From Strategic Investment to Tangible Results: Notable examples from the Human Capital Trust Fund

Two-thirds of the income gap between developed and developing countries can be attributed to disparities in human capital. Yet, budgets for critical human capital investments are tightening right when investment is needed most as we see gains slowing.  Many countries are responding by adding funds on top of fragmented systems, but this rarely produces sustained results. Instead, governments need to be strategic about their investments so that they translate into tangible results for growth and productivity.

The Human Capital Trust Fund (HCTF) supports exactly this kind of investment. Here are three recent examples of what it looks like in practice.

• In Gambia, the HCTF supported advocacy efforts to combat Female Genital Mutilation (FGM). Advocates, lawyers, and policymakers used a powerful asset: nationally available data showing that 76% of women aged 15 to 49 in Gambia have experienced FGM, and that 51% of girls under 14 remain at risk. In July 2024, the parliament rejected the bill that would have decriminalized FGM.
• In Ethiopia, the HCTF funded a rapid assessment on Program-Based Budgeting reform that was piloted at the regional level and allowed regional authorities to better link budgets with human capital outcomes. The Ministry of Finance endorsed the results, which subsequently informed the design of the World Bank Group’s Ethiopia Human Capital Operation. It is expected to increase children’s literacy and reduce stunting among girls, reaching 97 million Ethiopians and 800,000 refugees by 2028.  Building on this momentum, the 2025 Human Capital Forum, brought together ministries and development partners to align priorities across health, education and safety net services, livelihoods, and quality jobs. This whole-of-government approach is now shaping Ethiopia’s longer-term development trajectory, placing human capital at its core.
• In Bangladesh, the original Human Capital Index revealed sharp disparities: children from the poorest households faced higher stunting rates, lower child survival, and fewer years of schooling than those from richer households. The HCTF complemented this analysis and brought its findings into direct dialogue with the Ministry of Finance and Ministry of Planning, shifting the conversation toward targeted equitable human capital financing.

Across all three, the pattern is the same: evidence and coordination producing decisions, not just diagnostics.

Why this matters

Building stronger human capital outcomes supports more than social progress; it sustains economic growth, raises productivity, and creates more and better jobs. Under constrained budgets and rising demands, governments cannot rely on spending more alone; they must invest strategically. After all, human capital investment is productive investment. And the stakes only rise with increasing conflicts, famines, droughts, and unemployment, making it all the more critical for countries and development partners to come together for strategic investment in human capital.

This is the first in a series of blogs on how the HCTF is translating investment into results. Future posts will share impactful examples of how the HCTF is strengthening human capital outcomes.

With generous support from the Gates Foundation and Government of Canada, the HCTF continues to invest smartly in human capital worldwide. As of December 2025, the HCTF has influenced US $13.9 billion in 52 World Bank Group operations in 38 countries.

Source : World Bank