The Daily Star
Last update on: Sun Mar 23, 2025 12:37 PM
There is no denying the fact that the greatest wealth of a nation is neither its geographical size nor its natural resources, but its skilled human resources. This is even truer in a highly populated, natural resource-scarce country like Bangladesh. Labour and entrepreneurship are two critically important ingredients of economic activities. But simple labour or half-hearted entrepreneurship cannot make economic activities dynamic—one needs human resources and innovative and creative entrepreneurship for that purpose. In other words, labour must become human capital.
There are three distinctive ways in which the human resources of a country contribute to its economic development. First, the skills and capabilities of humans can effectively and successfully utilise other means of production. In the absence of human resources, the mere presence of land, machinery, and raw materials is nothing but a collection of innate things. Second, in the development process, the impact and contributions of technologies are crucial. But one requires appropriate human resources to properly use those technologies. In today’s world of technological and digital revolutions, capable and relevant human resources are a must. Third, in the process of human civilisation, the inventive power, creativity, and innovation of humans have played a major role. When the labour force of a country acquires these traits, it transforms itself into relevant human capital.
In developed countries, labour, due to higher labour productivity, enjoys a larger share of national income. For example, in the US, the share of labour income in the country’s national income is 62 percent. On the other hand, in Mexico, a developing country, the share of labour income in total national income is only 35 percent—the underlying reason being lower labour productivity. Viewed from yet another angle, in developed countries, labour has been transformed into human capital, while in the developing world, labour is yet to become human resources.
The digital revolution has changed the world of work, creating new demand for newer skills. In recent times, knowledge-intensive commodity trade accounts for nearly 50 percent of the total global commodity trade. Therefore, people with the skills and resources to use technology and create value can thrive in today’s digital world. Globally, 133 million new high-skill jobs have emerged by 2024, but 75 million jobs might have been displaced by automation and new technologies. Among the new roles expected to experience increasing demand are data scientists and analysts, e-commerce and social media specialists, training and development experts, innovation managers, AI and machine learning specialists, big data specialists, information security analysts, and process automation experts. There is no doubt that in the future world of work, new forms of human resources will be needed.
With that reality in mind, different countries have been remodelling their entire education systems. They are refining their academic programmes, syllabuses, and teaching and learning methods—emphasising science, technology, engineering, and medicine-based education (STEM). In China, 40 percent of graduates are in STEM fields. The relevant figure for India is 30 percent. In the contemporary world, human resource development emphasises five Cs—cognitive skill, communication, connectivity, collaboration, and coordination.
It goes without saying that in the context of the future world of work and the necessary skills for that world, this perspective is extremely important and relevant for Bangladesh. What is the Bangladesh scenario in these contexts? In global comparison, Bangladesh ranked 113th out of 141 countries in the Global Knowledge Index 2024. In the Global Innovation Index, it ranked 106th out of 133 countries. The top five skills rising in demand in Bangladesh are teamwork and leadership skills (93 percent), analytical skills (89 percent), technological literacy (81 percent), critical thinking and problem-solving skills (70 percent), and creative thinking (63 percent).
Today, the youth labour force in Bangladesh is about 27 million, representing 36 percent of the total labour force of the country. About 2 million young people are unemployed, accounting for 79 percent of the total unemployed population. The unemployment rate among the youth is about 7 percent. About 8 million young people are not in education, employment, or training (NEET)—a lost potential for the country. Joblessness among university graduates is on the rise—from 0.25 million in 2013 to 0.90 million in 2023, a more than three-fold increase. By levels of education, the unemployment rate is the highest among university graduates—the joblessness rate among them is 13 percent.
In tomorrow’s world, Bangladeshi youths will have to compete not only with their peers inside the country but also with youths from the outside world. Therefore, with that objective in mind, the following issues must be stressed.
First, an assessment profile must be prepared regarding what kinds of skills are currently being developed in Bangladesh, identifying both opportunities and deficits. In preparing such a report, the ongoing and upcoming human resource demands of domestic entrepreneurs must be kept in mind. Combining these two, a human resource plan for the country should be formulated and aligned with the overall national plan.
Second, a comprehensive list of future job opportunities that may arise in the outside world needs to be prepared. In that context, the impact of digital evolution must be considered. Along with this, it should be identified what kinds of skills would be needed for those job opportunities.
Third, an evaluation must be conducted on the country’s educational structure—academic programmes, syllabuses, teaching and learning methods, physical and educational facilities, and so on. The objective of this assessment would be to determine whether the current educational system can meet the country’s human resource demand as outlined in the human resource plan. In light of this, the entire educational system must be overhauled, incorporating information technology as well as artificial intelligence. In developing such an educational structure, on the one hand, focus should be placed on the history, culture, and heritage of Bangladesh, while on the other, lessons should be drawn from the experiences and achievements of other countries.
Fourth, to make human resource development effective, necessary training must be pursued continuously to ensure that knowledge acquired through education and skills built so far are up-to-date, modern, timely, and relevant. Such training is necessary not only for those in jobs but also for teachers and trainers. In education, academic programmes, teaching methods, and educational tools have been rapidly changing. Therefore, knowledge and experiences from the outside world can play an effective role in these areas.
Fifth, specific programmes may be undertaken to improve skills. These include strengthening industry-academic partnerships, developing on-the-job mentorship, organising affordable in-house training, offering skill-based incentives and bonuses, providing language training programmes, utilising government skill development initiatives, and partnering with local NGOs and training providers.
Sixth, the above framework for human resource development requires regular monitoring, close assessments, and objective evaluations. Based on the results obtained, the human resource development framework needs periodic reviews. Such a review may lead to changes, extensions, and refinements of the framework.
Seventh, over the past 25 years, the education budget of Bangladesh has always been less than 2 percent of GDP, and in 2025, it stands at 1.7 percent of GDP. Similarly, during the same period, the health budget has always been less than 1 percent of GDP. In contrast, India spends 5 percent of its GDP on education and 4 percent on health. In Vietnam, the education expenditure-to-GDP ratio is 4 percent, while the health expenditure-to-GDP ratio is 5 percent. Bangladesh should spend 4-6 percent of its GDP on education and 5-7 percent on health.
The world is changing, and so are societies and humans. Changes have also been occurring in human aspirations and expectations. As a result, the demands for human resources and their supply have also been evolving. Bangladesh must be prepared to effectively utilise its one and only unique wealth—its human resources, which holds the key to our future progress, achievements, and development.
Selim Jahan is former director of the Human Development Report Office under the United Nations Development Programme (UNDP) and lead author of the Human Development Report.
Views expressed in this article are the author’s own.
