State policy in the field of human capital development

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Kherson State Agrarian and Economic University

State policy in the field of human capital development

Pravotorova O.M. - Doctor of Law,

Professor of the Department of Public Administration and Law

Abstract

The article is devoted to the current problem of the importance of human capital in modern Ukrainian society at the present stage of development of Ukraine, namely the creation of legislative and institutional forms of policy implementation of the formation and preservation of human capital. As well as a comprehensive study of theoretical and practical aspects, development of proposals and recommendations for improving public policy in the field of human capital development.

This study states that human capital is a certain amount of investment that is generated and accumulated by a person: the stock of health, knowledge, skills, abilities, and motivations, which are used in the process of work to increase productivity and earnings. The author analyses the definition of key concepts of this issue - “human capital”, “human resources”, “Anthropocentricity”, and gives a brief description of the theoretical study of this issue among both Ukrainian and foreign researchers. The purpose of the article offered to us by the author is to determine the place of human capital at the present stage of development of Ukraine, the peculiarities of development, realisation of its potential and identification of possible prospects in the future.

In fact, people create human capital and are the main driving force of state-building processes, so it is extremely important to continue professional development and effective functioning of human capital, especially now when Ukraine is directing the vector of its development to European values. The author of the article also gives his own view on the prospects of development and requirements for “human capital”, possible measures aimed at improving the implementation of state policy in the field of human capital preservation in Ukraine. Thus, modern human capital in terms of socio-economic development is a key factor in ensuring the competitive advantage of the country, the main productive force of the economy and determines the content and nature of social progress.

Key words: anthropocentricity, human capital, human resources, investments, people, population, public policy, public administration, labour potential.

Анотація

Державна політика в сфері розвитку людського капіталу

Правоторова О.М.

Стаття присвячена актуальній у сучасному українському суспільстві проблемі важливості людського капіталу на сучасному етапі розвитку України, а саме створення законодавчих та інституційних форм реалізації політики формування і збереження людського капіталу. А також комплексному дослідженню теоретичних і практичних аспектів, вироблення пропозицій і рекомендацій щодо вдосконалення державної політики в сфері розвитку людського капіталу.

У нашому дослідженні було встановлено, що людський капітал - це певний обсяг інвестицій, які генеруються та накопичуються людиною: запас здоров'я, знань, умінь, навичок, мотивацій, які відповідно використовуються в процесі праці та сприяють зростанню її продуктивності та заробітку.

Автор аналізує визначення ключових понять зазначеної проблематики - «людський капітал», «людський ресурс», «Людиноцентризм», а також дає коротку характеристику теоретичного дослідження зазначеної проблематики як серед українських, так і серед закордонних дослідників.

Мета статті, яку пропонує нам автор, полягає в тому, щоб визначити місце людського капіталу на сучасному етапі розвитку України, особливості розвитку, реалізації його потенціалу та визначити можливі перспективи в подальшому.

Люди фактично і створюють людський капітал, і є основним рушійним чинником державотворчих процесів, тому вкрай важливо продовжити професійний розвиток та ефективне функціонування людського капіталу, особливо зараз, коли Україна направляє вектор свого розвитку до європейських цінностей. Також автор статті наводить власний погляд на перспективи розвитку та вимоги до «людського капіталу», можливі заходи, спрямовані на покращення реалізації державної політики у сфері збереження людського капіталу в Україні. Отже, сучасний людський капітал в умовах соціально-економічного розвитку є ключовим фактором забезпечення конкурентних переваг країни, основною продуктивною силою економіки та визначає зміст і характер суспільного прогресу.

Ключові слова: людиноцентризм, людський капітал, людський ресурс, інвестиції, люди, населення, державна політика, публічне управління, трудовий потенціал.

Introduction

Formulation of the problem. Human capital is the main and extremely important condition for the formation of the knowledge economy, and the production of knowledge and ideas - the basis of economic development. Education, health, development of creative abilities are the factors of formation of high-quality human capital, which will provide a high level of personal and social income in the future.

It should be emphasized that important strategic directions of Ukraine's development are the development of innovation and investment model of the economy, socio-economic orientation of state regulation and integration into the European economic space are very important processes.

Anthropocentricity now prevails in all areas of law. A human and his rights, freedoms and legitimate interests are a fundamental value for the state. In today's urbanised and globalized world, human capital is extremely important. It should be emphasized that the significant scale and pace of information, innovation, economic and intellectual development have covered all spheres of society, radically changing the development of the world, states and populations, the processes that humanity has undergone for decades.

Globalisation transformations create not only new benefits for the development of countries, but are also characterised by the emergence of certain risks and problems, and for human capital as well. And, therefore, we conclude that it is very important to understand the essence of human capital and determine the features of its implementation in Ukrainian realities, especially through the exercise of its functions by public authorities at the present stage of development of Ukraine.

Analysis of recent research and publications. Such domestic and foreign scientists as V.P. Antoniuk, O.V. Antoniuk, V.D. Bazylevych, G. Becker, S.V Voloshyna, O.O. Herasymenko, M.F. Holovatyi, O.M. Holovinov, O.A. Hrishnova, Y.K. Zaitsev, O.V. Zhadan, J. Kendryk, A.M. Kolot, A.S. Kryklii, V.M. Lych, L.S. Melnychuk, M.V Mnykh, L.A. Pidopryhora, A. Smith, A.M. Turylo, G.V. Shchokin and others studied the state policy of investing in human capital.

The purpose of the article. The purpose of the article is to determine the place of human capital at the present stage of Ukraine's development, the peculiarities of development, realisation of its potential and identification of possible prospects in the future.

Presenting main material

In the context of accelerating globalisation, when Ukraine is actively focusing on integration with the world and European community, there is a need to increase attention to the formation and development of human capital, ensuring its expanded reproduction in increasing competition, and therefore the need for theoretical and methodological research.

As Y.K. Zaitsev said, “A significant event in the development of economic worldview is the formation of the theory of human capital. Human, as a social being, is considered a universal component, an integral part of any social, including economic, system, occupies a central place in its structure, namely the internal organisation, because such an organisation is always a set of certain social relations: economic, personal, spiritual, which are carried by individuals, groups, segments of the population and social groups.

Human provides such a function of the social (economic) system as: its interaction with the external social and natural environment; ensures the formation, transformation and use of social information in order to achieve the goals of its activities; acts as the main object and subject of management as a tool of system integration, preservation of its qualitative certainty, improvement and development” [1].

The first criteria for a new paradigm of human functioning, personality in production, founded A. Smith - one of the prominent economists and researchers of the laws of social production. The scientist in his work “Theory of Moral Senses” showed that “it is not enough just to satisfy external, material needs for a person to feel like a person capable of realising themselves and determining their place in the society” [2, p. 100].

There are many concepts in the scientific literature that are close in content and identical to the category of “human capital”, which have changed throughout history and were due to the prominent role of a human in the society. Concepts such as: labour, personnel, human resources, human factor, labour potential, human capital were used at different times in economic theory. As well as G.V. Shchokin vividly highlights that a “human resource” is a concept that characterises the content and quality of labour or all personnel of the organisation, labour resources of the region, industry, country as a whole. The category “human resources” covers the potential of comprehensive development of employees, moral and psychological qualities and general culture, ability to create, a certain influence of cooperation and self-organisation (“team spirit”, corporatism, collective labour, organisation, etc.) [3, p. 44].

According to A.M. Kolot and O.A. Hrishnova, “human resources are the most important and specific of all types of economic resources. These are employees who have certain knowledge and professional skills and can use them in the process of work” [4, p. 235].According to A.M. Turylo “labour potential is a set of components such as health, education, creativity, professionalism, activity, organisation, working time, morality and ability to work in a team” [5, p. 46].

A broader interpretation of the category of labour potential is given by V.M. Lych, who defines it as: “1) an economic category that shows the relationships of people in social production and is able to meet the needs of the individual, enterprise, state, helping to solve global problems; 2) human resources with their intellectual and physical facilities capable of expanded reproduction” [6, p. 204]. In his scientific works, A.S. Kryklii explores the labour potential from the “standpoint of society as a whole, enterprises, individual economic activities, where it is possible through a system of targeted impact on their qualitative and quantitative parameters, in the current period and in the future, most effectively use employees in the job” [7, p. 133].

Thus, the research of scientists has shown that labour potential is a complex socio-economic phenomenon, which is based on the quantitative criterion of labour activity, and in intra-system relations, preference is given to quality.The theory of human capital is based on the achievements of institutional theory, neoclassical theory, neo-Keynesianism and other economic theories. The development of the concept of human capital is primarily related to the development of the concept of capital. According to their scientific views, mercantilists understood the category of “capital” as reserves of gold and money. Physiocrats believed that this was the land and the money invested in it. Representatives of classical political economy understood capital as a stock of means of production. The category of “capital” occupied a significant place in Marxist economic theory. In his scientific works, the famous scientist K. Marx considered “the source of capital is the added value created by the labour of employees in the production sphere” [8, p. 366]. Ukrainian scientist I. Blank in his study of the category of “capital” identified ten main characteristics of capital, which constitute its essence.

According to I. Blank, “capital is a stock of economic goods that are accumulated through savings, in the form of cash and real capital goods, sent to the economic process in the form of investment and production resources for profit and associated with risk factors, time and liquidity in market conditions” [9, p. 66]. In his works, V. Mandibura emphasizes that “capital by its political and economic essence is dialectically the most dynamic type of private property. In this system of relations, the owner of capital has the opportunity to obtain additional value for advanced capital, which is the result of hired labour” [10].

The theory of human capital was formed gradually in accordance with the stages of development of world economic theory and conditions of social production, which emphasizes the intellectual, creative and productive qualities of a human as a major factor in economic growth. In ancient times there were the first attempts to study the productive abilities of man.

In his works, F. Quesnay, who was a supporter of the Physiocrats, “considered capital in material form and believed that the last one is not money, but, above all, means of production that helps to create a clean product” [11, p. 402].It should be emphasized that O. Hrishnova considers in her works the problems of human capital development, where she emphasizes the importance of investing in human development. According to a scientist, “human capital is an economic category that characterises the set of personal abilities, traits and motivations of the individual, which develop as a result of investing in the individual, belong to him, are involved in the economic process, increase productivity, which in turn brings profit and contributes to the growth of national income” [12, p. 35]. Human capital in modern conditions is at the heart of any economic system, creates opportunities for development and, investing in people, increases capital and brings long-term social and economic effect. From the point of view of O.M. Holovinov “human capital is an accumulated as a result of investment stock of knowledge, skills, health, motivation, which increases productivity, enlarges income and can be used in any field of activity” [13, p. 97]. As a result of the evolution of scientific views on the essence of “human capital”, different approaches to the classification of species and components of this category have emerged. social institutional human capital ukraine

It should be stated that G. Becker in his works presents human capital as: “1) special human capital - knowledge, skills that benefit the individual; 2) universal human capital - knowledge and skills that are used in a broad sense and benefit the development of society” [14, p. 112].

From the point of view of J. Kendrick, the main components of human capital are: 1) material capital embodied in people - is capital created by the formation and education of the individual; 2) intangible capital embodied in people - is the capital obtained from the expenses of education, health care, studying, development of individual mobility, etc. [15, p. 55].

In their works, A. Dobrynin and S. Diatlov proposed to study human capital, which is embodied in the following forms: “1) living capital - embodies the knowledge reproduced in man; 2) inanimate capital - represents the knowledge reproduced in material and physical forms; 3) institutional capital - capital that combines living and non-living capital, is directly used in production and meets the needs of society” [16, p. 89]. Thus, with the transition of society to the information and innovation model of development, with the growth of scientific and technological transformations, the role of human capital increases significantly. It is the main productive force of social and economic development. Therefore, the issues of effective reproduction of human capital in modern conditions are becoming relevant. Reproduction of human capital is an investment process within the human life cycle, during which investments form, accumulate, use, develop and restore human knowledge, skills, health, facilities in quantitative and qualitative terms in accordance with the requirements of innovative development of society and increase productivity labour, which increases the competitiveness of the national economy.

Therefore, in the context of increasing globalisation processes, the development of knowledge economy requires expanded reproduction of human capital, which is a qualitative and quantitative renewal and growth of knowledge, skills, experience, motivation, information, mobility and cultural development, enlarging its productive forces.

Additional investment in a person contributes to the accumulation and development of new knowledge and skills, which contributes to the individual's ability to work innovatively, the realisation of his creativity, the growth of professionalism.

Thus, human capital in terms of social and economic development is a key factor in ensuring the competitive advantage of the country, the main productive force of the economy and determines the content and nature of social progress. There is no single point of view on the interpretation of the concept of human capital, but analysing the above, we conclude that human capital is a certain amount of investment generated and accumulated by man: health, knowledge, skills, motivations, which are used accordingly in the process of labour and contribute to the growth of its productivity and earnings.

A key element in the formation and efficient use of human capital is the investment process. Human capital is an asset. Characterised by the accumulated stock of skills, brings income from investment and shows the relationship between studying, health, quality of education, length of service and salary. Human capital has the ability to turn information into knowledge and becomes a decisive factor in shaping the information economy. M. Kritskyi's definition is based on “the reproduction of human capital, where the main source of its development is investment in this capital” [17, p. 6]. Awareness of the role of man as the dominant factor of production determines the need to invest in human capital. Investments in human capital are understood as investments that contribute to the professional development of skills, productive abilities, and lead to increased productivity and income. Investment is an important prerequisite for the production, accumulation, development of human capital in the process of human activity, which is almost always the future owner of this capital.

A feature of human capital is its creation in the public sector (for example, in education, health care) through public and private investment, on the one hand, and at the personal level - on the other. The future owner of human capital requires a certain amount of time, labour and will for self-development and self-improvement, to increase their capital.

Investments in human capital provide development and increase of productive abilities of the person, are characterised by double structure as are considered as investment of means, resources and at the same time as expenses of work, efforts and time. Given that the subject and bearer of such capital is a person who makes decisions, allocates funds for new knowledge, skills, abilities, their renewal, replenishment, and invests in the possibility of increasing income - the process of investing in human capital is aimed at transforming the acquired potential and, if a person has motivation, time and work - the creation of human capital.

We believe that the formation of human capital is a continuous process characterised by varying intensity in different periods of the life cycle of the individual. Domestic and foreign scientists have different approaches to determining the nature of investment in human capital. According to C. McConnell and S. Brew, “investments include any actions that contribute to the improvement of skills and abilities, which in turn leads to increased productivity, such costs are investments in nature, as they are carried out for multiple compensation in the future” [18, p. 556]. It should be emphasized in this scientific article that J. Fitz-Enz defined “the contribution of human capital to value added and attributed to investment in human capital the cost of educational and training programs, as well as staff development programs” [19, p. 51]. In his works O. Levchuk gives an expanded interpretation of investment in human capital, which means “costs aimed at improving the qualitative and quantitative characteristics of human resources” [20, p. 36]. This approach cannot be accepted, as human capital is a separate economic category, characterized by the precondition of obtaining additional income from current investments, and the cost of stimulating the quantitative characteristics of human resources does not necessarily have an effect and is a factor of extensive demographic reproduction, meanwhile the growth of quality characteristics of human resources can be interpreted as intensive reproduction and growth of social mobility.

Thus, human capital theorists argue that the costs of increasing the productive capacity and characteristics of the individual are investments, as they are carried out on the basis of multiple compensation for the flow of income in the future.

Conclusions

Thus, modern human capital in terms of social and economic development is a key factor in ensuring the competitive advantage of the country, the main productive force of the economy and determines the content and nature of social progress.

In fact, people create human capital and are the main driving force of state-building processes, so it is extremely important to continue professional development and effective functioning of human capital, especially now that Ukraine is directing the vector of its development to European values. It is extremely important to increase the material security of human capital so that people have decent and decent wages, benefits, pensions and so on.

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