Human potential as a factor of developing national competitiveness of Brazil, Russia, India and China

Abstract

This paper is devoted to the issue of the role of human capital in developing national competitiveness of BRIC countries. The authors analyze the basic concepts (human capital, human potential, national competitiveness). The article puts forward a hypothesis about the interrelation between the peculiarities of human capital and national competitiveness. Relying on the widely accepted indices and using regression analysis as a tool, the authors prove the rightfulness of this hypothesis. Supplementary analysis of the dynamics of Knowledge-Based Economy Index within the period of time under study (1990 - 2009) allowed to draw a conclusion up-on the difference in the efficiency of using the human potential in the BRIC countries: despite the fact that Russia and Brazil dominate in terms of the level of human potential development and in particular concerning the level of education, they lag behind China and India which use human potential and knowledge most efficiently.