Dyusebaeva Janar Kadylbekovna

Kazakh National University named after Al-Farabi, Kazakhstan

EDUCATION AS A COMPONENT OF HUMAN POTENTIAL

         The new strategic orientation of economic development and public policy in general social services determine new requirements for education. In the era of globalization, which affected almost all aspects of our lives and informatization of the educational process, higher education has become a key factor for sustainable development of the national economy, its competitiveness and national security.

         The education system is one of the major factors in the development of the national economy. A major task of educational institutions, one of the main components of the education system remains the preservation, reproduction and development of human potential. A man capable of finding and developing new knowledge and adoption of innovative solutions is the most important value and main capital of modern society. In the social development of the human factor is transformed into the leading productive force and contributes to the improvement and optimal use of all the other factors of production.

         The level of development of human capital depends on continued effective functioning of advanced industries. In the information society based on knowledge in human intellectual ability to demand the highest degree of its formation, the ability to generate new knowledge, creativity and initiative.

         Theoretical background of human potential of the concept developed in the works of the classics of Western economic thought and our scientists.

         Under the assumption of Adam Smith, in the fixed capital must include not only the tools, construction, land improvement and "human capital" - the capitalized value "acquired and useful abilities of all citizens and members of society" [1]. The costs of education or training employees, says Adam Smith, can be considered as investment in its ability to earn in the future.

For his development of this section of the economic analysis of T. Schultz and G. Becker, representatives of the "Chicago school", were awarded the Nobel Prize. The term "human capital" first appeared in the works of T. Schultz. He claimed that the improvement of people's well-being does not depend on the land, machinery or effort, but rather on knowledge. This qualitative aspect of the economy he called "human capital". T. Becker, who created the theoretical-practical model of human capital, has published a monograph on the subject "Human Capital". Formulated model is became the basis for all future research in this area.

         Developed applied aspects of the theory of intellectual potential, such as inventory and assessment of the intellectual resources of the company in the form of intangible (intellectual) assets. Intensively developing directions of research of influence of the human potential of the accumulation process on efficiency of activity of economic entities is the concept of human resources development, knowledge management [2].

         The role of education and knowledge of the system, which offers individual and groups of workers, became apparent in the second half of the XX century due to the impact of scientific and technological revolution in production.

         In the post-industrial society, human capital stands the most valuable resource it is much more important than the natural and accumulated wealth. Currently, in industrialized countries, human capital determines the rate of economic development and scientific and technological progress[3].

         Education is in demand because of the opportunity to benefit in the long run. By the expected return on investment for the individual in human capital are the following:

- The high level of earnings;

- The satisfaction of selected works;

- Improving working conditions;

- Improvement of living standards;

- Social status.

As part of the impact of society on education serve;

- Raising the level of education of the entire population;

- Increasing the share of high-tech industries in the economy;

- Improving living standards.

         The cost of providing education are made within a relatively short period of time and are often high. Accordingly, when deciding on education should determine the future benefits and compare them with the current costs. If future benefits exceed the current costs, then education would be justified. Becker considered consecutively three situations:

·       investments are limited to one period, and the return takes place in all the remaining periods;

·       investments are distributed within a predetermined period, called the investment period;

·       the amount of investment and time investment can be obtained from the information on the net income, is determined by the level of the expected profit[4].

         Education is for the benefit of society as a whole. After all, society needs human capital, which is prepared by universities.

         People see in education is also a way to improve their lives, which encourages investment in it. Higher education is no longer a rare and inaccessible boon. Society and the economy, built on a scientific basis, requires producers of knowledge and experienced users.

         A new synthesis of science and innovation through the organization of scientific research and technological development, as well as through the creation of new technical methods of forecasting will provide opportunities for the systematic, organizational and technological progress. This synthesis is "one of the fundamentals of the post-industrial society" [5]. In particular, the university became an important center in the production of knowledge in the production of a large number of engineers, managers, educated consumers who serve the post-industrial world.

         Education is in demand because of the opportunity to benefit in the long run. Making a decision about continuing education, the individual compares the costs of education and the benefits that he will receive in the future from the possession of knowledge.

         Human capital tends to be in constant evolution, a person throughout life is constantly accumulating knowledge and skills for their future use. Human capital is not increased by itself, for this specific application of funds is necessary, investment in human capital.

         Having a good knowledge of the developed countries is equivalent in meaning to the strategic resources (raw materials, territory, gold reserves, foreign exchange reserves). In the modern world is constantly working for the possession of intelligence, for access to its sources. World experience shows that in recent years, the role of leaders in socio-economic development of the country's claim to have a high level of education and science, health and culture.

         It is known that the development of human resources - one of the most important resources of modern Kazakhstan. Head of State in the Address to the Nation "Kazakhstan's way - 2050: Common goal, common interests, common future" set a goal of entering the 30 developed countries of the world. The main role is given education and science, because without competitive human capital and scientific innovation system this goal cannot be achieved [6]. The priority for our country to be a high level of services provided by higher education institutions, as well as, investment in pre-school and school education. That is the scale of coverage and basic knowledge of the younger generation allows you to achieve the objective of human resources development.

         The thirty most developed countries, Kazakhstan should enter with a highly educated and healthy population, a developed system of social protection and a wide range of employment opportunities. Accordingly, it is necessary to achieve a high level of human capital in all four areas:

- Education;

- Health;

- Employment;

- Social protection system.

         This includes meeting basic human needs in a clean environment, quality and at the same time, accessible education, health care and the creation of conditions for creative self-realization and productive work.

         According to the World report of the UNDP on human development in 2006, Kazakhstan took 79th place in the HDI (0.774) among 117 countries of the world, and by GDP per capita - 74th place, in 2007 Kazakhstan at the level of human development in the world rankings. It has moved from 79th to 73rd place. If back to 2007, Kazakhstan was among the countries with medium human development (73 place) among 177 countries, according to the Human Development Report by UNDP in 2013, Kazakhstan moved into the group of countries with high human development (70th place) from 187 countries [7].

         Center for the Study of Global Competitiveness of the International Institute for Management Development (IMD, Lausanne, Switzerland) announced the results of the World Competitiveness Ranking 2015, which was attended by 61 countries of the world. According to the survey in 2015 the Republic of Kazakhstan took the 34th place.

Table 1. Factors of competitiveness according to IMD methodology

Economic activity

 (84 indicators)

Government Effectiveness

 (71 indicators)

Effectiveness of Business

(71 indicators)

Infrastructure

(116 indicators)

The domestic economy

Public finances

Productivity

Core Infrastructure

International trade

Fiscal Policy

Labour Market

Technology Infrastructure

Foreign investments

Institutional Environment

Finance

Research Infrastructure

Employment

Law Practice

Management Business

Health and Environment

Prices

Social order

Attitudes and Values

Education

Source: IMD World Competitiveness Yearbook 2015

         IMD in collaboration with research organizations in 61 countries to assess the competitiveness of each country on 342 criteria, of which 2/3 (224), based on statistical data and third (118) on the survey data.

         They are grouped into subfactors, which in turn grouped into four groups: 1) the economic activity; 2) the efficiency of the government; 3) business performance; 4) infrastructure (Table 1)[8].

         In order to solve the existing problems in the formation of our country's government is working on the follow areas:

- Early childhood development;

- Ensuring equal access to education;

- High-quality technical and vocational education;

- Modernization of higher education by providing academic freedom.

         One of the major challenges facing our country - lay in the economy stronger scientific-educational foundation, eliminating gaps in education. Education should be seen as a key tool in ensuring the competitiveness of the economy.

         The ongoing successful policy to attract foreign investment, and the creation or use of new technologies will help improve productivity and increase professionalism.

         Successful implementation of strategic goals and objectives of social and economic development of the country would provide an innovative way of development of the Republic of Kazakhstan.

 

 

 

 

 

 

 

 

 

References

1. Anthology of economic classics. M., 1993. T. 1. S. 311, 51.

2. Armstrong M. Strategic Human Resource Management. - M., 2002.

3. The factor-targeted regulation of the economy: the theory, methodology, mechanism / ed. Kenzheguzina MB / IE Ministry of Education and Science of the Republic of Kazakhstan / Almaty 2002 p.268

4. Gojlo V. Intellectual Capital // World Economy and International Relations. - 1998. - ¹ 2.

5. D. Bell. The coming post-industrial society. M., 1999, p.267

6. NA Nazarbayev, Kazakhstan's Way - 2050: Common goal, common interests, common future. Message of President of Kazakhstan // Kazakhstanskaya Pravda 15 December 2012.

7. The Human Development Report 2013, "The Rise of the South: Human Progress in a Diverse World» http://hdr.undp.org

8. http://www.imd.org/wcc/