As noted in the Preamble of this report, human capital development is about supporting countries to create lifelong learning systems which will provide opportunities and incentives for people to develop their knowledge, skills, competences and attitudes throughout their lives, helping them to find employment, realise their potential, and contribute to prosperous, innovative and inclusive societies. The value of human capital for individuals, economies and societies depends on how well it is developed, and on the extent to which it is then available and used.
In Lebanon, human capital is both the country's main asset and a challenge for its socio-economic development. Some of the key indicators available on human capital, and those seen in the national report outcomes, suggest that there are many challenges at different levels and stages. The availability and utilisation of human capital is affected by many factors, amongst which sectarian governance, political conflicts and upheavals, demographic transformation, and lack of data are the most common.
More specifically, human capital development is hampered by low levels of job creation, skills mismatch, weak public employment services, and limited access to LLL and adult learning, as well as the inadequate capacity of public authorities for undertaking reform.
Table 1. Selected Indicators of Human Capital, Lebanon
Indicator |
Year |
Value |
(1) Population structure (%) |
||
0–24 |
2015 |
45.7 |
25–64 |
48.0 |
|
65+ |
6.3 |
|
0–24 |
2025 |
37.7 |
25–64 |
52.9 |
|
65+ |
9.4 |
|
(2) Average years of schooling |
2018 |
NA (8.7 in 2017) |
(3) Expected years of schooling |
2018 |
11.3 (12.5 in 2017) |
(4) Learning-adjusted years of schooling |
2017 |
6.8 |
(5) Adult literacy |
2018e |
95.1 |
(6) Global Innovation Index Rank (x/126) |
2019 |
88 |
(7) Global Competitiveness Index Rank (x/137) |
2019 |
88 |
(8) Digital Readiness Index Rank (x/118) |
2019 |
na |
(9) Networked Readiness Index Rank (x/139) |
2016 |
88 |
(10) occupational mismatch index |
2016 |
na |
Sources: (1) UN Population Division, World Population Prospects 2019 revision; (2) UNESCO UIS database; (3) and (4) World Bank HCI; (5) UNESCO, UIS database; (6) WEF, Global Innovation Index, 2019; (7) WEF, Global Competitiveness Index 4.0, 2019; (8) Cisco, Country Digital Readiness, 2019; (9) WEF, Networked Readiness Index, 2016; (10) ETF, Skills mismatch in ETF partner countries, 2016.
The population structure of Lebanese residents shows a clear trend towards an aging population, as the age group 0–24 is set to decrease from 45.7% to 37.7% of the population, and the 65+ group increase from 6.3% to 9.4% between 2015 and 2025. This will have an obvious impact on the education and labour market sectors. The country's low ranking in the global innovation, competitiveness and networked readiness indexes are also linked with human capital development and use in Lebanon, as we will see in the analysis below and in Chapter 3. Other international human capital indicators, such as average years of schooling, digital readiness index and occupational mismatch index, are not available for Lebanon.
The following sections provide an analysis of the main human capital development challenges that hamper the country's socio-economic development and need to be addressed as a priority.