The Weak Level of Iraqi Human Capital According to the Indicators of the World Bank and its Impact on Economic Growth

Abstract

The aim of this study was to shed light on the weakness of Iraq in utilizing its human capital and to examine the future productivity of the Iraqi workforce and its implications for long-term economic growth. The study also sought to identify the indicators used by the World Bank to measure human capital investment. Therefore, the research problem focused on the crisis of Iraqi human capital and the low productivity of the next generation of the workforce due to the lack of attention, inadequate investment, and insufficient training and development programs that align with the rapid technological advancements. The study concluded that Iraq possesses a demographic dividend, but this dividend is being wasted, as the human resources and capabilities are not being utilized effectively to enhance future economic growth. This leads to the creation of a generation incapable of keeping up with the rapid development, primarily due to low expenditure on education and healthcare compared to other developing countries. Secondly, the study identified the mismatch between the outputs of education and the needs and requirements of the labor market, which ultimately results in the limited contribution of human capital towards achieving long-term productivity. Consequently, Iraqi human capital lags behind in terms of development, creativity, and innovation compared to the rest of the world. Moreover, the mismatch between educational outputs and the needs and requirements of the labor market leads to a diminished contribution of human capital to achieving long-term productivity. This results in Iraqi human capital falling behind in terms of development, creativity, and innovation compared to the advancements made by countries worldwide.