Preservation and development of human potential of Ukraine in modern conditions

Petrova I., Sandugey V., Mamedova S.

The article analyses the process of transforming human potential into human capital, as well as the decisive role of human capital in the formation of a competitive economy. The issues of ensuring conditions, identifying problems and evaluating the prospects for the development of human capital in Ukraine are investigated.

The aim of the article is to substantiate contradictions in the formation of human potential and human capital, to reveal and explaine the gap between them, to determine the type of their reproduction and to show some ways of their preservation and development in modern conditions.

The hypothesis of the article is the assumption that the human potential formed as a result of the accumulation of knowledge, skills and experience does not guarantee that its bearers will receive higher incomes from labor. The transformation of human potential into human capital involves the process of capitalization of acquired knowledge, which is influenced by many objective and subjective factors.

Research Methodology is based on classical human capital theory as well as contemporary approaches to human recourses development. In addition, the following methods were used in the research process: theoretical generalization (concept of human potential and human capital) analysis and synthesis (component structure of human potential, levels and phases and types of human potential reproduction), quantitative-qualitative analysis (determination of quantitative and qualitative characteristics of human potential), comparative analysis (studying and comparing human potential indicators in different countries), statistical analysis and sociological analysis (using data of statistics and sociological research).

Findings include our propositions on creating jobs, establishing interaction between the labor market and the market of educational services, developing the infrastructure of the labor market, raising the standard of living of the population, limiting the unemployment rate, supporting motivation to work, and regulating population migration.

These factors require special measures to create conditions for the transformation of human potential into human capital, as well as for the development of human capital in the economy of Ukraine.

Keywords: human potential, capitalization of human potential, human capital, narrowing type of reproduction, preservation, development of human capital.