Baku, November 8, AZERTAC

Ahmet Levent Yener, the World Bank's Program Leader for Human Development in Europe and Central Asia, was interviewed by AZERTAC.

-What are the key human capital development challenges for Azerbaijan today?

- Human capital development is all about having an efficient, well-coordinated system that covers key areas like education, health, social protection, and employment services. Azerbaijan’s Vision 2030 and Strategy 2022-2026 are great steps toward creating a dynamic, inclusive society with highly competitive human capital. The country has made impressive progress, ranking among the top global human capital improvers according to the World Bank’s Human Capital Index between 2010 and 2020. However, there is still potential to be unlocked. While Azerbaijan has made strides, there’s an opportunity to align its health and skills development more closely with countries of similar income levels. Azerbaijani children born today can achieve about 58% of their full productivity potential as adults, compared to a scenario with complete health and quality education.

Further efforts to enhance learning outcomes and health services, particularly for children and youth, could set Azerbaijan’s future workforce on a higher productivity trajectory. Additionally, reducing non-communicable diseases could positively impact the older population’s ability to contribute to economic growth, enhancing overall productivity. With continued investment in human capital, Azerbaijan could boost its average growth by at least 1.7% annually from 2024 to 2050. Looking ahead, Azerbaijan is well-positioned to not only tackle the traditional challenges in human development but also prepare for emerging global challenges, like an aging population, climate change, and the evolving nature of work.

- You mentioned climate change as a global challenge. Azerbaijan is hosting COP29 this year. What needs to be done to protect and build human capital in this challenging context?

-First of all, let me congratulate Azerbaijan for hosting COP29 this year. It’s a significant achievement and a great opportunity for the country to showcase its commitment to addressing global climate challenges. To protect and build human capital in the face of these challenges, we really need to take a comprehensive approach that tackles both immediate shocks and long-term trends. Our report, How to Protect, Build, and Use Human Capital to Address Climate Change, highlights three key strategies: protecting, building, and using human capital to drive inclusive, green development. Initially, scaling up adaptive social safety nets is crucial. These programs are vital in preserving health, education, and income during climate shocks. Secondly, making health and education services climate-resilient and reducing carbon emissions is critical. Investments in green infrastructure, such as energy-efficient schools and hospitals, are dual-purpose.

They reduce emissions and ensure service continuity during climate-related disasters. Although Azerbaijan has progressed in making its health services more climate-resilient, further investments are necessary. Thirdly, preparing the workforce for the green economy through education and skills development is essential. The demand for green skills is rising, and enhancing Technical and Vocational Education and Training and high-quality tertiary education is crucial to meet the country's evolving needs. Our analysis indicates that climate-related industries could generate over 213 million jobs globally by 2030 in sectors like renewable energy and sustainable agriculture. By focusing on skills development now, Azerbaijan can lead these sectors by preparing its workforce for the future.

- You also mentioned the evolving nature of work as a challenge. How does the digitalization of human development services contribute to increased productivity and better jobs in Azerbaijan?

-Digitalization transforms how education, healthcare, and social protection are delivered, directly boosting productivity and creating job opportunities across multiple sectors in Azerbaijan. Firstly, digitalization significantly enhances service delivery efficiency. Integrating digital tools and platforms reduces the administrative burden on educators, healthcare professionals, and social protection officers, allowing them to focus on core tasks such as improving educational quality, enhancing patient care, and effectively targeting social benefits. For instance, digital platforms streamline social protection applications and service delivery, enabling quicker responses during crises, as demonstrated during the COVID-19 pandemic. Secondly, the expansion of digital systems creates new jobs and increases the demand for digital skills. As these systems become integral to human development services, new roles in IT support, data management, cybersecurity, and digital service design are emerging. There is also a growing demand for expertise in mobile app development, digital communication tools, and content creation. Significant investments in training programs are expected to meet this rising demand for digital skills. Lastly, advanced tools like artificial intelligence can more accurately and efficiently match job seekers with available opportunities. Digital platforms also offer training modules, career transition support, and job-matching services tailored to current market needs, benefiting regions undergoing economic shifts or post-crisis recovery. Furthermore, digitalization supports a startup ecosystem in the tech sector, providing innovative solutions to challenges in human development services.

- How does the World Bank Group support Azerbaijan to improve its human capital further?

-The partnership between Azerbaijan and the World Bank Group has flourished for over three decades. During this time, the World Bank has contributed its resources, expertise, and global experience to help Azerbaijan progress toward its national objectives and the Bank’s global goals of eradicating extreme poverty, promoting shared prosperity, and building resilience against global shocks. The new Country Partnership Frameworks (CPF) that we are currently preparing with the Government of Azerbaijan would focus on supporting Azerbaijan’s shift to a more dynamic and greener growth model. "Increased Productivity and Better Jobs" is a primary objective of our partnership. Through the human capital development engagement and the ongoing Employment Support Project, we collaborate with Azerbaijan to improve access to high-quality jobs. This project aims to expand employment and training programs for vulnerable groups, including women and youth. It includes initiatives to increase mentoring, provide matching grants for entrepreneurs, sponsor apprenticeship programs, and enhance the sustainability of new micro-enterprises. As we remain committed to assist Azerbaijan in diversifying and growing its economy toward achieving high-income country status, we will continue to provide technical assistance and sharing global knowledge to address the key human capital development challenges that we spoke about earlier.