FROM RAW MATERIALS TO KNOWLEDGE: THE ROLE OF HUMAN CAPITAL IN DEVELOPING EXPORT COMPETITIVENESS

Аннотация

This paper explores the significance of human capital in enhancing export performance in emerging economies. It focuses on key challenges in the areas of education and healthcare, as well as the effects of migration and social inequality on labor force development. A comparative analysis, drawing on data from China, India, Russia, and Brazil, demonstrates that investment in human capital is a critical factor in transitioning from a resource-based economy to one centered on the export of highly processed goods and services. The paper concludes by offering recommendations for developing a sustainable export strategy grounded in human development. Key words: human capital, export, competitiveness, developing countries, global production chains, education, sustainabledevelopment. Human capital development is a long-term process aimed at expanding the number of competent and promising citizens in the state. It involves acquiring and increasing the number of specialists with the required knowledge, skills and professional experience. The creation and strengthening of human capital involve investing in people and their development as effective and innovative forces [1]. There are over 200 countries in the world with varying levels of wealth, necessitating their classification for analytical purposes. This task is carried out by key international organizations such as the United Nations (193 countries), the World Bank (189 countries), and the International Monetary Fund (190 countries). AccordingtotheWorld Bank classification, countries can be broadly divided intothree groups: 1. Developed countries – characterized by market-based economies and a high level of social security. 2. Countries with transition economies – their GDP exceeds 50% of that of developed countries. 3. Developing countries – their total GDP does not even reach 25% of the GDP of developed countries. One of the key characteristics of developing economies is the relatively low level of investment in education, healthcare, and science compared to developed countries. This, in turn, results in limited access to quality education, insufficient training of specialists, and a weakened capacity for innovation. However, in recent years, positive trends have emerged: countries in Asia, Latin America, and Africa have intensified government efforts in education and workforce development, implementing reforms aimed at modernizingcurricula and improving thedigital literacy of theirpopulations.[2]. In developing economies, human capital has anumber ofspecific features: 1. Low level of investmentin education and health care (less than 5% ofGDP); 2. Mismatchbetween thepersonnel training system and thedemands of thelabourmarket; 3. High level ofoutflowofqualified specialists (brain drain); 4. Uneven access toquality services between urbanand rural areas. 271 Volume 4, issue 6, 2025 According to the World Bank and the United Nations Development Program, important indicators ofthestate ofhuman capital indeveloping countries are: Average duration of education. The average duration of education in developing countries is about 7.3 years, while in developed countries it is over 11 years. In Uzbekistan, the share of higher education coverage increased from 9% in 2016 to 42% in 2023. However, problems with the quality of education and its relevance to the labor market remain [3]. In a number of countries, for example, in Mali, the literacy rate among women aged 25 to 64 does not exceed 17%, which emphasizes the importance of strengthening education programs for the adult population. Adult literacy rate. This rate in developing countries has increased from 81% in 2000 to 87% in 2020 (UNESCO). However, 763 million people are still illiterate, most of them women. In 2020, onein sevenpeople overthe age of15lacked basicknowledge [4]. Child mortality rate and lifeexpectancy. According to the World Health Organization (WHO), in 2022, the child mortality rate in developing countries was 37 per 1,000 live births, while in sub- Saharan Africa it was 74 per 1,000 [5]. Life expectancy in the least developed countries increased from 36.8 years in the mid-20th century to 65 years in 2019, but fell to 64.1 years in 2021 due tothe COVID-19 pandemic [6]. Restoring and further increasing this indicator requires a comprehensive approach, including investments in health, improving living conditions and combating infectious diseases. Export competitiveness involves more than just price advantage; it encompasses a range of factors such as product quality, technological sophistication, compliance with international market requirements, and the ability of the economy to ensure stable and predictable conditions for foreign economic activity. In this context, it is essential to examine the set of factors shaping export competitiveness in developing countries and to analyze the key trends that influence its dynamics. Figure 1shows thefactors influencing export competitiveness: Fig. 1Key factors a