REGIONAL COOPERATION AND ECONOMIC INTEGRATION

CEFTA-2006 AND ANHANCING COMPETITIVENESS OF THE REGION - SOME SECTORAL ASPECTS
Consulting. The study highlights that the transition to the economy based on knowledge,
requires combination of skills (such as technological, information, problem solving skills,
adaptability and team work) and specific knowledge (such as engineering, mathematics,
languages and economics). The study “skills for the future,” emphasizes that while
individuals should take responsibility for the development of their own skills, business
sector (employers) should have a significant role in determining which skills are needed
by individuals. Educational institutions must be developed having in mind that education
should be continuous developmental process that lasts the entire life. Also, policy and
decision makers must play a key role in supporting and boosting these actions. (Huskić,
2007-2008, pp.5)
All countries in the European Union pay great attention on investment in human resources
development. But, one of the best examples of positive effects of investment in human
resource development is Ireland. Three decade before, Ireland depended on help of rich
countries. Today, its GDP per capita is the second highest in the EU. In front of them is
the only Luxembourg. The key to their success is a planned development, implementation
and management of investment in human capital. In the National Development Plan,
Ireland highlights the crucial role of development human capital for the economic growth
and development. Investment under the Human Capital Priority of NDP 2007-2013 is
indicatively estimated at €25.8 billion. The investment and funding source by Programme
is set out below.
Table 1: Human capital priority
All figures in €million current prices
Programme
Local State NTF (National
Exchequer PPP
Auth. Bodies Training Fund)
Total
Training & Skills
Development
4,785 0 0 104 2,829 7,718
Schools Modernisation
& Development
4,521 540 0 0 0 5,061
Higher Education 12,422 595 0 0 0 13,017
Human Capital Total 21,727 1,135 0 104 2,829 25,796
Source: Ireland’s National Development Plan, 2007-2013, Chapter 9: Human Capital
Priority http://www.ndp.ie/documents/NDP2007-2013/NDP_Main_Ch09.pdf
Investment in education, training and upskilling, broadly termed as investment in human
capital, has played a very important role in Ireland’s successful economic performance.
The biggest amount of many, as it is presented at the table above, has planed for higher
education. It has provided a well skilled and flexible labour force and thereby helped make
Ireland a major attraction for domestic and foreign enterprises. Ireland was particularly
successful in harnessing European Social Fund (ESF) receipts to very good effect. Human
Capital funding in the Plan 2007-2013 will be domestically generated but the objective
will still be to ensure access to a very good standard of education and training for all
and, in particular, to provide the labour force with the skills and adaptability to meet the
challenges of the future. (Ireland’s National Development Plan, 2007-2013, pp.190) Similar
to Ireland, the other European countries too, have come to the conclusion that investment
in human resource development is vital to their economic development and international
competitiveness.
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