By Ayo Onikoyi

In the race for investment and recovery of resilient economies, emerging markets show off their natural resources, infrastructure projects, and regulatory reforms.

These are metrics under which lies a quieter but more pressing concern- the systematic human talent neglect that has been going on for ages. Economists say that the cost of unutilized human capital in developing economies is much more than fluctuating currencies or even a debt crisis, leave alone inflationary pressure.

The urgency of this issue is evident in Africa, Asia, and Latin America where millions of educated young people are not getting jobs or remain underemployed. It is a great paradox. While these are the countries with the youngest populations in the world, they are also battling some of the highest brain drain rates. Governments herald rising remittances from more professionals in the diaspora but never count what they lose in productivity at home when such talent departs.

For Nigeria’s Damilare Davola, business strategist and consultant, the debate cannot wait. He frames the issue not simply as an economic failure but a generational risk. “Ignoring talent is not neutral,” he writes. “It compounds into poverty traps, weak institutions, and societies that can’t compete on the global stage.”

His view captures a rising frustration among African thinkers that policy frameworks see talent as incidental to development rather than something to be in and of itself. But Davola is not alone in stressing this dilemma. Harvard development economist Ricardo Hausmann has long argued that “a country’s wealth is determined by the diversity and complexity of the know-how held by its people.” In his widely cited research on economic complexity, Hausmann stresses that growth is not a matter of exports or resources. It is a matter of the skills embedded within a population.

When countries fail to grow the skills of their people they simply stunt their capacity to grow and compete. Taken together, Davola and Hausmann point to the same blind spot: the belief that talent is an endless resource.

The truth is that talent necessitates development, rewards, and intentional retention. Why? The opportunity cost is prohibitive if this is not present. The World Bank’s research indicates that human capital makes up more than half of global wealth, but in many underdeveloped and undervalued countries, this is still a significant factor.

Costs come in various tiers. If educated youth are unable to find jobs that match their skills, households at the micro level will lose their potential income. Why? At the macroscale, economies suffer from reduced innovation capacity, competitive advantage and the ability to scale industries beyond the extraction of raw materials. The consequences are also substantial: growing frustration among underprivileged youth intensifies political instability, migration pressures, and even extremist recruitment.

According to Davola, the danger lies not only in the loss of talent through migration but also in their lack of activation compared to the retention of skilled workers. He notes that many doctors who leave their offices may find themselves sitting idle due to inadequate industries building them up instead of striving for excellence.

Building on previous international perspectives, Hausmann notes the fact that emerging markets tend to misfocus their attention. Policymakers prioritize foreign direct investment and headline GDP growth over the more subtle aspects of improving educational systems, fostering entrepreneurial ecosystems, and ensuring continuous learning. If these foundations are not present, economies become weaker, more dependent on external shock and cannot climb the ladders of complexity.

The tension between different viewpoints highlights a crucial issue for emerging markets: whether they will continue to prioritize talent or focus on it as the foundation for sustainable development. The competition for knowledge workers is growing, and nations that neglect to cultivate and utilize their own will be forever in the dark.

The account isn’t entirely without reason. In several African cities, incubators and innovation hub sites are serving as platforms for young professionals to experiment, collaborate, and scale their ideas. Fintech companies in Nairobi are redefining financial inclusion, while Lagos’ creative industries are exporting cultural products with global appeal.

Ignoring talent in emerging markets may ultimately have existential consequences rather than just financial ones. Without the active involvement of its citizens, nations are unable to create inclusive growth. Furthermore, as Hausmann and Davola both clarify, the issue is not whether talent exists but rather whether societies are prepared to make the necessary investments to realise its full potential