Transforming the Functions of Education as a Social Institution

The article reveals the change in the role and functions of education in modern economic process. Studying the human capital formation is appropriate using the analysis of contemporary production relations and social institutions arising from human interactions in the social production process. This analysis has to be based on the socio-economical approach. Its application is exemplified by social institutions interaction and their influence on the human capital formation and development. Changing education result requirements demanded the transition from the academic to the competence model.