Latin American Capital Markets

466 CATHERINE CHANDLER-CRICHLOWFigure 15-1 I A Framework for Human Capital DevelopmentSector-based human capital development can be envisioned as having twobroad categories: endogenous factors and exogenous factors. The factors endogenousto a sector are the institutions, partnerships, associations, and specific productsand services that clearly differentiate the sector from any other. The factors exogenousto a sector are those that characterize the national environment in which a sectoris situated and include, but are not limited to, areas such as the domestic educationsystem, cultural norms, and public sector governance. Figure 15-1 presents aframework for sector-based human capital development. Implicit in this model ofhuman capital development is the notion that the process is as efficient and effectiveas the milieu in which it evolves.The model implies a dynamic relationship betweenthe approaches of the private and public sectors to governance. A domestic environmentthat places a premium on educational opportunities for its population, culturalintegration, and effective public sector governance is one that would be predisposedto implementing strong human capital development approaches.The converseof this might also be true in countries where the exogenous factors place limitationson the development of a highly skilled and knowledgeable workforce.The followingelements are considered endogenous to a sector:Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub