World Bank to launch new human capital index

Nusa Dua, Bali (ANTARA News) – The World Bank plans to launch a new Human Capital Index during the IMF-World Bank annual meeting, Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan disclosed here Monday.

He said 189 central banks in the world would participate in formulating the index, which will be used as the new reference for human resource development across the world.

“The human capital index will be released from here. It will be the worlds reference. It will be good for Indonesia as it will be at the center of the worlds attention,” Panjaitan, who is the chairman of the organizing committee of the meeting, said.

Finance Minister Sri Mulyani, on the other hand, said that the index would measure the success of investment in human resource development.

“Almost all studies in the world have shown that the rate of return on investments in human resource development is high. However, the investment in many countries is still not effective, while human beings are the most significant focus,” she said.

Mulyani said the index would push countries in the world to learn from each other regarding good quality human resource development.

Indonesia, she said, is included as an initial country that adopts the index. She said Indonesia has commitments with regard to the budget for human development and poverty alleviation by allocating 20 percent of the national budget for education and five percent for health.

The World Bank plans to launch the index on Thursday and it will be done personally by World Bank President Jim Yong Kim.

The index will measure the degree of health of children, teenagers and adults, as well as the quality and quantity of education that can be received well by children until the age of 18.

Source: ANTARA News