Establishing the linkages of human resource development with inclusive growth

This study is one of the component papers in the priority area on inclusive growth of Project APEC 2015. This paper aims to establish the linkages of enhancing human capital and human resource development in an economy in attaining inclusive growth. Various studies have suggested that education, training, and human resource development in general raise the productivity of workers through the transmission of knowledge, skills, and competencies, which then increase the earnings capacity of an individual. Inclusive growth refers to economic growth performance that encompasses equity, equality in both income and opportunities, and protection in market and employment transitions. Because of the link between education and earnings capacity, improving education will lead to inclusive growth as educated individuals enhance their employment opportunities, improve their income, and pursue entrepreneurial options. The state of education in the Philippines as well as in APEC economies was analyzed in terms of quality, relevance, access and equity, and efficiency and effectiveness. Likewise, options for the development of human resources in the Philippines and lessons learnt from best practices in APEC economies were categorized according to these four dimensions. Lastly, this study enumerates several actionable recommendations to help the region develop its human resources and ultimately attain inclusive growth through cooperation among the economies in bridging the development and human resource gaps in the Asia-Pacific region.