Abstract:

The paper highlights the importance of intellectual and high-quality human capital at a time of accelerated socioeconomic development, thereby implying high productivity, high-tech and continuing innovations as the basis of economic prosperity nowadays, as well as discusses the role of education in the context of globalization, which is based on human capital formation with high intelligence.

Now it is clear that the leaders will not be the country with the most developed economy and industrial base, and with the most effective and quality education. In a published by the United Nations Development Programmer (UNDP) Global human development report noted: human development is a process of empowerment of choice. But at all levels of development the most important for a person is to live a long healthy life to acquire knowledge and to have access to the resources necessary for a dignified existence.

In recent years, the world is increasing the role of modern education in the development of human capital, improving the efficiency of the economy. It is no coincidence that today the most advanced countries are betting on a new economy -the economy of knowledge and innovation. Nowadays, the national wealth of the most successful states is only 15% of assets, 20% of natural resources, and 65% of knowledge.

In modern conditions, educated people is the main driver of economic growth. Known in the West Economist for management
D. Grayson says that “human capital is the most valuable resource that is much more important than natural resources or accumulated wealth. It is human capital, not plants, and machinery, and production stockpiles are cornerstone of competitiveness, economic growth and efficiency”.

Azerbaijan is one of the most dynamically developing States. President of the Republic of Azerbaijan dated December 29, 2012, approved the Decree "Azerbaijan 2020: A Look into the Future" to develop the concept of human development which is one of our major challenges. The document says that in 2012-2020, the share of the funding for education in GDP will increase from year to year and reach the appropriate indicator in developed countries. Stimulating mechanisms will be created to increase the quality of education, and the financing of grants that promote per capita funding and innovative activity will be expanded. Management will continue to be improved in education and a management model that ensures the involvement of all interested sides will be prioritized.

In modern countries in the world, the education system is considered as an area of strategic advantages. Also recognizes that the successful future depends on the level of education. One of the determinants of human capital development is physical strength of the community, as well as the knowledge and skills of intellectual activity. Therefore, in globalization the human development and its services areas are significant.

Keywords:

Azerbaijan, human development, sustainable development, education, and innovation.