Human capital
Abstract: This article is about the understanding of human capital and improving the efficiency of human capital. The focus on human capital and the potential of human capital in countries and the role of human capital in the market economy are explained.
Key words: Human capital, human factor, human factor activity level, human factor assessment criteria, human resources, investing in human capital, the role of human capital in the digital economy.
A person is the owner of a highly developed and conscious brain with the ability to think and speak. A person and his abilities, knowledge, skills are the main factor for the well-being of any society and the economic development of the state. Development of human capital contributes greatly to the development of innovative economy, investments, global information systems, the latest technologies and business.
Human capital is a set of knowledge and skills used to meet the various needs of a person and society as a whole. Human capital represents the characteristic that affects the change of income. That is, it is possible to influence the economy through the level of knowledge of a person and influence the income through practical experience. Investments in human capital are the most effective investments. For example, we see that developed countries invest mainly in countries with intellectual potential and high human capital, not in countries with cheap labor. In developed countries, 70% of income is spent on human capital, and 30% is spent on physical capital. The experience and practice of the world show that the country is achieving high development by investing in human capital. It is necessary and useful to pay attention to education in the period from 3 to 22 years old. According to the experts of the field, investing in early childhood is the most effective than other programs, because the beginning of the development process of human capital is at 3-4 years old. comes, and from this point the child begins to have the ability to determine his own destiny and self-expression in the future, learns to apply his abilities in the labor market.
Investment is the tangible and intangible interests that are invested in the economy and other objects of activity. That is why developed countries invest mainly for human capital. Investments in people’s knowledge and skills are made in three stages. The first stage – the acquisition of human capital in childhood depends in most cases on the decisions of others. Parental resources and guidance, as well as the cultural environment and experiences in the early years of school, influence how a person approaches language learning, math comprehension, interest in learning, and overall healthy living. In the second stage, teenagers and young adults spend their full time studying in schools, lyceums and training programs. Thirdly, after entering the labor market, human capital enrichment of the workforce is carried out through on-the-job training, night schools, and short-term training programs. There is a high probability that the investment in human capital will be made when the expected future income is high and today’s costs are low. A person’s abilities, knowledge, and skills have an impact on earning a lot of income in the future, as well as on the development of society. The conditions of the market economy are aimed at obtaining income, and in the way of this goal, they try to produce more and satisfy more needs. As a result, it uses more resources. One of the global problems facing the whole world is the limited resources and unlimited needs. In such conditions, it is necessary to develop human capital and try to satisfy needs without harming nature through it.
The main goal of the development of any democratic state is man. The development of society is measured not only by the size of the country’s economic potential, but also by how much this potential is directed to the maturation and harmonious development of each person. The urgency of the problem of human capital formation is reflected in the following: firstly, the national economy cannot develop without highly educated and qualified workers in the modern civilized society, and secondly, one of the main features of the future is the introduction of digital technologies into human life.
The Law of the Republic of Uzbekistan “On Science and Scientific Activities”, President of the Republic of Uzbekistan dated February 8, 2019 No. PQ-4168 “On measures to improve state management in the field of intellectual property” Resolution No. PF-5847 of the President of the Republic of Uzbekistan dated October 8, 2019 “On approval of the concept of development of the higher education system of the Republic of Uzbekistan until 2030”, Resolution of the President of the Republic of Uzbekistan dated February 7, 2017 PF- It serves to activate human capital in the implementation of the tasks defined in the Decree No. 4947 “On the Strategy of Actions for Further Development of the Republic of Uzbekistan” and other regulatory legal documents.
The high value of human resources is determined, first of all, by the fact that they are institutionally replaced by innovative factors of production, such as competitive, “intellectually capable” goods and services, which are carried out in the form of innovative income in global competitive markets.
The powerful force of deepening democracy in management work is the activation of the human factor, which creates favorable conditions for raising social and economic development to a high level, relying on the activity and practical potential of labor resources. The scientific basis for the activation of the human factor in economic management has been developed. . In this, the organizational-structural structure of the formation of the human factor as a whole system, the qualities of humanity that make up its elements and the law of their interconnection, as well as the standard-diagnostic criteria for evaluating the level of human factor activity, have been developed.
Nobel laureate Amartiya Sen made a great contribution to the formation of the concept of human resources development. In the book “Development as Freedom” published by Amartiya Sen in 1989, the development process was analyzed not only in terms of material and economic well-being, but also as a process of expanding human capabilities. . According to his point of view, it is necessary to evaluate the standard of living in the society not according to the average level of income, but according to the available opportunities for people to lead a life that they consider worthy. An Indian economist taught that the goal of social development is not to increase production indefinitely, but to create opportunities for people to do more work, acquire knowledge, live longer, be free from diseases, etc. Changes in the composition of the general labor force, interest in factors of economic growth caused the emergence and development of the theory of human capital. The scientific and technical revolution, the automation and mechanization of labor, society under the influence of transformation, the qualification of these conditions, the increasing importance of the education level of each person and the population as a whole, the strict balance between labor as the main factor of production and capital as a derivative the factor inherited from the industrial revolution of difference has lost its original meaning.
In this regard, ideas about the ability to work have been changed. The concept of “work force” no longer fully expresses the growing role of the person who not only affects the material capital, but also manages it in the economy, which requires not only professional knowledge, but also the ability to make rational decisions. A person’s abilities are the result of purposeful actions of the owner himself and the people around him. Therefore, any person has a certain amount of past labor, which he uses and serves as a type of capital, which, unlike labor power, is sold or bought in the labor system. Salary is advanced and paid as fixed capital, which requires large funds in the process of its formation and development.
Human capital can be generally described, it is innate, formed as a result of investments and a certain level of health, education, skills, abilities, motivation, energy, cultural development, of any individual, of a group. people gathered in one group and society as a whole are appropriate to be used in a specific area of social reproduction, contribute to economic growth and affect the amount of income of the owner. Human capital is a part of the total capital A lib is the sum of its constituent elements, i.e. it has its own internal structure. Human capital can be divided into the following components depending on the level of generalization in its composition: individual, collective and public. The first two are considered at the micro level, that is, the human capital of an individual and a group of people united by a certain characteristic: a company team, members of a socio-cultural group, etc. The social component is human capital at the macro level, which represents the total human capital accumulated by society, which in turn is a part of national wealth, a strategic resource and a factor of economic growth.
Human capital is very different from physical capital, first of all, it is inseparable from a person, it cannot be bought, it can be provided for acquisition or use only under certain conditions. Acquiring knowledge and skills is possible and without additional investment, but in practice, through on-the-job training. At the same time, human capital, like physical capital, undergoes physical and spiritual degradation. With the passage of time, the human capabilities (physical, mental, psychological, etc.) decrease, knowledge decreases, and the knowledge itself simply becomes obsolete due to the degradation of their carrier.
Conclusion. Human capital plays an important role in developing countries. Investing in human capital has a high level of efficiency. You cannot go far with raw materials and its processing. In addition, innovation is also needed to obtain added value in production. Development of human capital – innovative economy, knowledge economy, investments, global information systems, development of the latest technologies and new forms of business is considered a necessary condition. With the increasing role of scientific and technical development in economic growth, the attitude of Western economists to the problems of labor force reproduction has changed.
The attention of scientists is focused on the problems of creating a qualitatively new labor force, while the main problems used to be the use of this labor force. The comprehensive automation of production processes and the introduction of difficult-to-manage mechanisms required a rethinking of the relationship to the “basic material”, which gave rise to the concept of “frames” representing a different essence and quality. It includes potential opportunities for knowledge level, creativity and all-round development of employees, their health, general culture and ethics, improvement of labor relations, motivation, entrepreneurial spirit and others.
List of used literature:
1. Decree of the President of the Republic of Uzbekistan “On the strategy of actions for the further development of the Republic of Uzbekistan” February 7, 2017, No. PF-4947.
2. The main indicators of socio-economic development of the Republic of Uzbekistan in 2014-2018. http://www/stat.uz.
3. Klochkov V.V. Human capital and its development. In the book: Theory of Economics. Changing the economy.
4. Kasimova D.S, Nazarova G.G, Salikhova N.M, Ismailova N.S Human resource management: Textbook
5. www.stat.uz – the official website of the State Statistics Committee of the Republic of Uzbekistan.
6. www.mf.uz
7. www.lex.uz
9. www.kun.uz
10. www.kalampir.uz
Saitkulova Matluba
Uzbekistan–A student of the Faculty of Economics
