The importance of human capacity in terms of countries development
Abstract
Human capacity in the modern world is one of the main types of economic potential. It can be measured with the help of Human Development Index (HDI). The Human Development Index is a statistic composite index of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. The subject of research of the article is human potential as the ultimate criteria for assessing the development of a country. The purpose of the work is to determine the role of human potential in the process of economic development of the state. Scientific methods are used, such as graphical analysis (to determine dynamics of HDI development in Ukraine), correlation analysis (to show the impact of HDI on GNI per capita in post-Soviet countries). Traditionally OECD countries show very high human development (0,89). Among post-Soviet countries Russia and Belarus outrank other states in human development index. However, it appears that they improved their characteristics largely by prolonging the time its population spends in school rather than boosting population health and the standard of living indices. Russia ranks 49th and Belarus ranks 53rd in the 2017 Human Development Index. That places them ahead of fellow post-Soviet states, Kazakhstan (58th), Azerbaijan (80th), Armenia (83rd) and Ukraine (88th). Conclusions: the experience of developed countries, as well as some post-Soviet states, shows that the development of human potential sufficiently affects some certain macroeconomic indicators, especially in emerging economies. Moreover, the growth of human potential can support the development of an innovative economy of the state, which is extremely relevant for Ukraine. Therefore, attention should be paid to the main areas of development of human potential, such as: demographic and public preservation policies, development of health care; development of physical culture and sports, development of education, development of culture and mass media; labor market development; development of social institutions and social policy; youth policy; development of the pension system; ecological safety.
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