HUMAN CAPITAL AND KNOWLEDGE ECONOMY: THE WORLD BANK’S METRIC REDUCTIONISM IN THE DIGITAL ERA
Abstract
This article undertakes a strategic and critical reassessment of the World Bank's evolving human capital strategy, foregrounding its significance for educational policy and leadership amid rapid technological transformation. Through a systematic analysis of World Development Reports (1978–2025) and salient critical literature, the study delineates the major conceptual evolutions within the Bank's human capital framework—from the basic needs orientation of the 1980s and market-centric reforms of the 1990s, to the knowledge economy emphasis of the 2000s and current digitalization debates. It contends that these successive shifts have incrementally constricted the meaning of human capital, culminating in the Human Capital Project and Human Capital Index (HCI), which distill complex human capabilities into standardized, economically oriented metrics. This metric reductionism has become deeply entrenched in global policy discourses, particularly as they relate to the changing nature of work and skills in the digital era. Anchoring this critique within educational administration and leadership studies, the article elucidates how metric-driven models influence national education policies, governance structures, and institutional agendas. It argues that excessive reliance on standardized indicators risks sidelining local knowledge, cultural diversity, and contextually grounded educational priorities. In response, the article advocates for a multidimensional, context-sensitive reconceptualization of human capital, highlighting the pivotal role of educational leaders in mediating global frameworks and local realities. Ultimately, it calls for more participatory, inclusive, and contextually responsive policy design that transcends narrow performance metrics to foster equitable, resilient, and sustainable educational systems.
Keywords
References
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Details
Primary Language
English
Subjects
Management Information Systems, Macroeconomics (Other)
Journal Section
Research Article
Authors
Özlem Küçük
*
0000-0002-7717-2439
Türkiye
Publication Date
June 27, 2026
Submission Date
April 26, 2026
Acceptance Date
June 11, 2026
Published in Issue
Year 2026 Volume: 21 Number: 1