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INVESTMENTS IN HUMAN CAPITAL
М. P. Tsoy
R. B. Bakieva
The article considers the role and value of investments in the educational system of the Republic of Uzbekistan. The advantages and disadvantages of the educational process are noted based on the experience of foreign countries.
Key words: investment, education quality, human capital, education efficiency.
Investments in human capital mean investments in education, making it possible to develop certain knowledge and skills, which, in the future, will bring returns in the form of an income [1]. Each individual, as a consumer, is interested in maximizing his/her income over a lifetime. He/she decides whether to learn or to find an alternative. It should be borne in mind that in world practice: (a) people seek to maximize the total income generated throughout one’s life; (b) the level of salary is directly related to the level of education; (c) as a rule, there are no limitations on the educational market (in the field of education offers).
Government spending in Uzbekistan on education and social services have increased more than five times during the years of independence; each year about 60% of the budget is allocated for development of public health services, education, and social protection of the population [2]. During the years of independent development, the country, with its one-sided hypertrophic resource-based economy, destructive monopoly for production of raw cotton, primitive production and social infrastructure, and low per capita consumption, has reached the objectives that changed its position and image in the world community. Gross domestic product grew by 3.5 times, while per capita GDP increased 2.5 times, and the average salary has increased more than 14 times. The total annual spending on education in Uzbekistan at all stages of lifelong education constitutes 10-12% of GDP, while in the world practice this index does not exceed 3-5% [3]. The main objective of investments in education is to increase the share of skilled professionals, and improve their knowledge and skills by means of continuing education. Science exists at all times thanks to the support of the state. And this is an important aspect of the development of the knowledge economy. However, the allocated funds are insufficient to cover costs, even at the minimum level. Therefore, commercialization should be the basis for development of science, i.e. creation of a product in demand, which has a value and brings considerable profit to businesses.
In many countries the strategy of education development is determined by the priorities of the overall development strategy of the country, turning it into the sphere of the most efficient and profitable long-term investment. "The American economics" states that every dollar invested in education gives five dollars of return. Meanwhile, one dollar invested in high-tech industries, like information technology in Silicon Valley, already gives $10-15 in return. As world practice shows, the specific competitive advantages of countries and prospects of economic development have become less dependent on geographical conditions,
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but rather have become dependent on knowledge and corporate experience. A high level of qualification is no longer a sign inherent to exclusively in the elite of society, but rather a natural requirement for specialists who will be responsible for the way our country will look like in ten years.
The goal of higher and secondary vocational education in Uzbekistan is defined taking into account the prospects of the country’s development. It is set in order to provide for the progressive scientific, technical, socio-economic and cultural development of society through training of competitive skilled personnel with high spiritual and moral qualities, able to think independently and make decisions. It is possible to judge about the effectiveness of the system of higher and secondary specialized education based on an evaluation by employers of the quality of preparation of graduates. The number of employed graduates can be a parameter of such an assessment. According to opinion polls, about 20% of respondents are fully satisfied with the quality of training of graduates in economic fields and areas of study. In certain areas, the supply of specialists is not balanced with the market needs, while sometimes demand exceeds or, vice versa, does not provide for necessary inflow of personnel. Therefore, we need a clear idea as to whether the system of higher and secondary specialized education can meet the needs of the labor market with its current structure, or whether it should be focused on the future market, taking into account regional specifics.
We should note the ever-increasing competition among applicants for admission to higher educational establishments. In Jizzakh Polytechnic Institute in 2011, with a quota of admission of 735 persons, about 4,000 applications were received, whereas in some areas, the competition was up to 10 people per one place, and the maximum pass score was 218.3 in such areas as Economics and Management [4]. In 2013 and 2014, the quota for admission exceeded 1,500 people, and competition was up to 12 people per one place. Thus, we can trace a certain inverse relationship: with high barriers to receive higher education, there is a low assessment of quality of preparation of specialists. The system of testing of specialists for admission to higher educational establishments has been faltering since 1993, which is why some institutions organize additional creative examinations and tests for physical fitness.
The authors of the articles studied the experience of training of specialists in Malaysia (Technology University MARA), Hong Kong and India (Entrepreneurship Development of India) in 2008 and 2011. In Malaysia, depending on the level of prestige of the institution and the specialization, applicants must pass from 9 to 16 exams in different subjects, and the process itself takes about three months. Therefore, the factor of a chance or a mere luck is practically excluded. As a result, in 2020, Malaysia should become a state with an economy based on knowledge, making it possible to turn knowledge into income in industries directly related to high technology. In India there is a system of incentives for students’ initiatives. The level of realization of the students’ ideas is very high, despite the fact that the entrance exams key figures do not demonstrate high levels.
Data from numerous studies and surveys among the employers conducted by the "Polytechnic" Alumni Club at Jizzakh Polytechnic Institute, active since 2005, suggest that the effectiveness of the services of the higher education system depends largely on the extent that the mechanisms below are taken into account and used:
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First of all, determination of the number of students and fields of study should be based on information about the real needs of the market in a particular specialist. The mechanism of formation of the state order on the basis of applications of ministries and departments, large companies, small companies, and central and local authorities should be more suited to determination of the future demand for staff, taking into account the development of industries and tendencies in the labor market;
Secondly, the quality of education should be ensured through the use of effective educational technologies, new teaching methods, and the presence of the appropriate material and technical base;
Thirdly, in order to reduce the period of adaptation of graduates at places of future work, it is necessary to organize practical training under contracts with advanced companies, organizations and firms of the region, following the principle: “a particular specialist for particular production.”
Bibliography
1. Белокрылова Л. С., Михалкина Е. В. Экономика труда: конспект лекций. - Ростов-на-Дону: Феникс, 2002. - 224 с.
2. Выступление Президента РУз И. Каримова на пленарном заседании Саммита ООН «Цели развития тысячелетия», 20 сентября 2010 [Электронный ресурс] // URL: http://press-service.uz/ru/news/performance/?PAGEN_5=2.
3. По материалам Государственного центра тестирования Республики Узбекистан [Электронный ресурс] // URL: www.edu.uz.
Translated from Russian by Znanije Central Translastions Bureas
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