Human capital investment strategy in Kyrgyzstan in the age of digitalization

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Abstract

In the transition to a digital economy, contributing to the further qualitative development of the country and its competitiveness, the determining and most important factor is human capital. The task of developing human capital should be formulated as the key state task of modernizing a number of modern sectors such as education, culture, health, and science, which should be viewed primarily as sectors of capitalization of the human potential of independent Kyrgyzstan. In the republic, based on the current legislation concerning education and the social sphere, it is difficult to conclude that there is a scientifically sound program for the development of human capital as a necessary element in the transition to the information society. Employment policy and migration policy, as factors determining the demand for human capital, do not take into account issues related to the dynamics of the level of human capital. There are no methods to determine the effectiveness of investment in the development of human capital in the country. As a result of the study, the mechanism of effective investment in human capital in the Kyrgyz Republic was developed, taking into account other sources of investment other than the state budget, which will allow to develop specific programs for the development of segments of the social sector in the Kyrgyz Republic on the basis of ongoing assessments. This, in turn, will solve the problem of uneven distribution of investment across them. Besides, the priority areas of investment in human capital, providing for the accelerated development
of human capital in the country, highlighting the role of state, regional and municipal authorities in the effective management policy to attract and promote not only public but also private investment have been identified. Taking into account the necessary amount of investment per person to form an innovative personality in Kyrgyzstan, meeting the modern requirements of a competitive economy and proficient in new digital technologies, will further contribute to reducing the level of labor migration in the country.