종합경제사회연구원 뉴스레터 RIES Newsletter
實事求是 Seek after Truth, Based on Facts
종합경제사회연구원 Research Institute of the East-West Economy & Society
International Scientific Conference, "Human Capital in Kazakhstan: Status and Growth Prospects
The opening ceremony started at AM 09.30 with the keynote speech by Mr. Bakhytzhan Zhumagulov, Minister of Education and Science. The first theme on "Social and Economic Modernization and Human Development in Kazakhstan" presented by Dr. Dariga Nazarbayeva, Chairwoman of Social-Cultural Development Committee of Majilis of the Parliamen. Shortly after the others presentation, the highlight subject on "Human Capital and Factors of its improving in Kazakhstan" by Prof. Kenzhegali Sagadiev, President of the University of International Business was proceeded ahead of me. In his speech, he emphasized that human capital is a basis and foundation of innovative economy and societal knowledge, which are being developed in contemporary Kazakhstan.
After K. Sagadiev, I made a speech by the title of "Korea's Experience on Human Resources Role in the Community Development ", emphasizing the modernization in Korea owed the role of human resources to youth leaders in community development. The conference was continued till the evening all day long except lunch time. After the conference, the reception on the occasion of the 75th jubilee of NAS of RK Academician K. Sagadiev was held at Saltanat Saray that was decorated with the elegance Russian style.
I was deeply impressed by the respect about a scholar, even his long study and old aged, and passion and continuous work. The celebration party continued till the mid night and also congratulated on his 75th anniversary with the foreign participant. The ceremony reminded me of the great economist and Kazakhstan itself.
I'd like to express my hearty thanks for all members of committee. Particularly I'd like to give my thanks to H.E. Murat Orunkhanov, vice minister of education and science, Dr. Meruert Narenova, Fulbright Scholar, Z. Murzalin, a charge d'affaires, Mr. Daniyar, secretary and a consular representative of Kazakhstan embassy to Korea. Hoping for seeing the glorious Kazakhstan's development in the near future, I also give my special thanks for helping the participation of the valuable conference to Mr. Timur Shalabayev and Miss Aigu L.. Taking this opportunity, I applaud Prof. K.Sagadiev to the remarkable academic achievement once again and wish you to contribute to the development of Kazakhstan with more good health and vigorous passion.
Human Capital and Factors of its Growth in Kazakhstan*
Social and cultural capital can also be fairly referred to as the factors influencing human capital in the country. Traditional values of a society within the framework of transition to a market economy are exposed to certain erosion, with values of self-expression and secular-rational values are growing, which to some extent, can influence on the growth of human potential. But such specific cultural features of the people as unwillingness to follow the laws and regulations, the lack of a "production culture", intertia, autocratic leadership style can negatively affect the level of human capital of the nation. Therefore it is necessary to pay attention to the above factors, and take purposeful actions in order for these activities to work on the actual of human potential(ibid.: 20).
Human capital exceeds the level of physical capital in OECD countries from 2 to 7 times. This excess in Kazakhstan in 2007 was 7.4 times and in 2011 -8.8 times. The growth in 2011 was due to serious efforts (increase in funding) taken by Kazakhstan to promote education, health and living standards.
In addition, there are two more significant comparisons. In 2011, OECD has conducted a study of competitiveness potential of Central Asia countries, where it noted that human capital central Asia is less developed than it should be and should be developed to achieve the objectives of increasing competitiveness and productivity growth.
The main factors influencing on growth of human capital reserves are the rise in the educational level of population and aging. Those countries where the effect of the first factor dominates the second have a positive trend of human capital reserves. Kazakhstan, with 29 years of average population age, can count on a positive trend(ibid.: 23).
* RIES introduces some issues which K.Sagadiev emphasized at the Astana international conference on Feb. 22, 2013. We feel sorry for not introducing the full text of his presentation due to the limit of space. Please see more details and his career on the http://www.sagadiev.com/ website.
Kazakhstan proclaimed the independence in 1991 and joined independence national union on May 1992. It is the 9th large country in the world and possesses enormous fossil fuel reserves and plentiful supplies of other minerals and metals, such as uranium, copper, and zinc. It also has a large agricultural sector featuring livestock and grain.
Ethnic Kazakhs, a mix of Turkic and Mongol nomadic tribes who migrated into the region in the 13th century, were rarely united as a single nation. The area was conquered by Russia in the 18th century, and Kazakhstan became a Soviet Republic in 1936.
Kazakhstan's economy is larger than those of all the other Central Asian states largely due to the country's vast natural resources.
In 2002 Kazakhstan became the first country in the former Soviet Union to receive an investment-grade credit rating. Kazakhstan relies on its neighbors to export its products, especially oil and grain. Although its Caspian Sea ports, pipelines, and rail lines carrying oil have been upgraded, civil aviation and roadways continue to need attention.
□ General Kazakhstan
Source: CIA, The World Fact Book, 2013/03/01.
□ Kazakhstan's Economic Index
Source: CIA, The World Fact Book, 2013/03/01.
Dr. Hong made a speech at the International Scientific Conference on Human Capital
at Astana, Kazakhstan on Feb. 22, 2013.
Dr. HONG, president of RIES was made a speech at the International Scientific Conference, "Human Capital in Kazakhstan: Status and Growth Prospects", held in Astana, Kazakhstan on Feb 22, 2013.
International Scientific Conference at Astana, Kazakhstan and Foreign Participants
International Scientific Conference at Astana on Feb 22, 2013 and foreign participants.
Photos at Conference
Korea's Experience on Human Resources Role in the Community Development
Seong Min Hong, Ph.D., RIES
In 1970s, Korea which was one of the poorest countries in the world achieved a great success of industrialization. At that time, Korea was traditionally agricultural society. When the peasants are free from farm work in rural area, most of them lost their employment. The decadent culture such as gambling or drinking was spreading with a frustration. Government did not overlook this point and planned to use the latent labor force.
The background of new community movement was caused by the mental reform and influenced the change of rural community. It was famous for "Saemaul Undong (SMU) or New Village Movement" and was the cornerstone of Korean modernization.
As is well known, Korean hand skill like using the chopsticks is excellent. The method of changing the ‘idle hand’ into the ‘working hand’ was efficient to induce village workers to the urban workers. However government has no capital accumulation. Government found a way out of this difficulty. The effective solution is the export as an exit of industrial products.
'Mental reform' played a decisive role in Korean modernization. Korea with insufficient resources and capital accumulation has good human resources. Thanks to the excellent hand skill, the government needed of motive to transform the "idle hand" into the "working hand". This thinking caused the success of SMU, particularly youth leaders in rural areas took the lead in developing the traditional society.
Modernization in Korea owed the role of human resources to youth leaders in community development. Needless to say, it may be somewhat unreasonable that Kazakhstan's economic system applies to Korean model of economic development. Unlike Korea's economic circumstance in the 1970s, the industrial structure of Kazakhstan that has large territory and a lot of natural resources, particularly energy resources differs from Korea's economic structure.
In this paper, I would like to emphasize the importance of human resources in the economic development. The 'mental reform' of rural community in the process of the economic development is very important and the training of youth leaders in the village can play a pivotal role in the society's modernization.
Today the experience on the role of human resources in Korean SMU is a matter of interest to many developing countries and Korean development model has been the subject of a good benchmarking to Asia, the Middle East and Africa. I dare to emphasize that the role of human resources in Korea's SMU has greatly contributed to its economic development. I expect that Korean experience is a lesson to the future economic development in Kazakhstan.
 Dr. S.M. Hong is president, Research Institute of the East-West Economy & Society.