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Executive Summary

  • Mar 10, 2023
  • Norbert Schady +4 more
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Abstract

Discusses how the COVID-19 pandemic destroyed human capital at critical moments in the life cycle—early adulthood (15–24 years)—and how policies could reverse these human capital losses by building agile, resilient, and adaptive human development systems for future shocks. The pandemic led to sharp reductions in critical inputs for child development. Lengthy school closures affected human capital by leading to deep learning losses, as little learning occurred while schools were closed, despite widespread remote-learning efforts. Some children did not return to school even after schools reopened. And those most affected—people younger than 25 today—will make up 90 percent of the prime-age workforce in 2050. The pandemic also revealed systemic weaknesses in how governments integrate efforts across sectors to address the multidimensional nature of human capital deficits. A human development system should build on existing sector-specific systems and individual programs to take a look at coordinating human capital investments and exploiting their complementarities for growth.

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