“THE key for the future of any country and any institution lies in the talent, skills and capabilities of its people. With talent shortages projected to become more severe in much of the developed and developing world, it will be imperative to turn our attention to how these shortages can be met in the short term and prevented in the long term. For the individual, as well as for societies and economies as a whole, investing in human capital is critical; even more so in the context of shifting population dynamics and limited resources.” – Klaus Schwab, World Economic Forum (WEF)
In its latest Human Capital Report, the WEF emphasized human capital endowment as a nation’s skills and capacities that reside in people and that are put to productive use, which can be a more important determinant of long-term economic success than virtually any other resource. The WEF measured countries on their ability to develop and deploy healthy, educated and able workers through four distinct pillars: Education, Health & Wellness, Workforce & Employment and Enabling Environment.
Finland topped the list followed by Norway, Switzerland, Canada, Japan, Sweden, Denmark, the Netherlands, New Zealand and Belgium. Other advanced economies were also included in the global list: France (14th), the United States (17th), the United Kingdom (19th) and Germany (22nd). The Philippines ranked 46th among 124 nations surveyed. This is major improvement from being 66th out of 122 in the previous year.
The WEF noted that all countries—rich or poor— “have yet to optimize their human capital and calls for a new people-centric model of growth.”
With an improved and raring economy, the Philippines is advised to invest more in human capital as part of its long term competitiveness and inclusive growth. Outlined in the Philippine Development Plan: 2011-2016, inclusive growth is rapid and sustained socioeconomic development that contributes to employment generation and poverty reduction. This can be achieved through investments in infrastructure and human capital, and measures that support good governance.
The demand for Filipino laborers in various global destinations has continued to rise. Prospects for global deployment of overseas Filipino workers (OFWs) remain positive especially as employment opportunities rose along with clearer signs of global recovery. This growth was accumulated from sustained and higher remittances from both sea-based and land-based workers since the start of the year.
Despite many policies put in place to uplift the welfare of the Filipino workforce back home, the overall human development in the country has yet to reach its maximum economic potential. Much remains to be done especially reforms to improve the access to basic education, sufficient work opportunities, and strengthen health systems.
While it has posted positive social and economic indicators, the Philippines remains a developing nation, haunted by poverty. It may only reach economic stability and growth—that is dynamic enough to keep its labor force in pace with its neighbors—if necessary reforms are enforced rigidly. (AJPress)
