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Джеймс Мохаммад Маллах - аспирант, Южный федеральный университет, Ростов-на-Дону, mallahj102@gmail. com,
James Mohammad Mallah - PhD student, Southern Federal University, Rostov-on-Don.
ОСОБЕННОСТИ ФУНКЦИОНИРОВАНИЯ ЧЕЛОВЕЧЕСКОГО КАПИТАЛА В РАЗВИВАЮЩИХСЯ СТРАНАХ FEATURES OF THE FUNCTIONING OF HUMAN CAPITAL INDEVELOPING COUNTRIES
Abstract. Many developing countries especially in Africa have faced tremendous challenges with the possibilities of bridging existing gaps amongst the most pressing problems related to improving the human capital development process. In comparison with the other regions, Africa has always lagged behind in key features. This article examines the main features of human capital such as education, health care, and employment with a special focus on the relationship between education and health care in developing countries in Africa. We have deployed Spearman's correlation matrix in other to examine the fundamental relationship between the human capital features of 14 (fourteen) developing countries using secondary data from the human capital development index 2020. The chapter further investigated the reason for low labour efficiency or productivity and work experiences based on existing critical gaps in skills development for many developing countries. The article is concluded with possible recommendations that will be useful for stakeholders or governments.
Keywords: Developing countries, Human Capital features, Socio Economic Development, Health Care development and Investment, Knowledge acquisition, Human capital Index, Employment ratio, skill development.
Introduction. Developing countries are regarded as the least in terms of the overall performance of Human capital features. Ultimately, there are weak human capital efforts in most developing countries leading to absolute disconnect amongst human capital features such as education, healthcare, and skills development (Brixiova, Z., Ncube, M., & Bicaba, Z. 2015). There is also insufficient information as well as literature that exist on the features of the functioning of Human Capital especially for developing countries (Danquah, M., & Amankwah-Amoah, J. (2017). However, a regional comparison by the United Nations Development Program for developing countries and Africa shows that all human capital features are in acute shortages. Features such as health care is significantly lacking due to non-availability of healthcare professionals (United Nation Development programme, 2013), whilst Education and Skill development records one of the lowest scores for school enrolment if compared to another region of the world (world development report 2018). Thus, improving every feature of Human capital for developing countries has become a major concern for policy makers.
The relevance of the human capital features, especially for Education, was emphasised by the work done in the 1950s and 1960s by Gary Becker, Jacob Mincer, T.W. Schultz which helps other scientists to understand the role played by Education in the socio-economic development processes of a country. In recent years, researchers have synchronised existing knowledge and literature in other to critically examine how education and other human capital features have impacted some developing countries' economic growth (Robert Lucas 1988; Robert Barro 1991; N. Gregory Mankiw, David Weil 1992).
The argument that Education at a higher level has the tendency to promote economic growth and development suggests that governments in developing countries should implement policies that can grant access to the attainment of higher education with the objective to achieve the most important economic goals. As a result, many researchers, Economists, and international organisations have taken the sides of the argument that reflect the importance of investment in Education as a feature and policy priority for human capital development (Becker 1995; Eric Hanyshek 1995: UNPD 1990; World Bank 2001). To understand the problem of education for the development of human capital in developing countries, the world development report 2018 highlighted the learning crisis around the world. The research indicated the urgent need for education and shows some of the existing gaps in developing countries in the region of Africa with emphasis on the gaps that exist in obtaining the right data for educational enrolment in different developing countries over the last few decades. Many other developing countries do not have historic data not only for academic enrolment but also for number of individuals that have completed academic pursuit in recent times and over the years as compared to many developed countries (World development report 2018). However, despite that there are records of drastic in-
crease in the enrolment number for children in many developing countries within grade 2(two) who could not do simple reading and solving of basic mathematical task, data however showed an increase number in the completion rate of school amongst average adult in many developing countries between the period of 1950 to 2010 (World development Report 2018). In general, it is clear that developing countries face extreme challenges in the quality of education delivered. Part of these challenges are associate with traditional methods of education which are widely use even though it seems not to help the process of knowledge acquisition and only help to lose and squander most of the information acquired in school (Towler,2014).
The table below shows the how education as a feature of human capital development examines the shortfall of early learning process for developing countries.
Grade 2 students who could not read a single word of a short text b.
Grade 2 students who could not perform two-digit subtraction
Figure 1 - Shortfall in learning (Sources: World Development Report 2018)
The graph above is a reflection of the human capital feature in term of education demonstrated in the early learning process which shows that there is a huge gap in knowledge dissemination amongst millions of students and explains the needs for numeracy and literacy skills. Countries in the African region such as Ghana and Malawi are the countries where more than four-fifths of the student population in the second grade cannot read normal words in recent assessment (World Development report 2018). In South America, countries such as Peru and other middle-income countries share half of the same problems before the recent reforms in their Education systems, andsimilar problems also exist in central America where only half of grade 3 students cannot read normal words in countries such as Nicaragua (World Development Report, 2018).In Asia, Pakistan is one of the many countries whereonly three fifths of students in grade 3 could perform subtractions correctly (World Bank, 2018). The treat amongst the various regions in terms of knowledge gap is seemingly wide and different policies in these developing countries have not been able to put solutions together. The lack of access to modern means of education is critical for the economic development process of many developing countries. However, these shortfalls in Education are associated with not just the lack of policies but also the usage of traditional method and the lack of technological access that have contributed to the poor-quality nature of the educational systems in many developing countries (Towler, 2014). The non-existence of prevalent technological usage creates a huge gap in learning. The presence of technology such as computer and other modern tools for educational purpose has the tendency to increase the rate of student enrolment whilst at the same time closes the rate of gap for low performing students who do not reveal greater success rate for standardized test or exams (Washington, 2012). Alternatively, developing countries suffer from a host of policies that do not prefer standards in their Educational systems. The slower nature of their educational systems is evidently as the lack of essential equipment and the overall shortage of teaching availabilities and experiences including the atmosphere to operate technologies that can better be value added for student to experience the right skills and knowledge (UNESCO 2018). Health care development for human capital purpose on the other hand poses considerable challenge as many developing countries have underexploited their population for economic gains.
Presently, global investment in both health and education is insufficient and inappropriately targeted to meaningfully improve human capital (Linada Shultz and Laura Appleby 2019). Countries are largely directing health investment to children in younger ages, whilst conversely education investment are targeted to older children. (Bundy D.A., de Silva N, Patton G C, Schultz L,Jamison DT 2017a). The importance of investment in human capital especially in education and health care has a crucial return throughout the crucial development phase during the 8000 days- from child survival to early child development through school age and adolescence (Bundy D.A., de Silva N, Patton G. C,Schultz L,Jamison D.T....Sawyer, S.M 2018a).
Methodology. We have taken an abstract ofsecondary data from the Human capital index report to analyse the main relationship between human capital features such as education and health indicators for 14 (fourteen) developing West African countries in different human capital index categories.
Table 1 - Education and health indicators for developing countries in West Africa (Source: World bank 2020)
Countries with Lead digital access Expected years of School Harmonized Test scores Learning adjusted years of school Adult survival rate Fraction of Children Under 5 Not Stunted Probability of survival to age 5
Tanzania 12.7 427 8.7 0.78 0.68 0.95
Nigeria 10.2 309 5.0 0.66 0.63 0.88
Lesotho 10.2 393 6.3 0.52 0.65 0.92
Benin 9.2 384 5.7 0.77 - 0.91
Cameroon 8.7 379 5.3 0.70 0.71 0.92
Senegal 7.3 412 4.8 0.48 0.81 0,96
Mali 5.2 307 2.6 0.83 0.73 0.90
Mozambique 7.6 368 4.5 0.58 0.58 0.93
Madagascar 8.4 351 4.7 0.80 0.58 0.95
Mauritania 7.7 342 4.2 0.80 0.77 0.92
Guinea 7.0 408 4.6 0.76 0.70 0.90
Ethiopia 7.8 348 4.3 0.79 0,63 0.94
Liberia 4.2 332 2.2 0.78 0.70 0.93
Sierra Leone 9.6 316 4.9 0.63 0.71 0.89
The table above plays a critical role in analysing two of the main features of human capital in developing countries. Education represents expected years of school, Harmonized test scores as well as the learning adjusted years, whilst health care is represented in the form of Adult Survival rate, fraction of children under 5 and the probability of survival to age 5(five). In analysing the relationship between these variables, we have used the Spearman correlation matrix to measure the strength of the association between the two set of variables (Education and Health care as main human capital features). Below is a summary of results indicating the main differences and relationship between the two variables of human capital features.
Table 2 - Spearman rank correlation matrix of HCI, education and health care indicators
Human Capital Index Expected years of School Harmonized Test scores Learning adjusted years of school Adult survival rate Fraction of Children Under 5 Not Stunted Probability of survival to age 5
Human Capital Index 1
Expected years of School 0.2158 1
Harmonized Test scores 0.5067 0.2068 1
Learning adjusted years of school 0.4356 0.8625* 0.5604* 1
Adult survival rate 0.1169 -0.2624 -0.3855 -0.4802 1
Fraction of Children Under 5 Not Stunted 0.3124 -0.3361 -0.0276 -0.1519 0.0194 1
Probability of survival to age 5 0.3483 -0.1242 0.5116 -0.031 0.0499 -0.1339 1
*statistically significant atp<0.05
The above result shows that variables related to education and health care follow non-normal distribution, so we have used Spearman rank correlation. We consider variable expected years of school, Harmonized test scores, learning adjusted years of school as representation of education and adult survival rate, fraction of children under 5 not stunted, probability of survival to age 5 as health care indicator. According to the above Spearman's correlation matrix:Association between education and health care indicators for African countries are not statistically significant in any indicators based on our data. Harmonized test scores have moderately positive association with HCI and probability of survival to age 5. That indicates Harmonized test scores will increase with the increase of HCI and probability of survival to age 5 separately.
The graph below shows Education indicators of west African developing countries in different human capital index categories. Data sources were taken from World Bank Human Capital Index report for 2020. Human capital index (HCI) considered as <=0.36= Low, 0.37-0.39= Medium, >=0.40= High As demonstrated above, the figure shows that amongst the selected developing countries, Tanzania has highest score in all education indicators whilst Liberia has lower expected years of school and learning adjusted years of school. Another west African country; Mali has lowest Harmonized test scores among all western African countries. These result are evidence that support the development and investment of education in developing countries especially in Africa.
On the other hand, many developing countries have experienced low quality care in meeting the needs of health care development (Kenneth L Leonard & David K Leonard 2004) which is also one of the most important features of Human capital development.
Low ~| Medium | HigiT
Human Capital Index 2020
I yearsof school Learning adjusted years of school ^^»Harmoneed test xores
Figure 2 - Education performance for 14 countries in Africa (Source: Calculations done by the author)
Public expenditure on health care is at the lowest in Africa if compared to the other regions especially newly industrialized countries in East Asia region (World Bank, 2018). The influence of quality health care in other developed regions are however associated with the productivity of a generational health care campaign that has led to the positive effects of early childhood development process. This approach by developed countries are critical to the synergy of investment in basic nutrition during pregnancy and infancy. However, Health care development amongst African countries is still at the centre of discussion amongst local and international policy makers (Shuaibu M. and Oladayo P.T 2016). A lot of emphasis on different studies on health care investment in the region can be associated to the work done by (Appleton and Teal, 1998; Dae-Bong, 2009; Omojimite, 2011; Asaju et al..,2013; world Bank, 2010; Ndulu,2010; Odia and Omofonmwan, 2010; Kern2009). The figure below shows the performance of health care amongst the 14 developing countries in Africa.
HurmanCapital index2020
■ Adijt survival rate — — Fraction of chidren underS not stunted — —Probability of survival to age5
Figure 3 - Health care indicators of west African developing countries in different human capital index category (Source: Calculated by the author)
Adult survival rate is at the lowest in countries like Senegal but highest in Mali considering that the fraction of children under 5 not stunted is higher in all Human Capital index categories across the west the West African developing countries. All other indicators clarify the need for the development of sustainable healthcare system which has been in acute shortage in the Africa region
Another important feature of human capital is associated with the labour productivity factor measured in the form of work experiences. In the course to establish effective economy, many developed countries, for example, wish to construct better opportunity for actual work experience based on available indicators targeting the labour market. However, scanty data exist on actual work experiences particularly for developing countries, butrelevant literature on the importance of labour market experience especially with emphasis on the earning function and estimates can be credited to the work of Mincer (1958) and Becker (1962) who both lead research on this subject. In extending the work of Mincer and Becker, Garvey and Reimers (1979) used dataset with explicit information relating to work history in other to estimate total hours of work experience based on individual work history on their demographic characteristics. Result shows that demographic information plays a huge role in constructing and improving the measurement of predicted experiences relative to the standardized future
experience. Developing countries in Africa, however, can tap into their demographic dividend in terms of their youthful population and better increase the quality of life by bridging the productivity gap through job creation, skills development, and questioning the quality of educational systems through systematic overhaul of their educational processes. However, the lack of work experience in developing countries, especially in Africa, are not only associated with the reference to demography. Many researchers and policy experts have questioned not only the type of standards in the education sector in Africa but also absorptive capacity of the African labour market (Monga et al.,2019). Devarajan et al., (2011) confirm that many African countries have over the years improved considerably by allocating huge resources to improve the quality of education (on average, they have dedicated 0.78 % of GDP to tertiary education compared with 0.66 % in other developing regions). This is seen as a strategy for many developing countries in Africa to incorporate their population into the labour market with the set goals of increasing or achieving economic benefit whilst at the same time improving the lives of the citizens.
The problem with work experience therefore in developing countries, especially Africa, is associated with the lack of skills and available work opportunities leading to an acute unemployment rate. It is estimated that Africa records the highest informally employed individuals with 94 % of workers having no education engaged in informal employment (AfDB,2019). The distribution rate of the informality of unemployed individuals are classified into countries with lower, middle income as well as countries that tends to experience higher unemployment rate (AfDB 2019). Formal and informal employment rates between 2000 and 2019 grew at annual rate between 2.5 and 3 percent with a major share of that increase in the Eastern and Central Africa (International Labour organisation 2020). Central to work experience, the continent suffers a decline of all employment rate in 2020 recording 50.5 % of employment rate compared to 53.3 percent in 2011(ILO 2020). In general, Africa shares a huge portion of formal unemployment rate leading to less formal work experiences. In total the informal sector of employment and its component constitute growth rate from 40.2 percent in South Africa to over 90 % in Central, Western, Eastern and Western Africa (ILO, 2019). Work experience is also characterised by a huge disparity between men and women, where 80 percent of the total informal employment is done by women compared to only 68 percent for men (ILO 2019).
The graph below explains the level of work experience in the different region of the world with a focus of employment to population ratio by gender in the year 2019.
World Africa Northern Central Eastern Southern Western Africa Africa Africa Africa Africa
Figure 4 - Employment to population ratio by gender 2019
(Source: Computed from ILOSAT, ILO modelled estimates, November 2019)
The above graph shows how high the employment to ratio is in Africa compared to the world. It is observed that African countries record the highest employment to population ratio due to the existing fact that a huge number of the African population are engaged in taking both formal and informal employment of any form (ILO 2020). These statistics, however, do not mean that Africa surpasses the world in the fundamental process of the establishment of job opportunities or work experience as a whole. In fact, many countries in all of Africa do not account accurately for work experience related to women. It is assumed that local or informal work and other related unofficial experiences are achieved by women. Statistics for formal employment also remains questionable as many countries in developing world do not actually take into account statistical advantage of recording the number of work force.
Further problems with work experience in many developing countries are associated with the mismatch of skills and the availability of jobs leading to negative consequence in the macroeconomic context of developing an economy.
The fact that skill mismatch influences job satisfaction, wages and salaries, and the likelyhood of changing jobs (Mincer 1974; Verdugo and Verdugo 1989; Daly et al..2000; Dolton and Vignoles, 2000; Allen
and Van der Velden, 2001; Chevalier and Lindley 2009), create more chances of unemployment for young people as well as adult who seek for the opportunity to work. At the micro level, the inability to find skill workers due to lack of required education, has a negative productivity outcome. However, since the period between 2000 and 2021 employment growth in Africa is recorded to be between 2.5 and 3 percent (ILO report 2020) which is said to be lower than the real output growth.
Below is a figure that describes the employment growth rate in Africa.
f: ^ ■ 11 r i A' ri.
2000 2003 МОЁ 2009 20l2 201E. 201Й 2021
Figure 5 - Employment growth rate in Africa (Sources: computed from ILO modelled estimates, November 2019)
Developing countries in Africa strive to accumulate a total rate of 63.1 percent of total labour participation which accounts for huge labour supply if compared to other regions of the world. However, this percentage is highly related to the availability of huge working age population seeking to survive economically and have gainfully employed themselves into the informal sectors with the lack advantage to seek formal opportunities (ILO 2018c).
It is estimated that the rate of participation in the job market in the continent has changed drastically over the last few decades recording 65.1 percent in 2000 to 63.1 percent in 2019, whilst at the same time records an increase labour force from 302.1 million in 2000 to 489.7 million in 2019 marking a total labour participation rate between 45.7 percent (ILO 2020).
Conclusion. This chapter reflected on the main features of human capital development taking into consideration three of the most important features. The justification assessed in this chapters shows the relationship between two of the most important human capital features such as Education and health care.
The result shows that variables related to education and health care follow non-normal distribution and also the relationship between education and health care indicators for the 14(fourteen) African countries are not statistically significant based on our data. In terms of work experience, the problems are associated with mismatch of skills and lack of real opportunities leading to a negative consequence in the macroeconomic context. It is recommended that these developing countries should focus on the attainment of better education and investment in health as well as improve the level of skill development so as to increase their level of human index and employment opportunities for their citizens.
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EDN: JCQFPP
В.А. Дианова - к.э.н., доцент кафедры туризма и физической культуры, Краснодарский государственный институт культуры, [email protected],
V.A. Dianova - Cand. econ. Science, Associate Professor of Tourism and Physical Education, Krasnodar State Institute of Culture;
В.С. Новиков - к.э.н., доцент кафедры социально-культурной деятельности, Краснодарский государственный институт культуры, [email protected],
V.S. Novikov - Cand. econ. Science, Associate Professor of Socio-Cultural Activities, Krasnodar State Institute of Culture.
УПРАВЛЕНИЕ ДЕЯТЕЛЬНОСТЬЮ СОЦИАЛЬНО-КУЛЬТУРНЫХ ОРГАНИЗАЦИЙ В УСЛОВИЯХ НЕСТАБИЛЬНОСТИ ВНЕШНЕПОЛИТИЧЕСКИХ ФАКТОРОВ MANAGING THE ACTIVITIES OF SOCIO-CULTURAL ORGANIZATIONS IN CONDITIONS OF INSTABILITY OF FOREIGN POLICY FACTORS
Аннотация. Актуальность темы социально-культурной деятельности в пространстве государства приобретает особое значение в условиях ограничительных внешнеполитических факторов. Отдельным моментом стоит отметить отказ от русской культуры в мировом масштабе, поэтому на первый план выходят новые способы и инструменты управленческой деятельности в сфере социально-культурной работы. Внутригосударственные ресурсы управления, инфраструктурное обеспечение, консолидация населения страны, возрождение культурных традиций, пересмотр культурных и духовных ценностей должны стать основой защитного механизма деятельности социально-культурных организаций в условиях нестабильности внешнеполитиче-
