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HUMAN CAPITAL DEVELOPEMENT AT THE NATIONAL AND REGIONAL LEVELS: PROBLEMS AND APPROACHES TO CREATION OF THE CONCEPT

Автор Доклада: 
Batchenko L.V., Myakotina N.A.
Награда: 
HUMAN CAPITAL DEVELOPEMENT AT THE NATIONAL AND REGIONAL LEVELS: PROBLEMS AND APPROACHES TO CREATION OF THE CONCEPT

УДК 331.108

HUMAN CAPITAL DEVELOPEMENT AT THE NATIONAL AND REGIONAL LEVELS: PROBLEMS AND APPROACHES TO CREATION OF THE CONCEPT

Batchenko L.V., Doctor of Economics, professor
Myakotina N.A., Assistant
Donetsk State University of Management, Donetsk (Ukraine)

 

Factors and trends in human capital development, the existing problems, approaches to develop a concept of its national and regional development are considered.
Key words: human capital, quality, development, factors, national and regional levels, concept, experience of European countries.

 

Increasing competition in connection with the Ukraine entry into the World Trade Organization requires a fundamental change in approaches to economic growth of the domestic economy, one of which is human capital. Therefore the search for untapped reserves and the best ways for an effective long-term development of Ukraine should be carried out in the plane of the leading real use of the theory of human capital in the practice of market reforms.

Ukraine's economy in a globalized poorly withstand the competition: in 2009-2010 index of international competitiveness, based on research conducted by the World Economic Forum, a low – 3.95 points in comparison 4.05 points in 2008-2009. This are predetermined downgrade – from 72 (2008-2009) to 82 places (2009-2010) [1].

Ukraine is much lower than developed countries and by the level of human capital: the importance of the human development index, used the United Nations Organization to characterize the quality of life in different countries, has allowed Ukraine to include grades' average level of development (0,5 - 0,8) and take into 85 in 2007 [2].

This level of human capital depend with: poor quality of life and level of wages (an increase in real wages in 2008 compared to 1999 was 6,3%), inadequate financing of human development (in 2008, spending on education and health accounted for 9.6% of GDP versus 11% in 1991) [3].

The presence of these factors, low levels of human development leads to negative socio-economic impact (reduction of population of Ukraine to the deterioration of the quality characteristics of human capital, unsustainable demographic structure, reducing the number of registered marriages, increase the number of single parent families, low population growth due to births, high mortality rate, including the working-age population, low wages). The main adverse effects of a depreciation of human capital, which refers to a generic (knowledge and skills acquired in the education system) and specific component (knowledge and skills that are acquired in the course of production activities at the workplace), which was one of the main factors, the sharp decline in productivity.

Failure to effective measures to improve the quality of human capital will lead to a further reduction in its level, age structure and deterioration of relations between the able-bodied and disabled people, poor health of citizens, in general the negative socio-economic consequences and weaken the competitiveness of the state.

Ukraine has adopted the “Strategy of demographic development of Ukraine for 2006-2015”, which promotes natural reproduction and increase the quantity and quality of the population in Ukraine. However the measures taken in this program and other legal acts for the development of human capital are scarce and fragmentary, there is no systematic policy of human capital development at all levels of government, the problem is not considered a priority in national strategic plans and regional programs of social and economic development.

In this aspect, it is expedient to take into account the experience of European countries, where about a third of social programs funded by private charitable foundations that provide funds to finance social programs and projects, that is partly taken over responsibility for government functions (helping disabled people and needy, citizens education and etc.).

The experience of developed countries shows that the modern concept of management of human capital development at the national and regional levels should include:

  • 1) long-term prospects for the qualitative development of human capital;
  • 2) investments in human capital and economic returns of investments;
  • 3) creation of conditions for continuous learning and development of labor potential, based on the disclosure of intelligent, creative and entrepreneurial skills, increase competence and motivation to achieve both national goals and to meet personal needs;
  • 4) ways to improve the quality of life, including employment on the basis of key indicators for monitoring at national and regional level.
  • 5) the development and use of advanced-technology staff of human resource development.

It seems appropriate to introduce the following measures to human capital develop:

  • 1. Include national and regional socio-economic development and other strategic government documents subprogram to develop human capital as a factor in strengthening the competitiveness of the state and the priority of the socio-economic development.
  • 2. In adopting measures to implement the “National Security Strategy of Ukraine” to take into account among the threats of social and economic consequences of loss of human potential and to provide ways to overcome them.
  • 3. For a gradual increase in funding human development (education spending and health care) to the level of countries with high levels of human capital.
  • 4. In order to reduce the mass migration abroad to develop a targeted program to encourage self-employment and micro-enterprises, including those who return after work overseas.
  • 5. Mainstream issues of charitable activities in the sphere of social programs to stimulate investment in human capital.
  • 6. At the national and regional health programs include issues related to improving reproductive health, increasing physical activity of the population and control of harmful habits, development of training qualified specialists in these matters.
  • 7. Establish a system for operational monitoring of the quality of human capital as a tool for effective community-oriented policies by governments at various levels.

Thus, Ukraine is much lower than developed countries in terms of human capital, which is due to the poor quality of life and the underfunding of human development. The problem of improvement of its qualitative characteristics is systemic in nature and requires a paradigm shift in strategic planning and development of human capital, considerable financial and time costs.

The main basis of the concept of human capital development should be its recognition in policy documents state and regional level as a crucial resource for economic growth and social values of society as a whole, and the saints with these into the relevant subprograms. Their financing possible, including and through charitable activities – investment in human capital.

Implementing the proposed measures (increased funding for human development, program development and self-employment, etc.) will improve the quality of life in the regions and state as a whole, as well as the competitiveness of our country.

Literature:

  • 1. Дрзенік Хану М. Основні положення Звіту про конкурентоспроможність України 2010: Назустріч економічному зростанню і процвітанню / М. Дрзенік Хану, Т. Гейгер // Матеріали Всесвітнього економічного форуму. – 2010. – 74 с. – [Електронний ресурс]. – Режим доступу – http:// www.feg.org.ua.

  • 2. Statistics in the Human Development Report. [Электронный ресурс]. – Режим доступа : http://hdr.undp.org/hdr2009/statistics.

  • 3. Україна у цифрах у 2008 році : статистичний збірник / [за ред. О. Г. Осауленка]. – К. : ДП «Інформаційно-аналітичне агентство», 2009. – 258 с.

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