Declining health and education in poor countries harms earning potential, World Bank says

"Deteriorating health, education and training in many developing countries is dramatically depressing the future earnings of children born today, the World Bank says. In a report the World Bank urges policymakers to focus on improving outcomes in three settings: homes, neighbourhoods and workplaces. The report, Building Human Capital Where it Matters, finds that in 86 of 129 low and middle income countries health, education, or workplace learning declined between 2010 and 2025."

"Mamta Murthi, the World Bank's vice-president for people, said: The prosperity of low- and middle-income countries depends on their ability to build and protect human capital. Right now, we see that many countries are struggling to improve nutrition, learning and skills of their current and future workforce, which raises concerns about labour productivity and the types of jobs their economies can sustain in the future. As many as 70% of workers in low and middle income countries are in small-scale agriculture, low-quality self-employment, or microfirms."

"Evidence of this troubling deterioration includes the fact that in several sub-Saharan African countries, adults are on average shorter today than they were 25 years ago, pointing to a deterioration in underlying health. Meanwhile, children across low and middle income countries are achieving lower learning outcomes than 15 years ago, the World Bank says, with the worst decline in sub-Saharan Africa."

Human capital outcomes — health, education and workplace learning — declined in 86 of 129 low- and middle-income countries between 2010 and 2025. Children born today in these countries could earn 51% more over their lifetimes if national human capital matched the best-performing peers at similar income levels. As many as 70% of workers in low- and middle-income countries are in small-scale agriculture, low-quality self-employment, or microfirms, suppressing productivity. Several sub-Saharan African countries show adults shorter today than 25 years ago, indicating worsening nutrition and health. Children across these countries are achieving lower learning outcomes than 15 years ago, with the worst declines in sub-Saharan Africa. Analysis connects factors from childhood stunting to neighbourhood crime and workplace learning deficits.

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