Bank wants govt to develop human capital to boost productivity


THE World Bank says human capital development in Papua New Guinea is important as it can lead to greater productivity.
World Bank country sconomist Ilyas Sarsenov said: “Our analytics, our capital development teams will try to make some insights into the human capital development issues and then provide some solutions and recommendations to the Government of PNG going forward.
“Human factor is important that may lead to greater productivity in the country, therefore our plan is to focus more on the human capital development in the PNG Economic update in January 2020.
“We have a number of economic reports.
“One of them is global economic prospects, which the World Bank issues in January and June of each year.”
Sarsenov said the country must focus its efforts on the non-resource sector.
The World Banks’ East Asia and Pacific Economic Update has been released.
“Government should reinforce their efforts to work more deeper on structural reforms and by bringing in private sector investment and in the case of Papua New Guinea, including non-resource economy, but also improving the human capital, health of the population and the workforce, education, so this will bring the higher productivity moving forward,” he said.
“On the monetary side, the Bank of PNG is addressing the foreign exchange backlog, introducing more exchange flexibility, and working on the interest rates transmission mechanism.
“All of these measures, certainly lead to macroeconomic stability, and may improve the private sector confidence in the economy of Papua New Guinea, bringing in more investments so that is what the government should focus on.”