REGIONAL COOPERATION AND ECONOMIC INTEGRATION

CEFTA-2006 AND ANHANCING COMPETITIVENESS OF THE REGION - SOME SECTORAL ASPECTS
dr Maja Ćirić,
Assistant professor
Faculty of economics and engineering management
University Business Academy,
Novi Sad, Serbia
THE INVESTMENT IN HUMAN CAPITAL – THE RIGHT WAY TO
ENHANCE COMPETITIVENESS IN BALKAN TRANSITION ECONOMIES
Abstract
The aim of this paper is to discus and to point out the need of the investment in human capital,
in order to increase competitiveness of Balkan transition economies. At the very beginning of
this paper it is presented the role of human capital in a knowledge-based economy. Intention
is to show that high competent employees positively influence companies` performance and
competitiveness, which would, in turn, contribute to the competitive economy. Further,
it is considered what Balkan transition economies should do, in order to improve their
human capital. The main accent is placed on need of establishing a better quality of higher
education system and more investments in a science and technology development. After
that, in this paper, there are analyzed the reforms of higher education systems in Balkan
transition economies. Research findings provide an insight into the improvements in higher
education systems that have been already done in Balkan transition economies, problems
that have to be solved, and the effect of higher education on human resources development.
The implications of these findings, both theoretical and practical, are discussed.
Key words: human resources development, higher education system
INTRODUCTION
At the beginning of the 21 st century all the economies in the world have been faced
with a lot of challenges: fast and radical changes in the environment, increasing
global competition, global financial crisis, increasing importance of new information
technologies, and domination of knowledge as a key factor that influences competitive
advantages. Traditional sources of competitive advantage, such as production capacities,
access to financial resources, distribution channels or economies of scale, are necessary
but not sufficient for success in today’s business world. In such circumstances it is crucial
for every country’s economy, no matter is it developed, developing or transition, to have
well educated, skilled and competent people. Lifelong learning, education and training are
prerequisites for adaptation to international and local environment and they are the main
factors that influence the overall socio-economic development of any country. Human
resources development improve the quality of human capital, increasing the level of
employment, the level of income and social integration, which in turn lead to the increase
in living standards. In fact, human resource development is an investment in human capital,
which is actually the investment in people. European standards encourage the development
of human resources through investment in education and training, employment, small and
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