Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The Human Capital Index (HCI) measures the expected human capital a child born today can attain by age 18, considering health and education risks in their country [11][21] - The revised Human Capital Index Plus (HCI+) extends the HCI by incorporating human capital accumulation through higher education and skills acquired during working life, recognizing that human capital development continues beyond formal schooling [14][39] - The HCI+ tracks human capital across three domains: health, education, and on-the-job learning, allowing for a more comprehensive understanding of productivity impacts [15][43] Summary by Sections Introduction - Human capital encompasses health, knowledge, skills, and resilience, which are crucial for productivity and economic growth [10][20] - Investments in human capital can lead to sustainable growth and poverty reduction, but countries often underinvest due to delayed benefits [10][20] HCI and HCI+ Methodology - The HCI measures human capital accumulation from birth to age 18, while the HCI+ extends this measurement into adulthood, capturing ongoing human capital development [24][39] - The HCI+ is designed to be responsive to current policies and outcomes, making it more relevant for policymakers [33] Components of HCI+ - The HCI+ includes three domains: - Health and nutrition, which considers stunting and adult survival rates [44] - Education, which evaluates years of schooling and learning outcomes [45] - On-the-job learning, which assesses work experience and labor market participation [46] - Each domain's contribution to productivity is quantifiable, allowing countries to identify areas needing improvement [15][43] Economic Implications - A 1% increase in HCI+ is associated with a 1% increase in average earnings potential, which can correlate with GDP growth in the long term [56][57]