ABSTRACT
Investment in human capital, embodied in the skills, knowledge and competencies that make people act in productive ways (OECD 1998), is one of the prerequisites for achieving sustainable development. The notion of sustainable development refers to balancing economic, social and environmental objectives for the betterment of society, now and in the future (see Dhakal 2012; UN 2015). The state of economic and human capital development in the South Asian region – Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka – is quite varied, and data indicate that these countries are collectively transitioning towards the middle-income bracket. For example, the Gross National Income (GNI) varies from US $630 in Afghanistan to US $6,670 in Maldives and only one country in the region – Sri Lanka with a GNI of US $3,800 – is ranked 50th amongst 130 countries in the Human Capital Index (HCI) (WEF 2016; World Bank 2016a). The HCI assesses the result of past and current investments in education and offers insight into a country’s talent base in the future (WEF 2016 p. 1). Although South Asian countries have made substantial investments in education and employment generation (Panth 2013; British Council 2014a; British Council 2014b), the work-readiness of graduates – the ability and capability to gain and maintain employment and obtain new employment when necessary (Hillage and Pollard 1998) – is yet to be a fully-fledged priority. Van Adams (2007) highlights four critical factors that influence employability: quality of education, work experience, training that fulfils labour market needs and labour market relevant policies. This chapter explores these elements in the context of employment opportunities and employability in Nepal.
