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Human capital challenges require integrated and holistic approaches: Isolated interventions can only go so far in creating sustainable and meaningful change.

Failure to address challenges throughout the lifecycle can trap people in vulnerable positions and perpetuate the intergenerational cycle of poverty. AbiramiвЂ™s inability to complete schooling hindered her job prospects and quality of life and, in turn, affected her children. They often have a compounding effect, with challenges from each stage building upon the next. From raising healthy, educated children, and providing jobs for adults, to supporting social security and healthcare for the elderly, human capital challenges occur at all stages of life. Human capital challenges emerge throughout the lifecycle. She leaves us with four key takeaways on how best to understand and approach human capital challenges. It is a story of lost potential, which speaks volumes about the power of investing in human capital. вЂњI always wanted to become a beautician,вЂќ she says, sounding almost guilty to admit that she once had aspirations for herself. With so much on her plate, Abirami has never had room for her own dreams. For a family that survives on a daily income, this cost is overwhelming.

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Though she receives free treatment from public hospitals, Abirami is left with many additional costs associated with her care. Though Sri Lanka provides free education, disparities in the quality of education often result in unequal employment opportunities, making it harder for children from poorer households to climb out of poverty.ДЄbirami is also responsible for her elderly mother who was recently diagnosed with cancer.

Despite her best efforts, she may be unable to give them the future she hopes for. A school dropout herself, she is determined that her boys do not have the same fate. That is a challenge for another day.ДЄbiramiвЂ™s priority is to educate her two sons. She does not have the luxury of planning for her future. She lives day to day, using her meagre income to cover their daily needs. As an informal sector worker, she has no employment benefits, or social security. Insecurity is a familiar feeling for Abirami. They now survive on a few thousand rupees a month and have no stable income to rely on. Unable to make ends meet, the couple was compelled to sell the cart, the only asset they had in their name. Her husband Kumar used to operate a food cart, but that too ended abruptly during lockdown. Abirami has been out of work since April 2020, barring a few odd jobs that came her way.

Daily wage earners like her have been hit hard by the pandemic. Sri Lanka could benefit by bringing together key sectors and stakeholders for comprehensive solutions that can help restore and accelerate human capital.ДЄbirami is a domestic aide. Recovery efforts require a renewed commitment and investment in human capital which focuses on establishing robust and resilient systems to reduce exposure and vulnerability to shocks. COVID-19 has had a devastating impact on human capital worldwide and has reversed valuable gains made over the past decade.

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