’s impressive Singapore. need to prepare young people for the momentum—across the jobs in the 21st century. The discussion also areas of policy reform, touched upon financing human capital, the financing, efficiency of use of data for decision-making and the need to undertake a whole-of-government spending, scale-up of high- approach that includes different sectors impact interventions, and and ministries to effectively support strengthening of data and economic transformation. analytics on human capital. Tharman Shanmugaratnam, Senior Minis- There are many lessons to ter, Singapore, began by pointing out a be shared among Human fundamental challenge many countries Capital Project countries of face: the mismatch between supply and all income levels, and the demand for skills required by today’s job market. “Higher education systems have network of peer learning become overly academic in their ori- within the project aims to THARMAN SHANMUGARATNAM entation, matching neither the abilities support this.” Senior Minister, Singapore of young people, nor the needs of the marketplace,” he explained. To address this mismatch, Singapore is Minister Donohoe attributed Ireland’s working with market intermediaries and “The number of Human Capital Project countries has grown from 28 to 70 in just over a year.” economic success to a long-term training providers to advise institutions, whole-of-government approach. He linked students and employees. growth seen in the 1990’s back to educa- tion decisions from the late 1960’s—these Similarly, Nigeria’s education sector is investments in human capital over time working with industry associations to created a virtuous cycle of more and bet- create a skills-development system that is ter investments in health, social protec- responsive to labor market demands and to tion, and other pivotal areas. rapidly changing technology. As Zainab Ahmed, Finance Minister, EXCHANGING EFFECTIVE Nigeria, explained, “young people are the APPROACHES country’s greatest asset, and so current Another way countries are equipping their reform efforts are aimed squarely at the young people with skills relevant to the youth demographic.” needs of the labor market is through a There was general agreement that focus on vocational training. Underscoring government policy must strengthen this point, Shaikh Salman bin Khalifa Al education systems to work with the Khalifa, Minister of Finance & National labor market. Reflecting on Ireland’s Economy, Bahrain, noted that 96 percent journey from a poor, largely agrarian of Bahrain Polytechnic graduates left economy in the mid-20th century to the with jobs in hand whereas this wasn’t the dynamic economy of the present, Paschal case at most at the country’s traditional Donohoe, Minister of Finance, Ireland, learning institutions, including the national noted that “it was the introduction of free university. Aïchatou Kané, Minister of second-level education in 1967 that Planning, Niger, explained that her might be considered our starting point. government plans to raise vocational This decision and the subsequent training in Niger to 40 percent of the total expansion of higher education education system in the coming years. opportunities underpinned the significant “We believe that it is through vocational increase in Irish productivity, training that we can unleash better employment, workforce participation, opportunities for young people,” she said. and export orientation to growth that Entrepreneurial development programs began in the mid-1990s.” are another tool that can foster employment among young people. SHAIKH SALMAN BIN KHALIFA AL KHALIFA MOHAMAD AL-ISSISS Minister of Finance & National Economy, Minister of Planning and International Bahrain Cooperation, Jordan PASCHAL DONOHOE KOJO OPPONG-NKRUMAH AÏCHATOU KANÉ BENIGNO LOPEZ MANUEL NETO DA COSTA OKSANA MARKAROVA Minister of Finance, Ireland Minister for Information, Ghana Minister of Planning, Niger Minister of Finance, Paraguay Minister of Economy and Planning, Angola Minister of Finance, Ukraine gender equality, and is using its five-year national development plan to coordinate relevant ministries such as Health, Social Affairs, Education, Electricity and Water, and Agriculture around actions that are related to human capital, both to bring in synergies and avoid overlaps. To maximize government impact and spend taxpayer dollars efficiently, Minister Markarova of Ukraine proposed to first address inefficiencies, then expand ANNETTE DIXON CEYLA PAZARBASIOGLU fiscal space on health care, education, World Bank Vice President World Bank Vice President for Equitable and social care. In terms of leveraging for Human Development Growth, Finance, and Institutions the private sector, Minister Al Khalifa mentioned how “Bahrain’s fiscal reform plan has reduced the public sector’s As Minister Al Khalifa explained, “we want to “increase investments in pre-school head count by 18 percent, which has led college graduates to graduate and be education to enhance the multiplier to the private sector now becoming the job creators, not just job seekers.” effect of strong early childhood country’s largest employer.” Paraguay, with 60 percent of its popu- education.” Similarly, Minister Al-Ississ lation under the age of 30, is placing mentioned that Jordan has made pre- particular attention on educating its youth school through grade 2 education THE IMPORTANCE OF DATA with a clear understanding of the linkage mandatory and plans to ramp up access Innovative use of data can also underpin to future economic growth. “Universal to kindergarten over the next decade. financing decisions and support a whole- quality of education is key to increasing of-government approach. Kojo Oppong- [our] labor productivity,” said Benigno Nkrumah, Minister of Information, Ghana, COORDINATING ACROSS explained that “it’s not about creating Lopez, Paraguay’s Minister of Finance. GOVERNMENT new interventions, it’s about having The primacy of education is also clear Better human capital investments require new data on the outcomes of the with regard to conflict and displacement. sound decisions around coordination existing interventions and having more Mohamad Al-Ississ, Minister of Planning and financing. As discussed at earlier policy cohesion to avoid duplication and International Cooperation, Jordan, conclaves, several countries focused on of policies and inefficient spending.” explained how his government made the need to bring ministries and sectors Minister Markarova noted that all public education free for 1.3 million Syrian together, to prioritize budgets and create finance data in Ukraine is now accessible refugees, saying “education is the only fiscal space. online to the public. Using the World guarantee for a peaceful future.” Manuel Neto da Costa, Minister of Bank’s BOOST database, her government Economy and Planning, Angola, noted is able to efficiently see all budget data FOCUSING ON THE EARLY YEARS that joining the HCP in 2018 had helped and assess linkages between spending Focus on the early years of life was spur his country to adopt a whole-of- and outcomes to influence policy. judged to be equally important. Oksana government approach to developing Through the use of this data “we can see Markarova, Minister of Finance, Ukraine, human capital. Angola has identified what it costs to have a high achiever in explained that her country was planning priority areas, including malnutrition and both urban and rural settings,” she said. The October 2019 Human Capital Project Conclave was a chance to draw connections among the many historical and present-day decisions that are leading to effective investments in people. Ministers, Champions, and high-level participants will convene again in April 2020 for the fourth HCP Conclave, continuing the drive to invest in people around the world. The Human Capital Project is mobilizing countries and partners to improve outcomes for people, drive sustainable economic growth, and deliver opportunities for all. The project envisions a world where all children – both girls and boys – reach their full potential, growing up healthy, well nourished, engaged and protected during their early years, learn in the classroom, and enter the job market as skilled and productive adults. For more information visit: www.worldbank.org/humancapital