Human Capital Accumulation In The Minority Nationality Rural Regions Of China

Human capital is a very important determinant in economic growth and social development. This paper aims at evaluating and analyzing the situations and problems on human capital accumulation in the minority nationality rural regions (MNRRs), trying to find the way of promoting the human capital accumulation in these regions.At the level of the MNRRs, this paper explains the significance of human capital in both social and economic development, depicts the human capital conditions, and primarily discusses the human capital investment and the human capital flowing which are important forces in determining the level and the pace of human capital accumulation in a specific region.By observing and studying education investment in the MNRRs, there are three points recognized. Firstly, under the education investment system in which the county government plays the leading role in rural education investment, the regional economic development disparity expansion results in the regional education investment disparity expansion. Secondly, the education marketability reform aggravates inequality in gaining both education chances and high-quality education resources between the minority nationality students in poor areas and other students in rich areas. Thirdly, the private education investment is short of economic drive for following reasons: the chances of entering college are more inadequate for the minority nationality students; the labor transfer from agricultural sector to non- agricultural sector is more difficult in the MNRRs; the labor's earning is less related to education level in the divided labor market.The human capital flowing has the important effect on the local human capital accumulation. For a specific region, immigrating high-quality labor from other regions increases the human capital, vice verse. Through observing the characters of the rural labor transfer, it should be affirmative that the labor transfer in the MNRRs is a human capital out-flowing process, which may expand the gap between the MNRRs and other areas.The last chapter of this paper discusses how to increase human capital accumulation in the MNRRs. Based on the analyzing above, the key issues to enhance the human capital in the MNRRs are: to balance compulsory education by establishing public finance-oriented compulsory education system and by bearing more investment duty for the central finance; to develop endogenetic system in order to accumulate human capital, which mainly refer to raising material investment and optimizing industrial structure, and perfecting labor market system. The paper also puts forward the policy arrangement for the human capital accumulation based on the facts of economic development in the MNRRs. Namely, the first stage is to popularize primary education and to develop secondary school education in the coming ten to twenty years; the second stage is to continuously increase the investment to the higher education with the increase of material capital accumulation and the change of industrial structure. Certainly, this phased arrangement does not mean doing one and neglecting another, but a choice of the important point.