The World Bank launched its first Human Capital Index (HCI) in Bali, Indonesia on October 11, 2018, as part of the World Development Report 2019. The index ranks countries based on their success in developing human capital.
157 countries are ranked in the Index based on their health and educational outcomes and how efficient they are in enhancing the productivity. While, African countries occupying the bottom spots, Singapore tops the rankings.
The human capital index, which has been modeled on the World Bank's existing doing business index that assesses national business conditions, aims to create a similar ranking for countries based on how well they look after their people.
The index claims to seek to measure the amount of human capital that a child born today can expect to attain by age 18.
The HCI index values are contended to convey the productivity of the next generation of workers, compared to a benchmark of complete standard education and full health.
The four key indicators of the index include:
1. Under‐5 mortality rates
2. Expected years of Quality-Adjusted School
3. Adult survival rates
4. Rate of stunting for children aged below five years