human capital to shape the future of brics

7/26/2019 Human Capital to shape the future of BRICS

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Human Capital to shape the future of BRICS

BRICS nations are emerging market economies that shared a commondenominator of rapid growth and regional inuence. However, recently theseeconomies have charted greater economic disparity. Brail is in its worst recessionsince !"#!. Russia$s annual growth has fallen %y &.' percent due to fall in oil

prices. South (frica is growing at !.) percent, China is witnessing a declining rateof growthwhile India is continuing to grow at a modest rateof '.& percent. ( keyfactor that will greatly inuence the future growth tra*ectories of BRICS will %e the+uality of human capital.

Source -orld conomic /orum0 Human Capital Report, 1#!)

Recent data!shows high enrolment rate in primary and secondary education anddeclining gender gap in BRICS. 2outh literacy rates are high and compara%leacross these nations. However, /igure ! shows large disparity in vocationalenrolment rates and youth la%or force participation rate among BRICS. Countrieslike Russia and China can defend a low youth participation rate due to highenrolment rates in tertiary and vocational education. Brail, on the other hand,shows high youth participation and low levels of educational attainment, pointingto a poor +uality of la%or force that would not %e 3*o% ready$. 4oor enrolment ratein vocational education in India also signal a potential skills gap.

/igure 1 highlights another interesting o%servation. It points out that higherspending does not necessarily lead to higher +uality of education. /actors like

curriculum structure, education standards, num%er of years of compulsoryeducation and policy priorities are e+ually signi5cant in shaping the +uality ofhuman capital.

! 67SC8. 1#!9. BRICS Building ducation for the /uture. :Book not availa%le in pu%lic domain;
http://www.bloomberg.com/news/articles/2016-01-04/brazil-analysts-ring-in-new-year-with-deeper-recession-forecasthttp://www.bloomberg.com/news/articles/2016-01-04/brazil-analysts-ring-in-new-year-with-deeper-recession-forecasthttp://www.theguardian.com/world/2016/jan/25/russias-gdp-falls-37-as-sanctions-and-low-oil-price-take-effecthttp://www.theguardian.com/world/2016/jan/25/russias-gdp-falls-37-as-sanctions-and-low-oil-price-take-effecthttp://knowledge.insead.edu/blog/insead-blog/china-years-of-decline-4516http://knowledge.insead.edu/blog/insead-blog/china-years-of-decline-4516http://www.forbes.com/sites/timworstall/2016/05/31/indias-economic-growth-up-to-7-9-of-gdp-for-quarter-7-6-for-the-year/#55cab7df4777http://www.theguardian.com/world/2016/jan/25/russias-gdp-falls-37-as-sanctions-and-low-oil-price-take-effecthttp://www.theguardian.com/world/2016/jan/25/russias-gdp-falls-37-as-sanctions-and-low-oil-price-take-effecthttp://knowledge.insead.edu/blog/insead-blog/china-years-of-decline-4516http://knowledge.insead.edu/blog/insead-blog/china-years-of-decline-4516http://www.forbes.com/sites/timworstall/2016/05/31/indias-economic-growth-up-to-7-9-of-gdp-for-quarter-7-6-for-the-year/#55cab7df4777http://www.bloomberg.com/news/articles/2016-01-04/brazil-analysts-ring-in-new-year-with-deeper-recession-forecasthttp://www.bloomberg.com/news/articles/2016-01-04/brazil-analysts-ring-in-new-year-with-deeper-recession-forecast


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Source -orld conomic /orum0 Human Capital Report, 1#!)Score of ducation ample, /igure & shows that employment opportunities not onlyvary %y industry within countries %ut also across countries. ?echnical and

@ocational ducation and ?raining :?@?; must incorporate these changes indesigning %etter and relevant courses so that skills gap can %e closed. ?his willensure that the youth is *o% ready and reduce underemployment in industries,which in turn, will lead to greater productivity and output. 4olicies should %ee>i%le enough to allow transfer of resources from declining sectors to onespromising %etter prospects.

Source -orld conomic /orum0?he /uture of Ao%s, 1#!
http://www3.weforum.org/docs/WEF_Human_Capital_Report_2015.pdfhttp://www3.weforum.org/docs/WEF_Human_Capital_Report_2015.pdfhttp://www3.weforum.org/docs/WEF_Human_Capital_Report_2015.pdf


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?he economic emergence and reaching high0income status will hinge upon howsuccessfully BRICS can adopt to changing market needs %y leveraging its la%orforce and providing them with %etter skills. ?his will also determine how powergets distri%uted within BRICS, in the future and the overall relevance of BRICS.

human capital to shape the future of brics

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