The Importance of Human Capital in The Formation of Capable United Territorial Communities of Ukraine

Abstract

The study examined the modern state of human capital formation, accumulation and use in Ukraine and assessed it to be ambiguous. On the one hand, the improvement of certain qualitative characteristics such as increasing amount of the population with higher education, computer literacy, its ability to work in a market environment and run business are observed. On the other hand, destructive processes are taking place which especially true for the rural population (shortage of highly qualified personnel, depreciation of labor, unemployment, low level of innovations introduction and implementation, increasing poverty, reducing life expectancy, mortality exceeding birth rate, migration, unequal opportunities for education and health services, lack of infrastructure, opportunities for cultural development of cinema, theater, youth recreation areas, etc).The survey was conducted to find out the degree to which life quality had changed after unification and it reveals that only 10% of respondents in Kyiv oblast wanted their children to live in the community, while in Cherkasy oblast no one wanted to. In addition, 53% of the respondents considered the state of community development unsatisfactory, and only 17% considered it to be good.The study also reveals the low level of competence of local authorities heads and their executive committees, especially in the use of modern tools of public administration. However, significant reserves for human capital development have been identified, namely, investment in people and development of their professional qualities, which form modern productive abilities and turn them into the main productive knowledge-based force in the conditions of decentralization of power and participation of citizens in local self-government.The necessary cooperation of newly created communities with higher education institutions and the use of their potential for the formation, development of intellectual capital and further innovative development is proved. The mutually beneficial synergistic effect for their development is substantiated on the example of cooperation of the studied communities with the university.