17th June 2021, Skopje – Human capital is directly correlated with the economic growth, i.e. deeper knowledge and greater skills of citizens contribute to growth intensification. Hence, one of the priorities in the plans and projections as regards the recovery and the accelerated growth are human capital investments, Minister of Finance pointed out at the webinar organized by the Faculty of Economics, covering the topic “Economic Challenges in Higher Education in Post-COVID-19 Period”.
Minister underlined one of the main pillars in the Strategy for Economic Recovery and Accelerated Growth, that being human capital investments, i.e. human resource development (education, science and health), intensified activity of the working able population and social protection, under which various measures and activities have been envisaged. He also stressed the propensity for allocating more budget funds in the field of education, health and social protection over the past few years, thus resulting in their multiple increase.
World Bank’s Human Capital Index assesses the potential productivity of citizens once they turn 18, according to the level of investments made in their education, health and social protection. In the 2010-2020 period, Human Capital Index in the Republic of North Macedonia ranged between 0.54 or 0.56, meaning that children who will be born now, depending on the level of investments made in their education, health and social protection, will be able to exploit around 50% of their potential when they turn 18. As for the most developed economies worldwide, Human Capital Index is higher than 0.8, accounting for 0.75% in the EU Member States, while the average potential productivity in the countries in the region is 0.65.