lively discussion about which concept is currently more capacious – the human capital
or the human potential.
Figure 1. Evolutionary development of the concept of "Human Capital" and its
relationship with other indicators of cross-country comparisons
Source: [2, p.10-14]
On one hand, there is a view that human potential is only a certain component of
the human capital in assessing the level of literacy of the country's population, duration
and standard of living (this conclusion is based on the current HDI assessment
methodology). On the other hand, experts write that human potential is a more
multifaceted phenomenon than the human capital. "Unlike the theory of the HC, which
postulates exclusively the economic role of man, the concept of human potential takes
into account the self-worth of a person's life and the environment of his existence.
The safety of people, the preparation of an effective
elite, the formation and development of civil society,
the improvement of the effectiveness of institutional
services, the improvement of the quality of life of the
population, the inflow of capital from outside
Science, education, health,
information services,
culture and art
More than 50
indicators of cross-
country comparisons
in the field of
education, ranging
from the number of
students in the
nursery and schools,
to the level of literacy
and unemployment
Education
First stage
Second stage
First stage
Human capital –is investment in…..
More than 100
indicators of cross-
country comparisons in
the field of development
of science and
technology, health,
social and urban
development
About 150
indicators of cross-
country
comparisons in the
field of economic
policy
effectiveness,
public, private,
financial sector
development,
infrastructure
quality, etc.
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