Human Capital Development: Comparative Analysis of South Asian Countries

Abstract

Human resource development research suggests that investment in people results in improved performance on the individual level, improved productivity on the organizational level, and economic development and other benefits on the societal level. Nevertheless, comparative research on Human Capital (HC) development is still limited and comparisons among multiple countries are difficult to find. The purpose of this paper is to conduct macro-level analysis of HC development strategies, followed by four emerging countries in South Asia (India, Pakistan, Sri Lanka and Bangladesh). This analysis is based on comparisons of macro indices of HC and innovativeness of the economy and a review of related academic literature and publications of governments and international organizations. Study results suggest that in terms of present human capital capacity India and Sri Lanka are ahead of Bangladesh and Pakistan. However, during the last decade the governments of Bangladesh and Pakistan have initiated impressive national programs of HC development, which include significant investment in all stages of education and vocational training, especially in science and technology fields. Though Sri Lanka is well-ahead of many human capital indices, it lacks comprehensive long-term strategies to maintain the momentum. While being the highest populous country, the Indian government plays a progressive and sustainable role in all the areas of human development and coordinating effort of various agencies and constituencies. Study provides not only specific insights on the current and future state of HC in South Asian countries, but also a practical framework for analyzing HC policies in any other developing country of the world.