Investing in human capital

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Date: 05 - 10 - 2024

Cairo

Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

 

In a world characterized by rapid change and intense competition, investing in human capital has become a fundamental pillar for achieving sustainable development and economic progress. Egypt, with its growing awareness of the importance of this type of investment, has begun to take serious steps to promote this field across various sectors, believing that this investment is the key to its future. Investing in developing human skills and capabilities has many positive repercussions, such as increasing productivity and creativity, improving the quality of products and services, in addition to attracting foreign investments, creating new job opportunities, reducing unemployment rates and improving the standard of living.

Egypt strives to improve the quality of education as the cornerstone for building a society capable of facing future challenges. National plans are working to develop curricula to keep pace with global developments, modernize the educational infrastructure, and provide modern technology in school facilities. The government also focuses on training teachers and qualifying them to use modern educational methods, in addition to encouraging scientific research and innovation in educational institutions. These combined efforts aim to create a stimulating and supportive educational environment that enables students to contribute to the growth and development of society.

Scientific research is the cornerstone of Egypt’s efforts to transform into a knowledge economy, as it is the engine of innovation and development. In 2023, the government allocated 0.72% of GDP to research and development. Government investments included establishing advanced research centers and encouraging scientific institutions to conduct various research and studies, to support innovation and scientific research.

Egypt is also working to create a supportive environment for entrepreneurship and innovation, by providing business incubators and supporting young entrepreneurs, in addition to financing programs for start-ups to help them grow and expand. These initiatives contribute to transforming innovative ideas into realistic projects that contribute to developing the national economy, providing new job opportunities, and supporting sustainable economic growth.

In an era of accelerating technological progress, developing digital skills has become imperative. Therefore, Egypt is implementing comprehensive training programs that aim to qualify citizens to work in the global digital market and support the competitiveness of the Egyptian economy at the international level. The Egyptian government is adopting partnerships with international educational institutions and leading technology companies to provide the latest curricula and training resources, including distance learning and intensive courses in fields such as programming, data analysis, and cybersecurity. These initiatives seek to bridge the digital gap and achieve digital inclusion that ensures all citizens have equal opportunities to benefit from the digital revolution.

Regarding health and social care, which are essential factors contributing to improving the health and productivity of individuals, the government allocated about 4.8% of GDP in 2024, which reflects a significant investment in the health of the population. The government is also working to expand the scope of health coverage to include rural and remote areas, ensuring that health care services reach all citizens. In addition, many initiatives have been launched to promote preventive health and raise awareness of chronic diseases, through intensive health campaigns and large-scale vaccination programs. These efforts come within the framework of a comprehensive vision aimed at improving the quality of life, reducing disease rates, contributing to raising the level of general productivity and promoting sustainable development in the country.

Despite these great efforts, Egypt faces many challenges in this area. Financing is one of the biggest challenges, as investing in human capacity development requires huge sums of money. Egypt suffers from a shortage of some specialized skills, which poses a challenge to the development of its economy, and bureaucracy is still among the factors hindering the process of investing in human capacity development. In addition, school dropout is one of the factors that negatively affects the development of human capacity, as about 6% of students in Egypt leave education before completing secondary school, and about 30-40% of students who complete secondary school enroll in higher education, which are obstacles that require innovative solutions.

Overcoming these challenges requires a coordinated, collaborative approach at the national level. Investing in human capital is not only essential for Egypt’s progress, but a strategic imperative for the economic and social transformation it needs. The government’s efforts, while commendable, must be reinforced by the cooperation of all components of society. A unified approach can pave the way for a future in which Egypt positions itself as a leader. But the road to progress is fraught with challenges.

To ensure the success and expansion of national efforts, policymakers should ask themselves: How can we make these initiatives sustainable and expand their impact? How can the private sector and civil society increase their participation in education and training projects? Can we see new models of cooperation that contribute to accelerating progress? How can we secure sustainable sources of funding to support educational initiatives? How can we build a culture of innovation and entrepreneurship among young people? Answering such questions will have a significant impact on the future of development in Egypt.