Harnessing human capital and investing in youth ensures sustainable economic growth in the long term, young researchers from TRENDS Research and Advisory said. They explained that a highly skilled workforce can build a resilient economy capable of resilience that withstands global fluctuations and emerging crises.
Such an economy provides young people with the necessary skills and knowledge that enable them to respond to future challenges, adopt innovation and take advantage of available opportunities, to achieve sustainable development of their nations.
The main discussion theme was entitled: “Wealth Management in a Turbulent World: Harnessing Human Capital and Investing in Youth.” It was hosted by the “Our Youth is Our Wealth” platform within the activities of the 12th edition of the “International Government Communication Forum 2023”. The speakers indicated that the current global economic and social challenges resulting from inflation, supply chain disruptions and the repercussions of climate change, require countries to explore the impact of these factors on the management of human resources. They must take actions to mitigate their impact on human capital, especially youth.
Active scientific participation
The discussion session was held as a conclusion to TRENDS’ active and qualitative scientific participation in the work of the 12th edition of the IGCF 2023. It discussed a number of topics, including: “the role of wealth management in achieving financial security and prosperity, the power of human capital in building wealth, investing in youth as a catalyst for future success, overcoming challenges and taking advantage of opportunities in volatile times, integrating wealth and social responsibility, developing a dedicated wealth management plan and motivating the next generation of wealth managers.”
Abdullah Al Hammadi, Director of Conferences and Strategic Communication Department at TRENDS, moderated the discussion. He said that wealth management is one of the concepts that have multiple definitions and relevant visions. The most important aspect in this topic is how to mobilize and manage the national working wealth and optimize invest in youth. He added that proper investment in human capital through the intensive use of skills and tools of technical, innovative and advanced technological knowledge, must constitute a real value-added to the economy. This is done through the employment of Human capital and the right investment in young people.
Al Hammadi explained that capital development is related to the efficiency and skills of the human element and investment in it, using many means that include education and continuous training, capacity building and skills development. He indicated that many countries have realized that the source of their strength lies in their possession of the tools to manage their human resources and that their human capabilities are the important competitive weapon in achieving superiority. The strategic resources make the difference with their competitors.
Human Capital Development
Al Hammadi explained that technological progress has reduced the value of certain jobs that do not require high skills. It created new jobs based on knowledge, this requires the development of human capital in terms of quantity and quality, There is a general agreement that the emerging challenges shall only be addressed by a capable human capital, whether at the individual level or at the national level. This would allow all nations to participate in the modern world economy from a position of ability in a competitive context.
1.2 billion Young People
Warda AlMenhali, Director of the Corporate Communication Department and member of the TRENDS Youth Council, said that investing in youth is an investment in the present and future, because the challenges facing societies can only be solved by young people who are the leaders of the innovation and creativity revolution. Young people are the capable the modern tools to serve their peoples and societies. She indicated that the world population includes about 1.2 billion young people who fall in the age category of 15 and 24 years. Therefore, in light of this huge number of young people, countries should provide them with the necessary skills to contribute to a productive economy.
AlMenhali indicated that investing in youth is a key factor in achieving sustainable development. Neglecting this aspect may hinder economic growth in any country. She said that the term “investing in youth” means allocating more funds in programs and services provided to develop their skills by the public and private sectors. This would help countries to save the allocated funds to solve problems usually associated with this population category, such as unemployment, addiction, crimes and a tendency to violence, in a way that increases their contribution to the economic growth of countries.
AlMenhali indicated that achieving the sustainable development goals requires developing the skills of young people, raising their awareness and arming them with science, knowledge, values and attitudes necessary to live in a sustainable and effective society. The eighth goal of the SDGs takes into account the call to provide decent work for youth. This UN goal explained that investing in youth is a national duty and a public responsibility, in which everyone must participate by qualifying young people, training them, arming them with science, knowledge and modern technology. Countries must support youth initiatives financially and morally.
AlMenhali indicated that the UAE has established a clear approach to investing in the capabilities and energies of young people, as the most important wealth. The UAE has developed an integrated system of policies and strategies that provided young people with intellectual, cognitive and scientific advancement tools. The UAE has since long realized that the future depends on the energies of young people who are well empowered with science and knowledge.
Preservation and development of wealth
Mohammed Al-Dhahouri, Head of the Strategic Studies Department, member of the TRENDS Youth Council, spoke during the discussion session on “The Role of Human Capital in Preserving and Developing National Wealth”. He stressed that human capital plays a vital role in achieving development, as today’s economy is measured by the quality, efficiency and rational use of human resources.
He stated that there are important points related to the interrelationship between capital and wealth. They include “the concept of multidimensional human capital, human capital in light of the changing business environment, human capital and skills support mechanisms in light of modern technological developments, human capital and how to reduce the carbon footprint of humans and the reciprocal and complementary relations between financial, natural and human resources. This is in addition to the role of human capital in supporting national investment, technology and knowledge accumulation.”
Innovation growth and productivity
The head of the strategic studies department at TRENDS stressed that the indicators of human capital focus on a number of things such as: spending on education, spending on health, unemployment, and quality of life. He stressed that there is a positive relationship between human capital and economic growth, as investment in human capital ultimately leads to increased innovation, well-being and higher productivity, which in turn contributes to economic growth.
He added that the UAE’s fifty principles focus on human capital, noting the diversity and multiplicity of repercussions suffered by human capital, especially in the wake of the Covid-19 pandemic and the subsequent global crises such as the Ukrainian war and the spread of inflation, recession and rising global unemployment rates.