World Bank on BiH: Deficiencies in education and healthcare threaten the future of residents

SARAJEVO, (Patria) - A child born today in Bosnia and Herzegovina (BiH), when grown up, will achieve only 58 percent of the productive potential they could achieve with complete education and full health, according to the latest edition of the World Bank's Human Capital Index (HCI), which measures human capital outcomes worldwide before the pandemic. This percentage is lower than the average for the Europe and Central Asia region, but higher than the average for upper-middle-income countries.

Human capital consists of the total knowledge, skills, and well-being that people acquire during their lives, enabling them to realize their potential as productive members of society.

"Human capital is BiH's most significant resource and is crucial for the country's development. Unfortunately, the country is rapidly losing its human capital, as residents, especially young people, are leaving the country in search of better opportunities elsewhere. But even for those who stay, deficiencies in education and healthcare mean that almost half of their lifetime productivity will be lost, as education does not provide them with the necessary skills for the market, and healthcare does not enable them to live healthy and productive lives," says Emanuel Salinas, World Bank Country Manager for Bosnia and Herzegovina and Montenegro.

"The COVID-19 pandemic has only increased the urgency to act to stop the loss of human capital. Our desire is to see people in BiH live healthy lives and be able to reach their full potential. This is achievable, but we must act now to reverse this negative trend."

When assessing education in BiH, the report shows that, on average, children can expect to complete 11.7 years of schooling by the age of 18. However, when the quality of learning is taken into account, this represents an equivalent of only 7.8 years of effective education. The quality of learning is of utmost importance for the development of human capital. This means that improving the quality of teaching and learning in classes and schools across the country is the way to increase human capital and enable all students in Bosnia and Herzegovina to achieve their growth potential. To achieve this, it is important for the country to prioritize education development.

This year's report also includes an analysis of ten-year human capital development in 103 countries from 2010 to 2020. Albania, Azerbaijan, and Russia are among the top ten countries that have made the most progress in healthcare and education globally.

The World Bank is helping governments develop long-term solutions to build more resilient, inclusive economies in the post-pandemic period. In Bosnia and Herzegovina, the World Bank is supporting the health sector by financing medical equipment, consumables, and facilities in response to the COVID-19 pandemic, and is currently discussing with authorities opportunities to improve the performance of the health sector and the quality of services.

Regional Health Achievements

Overall, health outcomes in the Europe and Central Asia region are relatively good by global standards. Child mortality rates have significantly decreased over the past 10 years, with Azerbaijan, Kazakhstan, and Turkey recording the largest declines in child mortality. Similarly, stunting rates in children have significantly decreased, especially in Albania, Azerbaijan, North Macedonia, and Turkey. Adult mortality rates have also significantly decreased, most notably in Kazakhstan, Russia, and Ukraine. However, adult mortality rates remain high in several countries.

Regional Education Outcomes

Primary education outcomes in the Europe and Central Asia region are mixed, although the region's performance is good by global standards. Over the past decade, expected years of schooling have increased, with Azerbaijan, Albania, Montenegro, Poland, and Russia making the most progress – largely due to increased enrollment in secondary and pre-primary education. However, expected years of schooling have decreased in several countries, including Bulgaria, Moldova, Romania, and Ukraine. The quality of education, on average, has not improved in the region over the past decade. Bulgaria and Ukraine are among the countries where a decrease in the quality of education has been observed. Countries that have achieved improvements in the quality of education include Albania, Moldova, and Montenegro.

Globally, the HCI report also points to the need for better data collection, which would enable policymakers in countries to provide targeted support to those who need it most. The World Bank's Human Capital Index examines a child's journey from birth to age 18 in critical aspects such as survival (from birth to age 5); expected years of primary and secondary education adjusted for quality; child stunting; and adult survival rates. Based on data up to March of this year, the 2020 HCI provides a baseline of key parameters before the pandemic, which can help in making policy and investment decisions during the post-pandemic recovery.