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Journal number 1 ∘ Revaz Javakhishvili
Human capital in the Japanese economy

Expanded Summary

Japan is a classic example of how, with the right resources and in the shortest possible time, based on the development of human capital  country can overcome economic backwardness and become one of the most developed countries.  According to the human capital index, Japan ranks second in the world, along with South Korea. He did this primarily through a radical transformation and improvement of the education system. Currently, this system in Japan has the following components: 1. Secondary education, divided into three levels: primary, secondary and high school; 2. Higher education institutions with their four levels: universities, vocational colleges, specialized universities and postgraduate education organizations. Primary and secondary education, which is free, is considered compulsory in the country. All secondary education continues in gymnasiums, and half in higher education. In total, Japan needs 18 years of education at all levels, while in Russia it is 15 years, in the USA, Germany and France - 16 years, and in China - 14 years. In the learning process, the level of professional competence of the student is determined by his intellectual abilities. According to the results of the exam, the student has an idea about the possibility of further training.

Japan spends 3.8% of GDP annually on the education system. This corresponds to 4.1% in Russia, 5.1% in Germany, 5.6% in the USA and Great Britain, and 5.9% in France. However, due to the high payback, the level of enrollment in higher education in the country is quite high (48%) and is a leader in the world. In addition, Japan pays serious attention to the development of basic scientific research, which annually consumes large financial resources. As of 2018, $ 168.6 billion was spent on the development of science in Japan, and by this indicator it is the third largest country in the world. In this regard, it is second only to the USA (571.1 billion), China (451.2 billion) and ahead of Germany (118.5 billion), Korea (79.4 billion), France (62.2 billion). India ($ 50.1 billion) and the UK ($ 47.2 billion). Along with science, the Japanese government is at the forefront of further deepening and expanding engineering and test design.

In Japan, the significant development and use of human capital is supported by the development and improvement of public health, which accounts for 8.1% of the country's GDP. The level of health here is much higher than in the United States, where health care costs are almost twice as high. Japan has a high level of maneuverability: the median is 6 minutes per patient and 20 minutes in the United States. This is achieved by the high level of provision of doctors in Japan, their qualifications, technical equipment of medical institutions and the organization of their activities, low morbidity in the country and “less regressive” treatment methods.

In general, an increase in health care costs should be considered, on the one hand, as a positive sign that the state is taking care of improving people's health, and on the other hand, this indicates that the health of the population is deteriorating, that people often need medical attention. The key here is the structure of health care costs. It is advisable to increase the share of total expenditures for health, sanatorium and resort and preventive measures in comparison with the costs of treating diseases. When it is the other way around, it negatively affects the accumulation of human capital, and sometimes even causes its loss.

The basis for the development of Japanese health care is its health insurance, which is presented in two ways: 1. The national health insurance system, which brings together small entrepreneurs and members of their families, people with disabilities, and others; 2. The insurance system for employees, which is the largest and covers all employees and their dependents. Insurance does not impose any restrictions on the choice of doctors and medical facilities. The proportion of patients' participation in capital is set at 10 to 30%, while the upper tax limit is $ 677 per month on average for the household.

Basic factories, determinants of the potential of the Japanese capital, humanitarian and cultural characteristics of the population, and the importance of systematically integrated management. And the feeling is long. They are patient, disciplined and punctual, conscientious and attentive, capable of working hard and effectively fulfilling their responsibilities. They are loyal companies, confident, that they are working hard to help companies operate smoothly, which will give them greater impact on earnings and bonuses.

The low level of income differentiation also indicates the creativity of Japanese human capital. The wages of the boss and subordinate are not significantly different from each other, which does not aggravate labor relations, but increases the interest of workers in working with maximum efforts to increase labor productivity and productivity. According to the UN, the deprivation rate of property in Japan is only 4.5, in France - 9.1, in the UK - 13.8, in the USA - 15.9, in China - 21.8.

The Japanese model of human capital management, as well as the model of a market economy, implies the connection of company management with the outside world using two tools - labor and technology. The supervisor can, in the case of increased demand, hire a large amount of labor, and when demand decreases, he will not be able to use the system of fines and dismissals. In the post-war period, a large labor shortage and the need to maintain these conditions led to the introduction of a new mechanism - educational diplomas instead of the old hiring method. In this situation, young people seek higher education in Tokyo, Harvard and other leading universities. In turn, firms seek to attract graduates of such universities.

Japanese companies pay great attention to creating and strengthening trust in the workforce, which give people an incentive to work better. The effect of "corporate unity" is achieved by reducing the distance between employees and managers in the vertical of management, which affects the external manifestation and internal labeling. Japanese managers and workers are equal and highly dependent on their home company. A characteristic feature of Japanese management is the paternalistic attitude of firms towards employees and members of their families. When an employee goes to work for the company, he feels at home there. In such a situation, all employees care about the well-being of the company, to which the company responds from a position acceptable and favorable for both parties.

Direct transmission and copying of the tremendous successes of Japan and the rich experience gained in developing countries in the field of the formation and management of human capital are impossible and unacceptable. At this time, the features and traditions of the country's historical, economic and cultural development, external, internal and other factors affecting its socio-economic and political development should be taken into account.