EDUCATION AS A CRUCIAL FACTOR IN THE FORMATION OF HUMAN CAPITAL

Abstract

This article explores the critical role of education in the formation and development of human capital, emphasizing its significance for socio-economic progress and sustainable growth. Using the Republic of Armenia as a case study, the research delves into the challenges faced by the higher education system, including declining quality, insufficient funding, mismatch with labor market needs, and accessibility issues. Drawing on theoretical frameworks from pioneers like Schultz, Becker, and Durkheim, the study underscores the transformative potential of education in enhancing individual productivity and societal cohesion. The analysis integrates statistical data, global best practices, and trends in higher education reform to offer actionable recommendations. Key findings highlight the demographic and social factors contributing to the decline in student enrollment, the unequal distribution of human capital across regions, and the pressing need for a stronger alignment between educational programs and market demands. The research also sheds light on the role of cultural values, governance, and innovation in shaping an effective education system. By addressing these challenges, the article advocates for targeted reforms to improve the quality, accessibility, and efficiency of education in Armenia, thereby strengthening its human capital and supporting long-term economic and social development.