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A recent report from the World Bank reveals alarming trends in education and health among children in low and middle-income nations, indicating that learning outcomes have deteriorated significantly over the past 15 years, particularly in sub-Saharan Africa. The findings underscore the urgent need for policymakers to focus on enhancing human capital to secure better futures for the next generation.
Deteriorating Health and Education Outcomes
The World Bank’s report, titled *Building Human Capital Where it Matters*, paints a stark picture of the challenges faced by children born today in low and middle-income countries. It highlights that in 86 out of 129 nations studied, there has been a decline in health, education, or workplace learning from 2010 to 2025. This regression not only impacts individual lives but also threatens the overall economic potential of these nations.
According to the report, if these countries were to improve their human capital to match that of the best-performing nations with similar income levels, children could earn up to 51% more over their lifetimes. Mamta Murthi, the World Bank’s vice-president for people, stated, “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.”
The Impact of Malnutrition and Crime
The report highlights a disturbing trend in several sub-Saharan African nations, where adults are now, on average, shorter than they were a quarter of a century ago, indicating a decline in health standards. Additionally, children across these regions are performing worse academically than their peers did 15 years ago. The analysis elaborates on various factors contributing to these trends, including malnutrition-related stunting in childhood and the prevalence of crime in local communities.
For instance, the report references the plight of children in China who are cared for by relatives while their parents seek work. Despite higher household incomes, these children struggle academically and exhibit heightened levels of depression, illustrating the long-lasting consequences of inadequate parental care.
Moreover, the environment in which children grow up significantly affects their development. Research cited in the report indicates that individuals residing in gang-controlled areas of San Salvador experience lower income, fewer assets, and diminished educational achievements compared to those living just a short distance away. This demonstrates the critical importance of a safe and supportive neighbourhood for fostering human capital.
Employment Challenges in Low-Income Countries
The workplace environment also plays a vital role in building human capital. Currently, around 70% of workers in low and middle-income countries are engaged in small-scale agriculture, low-quality self-employment, or micro-enterprises. These sectors often offer limited formal training and few opportunities for on-the-job learning, hindering workforce development.
The report points out that a staggering 40% of women in these regions are not in employment at all, which further exacerbates economic inequality and limits opportunities for growth. To address these gaps, the World Bank recommends a comprehensive suite of policies, from enhancing parenting support and ensuring access to clean water to creating incentives for apprenticeships and vocational training.
Lessons from Success Stories
Interestingly, the report notes significant disparities in human capital development among countries with similar income levels. Nations like Jamaica, Kenya, the Kyrgyz Republic, and Vietnam have emerged as success stories, demonstrating that targeted interventions can yield substantial improvements in health and education outcomes.
As the global landscape shifts and international aid becomes increasingly scrutinised, World Bank President Ajay Banga has redefined the institution’s mission, placing a stronger emphasis on job creation and economic growth. This strategic pivot aims to bolster human capital development in the most vulnerable regions of the world.
Why it Matters
The findings of this report are a clarion call to action for governments, NGOs, and the international community. The decline in health and education outcomes not only compromises the future of millions of children but also threatens the economic stability of entire nations. By prioritising investments in human capital—through improved nutrition, educational opportunities, and safe environments—countries can unlock the potential of their youth, paving the way for sustainable growth and prosperity in the years to come. Addressing these challenges is not merely a matter of charity; it is an urgent imperative for global progress and stability.