Public Policy Innovation Capacity and Human Capital Development Effectiveness in Guyana's Transitioning Economy: Evidence from Informed Stakeholders in Georgetown

Guyana's petroleum-led economic transformation has increased demand for technical, professional, and adaptable workers and placed new pressure on the institutions responsible for education, training, and workforce planning. This study examined the extent to which Public Policy Innovation capacity predicts Human Capital Development effectiveness among informed stakeholders in Georgetown. A cross-sectional survey of 63 professionals from government, the private sector, civil society, education, and research measured perceived policy innovation capacity (six items) and perceived Human Capital Development effectiveness (eight items) on five-point scales. Both scales showed very high internal consistency (Cronbach's alpha of 0.96). Data were analysed using descriptive statistics, reliability analysis, Pearson and Spearman correlation, a Kruskal–Wallis test of sector differences, and simple and multiple ordinary least-squares regression with diagnostic checks. Perceived policy innovation capacity was strongly and positively associated with perceived Human Capital Development effectiveness (r of 0.87; R-squared of 0.75), and the association held after controlling for sector, experience, and level of involvement. The strength of this association should be interpreted with caution: the near-identical reliability of the two scales, the bimodal distribution of composite scores and the single-informant design indicate a substantial common-method component, so the results support the direction of the hypothesised relationship rather than its magnitude. Stakeholder assessments were sharply divided, with government respondents rating policy capacity about 0.8 of a scale point higher than employers, educators and civil-society practitioners, and with those closest to programme delivery more critical of outcomes. Despite this division, 98 percent of those who answered the item (n = 61) judged reform of Human Capital Development policy very or extremely urgent, and alignment between education and labour-market requirements, supported by labour-market information and institutional coordination, was the dominant priority. Because the sample was small, purposive and composed largely of senior, highly qualified professionals in Georgetown, the findings cannot be generalised to all Guyanese stakeholders. The study contributes one of the few empirical tests, in a small and newly resource-rich economy, of the link between perceived policy innovation capacity and perceived Human Capital Development effectiveness, and it identifies labour-market information, programme monitoring and evaluation, and structured stakeholder participation as priority areas for Guyana’s Human Capital Development policy.