American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 18, | November, 2023 P a g e | 170 www.americanjournal.org THE ROLE OF HUMAN CAPITAL IN THE DEVELOPMENT OF THE COUNTRY'S ECONOMY З. К. Рахимов Самарқанд иқтисодиёт ва сервис институти “Менеджмент” кафедраси PhD, доцент в.б. A B S T R A C T K E Y W O R D S The article describes the theoretical and practical aspects of human capital in the development of the country's economy. The data was compiled based on the author's observations and analysis of foreign literature. Human capital, management, structure, system, education, advanced training, efficiency, effective, factor, quality, competition, commerce, network, development, employment, infrastructure Introduction The structural social economic reforms taking place in the Republic of Uzbekistan became the basis for the introduction of modern approaches in the development of industries. Today, the achievements achieved in our country testify to the need for the scientific and practical skills of our personnel working in the fields of production and service, as well as their experience. Education and skills training increase labor productivity and, as a result, lead to higher wages. Investing in human capital is an important means of increasing labor productivity. It goes without saying that the simplest indicator of the quality of the workforce is the level of education. Currently, 80 percent of those employed in the economy of our republic have higher and secondary special education. World experience shows that intensive development has been the impetus for the modern development of the country's industries, rather than extensively developed countries. Therefore, countries such as the United States, Germany, and Great Britain changed from extensive development to intensive development in 1870-1914, developed scientific innovations of the next generation and applied them in practice, and economic development was more effective 1. 1Bozorov E., Khatamov O.K., Avliyakulov A. Economic growth. Reports text.: - Termiz, 2009. American Journal of Business Management, Economics and Banking Volume 18 Nov., 2023 P a g e | 171 www.americanjournal.org Literature Analysis One of the first scientists who analyzed the concept of "Human capital" was the American economist Jacob Mincer 2. Theodore Schultz and Gary Becker were among the economists who were responsible for the development of this concept in practice 3. At the same time, scientists such as R. Dornbush, S. Fishera, K. Schmanlezi, R. Solow, L. Dublin, F. Kram, I. Fisher, S. H. Forsyth, "Human capital", "Personal capital" and conducted several scientific researches about the impact of the new generation on the future economic development 4. Economists of our country M.Q.Pardaev 5, A.Olmasov, A.Vahobov 6, K.Kh.Abdurahmonov 7, N.R.Narzikulov 8and others conducted research on the development of "Human capital". Research Methodology The method of historical and monographic observation was used to explain the scientific content of the article. Through these methods, in the effective development of the economy, the possibilities of meeting the growing needs from limited resources and the necessity and importance of using human capital in the present and in the future have been shown. Analysis and Results Regardless of the type of activity, the human factor is important. A person brings social and economic benefits in exchange for the knowledge and skills he has accumulated during his lifetime by theoretically and practically studying the environment. This requires paying special attention to the development of human capital for an economically developing country, enterprise and society. It is known that the existing countries in the world have gone through different stages of development. However, regardless of any system, attention to the population and their living conditions is unique. have found it effective to shift from extensive 9to intensive development 10as their population grows and they are faced with finding ways to use the limited resources efficiently. However, one of the main consequences of extensive development: - in the period of such a system, due to the lack of attention to human capital, there was only an increase in attention to material needs at the expense of existing resources, which led to the creation of few innovations and discoveries. For example, Western countries switched from extensive growth to intensive growth in the first half of the 20th 2 Mincer J. Investment in Human Capital and Personal Income Distribution Архивная копия от 26 января 2019 на Wayback Machine//Journal of Political Economy, Vol. 66, No. 4 (Aug., 1958), pp. 281—302. 3 Schultz T.W. Investment in Human Beings. — Chicago: University of Chicago Press, 1962. Becker G.S. Investment in Human Capital: A Theoretical Analysis//Journal of Political Economy, Vol.70, No.5, Part 2, 1962, pp. 9–49 — DOI 10.1086/258724. 4 https://nlr.ru/news/20170427/haikin.pdf 5M.K. Pardaev thesis entitled "Concepts on labor in the conditions of a market economy". Samarkand. SamKI 1997. 59 p. 6Olmasov A., Vahobov A. Economic theory. Textbook. TDIU. - T.: - Economy and finance, 2014. 226 p. 7Abdurakhmonov K.Kh. Labor economy. Textbook. Mehnat Publishing House, 2004. 204 b. 8Narzikulov N.R., Muhammedova O.H., Bakoeva I.A. Economy of human resources. - (Learning) - T.: TDIU, 2004. 7 pages. 9The way of extensive development is the way to increase the volume of production at the expense of quantitative factors of economic growth (additional recruitment of labor force, expansion of cultivated areas, increase of production of raw materials, construction of new facilities). http://banki.tomsk.ru/pages/dictionary/ 10The intensive development path is one that ensures a qualitative understanding of the necessary tasks, their rationalization, and endless improvement until the technology is completely mature. Then the technology changes completely for the next development. https://mostovoy.livejournal.com/55704.html https://karollgomez.files.wordpress.com/2014/10/mincer1958.pdf https://karollgomez.files.wordpress.com/2014/10/mincer1958.pdf https://web.archive.org/web/20190126221201/https:/karollgomez.files.wordpress.com/2014/10/mincer1958.pdf https://ru.wikipedia.org/wiki/Wayback_Machine http://marbles.sonoma.edu/users/c/cuellar/econ421/humancapital.pdf https://nlr.ru/news/20170427/haikin.pdf http://banki.tomsk.ru/pages/dictionary/ https://mostovoy.livejournal.com/55704.html American Journal of Business Management, Economics and Banking Volume 18 Nov., 2023 P a g e | 172 www.americanjournal.org century. According to the information of the Dutch economist Ya. Tintergen, the ratio of extensive and intensive growth in 1870-1914 was as follows (Table 1). 1-jadval11 Iqtisodium ўsishda extensive va intensive omillarning nisbati Mamlakat Usishning extensive / intensive omillari % Buyuk Britannia 80/20 Germany 60/40 АҚШ 73/27 As these countries began the transition period from extensive growth to intensive growth, their economic growth indicators began to increase as a result of the introduction of innovations. Later, the American economist R. Solow found out that technical progress, that is, intensive growth, caused more than 80 percent of GDP growth in the USA in 1909-1949 12. In the 1970s, the economic growth of the United States and other developed countries slowed down. The main reason for this was the decrease in the growth rate of labor productivity. In the 1980s and 1990s, this rate increased somewhat, but it did not reach the level of the 1960s, which was described as the "golden age of rapid economic growth." Economists explain the decrease in the growth of labor productivity as a result of a number of reasons 13. During the former Soviet Union, the transition from extensive to intensive growth rates was planned only in the late 1980s and early 1990s. This movement had become one of the main tasks of the period of reconstruction that began in the mid-80s . In the 10th -11th five years (1975-1980, 1981-1986), economic growth in the country almost stopped. The reason for this is that the extensive factors of economic growth, i.e. the flow of labor force, extraction of natural resources, the growth of the income of enterprises and the financial resources of the state have stopped 14. From the early days of independence, our country began to pay special attention to science, technology, culture and traditions in the restoration of its economy. Due to approaches to human and human capital, the GDP of the country began to increase sharply in a short period of time. Since the second half of the 1990s, there has been an increase in the application of modern technologies in the production and service sectors, and as a result, an increase in the quality of products, an increase in the range of substitute goods, and the introduction of remanufacturing. The Law "On Education" adopted in the Republic of Uzbekistan on August 29, 1997 created an opportunity to develop human capital, increase labor productivity and use new technologies in industries.15 Nowadays, digital technology, green economy and human resources management are getting more and more attention in our country. Due to digital technologies, the study of foreign experiences in the further development of human capital and their practical application are developing well. 11 Bozorov E., Khatamov O.K., Avliakulov A. Economic growth. Text of reports.: - Termiz, 2009. 12 In that place. 13 In that place. 14 In that place. 15 https://lex.uz/docs/16188 https://lex.uz/docs/16188 American Journal of Business Management, Economics and Banking Volume 18 Nov., 2023 P a g e | 173 www.americanjournal.org In the development of our economy, due to the use of advanced foreign experiences in the training of personnel, our short-term experiences show that in practice new personnel attract innovations and the formation of innovations increases. Conclusions and suggestions: Human resources are an important factor in effective and qualitative development of the country's economy. Foreign experiences show that efficient use of resources is becoming one of the main problems in the process of current economic reforms. Therefore, intensive development, inventing modern technologies and providing them with all-round support in the training of young specialists, increasing attention to education and training, innovations can bring positive results in the production and service sectors of the state in the coming years. Based on the above, the following can be suggested for increasing human capital in our country: To explain to them the social and economic importance of human capital in the development of human resources; Improving organizational and economic mechanisms for the development of human capital; Application of motivational processes in the development of human capital; Creating conditions for further study of the experience of economically developed countries and their practical application; Ensuring the cooperation of national educational institutions with foreign educational institutions; Expanding the visit of specialists from leading production and service enterprises in foreign countries to our country and the passing of master classes. References 1. Bozorov E., Khatamov O.Q., Avliyakulov A. Economic growth. Text of lectures.: – Termiz, 2009. 2. Mincer J. Investment in Human Capital and Personal Income Distribution Archived copy on January 26, 2019 at the Wayback Machine //Journal of Political Economy, Vol. 66, No. 4 (August, 1958), pp. 281-302. 3. Schultz TW Investment in Human Beings. - Chicago: University of Chicago Press, 1962. 4. Becker GS Investment in Human Capital: A Theoretical Analysis //Journal of Political Economy, Vol.70, No.5, Part 2, 1962, pp. 9–49 - DOI 10.1086/258724 . 5. M.K. Pardaev thesis entitled "Concepts on labor in the conditions of a market economy". Samarkand. SamKI 1997. 59 p. 6. Olmasov A., Vahobov A. Economic theory. Textbook. TDIU. - T.: - Economy and finance, 2014. 226 p. 7. Narzikulov N.R., Muhammedova O.H., Bakoeva I.A. Economy of human resources. - (Learning) - T.: TDIU, 2004. 7 pages. 8. https://lex.uz/docs/16188 9. https://nlr.ru/news/20170427/haikin.pdf https://karollgomez.files.wordpress.com/2014/10/mincer1958.pdf https://web.archive.org/web/20190126221201/https:/karollgomez.files.wordpress.com/2014/10/mincer1958.pdf https://ru.wikipedia.org/wiki/Wayback_Machine http://marbles.sonoma.edu/users/c/cuellar/econ421/humancapital.pdf https://lex.uz/docs/16188 https://nlr.ru/news/20170427/haikin.pdf