Open AccessRisks of human capital approach to sustainable development
Author(s) -
I.V. Soboleva
Publication year - 2022
Publication title -
èkonomičeskoe vozroždenie rossii
Language(s) - English
Resource type - Journals
ISSN - 1990-9780
DOI - 10.37930/1990-9780-2022-1-71-120-128
Subject(s) - variety (cybernetics) , human capital , social reproduction , economic capital , population , reproduction , expansive , financial capital , economics , economic system , individual capital , investment (military) , business , positive economics , social capital , market economy , sociology , political science , social science , computer science , law , ecology , compressive strength , demography , materials science , artificial intelligence , politics , composite material , biology
The paper substantiates a need for a clear distinction between the concepts of “human potential” and “human capital”. It is argued that the integral category “human potential implies a comprehensive study of the whole variety of processes and ways of expanding development opportunities on individual level and for the population as a whole, while the category “human capital” reflects a narrower market-related angle of things. Therefore, replacement of human potential view for human capital view limits the possibilities of theoretical analysis and can have negative practical consequences. expansive interpretations of human capital mask the investment core and lose the logical coherence of the original concept, but at the same time are not able to cover all the variety of aspects of human development. Special attention is given to the discussion of risks stemming from adherence to human capital approach when elaborating state policies in the social sphere and in the world of work. It is shown that those risks are rooted in ignoring important non-market aspects and opportunities of the reproduction process. As a result, national economy and society may suffer substantial losses not only in social sphere but in economic outcomes and competitiveness as well.