The Human Capital Index (HCI) is an annual measurement prepared by the World Bank.^[1] HCI measures which countries are best in mobilizing their human capital, the economic and professional potential of their citizens. The index measures how much capital each country loses through lack of education and health. The index ranges between 0 and 1, with 1 meaning maximum potential is reached.^[2] HCI is used in country studies of employment and wages, for example in Ukraine after Russia's invasion.^[3]

Methodology

The applications to measuring human capital were developed in research by Noam Angrist, Simeon Djankov, Pinelopi Koujianou Goldberg, and Harry Patrinos in the scientific journal Nature.^[4][5] These findings were popularized in a 2021 article.^[6] HCI is grounded on the following three pillars:^[7]

Survival

• Percentage of children surviving past the age of 5

School

• Quantity of education (Expected years of schooling by age 18)
• Quality of education (Harmonized test scores)

Health

• Adult survival rates (Percentage of 15-year-olds who survive until age 60)
• Healthy growth among children (Stunting rates of children under 5)

History

The Human Capital Index was first published as part of the World Bank's World Development Report 2019, directed by Simeon Djankov and Federica Saliola. Nobel Prize winner Paul Romer started the measurement.

List of countries by HCI

List of countries by Human Capital Index 2020^[8]

Rank	Country / Region	Score (% of potential reached)
1	Singapore	0.88
2	Hong Kong	0.81
3	Japan	0.80
4	South Korea	0.80
5	Canada	0.80
6	Finland	0.80
7	Macao	0.80
8	Sweden	0.80
9	Ireland	0.79
10	Netherlands	0.79
11	United Kingdom	0.78
12	Estonia	0.78
13	New Zealand	0.78
14	Slovenia	0.77
15	Norway	0.77
16	Australia	0.77
17	Portugal	0.77
18	France	0.76
19	Belgium	0.76
20	Switzerland	0.76
21	Cyprus	0.76
22	Denmark	0.76
23	Poland	0.75
24	Czech Republic	0.75
25	Germany	0.75
26	Austria	0.75
27	Iceland	0.75
28	Israel	0.73
29	Spain	0.73
30	Italy	0.73
31	Croatia	0.71
32	Malta	0.71
33	Latvia	0.71
34	Lithuania	0.71
35	United States	0.70
36	Belarus	0.70
37	Greece	0.69
38	Vietnam	0.69
39	Luxembourg	0.69
40	Hungary	0.68
41	Russia	0.68
42	Serbia	0.68
43	United Arab Emirates	0.67
44	Slovakia	0.66
45	China	0.65
46	Bahrain	0.65
47	Chile	0.65
48	Turkey	0.65
49	Qatar	0.64
50	Albania	0.63
51	Montenegro	0.63
52	Seychelles	0.63
53	Ukraine	0.63
54	Costa Rica	0.63
55	Kazakhstan	0.63
56	Brunei	0.63
57	Uzbekistan	0.63
58	Mauritius	0.62
59	Mongolia	0.61
60	Bulgaria	0.61
61	Mexico	0.61
62	Malaysia	0.61
63	Thailand	0.61
64	Oman	0.61
65	Peru	0.61
66	Colombia	0.61
67	Trinidad and Tobago	0.60
68	Saint Lucia	0.60
69	Argentina	0.60
70	Uruguay	0.60
71	Sri Lanka	0.60
72	Kyrgyzstan	0.60
73	Antigua and Barbuda	0.60
74	Ecuador	0.59
75	Iran	0.59
76	Palau	0.59
77	Saint Kitts and Nevis	0.59
78	Romania	0.58
79	Moldova	0.58
80	Palestine	0.58
81	Bosnia and Herzegovina	0.58
82	Armenia	0.58
83	Azerbaijan	0.58
84	Saudi Arabia	0.58
85	Georgia	0.57
86	Kosovo	0.57
87	Grenada	0.57
88	Kuwait	0.56
89	North Macedonia	0.56
90	Jordan	0.55
91	Brazil	0.55
92	Samoa	0.55
93	Kenya	0.55
94	El Salvador	0.55
95	Dominica	0.54
96	Indonesia	0.54
97	Jamaica	0.53
98	Algeria	0.53
99	Saint Vincent and the Grenadines	0.53
100	Tonga	0.53
101	Paraguay	0.53
102	Tunisia	0.52
103	Philippines	0.52
104	Lebanon	0.52
105	Fiji	0.51
106	Nauru	0.51
107	Nicaragua	0.51
108	Federated States of Micronesia	0.51
109	Nepal	0.50
110	Morocco	0.50
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