Investing in Human Capital: A Path to Sustainable Development and Poverty Reduction in Guinea-Bissau

The report underscores the need for strategic investments in health, education, nutrition, and social protection to unlock the potential of individuals and enhance productivity.

Guinea-Bissau, a small West African nation, faces significant socio-economic challenges that hinder its long-term development. According to the newly released Human Capital Review by the World Bank, strengthening human capital is fundamental to reducing poverty and fostering sustainable economic growth in the country. The report underscores the need for strategic investments in health, education, nutrition, and social protection to unlock the potential of individuals and enhance productivity.

The State of Human Capital in Guinea-Bissau

Human capital, which encompasses the knowledge, skills, and health that individuals acquire over their lifetime, is a critical driver of economic prosperity. However, Guinea-Bissau struggles with multiple constraints that threaten its human capital development. High maternal and neonatal mortality rates, limited access to quality education, malnutrition, gender disparities, climate vulnerabilities, and weak social protection mechanisms contribute to the country’s fragility. These factors significantly impact the ability of the workforce to thrive and contribute effectively to national development.

The Human Capital Review identifies key gaps in Guinea-Bissau’s human capital and offers policy recommendations to bridge them. In response, the World Bank has approved a $20 million project to support the country in addressing these challenges and accelerating progress in the most critical sectors.

Key Challenges Affecting Human Capital Development

Several barriers hinder the growth and preservation of human capital in Guinea-Bissau, including:

1. Poor Health Outcomes

   • Guinea-Bissau has one of the highest maternal and neonatal mortality rates in the world. Limited access to quality maternal and child healthcare services puts expectant mothers and newborns at significant risk.
   • Malnutrition remains widespread, particularly among pregnant women and children under five, affecting their physical and cognitive development.

2. Education Deficiencies

   • The country faces low enrollment rates, high dropout levels, and poor learning outcomes. Many children do not complete their basic education, limiting their future opportunities.
   • The quality of education is often compromised due to a lack of trained teachers, inadequate learning materials, and insufficient infrastructure.

3. Weak Social Protection Systems

   • Many vulnerable populations, including low-income families and unemployed youth, lack social safety nets to protect them from economic shocks.
   • The absence of a comprehensive national social protection system leaves many struggling to meet basic needs.

4. Economic and Gender Disparities

   • Women and girls face systemic challenges, including early marriage, limited access to education, and restricted participation in the labor market.
   • Youth unemployment is high, particularly among educated individuals who struggle to find meaningful employment opportunities.

5. Climate and Environmental Vulnerabilities

   • Guinea-Bissau is highly susceptible to climate change-related risks, such as coastal erosion, rising sea levels, and unpredictable rainfall patterns, which threaten agriculture and food security.

Recommendations for Strengthening Human Capital

To overcome these challenges, the report presents a comprehensive strategy that prioritizes investments in key social sectors. Some of the major recommendations include:

• Enhancing Healthcare Services: Expand access to quality maternal and child healthcare to lower mortality rates and improve overall health outcomes.
• Improving Nutrition: Implement targeted nutrition programs for pregnant women and young children to prevent stunting and enhance cognitive development.
• Expanding Access to Quality Education: Strengthen the education system by improving teacher training, infrastructure, and access to learning materials.
• Establishing a National Social Protection System: Develop a robust framework to support vulnerable populations, ensuring economic stability for those in need.
• Encouraging Economic Inclusion: Introduce programs that create job opportunities for unemployed youth and promote entrepreneurship.
• Reactivating the National Council for Social Protection: Strengthen coordination among stakeholders to ensure effective implementation of social policies.
• Boosting Local and Community Participation: Empower communities to play an active role in service delivery and decision-making processes.
• Creating a National Social Registry: Develop a centralized system to track and assist the most vulnerable populations in accessing necessary services.

The World Bank’s Commitment to Human Capital Development

Recognizing the urgency of the situation, the World Bank has pledged $20 million in funding to support Guinea-Bissau’s human capital development efforts. This investment aims to drive progress in healthcare, education, and social protection while laying the foundation for long-term economic stability.

“The Human Capital Review provides a critical assessment of the current state of human capital in Guinea-Bissau, identifying gaps and offering key insights to inform the government’s development policies and align our operations to the country’s needs,” said Rosa Brito, World Bank Group Resident Representative in Guinea-Bissau. “This study outlines the need for more investments in health, education, and social protection to strengthen human capital in Guinea-Bissau.”

Guinea-Bissau’s path to sustainable development depends on its ability to invest in its people. Strengthening human capital through targeted policies and strategic investments will not only reduce poverty but also build a more resilient and prosperous society. The Human Capital Review serves as a crucial roadmap, guiding policymakers and development partners in making informed decisions that will shape the future of the country. With concerted efforts and continued support, Guinea-Bissau can unlock the full potential of its population and chart a course toward sustainable economic growth.

4o