Human capital development: what can South Africa learn from Botswana?

Abstract

South Africa and Botswana share a number of commonalities, although the two countries are distinctly different in terms of economic performance, population size, and human capital development. This paper provides analysis of human capital development factors that contribute to differences in the human capital index score of the two countries. In 2013, the World Economic Forum published the first edition of the Human Capital Report which measures human capital using an index based on four pillars: (1) education; (2) health and wellness; (3) workforce employment; and (4) enabling environment. Botswana’s human capital index score is higher than that of South Africa even though both countries have negative human capital index scores. The indicators that show the fundamental differences between South Africa and Botswana are education, health and wellness as well as workforce employment. The differences are discussed in terms of their implications to policy formulation.