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English 2.Pdf 42 Global Social Service Workforce Alliance Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Strategic Human Capital Investments toward a more Prosperous and Inclusive Armenia © 2020 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected]. 2 PREFACE Technological advancement is changing the main drivers of newly renovated and equipped modern schools, which create economic growth in the modern world. Therefore, each country an environment and conditions conducive to learning, we also must adapt its labor force to present-day conditions. Currently, aim to provide those children with a competitive, modern, and our country is facing several challenges, and to cope with them, quality education that enables them to develop creative and our state must bring together and consolidate all its forces for analytical thinking. the benefit of Armenia and the well-being of its people. To keep human capital development on the government’s Trends in population aging in the world and in Armenia pose agenda, I have initiated the setting up of an inter-ministerial a critical challenge to the entire socioeconomic system. For committee consisting of Deputy Ministers from the this reason, urgent interventions are necessary to boost the Health, Education, and Social Affairs ministries , as well as productivity of the future workforce. Given Armenia’s lack representatives of other government agencies. This steering of natural resources and its geographic constraints, its key committee will serve as a consultative platform for the resource is human capital, the development of which can put implementation of reforms in human capital development. the country on the right development track and enable us to keep pace with global trends. Human capital development is a priority for us. The government’s consistent policy for improving health, education, I am pleased that Armenia hosted the World Congress on and skills in Armenia is captured in the Government Program, Information Technology and the Global Innovation Forum from the associated five-year action plan, and Armenia’s long-term October 6 to 9, 2019, , which signals that Armenia recognizes strategic documents. that realizing the full potential of our population can help to improve our position in the global economy. Armenian citizens In partnership with the World Bank, we have also undertaken with education and skills will be equipped to work in fields this assessment of human capital formation in Armenia’s such as artificial intelligence, virtual reality, and other advanced children and youth with the aim of identifying investments technologies, not only at the local level but worldwide. This in health, education, social protection, and jobs that can has also been emphasized by the recent establishment of the catalyze the next generation into a competitive workforce. This Ministry of High-Tech Industry with the key mission of achieving assessment constitutes a consensus between the Government success by adopting the right policies to build skills in these of Armenia and the World Bank on critical investments areas. over the medium term. I thank the joint team for their close collaboration in developing recommendations to inform the I think the fact that Armenia is an early adopter of the human capital development strategy for Armenia. World Bank Human Capital Project is an indication of our commitment to accelerating more and better investments The Velvet Revolution has offered the Armenian people a in health, education, social protection, and employment that historic opportunity to strengthen governance, boost economic will prepare future generations to be competitive in a rapidly- growth, and ensure equality of opportunity. We are committed, changing global economy. through the Human Capital Project, to keeping our promise to invest in the knowledge, skills, and health of the next We recognize that making strategic investments in human generation, to boost growth, support vulnerable families, and capital development requires both a shift in thinking ensure that Armenia is competitive in the global economy of and development and an upgrade in infrastructure. The the future. Government of Armenia will continue to invest in physical infrastructure, and, in parallel, we will also consistently expand access to quality healthcare, increase school enrollment rates, and strengthen social assistance and job-matching programs. Mher Grigoryan I would like to note that, in the health and education sectors, we Deputy Prime Minister of the attach importance not only to using cutting-edge technologies Republic of Armenia and building improved facilities but also to ensuring the highest quality content. While it is important for children to study in 3 PREFACE In 2018, the World Bank Group launched the Human Capital and inclusive Armenia, builds on the ongoing country Project (HCP), a global effort that supports countries through engagement and is the first step towards collaboratively data, policies, and research to accelerate more and better designing and implementing strategic human capital investments in people for greater equity and economic growth. investments in the country. The report puts a spotlight on Without strategic investments in human capital, countries will the state of human capital outcomes in Armenia, explores not have a workforce that is prepared for the highly-skilled the challenges to building and activating human capital, jobs of the future and will not be able to effectively compete in and recommends specific investments to overcome these the global economy. Human capital development is urgently challenges. needed in the South Caucasus, a region confronted with aging populations, net emigration, chronic health conditions, growing The World Bank is committed to the ambitious human capital skills mismatches in the labor market, high unemployment agenda that the Government of Armenia has adopted. rates among youth and women, and inequitable household Through our close collaboration, we will build on this initial income levels. stock-taking with deeper analyses to operationalize these recommendations and with financing for high-impact The HCP presents a viable opportunity for the World Bank investments in Armenia’s people. Together, we can ensure to support the region in addressing these challenges and rapid progress towards an Armenia in which all children arrive accelerating growth in a sustainable and inclusive way. in school well-nourished and ready to learn, can expect to Recognizing this opportunity, the Government of Armenia attain real learning in the classroom, and are able to enter the has prioritized human capital development, through the job market as healthy, skilled, and productive adults. early adoption of the HCP and ensuring high-level political leadership of the human capital agenda by Deputy Prime Minister Mher Grigoryan. This report, Survive, learn, thrive: Sebastian-A Molineus strategic human capital investments toward a more prosperous World Bank Regional Director for the South Caucasus 4 ACKNOWLEDGEMENTS The report was produced through a collaboration between the Government of Armenia and the World Bank under the supervision of Sebastian Molineus (Regional Director, South Caucasus), Mercy Miyang Tembon (Former Country Director, South Caucasus), Sylvie Bossoutrot (Country Manager, Armenia), Lire Ersado (Program Leader, Human Development), Fadia Saadah (Regional Director, Human Development), Harry Anthony Patrinos (Practice Manager, Education Global Practice), Tania Dmytraczenko (Practice Manager, Health, Nutrition, and Population Global Practice), and Cem Mete (Practice Manager, Social Protection and Jobs Global Practice). The writing team consisted of Adanna Chukwuma, Nairuhi Jrbashyan, Marianna Koshkakaryan, and Maddalena Honorati. The team also thanks Arpine Azaryan for the excellent administrative assistance that facilitated the dialogue and completion of the report. The report was edited by Fiona Mackintosh and Anahit Harutyunyan and translated by Lilit Simonyan and Shushanik Aghababyan. Production of the report was supported by Micheline Frias and Monika Mayr. The report is a deliverable of the Advisory Services and Analytics on Accelerating Human Capital Development in the South Caucasus Countries, led by Soren Nellemann, Adanna Chukwuma, and Maddalena
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