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종합경제사회연구원 Research Institute of the East-West Economy & Society

 제24호 2013년 3월

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No. 24, March, 2013

 

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International Scientific Conference, "Human Capital in Kazakhstan: Status and Growth Prospects

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Astana is the capital of Kazakhstan. I was impressed on my mind by the kind people and quiet city, covered with white snow during my first visit. Astana that became the national capital from Almaty, the largest in 1997 is newly well-planned built modern city and construction work are going up continuously, even cold weather in winter. I visit to this smart new city for attending the international conference on human capital. The conference was held at the L.N. Gulilyov Eurasian University on Feb. 22, 2013.

It was organized on the theme of International Scientific Conference "Human Capital in Kazakhstan: Status and Prospects of Growth" by the Ministry of Education and Science of the Republic of Kazakhstan, Committee on Social-Cultural Development of Majilis of the Parliament of the Republic of Kazakhstan, Fund of the First President-Leader of Nation and L.N. Gulilyov Eurasian University.

Seong Min Hong

(President, RIES)

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.  


 

Kazakhstan Conference

Human Capital and Factors of its Growth in Kazakhstan*

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In modern society, a person becomes not only a goal but also a resources for social and economic development. This resource is increasing in significance among other factors of development -human capital as an object of investment is becoming more essential than basic capital and technology. Thus, human capital is a basis and foundation of innovative economy and societal knowledge, which are being developed in our contemporary world, including Kazakhstan. Such an understanding is growing strongly in the whole world and there is a consistent turn of policy towards comprehensive consolidation and accumulation of human potential. In short, human capital is becoming the core, the main axis, around which the majority of other factors of modern economic transformation are circulating(K.Sagadiev, 2013: 1).

Prof. K.Sagadiev

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).

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* 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.

  


 

Programme

 International Scientific Conference: "Human Capital In Kazakhstan: Status And Prospects Of Growth"

L.Gumilyov Eurasian National University           Astana           22 February 2013  

08.30 –09.30                                     REGISTRATION  OF PARTICIPANTS                                             Atrium  «Кultegin» 

                        Plenary Session                               Room of the First President of the Republic of Kazakhstan

09.30-09.40

 Opening Ceremony

Mr.Bakhytzhan ZHUMAGULOV, Republic of Kazakhstan, Minister of Education and Science of the Republic of Kazakhstan, Member of the National Academy of Science of the Republic of Kazakhstan.

09.40-10.00

Speakers

Dr.Dariga NAZARBAYEVA, Republic of Kazakhstan, Chairwoman of Social-Cultural Development Committee of Majilis of the Parliament of the Republic of Kazakhstan

Presentation: «Social and Economic Modernization and Human Development in Kazakhstan».

10.00-10.10

 

Dr.Martha Brill OLCOTT, USA

Senior Associate, Carnegie Endowment for International Piece

Presentation: «Generational Change and the Challenges of Modernization in Kazakhstan».

10.10-10.20

 

Mr. Kairat KELIMBETOV, Republic of Kazakhstan, Deputy Prime-Minister of the Republic of Kazakhstan

Presentation: “Socio-Cultural Formula of Economic Modernization”

10.20-10.35

 

Dr. XUE Lan,  People’s Republic of China , Director, China Institute of Science and Technology Policy, Vice-President of Development Research Academy for the 21st Century, Tsinghua University

Presentation: «Domestic Reform and Global Integration-The Transition of China’s Innovation System».

10.35-10.50

 

Prof. Kenzhegali SAGADIEV, Republic of Kazakhstan, Member of the National Academy of Science of the Republic of Kazakhstan, President of the University of International Business.

Presentation: «Human Capital and Factors of its improving in Kazakhstan».

10.50-11.00

 

Dr. Seong MIN Hong,   Republic of Korea, President of Research Institute of the East-West Economy & Society (RIES)

Presentation: «Korea's Experience on Human Resources Role in the Community Development». 

11.00-11.30

Coffee Break

Atrium  «Astana»    

Plenary session, second part

 

11.30–11.45

Speakers

Dr.Chuanqi HE, People’s Republic of China , Director of China Center for Modernization Research, Chinese Academy of Sciences

Presentation: «Modernization Science and Kazakhstan’s Modernization».

11.45-12.00

 

Mr. Nurlan KAPPAROV, Republic of Kazakhstan, Minister of Environmental Protection of the Republic of Kazakhstan

Presentation: «Green Economy Perspectives in the Republic of Kazakhstan».

12.00-12.15

 

Prof. Dr. BAHISHAM  Yunus, Malaysia, Director of Strategic and Corporate Planning Centre, Tenaga National University

Presentation: «Catalysing Private Higher Education for Human Capital Development in Malaysia».

12.15-12.30

 

 Mr.Serik ABDENOV,  Republic of Kazakhstan, Minister of  Labour and Social Protection of Population of the Republic of Kazakhstan

Presentation: «The Issues of Labour Market Efficiency in Kazakhstan».

12.30-12.40

 

Dr. LEE June Seung, Republic of Korea, President of Korea Institution of Science & Technology Evaluation and Planning

Dr. Byoungsoo KIM, Republic of Korea, Director оf Korea Institute of Science &Technology Evaluation and Planning

Presentation: «Dynamic Policy Evolution to Cultivate Korea's S&T Human Capital»

12.45-13.00

 

Prof. BIANCHI Massimo, Italy, The University of Bologna

Presentation: «The virtual enterprise laboratory of Bologna in the researches on Enterprises Human Capita»

13.00-14.00

Lunch

 

14.00-16.00

 

Panel Sessions (Panel Session 1 - Hall of the First President of the Republic of Kazakhstan; Panel Session 2 - Main Building, Room 303)

16.00-18.00

 

Closing remarks  

Сelebration of the Academician K.A.Sagadiyev оn the occasion of his 75th jubilee (Main Building, Hall of the First President of the RК)

 

 


RIES Study

Kazakhstan

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

Country name

Republic of Kazakhstan

Government type

republic

Administrative divisions

14 provinces

Independence

27 October 1991 (from the Soviet Union)

Climate

continental, cold winters and hot summers, arid and semiarid

Capital

Astana

Area

2,724,900 sq km

Population

17,522,010 (July 2012 est.)

Urbanization

59% of total population (2010)

Ethnic group

Kazakh(Qazaq) 63.1%, Russian 23.7%, Uzbek 2.8%, Ukrainian 2.1%, Uighur 1.4%, Tatar 1.3%, German 1.1%, other 4.5% (1999 census)

Religion

Muslim 47%, Russian Orthodox 44%, Protestant 2%, other 7%

Language

Kazakh (tate language) 64.4%, Russian (official, used in everyday business, designated the "language of interethnic communication") 95% (2001 est.)

Literacy

total population: 99.5%

Source: CIA, The World Fact Book, 2013/03/01.

Kazakhstan's Economic Index

GDP

$232.3 billion (2012 est.)

GDP-real growth rate

5.5% (2012 est.)

GDP-per capita (PPP)

$13,900 (2012 est.)

Labor force

8.973 million (2012 est.)

Labor force by occupation

agriculture: 25.9%, industry: 11.9%, services: 62.2% (2010 est.)

Age Structure

0-14 years: 24.4%, 15-24 years: 17.7%, 25-54 years: 42.4%, 55-64 years: 8.6%, 65 years and over: 6.7% (2012 est.)

Unemployment rate

5.3% (2012 est.)

Inflation rate

5.2% (2012 est.)

Agriculture - products

grain (mostly spring wheat and barley), potatoes, vegetables, melons; livestock

Industries

oil, coal, iron ore, manganese, chromite, lead, zinc, copper, titanium, bauxite, gold, silver, phosphates, sulfur, uranium, iron and steel; tractors and other agricultural machinery, electric motors, construction materials

Export

Total amount

$88.61 billion (2012 est.)

Commodities

oil and oil products 59%, ferrous metals 19%, chemicals 5%, machinery 3%, grain, wool, meat, coal

Partners

China 21.7%, France 9.4%, Germany 8.3%, Russia 5.3%, Italy 5.2%, Canada 4.5%, Romania 4.5% (2011)

Import

Total amount

$42.82 billion (2012 est.)

Commodities

machinery and equipment, metal products, foodstuffs

Partners

China 30.1%, Russia 20%, Germany 7.4%, Ukraine 5% (2011)

Source: CIA, The World Fact Book, 2013/03/01.


RIES Activity


Dr. Hong made a speech at the International Scientific Conference on Human Capital

at Astana, Kazakhstan on Feb. 22, 2013.

 

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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

      

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 International Scientific Conference at Astana on Feb 22, 2013 and foreign participants.

 

 


 

Photos at Conference

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This publication is consisted of  Korean, English, Arabic and the other languages concerned. The contents of the newsletter do not necessarily reflect either the position or the views of  RIES.

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종합경제사회연구원 Research Institute of the East-West Economy & Society

Publisher: Dr. Seong Min HONG, Editor: Dr. Joo Heon KANG

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 <Abstract>

 Korea's Experience on Human Resources Role in the Community Development

Seong Min Hong, Ph.D., RIES[1]

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.


[1] Dr. S.M. Hong is president, Research Institute of the East-West Economy & Society.