Human capital formation in the Gulf and Mena Region

Abstract

In the 'knowledge' economy the provision of high levels of human skills and competencies in generating wealth are crucial. Recent developments in theories of human capital formation are particularly relevant to the Gulf and MENA regions. Recent reconfigurations of the theory in the West are discussed; much local work needs to be done to reshape theory to make it useful in the Middle East. Understanding of entry into the labour market in the West has become more sophisticated, and the impact of the global economy on skills and employment has been investigated. Despite great variation amongst Gulf and Middle Eastern states, issues relating to employment, education and training are of widespread concern. Coordinated planning and policies and the role of government there are important, and a critical factor is the ability of individuals, firms, institutions and even cultures to learn from technological innovation and change and thus to indigenise it successfully.