Building Human Capital for Better Lives. Directions in Development

摘要

The key words in today's development economics are 'human capital.' More and moreemphasis is being placed on investments in education, health, and nutrition as a means of bettering the lives of people in developing countries. There is now enough theoretical and empirical evidence to indicate that both public and private investments in people contribute significantly to economic growth and the alleviation of poverty. This report examines past advances and current problems in this area of investment and presents the strategies most likely to reduce those problems. It also explains how the World Bank helps countries build human capital. Beyond what the World Bank can do, governments need to redefine their role in the financing and provision of social services by focusing attention on the selectivity and reallocation of public expenditure toward essential services for the poor. This short compendium provides in a nutshell the principles on which human capital can be built.