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Challenges of Modern Human Capital Development in Rural Areas of Ukraine in the Conditions of Economic Transformations
Demchenko O. V.

Demchenko, Oleksandr V. (2024) “Challenges of Modern Human Capital Development in Rural Areas of Ukraine in the Conditions of Economic Transformations.” Business Inform 7:297–307.
https://doi.org/10.32983/2222-4459-2024-7-297-307

Section: Agricultural Economics and Agribusiness

UDC 331.101:332.122

Abstract:
The article is concerned with systematization of factors that hinder the development of human capital in rural areas of Ukraine and are components of the mechanism of its destruction. The factors of destruction of human capital in rural areas are: low-quality school education; poor medical care; unsatisfactory level of development of social infrastructure; monopsony of agricultural enterprises in the rural labor market; low level of development of non-agricultural species; urbanization and the growth of rural unemployment. These factors cause such challenges as low labor productivity, high potential for unemployment and marginalization, excess of mortality over birth rate, migration, low incomes and depopulation of rural areas, which, in turn, lead to the destruction of human capital in rural areas. The development of human capital in rural areas of Ukraine largely depends on social infrastructure. The revival of the village is impossible without the priority development of its social sphere, which requires comprehensive institutional and material measures. Improving the quality of educational and medical services, as well as the development of socio-cultural facilities are critically important for stable economic development and improving the well-being of the population in rural areas. The problems of implementing the strategic task of reproduction and development of human capital in rural areas are caused by the low level of innovation and technological modernization in the agrarian sector, which negatively affects labor productivity. The existing link between the development of human capital and the socioeconomic progress of rural areas emphasizes the need to create conditions for the reproduction of human capital through the development of entrepreneurship, improving the quality of labor potential and social infrastructure. Effective human capital development in rural areas requires overcoming these challenges through an integrated approach that includes innovative solutions, investment in social and productive infrastructure, and increased entrepreneurship.

Keywords: development, destruction, human capital, rural areas, medical services, education, social infrastructure, innovative solutions.

Fig.: 1. Bibl.: 35.

Demchenko Oleksandr V. – Candidate of Sciences (Economics), Candidate on Doctor Degree, Department of Trade Entrepreneurship, Commodity Science and Business Management, Odesa National University of Technology (112 Kanatna Str., Odesa, 65039, Ukraine)
Email: [email protected]

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