Mental health, human capital, and youth-driven economic progress

This article is part of the essay series “World Mental Health Day 2024”

The well-being of youth is a fundamental driver of national development, playing a crucial role in both economic progress and the creation of resilient societies. While significant strides have been made in health, education, and income over the past decades, youth mental health remains a key area where further progress is essential, particularly in the Global South. Without addressing mental health concerns, it is unlikely that these nations will achieve the shared objectives outlined by the United Nations Sustainable Development Goals (SDGs), specifically SDG 3, which aims to ensure "Good Health and Well-being."

While significant strides have been made in health, education, and income over the past decades, youth mental health remains a key area where further progress is essential, particularly in the Global South.

Mental health is increasingly recognised as an integral component of SDG 3, and target 3.4 aims to promote mental health and well-being and reduce premature mortality from non-communicable diseases by one-third by 2030. While SDG 3 plays a pivotal role in shaping youth well-being, explicitly focusing on ensuring healthy lives and promoting well-being for all ages, several youth-centric parameters demand particular attention.

Adolescence and Mental Health

Adolescence is a critical stage for developing mental well-being, as young people establish essential social and emotional habits like healthy sleep, regular exercise, emotional regulation, and problem-solving skills. It is also a crucial developmental stage, marked by significant physical, emotional, and social changes, which makes it a vital period for establishing long-term mental health. Supportive environments at home, in schools, and in communities are essential for fostering positive mental health.

However, adolescents face numerous risk factors, including exposure to adversity, peer pressure, and identity exploration, all of which can heighten stress. Media influence, gender norms, violence, and harsh parenting further contribute to mental health challenges, especially for vulnerable groups such as those experiencing stigma, discrimination, or living in unstable conditions. Adolescents with chronic illnesses, disabilities, or those facing early marriages and exclusion also face heightened risks.

Adolescents face numerous risk factors, including exposure to adversity, peer pressure, and identity exploration, all of which can heighten stress.

Despite global progress in areas such as under-5 mortality, youth access to mental health services remains a significant challenge. The World Health Organization (WHO) estimates that one in seven adolescents worldwide suffers from mental disorders. This disparity has been exacerbated by the COVID-19 pandemic, which has led to increased levels of anxiety, depression, and social isolation among youth globally. The figure below highlights that over time, there has been a 36 percent drop in the global suicide rate from 2000 to 2019, demonstrating some progress in suicide prevention efforts. However, 58 percent of suicides occur before the age of 50, and it differentiates suicide deaths by income level, showing that low- and middle-income countries bear a more significant burden of suicide deaths across various age groups, particularly in the 15-50 age range.

Figure 1: Suicides Across Age Groups and Income Levels, 2019

Source: World Mental Health Report, WHO, 2022

Fostering Youth Development through Mental Health

Ensuring equitable access to mental health care is critical for youth development and human capital formation. Youths in good mental health are more likely to engage meaningfully in education, build social connections, and contribute to their nation's workforce. Conversely, mental health challenges such as depression or chronic stress hinder educational attainment and social integration, limiting a young person’s ability to reach their full potential. Beyond the traditional human capital perspective, fostering youth development necessitates an intrinsic well-being approach that fully integrates mental health, as detailed in the following key domains.

Table 1: Adolescent Well-being Domains 

Source: Author’s own, data from various sources

(Disclaimer: GPT-4o has been used to help summarise the findings from various sources. The information is then edited and placed in the relevant column categories defined by the author.)

Mental health as a driver of economic development

Untreated mental health issues among youth, including depression, anxiety, and suicide, contribute to social and economic burdens, undermining national development efforts. Countries that invest in youth mental health see better workforce participation, educational achievement, and overall productivity. The WHO estimates that the global economy loses nearly US$ 1 trillion annually due to lost productivity linked to depression and anxiety disorders.

For instance, in high-income countries like Germany, France, and Switzerland, where public healthcare expenditure accounts for more than 11 percent of the GDP, mental health services are more accessible, leading to healthier and more productive youth populations (OECD, 2021). In contrast, the 2023 Youth Development Index (YDI) reveals that while regions like Sub-Saharan Africa have progressed in youth development, they experience higher rates of youth unemployment and lower levels of human capital development.

Partnerships between developed and developing nations and international organisations can facilitate knowledge exchange, resource sharing, and coordinated efforts to address mental health disparities.

To achieve SDG 3, nations must adopt a multi-pronged approach to youth mental health, including targeted interventions for underserved populations. This includes increasing access to mental health services, reducing stigma, and ensuring that mental health is fully integrated into healthcare systems. Partnerships between developed and developing nations and international organisations can facilitate knowledge exchange, resource sharing, and coordinated efforts to address mental health disparities.

Finally, youth mental health is not merely a public health issue; it is an economic and social imperative. By investing in mental health, nations can cultivate a more resilient and capable youth population, driving sustainable development and long-term economic growth. A holistic approach within the SDG framework, encompassing mental, emotional, and physical well-being, is essential for fostering youth capital.

Soumya Bhowmick is an Associate Fellow at the Observer Research Foundation

• Healthcare
• Sustainable Development
• India
• adolescent wellbeing
• economic growth
• Mental Health
• mental health and economic growth
• mental health care and youth development
• mental health sdg 3
• sdg 3
• SDG Goal 3
• sustainable development goals mental health
• who report on mental health
• world mental health report

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