the future of human capital in central asia nargiza juraboeva 2009
TRANSCRIPT
The Future of Human Capital in Central Asia
Nargiza Juraboeva2009
Human Capital ???
Human capital refers to skills, education, health
and training of individuals.
Linked to human development and is measured based on human development
indicators
Expenses that a Government makes into the education and health are seen as an investment into future
productivity . . .. . . returns of
which are later seen in wages and input into the economy.
Education Health
Labour market
GrowthIncome
Productivity
We will talk about...
• Central Asia in brief • The Soviet influence on human
capital• Independence: what went wrong? • The current state of affairs• What is next?
The Soviet influence
1. Universal access to education and health2. Equal access to boys and girls3. High quality of education4. Innovation , science and research5. Nearly universal employment6. Women in decision making roles7. Universal social security system
Independence: what went wrong?
• Reforms can be painful– Inability of existing systems to adjust smoothly– Time it takes to start new market oriented reforms
• Severe implications on citizens– Declining social indicators– Increase in poverty and inequality – Rising unemployment and rise of the informal sectors – Decreased investment to R&D and science
One of the recent books:Central Asia’s Second Chance
- geopolitics- power- institutions
by Martha Brill Olcott
New challenges• Shift in the architecture of the labour market• Rise of the private sector (liberalization policies)
• Rise of the informal sector (labour dislocations)
• Decreasing quality of education (motivation)
• Gap between the education system and new market demands
• Increase in poverty and inequality Negative impact on human capital
Real GDP growth (%)
GDP per capita
Increasing disparities...
• KAZ: 18.2% population live below poverty line, with 40% close to poverty line (2006)
• KYR: 35% in poverty and 6.6 in extreme poverty (urban – 30%, rural – 51%)
• TAJ: 64% below poverty line, 2006• TUR: about 21 % (ADB estimation), 2006• UZB: 23,6% (urban-17,6%, rural-27,1%), 2007
Education• For all Central Asian states the literacy rate is
95% and over• Schooling is compulsory and gender equality is
maintained• Enrolment is lower specialized colleges and
higher education gender disparities are more vivid (KAZ an exception)
• The number of early marriages has increased – a barrier for girls to continue education
What is new?
• Identification of gaps and new programmes• Expansion of education facilities
– Creation of specialised colleges
• Revised curricular at all levels• Introduction of IT and resource centres• Education programs for talented youth (study
abroad and exchange)
Despite certain achievements, the existing system of educational
management has failed to promote successful implementation of public
policy in the area of developing human resources, which is oriented
towards current and prospective labour force demands.
It has also failed to ensure an increased
level of education among the population.
Health• Human capabilities and the level of productivity
have a direct link to health• Anaemia is very high in the region lower work
output• Malnutrition – height and lack of vitamins• Iodine deficiency intellectual level• Vitamin A mortality and death (50-60% of
women and children in the region)• Lack of access to quality basic health services• Low awareness and early marriages
People that don’t have jobs...
Tajikistan: unofficial
unemployment rate is 33%
Kazakhstan: 8.4% in 2004, down from 13.5 % in 1999
Uzbekistan: officially at
4%, but others
estimate at 4, 5 times higher
Kyrgyzstan:Officially 8.1 in 2005
I need a job...30% of university
graduates in Uzbekistan do not work in the area of specialization
20-24% of graduated from construction
colleges cannot find jobs, at a time when
there are lack of specialists in other
KAZ: proportion of the unemployed with only secondary or primary
vocational education was 38.1%; the proportion without any vocational education was 49.7% in
2002
What is for gender in employment?
construction, transportation, communications
industries; production and distribution of electricity,
gas, and water
Men
education, healthcare,social services sectors
Salaries in these sectors areapproximately 2.5 times lower than salaries in the
traditionally “male” sectors
Female
unemployment among women in all
agegroups is more than
1.5 times higher than that of men
Where can I earn for living...
Russia?
Kazakhstan?
Foreign markets
? Brain
Drain
bubble
Labour migration• Total labour migrants (including dailylabour and shuttle trade, 2004):
– Around 600,000 for Tajikistan, Kyrgyzstan, Uzbekistan
– 1,209,814 people emigrated from Kazakhstan between 1995 and 2005.
• Remittances:– Up to 20% of GDP in Tajikistan (2005)– 10% of GDP in Uzbekistan (2007) – 27% of GDP in Kyrgyzstan (2007) = 1bln USD
What next?• Commitment and political will
– Can we learn from mistakes?– Can we close the gaps?
• Strengthen public administration reforms: invest in institutions and capacity development
• Strengthen the rule of law
Did we miss a chance to integrate better...
Time is ticking....
...and money is flowing
What next?• Continuous improvement in the education
sector– Focus on quality (creativity, innovation, self-
expression)– Spend resources wisely, M&E system
• Address the market demand and adjust supply of graduates– Analyze the market to learn what skills are missing– Learn from others and take action
The region is rich in human resources. We should not lose the momentum to enhance the capacities of our people and help create
knowledge based economies. There is a need for the right kind of reforms, that are
sustainable in the long term.