EDUCATION AS AN INSTRUMENT OF HUMAN CAPITAL DEVELOPMENT

Abstract

Relying on the literature analysis of the concepts “education”, “human potential” and “human capital” the authors address the entire chain of human capital formation, which, in case of good management, enables permanent development of the spheres above, which, in turn, maintain living standards and sustainable development. As for the later, it is necessary to constantly accumulate the human capital – that becomes possible due to education. This the exact unit, where the common human knowledge joins the person and increases his/her individual potential, which, further, turns into the human capital. Basing on the field study of the senior schoolchildren, their parents and teachers, who live in the remote areas of the northern part of the Eastern Siberia, the authors trace the whole chain of individual human potential formation and its shift into the human capital. Some restrictions which put barriers on this process – basically, the restrictions in education – are considered.