Brain gain: How improving brain health benefits the economy

Brain health disorders — including mental, substance use and neurological disorders — contribute up to 15% of the global disease burden, putting them on par with cardiovascular diseases.

Brain disorders are estimated to cost the global economy $5 trillion per year — a figure expected to rise to $16 trillion by 2030. Yet in most countries, the majority of people do not have access to effective brain health promotion, services and support.

The McKinsey Health Institute estimates that, if the current global burden of mental disorders were addressed, 130 million years of higher-quality life could be recovered, with each year adding $200,000 of economic value.

The ideas of brain capital (the economic output of positive brain health) and the brain economy (an economic system whose growth and stability are driven by the collective brain power contributed by communities, societies and countries) are novel concepts to help navigate an ever-changing world. Policies and investments that empower better cognitive function can increase productivity, stimulate greater creativity and economic dynamism and create a more resilient, adaptable and engaged population.

Investments in brain health should start early: more than half of the brain’s synaptic connections are formed by age 3. Early investments such as stimulating activities, proper nutrition and positive social interactions can build strong foundation for cognitive and emotional resilience. For example, up to 75% of all energy absorbed from food is consumed by the brain during this period.

Threats to healthy brain development also threaten this foundation as a child grows older. In contrast with other chronic illnesses, mental and substance-use disorder burden disproportionally affects young people, with 75% of mental disorders appearing by the age of 24. Homes, education systems and workplaces offer the opportunity to strengthen this foundation to build and maintain brain capital across the lifespan.

Educators and policymakers can stimulate the brain economy by providing access to early education initiatives and creating brain-healthy environments from infancy onward. Foundational literacy skills, such as phonics, vocabulary and reading comprehension, can lay the groundwork for effective communication and critical thinking.

Numeracy skills, such as counting, number recognition and basic operations, provide the basis for mathematical reasoning and problem-solving. One study from MIT found that students who attended public preschool, versus those who did not, were less likely to experience juvenile incarceration or suspensions in high school and were more likely to graduate.

By explicitly embedding brain health protective factors from kindergarten onward, and consistently reinforcing these as children advance through adolescence, societies can establish a strong foundation for positive brain health and lifelong success in health, careers, family life and society. By the time a student graduates from high school, they will have spent approximately 14,000 hours in an academic environment — one that can either bolster or erode brain health capital.

Innovative programmes like the Brain Health Initiative’s Schools for Brain Health empower teachers, students from Kindergarten through graduation, families and communities to promote brain-healthy lifestyles, address brain illness risk factors and optimize brain development and performance. These efforts are vital in supporting the unique challenges faced by youth and adolescents, both in school and at home, and in building a robust foundation for their brain health and their future.

Parents and caregivers can strengthen brain capital in the home by fostering positive social emotional skills. Research shows that familial support and stimulating home environments are drivers of early childhood success, and lead to better social skills, impulse control and learning outcomes.

About 64% of US adults reported experiencing at least one type of adverse childhood experience (ACE) before age 18. Nearly one in six (17.3%) adults reported they had experienced four or more types of ACEs. Chronic stress from elevated ACEs can affect children’s brain development, potentially inhibiting attention span, decision-making and learning abilities for the long term.

But science shows that with the right support, children can develop positive coping skills and emotional resilience to insulate them from the effects of trauma. Programmes such as Sesame Workshop’s Building Resilience in Children and Families, Child Mind Institute’s Healthy Minds, Thriving Kids, Cincinnati Children’s Hospital and Medical Center and McKinsey Health Institute’s Strong Resilient Youth empower caring adults with the skills necessary to respond to children in a trauma-informed and brain-positive way.

Workplaces can promote brain capital by supporting the brain health of employees, allowing them to operate at their highest level. Analytical thinking is a key marker of individuals with positive brain health, and it’s also one of the most sought-after skills by employers.

Today’s front-line worker may be tomorrow’s CEO, which is why it’s necessary to invest in their brain health. It’s also critical for parents to think about how their children can be equipped to meet the challenges of the future workforce.

The World Economic Forum is working with over 50 global organizations from across public and private sectors to determine challenges and best practices to enhance the holistic health of employees. It builds on the premise that, if employers proactively invest in employee health and well-being, there’s the potential to increase global GDP by up to 12%.

The initiative further focuses on frameworks and measurements to advance and evaluate holistic health interventions at workplaces, helping organizations to make a business case for the same.

This movement is gaining momentum as evidenced by the convening of global stakeholders to advance the brain economy transition, including at the upcoming Brain Days of the 79th United Nations General Assembly Science Summit.

Living in today’s world requires fortitude, especially in the face of growing individual and societal crises like climate change and mental health. Strategies to address these challenges include:

Every global leader and every individual has a role to play in promoting brain capital and spurring the continued growth of the global brain economy. By laying the groundwork for better brain health, we all can move towards a flourishing future.

Acknowledgements: Erica Coe, Global Leader of the McKinsey Health Institute and Shekhar Saxena, Senior Advisor of the McKinsey Health Institute, made significant contributions to this article.