Human-oriented concept as a condition of Ukraine’s development

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HUMAN-ORIENTED CONCEPT AS A CONDITION OF UKRAINE'S DEVELOPMENT

P. Makarenko,

PhD Geography, Researcher, Institute of Geography of the National Academy of Sciences of Ukraine, Kyiv, Ukraine

According to Ukrstat, 42.4 million people lived in Ukraine in 2018, but the population is declining every year. Under the current dynamics, by 2050 the population will decrease to 28.0 million people. Under such conditions, in the perspective of 10-20 years in Ukraine there will be a catastrophic shortage of labor resources. However, today the economically active population is 18 million people with an economically inactive population - 18.5 million people. In confirmation of this, the average number of full-time employees in April 2020 decreased by 171 thousand people compared to April 2019. The largest decreases were recorded in industry (-77.9 thousand people), health care (-49.7 thousand people) and agriculture, forestry and fisheries (-40.0 thousand people).

In the Global Competitiveness Rating according to the World Economic Forum, Ukraine in 2019 ranked 85th out of 141 economies in the world. However, the best results of the Forum were recorded in the categories "Qualification of the population" (44th place, 69.9 points out of 100) and "Infrastructure" (57th place, 70.3 points out of 100), which was significantly higher than the average values of countries with below average income. Particularly noteworthy are the results of the subcategory "Qualification of the future workforce" - 26th place, 72.6 points out of 100. According to the Human Development Index, Ukraine in 2019 ranked 88th with an average index of 0.750. Over the last ten years, the increase in this index has been minimal.

At the same time, research by the Finnish Economic Research Institute (ETLA) suggests that innovation or new marketing strategies can be used to continuously increase national competitiveness. In Finland, the main method of increasing competitiveness is investment in the quality of human capital, investment in education, which provides an opportunity to train qualified personnel and develop quality production. Therefore, the task of preserving and developing human capital becomes the main condition for further development of the country. But in the conditions of full-scale aggression of the Russian Federation in Ukraine, partial destruction of its economy and mass displacement of the population this task becomes vital.

Keywords: human-oriented concept, education system, investment in human capital, competitiveness.

labor resources investing human potential exit crisis

Statement of the problem. In the minds of the economic crisis, as an effective development of Ukraine for the last 30 years, a number of options for neutralizing this negative impact have been outlined. This problem will become especially topical in the minds of the Soviet military in Ukraine.

Analysis of the rest of the research and publications. On the thought of leading scientists, who research the problem, one of the most effective and priming options for promoting the competitiveness of the national economy is investing in human potential.

The method of this work was to characterize the development of labor resources in Ukraine in a people- oriented concept of exit from the crisis.

Follow-up methods. Some analytical and analytical- statistical research methods were used in the article, in particular, the analysis of the literature of domestic and foreign authors was necessary to understand the relevance and level of study of problems by specialists. Systematization and generalization of data from the State Statistics Service of Ukraine and other open sources were used to assess labor resources and the impact of education on them in some countries.

Follow-up results. Science sees a number of officials who are pouring into the labor force in Ukraine (Table 1) (Hitis, Nikulina, 2018). According to them, the necessary measures to improve the situation have been proposed.

Table 1. Characteristics of officials and correctional entries in the system of labor resources in Ukraine

The current system of higher education in Ukraine is characterized by the ratio of the number of educational institutions to the population as a "super-system". Higher education has always been prestigious among the population, with the majority of young people seeking higher education. The ratio of the percentage of people receiving higher education, regardless of their age, to the total number of people with a typical age for higher education (Gross Enrolment Ratio) in Ukraine is 73%, which corresponds to this figure in Central and Eastern Europe (Antoniuk, 2019).

The reason for the imbalance in the system of qualified personnel is explained by the training of educational institutions of specialists who are already oversaturated with the labor market - lawyers, managers, economists, etc. At the same time, there is a shortage of technical specialists needed by industry and agriculture (Hitis&Nikulina, 2018).

The current level of infrastructure of educational institutions, the culture of the population and its desire to obtain higher education should be the foundation for further development of human resources. This is especially important for the introduction of a full-fledged system of lifelong learning and retraining. However, the foundation of human education remains school education, in isolation from which it is impossible to assess the development of human resources in the coming decades.

Given the steady trend of an aging population and the need to overcome the consequences of imbalances in the training of skilled workers, it is a developed education system that should become the locomotive of human resources development and the basis of human-oriented concept of overcoming the crisis.

However, the current level of investment in education, professional, scientific and technical activities remains low. In macroeconomic categories, Ukraine spends 5.0 % of GDP on education (Conceigao, 2019), but more detailed statistics are available in small quantities. From 2020, Ukrstat collects regional statistics on the capital investment indicator, which is shown in the Table 2.

Table 2. Capital investments for types of economic activity by regions in January-March, 2020 (Ukrstat)

The data are given without taking into account the temporarily occupied territory of the Autonomous Republic of Crimea, the city of Sevastopol and parts of the temporarily occupied territories in Donetsk and Luhansk regions.

Symbols: Conf. - data are not published in order to ensure compliance with the requirements of the Law of Ukraine "On State Statistics" on the confidentiality of statistical information.

Investments in education at the regional level in the 1st quarter of 2020 were equal to or exceeded 1.0% of the total investment in only 5 regions, and in the Zhytomyrska region were not at all. The situation with investments in professional, scientific and technical activities is uneven. In three oblasts at the same time, the relative percentage of such investments was less than ten percent, and in five regions it was more than 1.5 %.

Also, the level of wages in education should be taken into account. The average monthly salary for the 1st quarter of 2020 was UAH 10.4 thousand, and in the field of education - UAH 8.3 thousand. (State Statistics Service of Ukraine, 2020).

There is a separate problem of low productivity in Ukraine - one worker produces about $ 3 per hour (at the same time, the average value of this indicator in the EU is $ 61.1 (Organisation for Economic Co-operation and Development, 2019), but should take into account the shadowing of the domestic economy. According to IMF estimates, it ranges from 35-57 % of GDP, which is almost twice as much as Western European countries (Vikhrov, 2018).

The main reasons for low productivity are the structure of the economy, and workers are involved in those areas that have not been modernized for a long time and focus on exports of raw materials and products with low added value. Despite the fact that labor productivity ranges from $ 4/hour. in scientific and technical activities up to $ 22.2 / h in the field of information and telecommunications, the number of employees in these areas is insignificant. Only in the spheres of industry, agriculture, fisheries and forestry in 2018, 47 % of the working population was employed, and labor productivity here fluctuated in the range of $ 1-2 / hour. These results indicate that without proper modernization, even skilled labor will not be able to realize their potential.

At the moment, it is possible to identify several areas and industries where the current level of skills of labor resources can give impetus to the resumption of economic development.

Despite the pandemic the world faced in 2020, the potential of Ukraine's tourism sector is significant, given the wide range of recreational resources available. Its development is able to solve economic, important social and political problems (Shelemetieva, 2019). In the ranking of the competitiveness of the tourism industry in 2019, Ukraine ranked 78th out of 110 Eurasian countries, but it should be noted that in such categories as "Human Resources and Labor Market" and "Price Competitiveness" Ukraine was rated at 4.8 and 5.9 points , respectively. In addition to the relatively low level of holiday prices, according to the assessment of labor resources, Ukraine is close to Spain and the Czech Republic (4.9 points), corresponds to the tourist attractions of Montenegro and Poland (4.8 points) and exceeds Greece (4.7 points), Italy (4.6 points) and Croatia (4.1 points) (Calderwood&Soshkin, 2019). For Ukraine, this hides significant development potential and the opportunity to become a significant tourist center of Eastern Europe.

In this aspect, it is important to take into account international experience. Since the 1980s, in China, one of the directions of development of both the economy and human potential is the formation of favorable conditions for the progress of the tourism sector (Liu&Wall, 2005; Qiu Zhang&Wu, 2004). For Ukraine, this approach can be implemented with a high degree of probability. Significant traditions of friendliness and great cultural heritage will help attract professionals and develop human capital.

Examples from China show that despite very different wages, tourism attracts workers from the regions and is often considered more lucrative than other forms of employment. Experts expect that this will help achieve a high level of employment of a large number of the country's working population and especially rural workers (Liu&Wall, 2005). However, it is important to take into account the criticism of the processes and the negative aspects. Despite the rapid development of China's tourism industry, human resources problems were recorded in the mid-2000s, the main ones being staff turnover, human resource shortages, lack of qualified managers and the gap between education and industry. These challenges stimulated the development of a retention strategy, which should be implemented at the level of general managers of companies, including with the short-term assistance of national and regional tourism administrations. Specialists focused on conducting the necessary training and retraining of managers directly in the workplace. It should be noted that at that time, the industry was dissatisfied with the activities of graduates, there was a gap between qualifications in education and the real tasks of tourism workers (Qiu Zhang&Wu, 2004), which today is typical for Ukraine not only in tourism.

In order to reduce this gap, experts saw the joint participation of all stakeholders - industry, education and government. Given that the existing curricula at the time were considered obsolete, advisory commissions and, in particular, high-level teachers in educational institutions were urgently needed (Qiu Zhang&Wu, 2004).

Researchers in China have developed detailed recommendations for a systematic plan for internships for tourism workers for human resources development on the example of Heilongijang Province (Figure 1) (Qiu Zhang&Lam, 2004). First of all, they proposed to establish general directions for the development of human capital for the next 20 years. With this in mind, the following three plans were proposed:

1. On-the-job training.

2. Trainings of trainers.

3. Certification of teachers and improvement of research skills.

The first plan is to be the main issue in improving the skills of the workforce and labor standards in the region.

At the same time, training a significant number of staff requires significant financial costs, so the №2 plan - training of trainers - included raising the existing level in the industry; in this case, well-trained trainers can return to their region, city and conduct the necessary training depending on the needs.

Plan №3 provided for raising the level of relevant faculties of educational institutions to the level of international standards, teaching students modern approaches to teaching the necessary material. Experts recommended the introduction of licensing for university teachers. At the same time, improving the research infrastructure is the best way to increase the effectiveness of teaching in the faculties. To achieve this goal, faculty members should be involved in international exchange programs and participate in international conferences in the field of tourism (Qiu Zhang&Lam, 2004).

Another industry, which is based primarily on human capital and is already developing in Ukraine year after year, is the field of IT technology. A study of this market in 2018 showed that there were 12,634 companies in Ukraine with IT NACE and estimated that about 70 % of active companies in the labor market provide IT services to a wide range of customers, about 15 % - work for one parent company and 15% create their own product (Shelest, et al., 2018). That is, an important feature of the Ukrainian IT market is the high share of outsourcing, which is sometimes seen as a low value-added activity. Ukraine is one of the five countries most attractive for IT outsourcing (Ganushchak-Yefimenko, 2016). In the regional aspect, according to official data, 51.7 % of all companies in this industry in 2018 were based in Kyiv, and in Kharkiv, Dnipro, Lviv and Odessa were based 7.5 %, 6.0 %, 5.0 % and 4.5 % respectively. It is noteworthy that in other regions were based a significant 25.4 % of all these companies (Shelest et al., 2018).

In 2016, the share of the IT industry in Ukraine's GDP was 3.8 % and was estimated at UAH 2,383.2 billion (Rakhman&Aleksandrova, 2018). The Ukrainian IT industry is currently successfully competing in the global market, and in the first half of 2018, the export of computer services ranked second in the structure of exports of services in Ukraine. However, the IT industry will be truly successful when the value of the external and internal markets is roughly equivalent. As of 2018, the value of the domestic market of IT services in Ukraine is many times less than the export share (Shelest et al., 2018).

Also, in 2017, the official salary in the field of information and telecommunications was 69 % higher than the national average. The importance of labor resources in this area is underlined by the fact that in the cost structure of IT companies in Ukraine the share of the wage bill has consistently exceeded 80% in recent years. In 2017, the number of employees in this field was estimated at more than 120 thousand people (Shelestet al., 2018).

At the same time, the results of the SWOT analysis of the IT market of Ukraine showed its high fragmentation, low level of foreign investment, outflow of highly qualified personnel, unfavorable legal field, low level of IT expenditures in the domestic market, high corruption and unguaranteed investor and property rights (Meshko&Kostiuchenko, 2015).

However, experts believe that the most important areas for the development of this industry is a systematic approach of industry to the development of education and, above all, higher technical education; and, it is the reform of tax legislation and maintaining the conditions that allow the industry to develop and be competitive internationally (Schwab, 2019, Shelest, et al., 20і8). Thus, IT companies pay 19 % income tax, while the raw materials industry spends only 3 % (Rakhman&Aleksandrova, 2018).

The prospect for the development of IT companies and increase its competitiveness is the unification of IT companies, universities and research institutes, with the support of the authorities (Rakhman&Aleksandrova, 2018; Rahman, 2017). Given the high potential and skills of the workforce in this area, the creation of such associations, possibly in the form of technology parks, with appropriate tax and investment regimes, will allow the industry to develop and invest in human capital.

In addition, a form of such cooperation in Ukraine could be the widespread introduction of dual education, a way of learning that began in the 1960s in Germany. According to the wording in the "Concept of training specialists in the dual form of education", approved by the Cabinet of Ministers of Ukraine in 2018, it provides a combination of training in educational institutions with on-the-job training at enterprises, institutions and organizations to obtain certain qualifications, on the basis of the agreement on the implementation of training in the dual form of education (Pro skhvalennia Kontseptsii... zdobuttia osvity, 2018).

In the IT industry of Ukraine, successful examples of the introduction of dual education at the master's level are in Kharkiv Polytechnic University (Department of Software Engineering and Information Technology Management). University students legally combine education (fundamental theoretical training is carried out on the basis of the department) and work (the practical part is implemented within the work process in the IT industry).

At Kharkiv National University, at the master's level in Strategic Communications and New Media, the course program consists of a mandatory component developed by the department, and the other part is developed and filled by the curator of the program from an IT company, in this case Kharkiv IT cluster. Within the framework of such a project, teachers are specially invited to read individual courses or modules (Nikitina, 2019).

In Kyiv, there is an example of the organization of dual education in one discipline - "Accounting Automation Technologies" for 4th year students of the Department of Computer Science, Kyiv National University of Culture and Arts together with the Center for Certified Education PROCOM. Theoretical training at the university is combined with practical training from experienced specialists on the quality standards of IT companies at the level of seminars.

In 2020, the Eastern European National University in Lutsk, its students and the IT company Internet Devels started dual education, starting with the first year of students of the two educational programs "Computer Science and Information Technology" and "Applied Linguistics" based on new curricula. Since 2017, the Precarpathian University in Ivano-Frankivsk has been training high school students for intensive Java training courses, and freshmen are training on real projects at Ciklum and EPAM branches in parallel with their studies at the IT specialties of the State University of Telecommunications.

These and other examples show the significant potential of using this method of study, which will adapt students' professional knowledge and skills to the requirements of the labor market, improve their practical training, confirm the competitiveness of graduates in the labor market, enable students to earn while studying, and most importantly, to keep him from going abroad, to form in him a vision of innovative, attractive for life and work environment, not overshadowed by the shortcomings of the education system, to prevent the outflow of qualified professionals (Holmstrom et al., 2019).

However, at the moment it is important that to modify the educational process, provide educational services should not IT companies, but the university together with its innovation center, whose specialists, who are also teachers, form the vector of learning senior students involved in development of projects of the center. In this situation, IT companies are forced to perform educational functions that are not typical for them.

Conclusions. Every year the population of Ukraine decreases, which in the perspective of 10-20 years will lead to a significant shortage of labor resources. Under such conditions, the task of preserving and developing human capital becomes the main condition for further development of the country. At the heart of the human-oriented concept of overcoming the crisis is the priority of national policy for the development of education from preschool to retraining of adult professionals, which will enable the training of qualified personnel and develop quality production. An important element in the development of the education system should be the involvement of international experience, the creation of programs for the exchange of experience, education and training of teachers. Today, investments in human capital in such areas as tourism and IT business will give a boost to the economy, create conditions to prevent the outflow of skilled labor, create jobs in the regions. Particular attention in this aspect is given to the creation of comprehensive programs of interaction of all stakeholders: employees, business and government, the combination of which can lead to a synergistic effect.

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П. Макаренко, канд. геогр. наук, наук. співроб.

Інститут географії НАН України, Київ, Україна

ЛЮДИНО-ОРІЄНТОВАНА КОНЦЕПЦІЯ ЯК УМОВА РОЗВИТКУ УКРАЇНИ

За даними Укрстату, у 2018 р. в Україні проживало 42,4 млн осіб, проте щороку кількість населення зменшується. За існуючої динаміки до 2050 р. кількість населення скоротиться до 28,0 млн осіб. За таких умов у перспективі 10-20 років в Україні катастрофічно не вистачатиме трудових ресурсів. Проте і на сьогодні економічно активне населення становить 18 млн осіб, ураховуючи, що чисельність економічно неактивного населення становить 18,5 млн осіб. Підтвердженням цього є те, що середньооблікова кількість штатних працівників у квітні 2020 р. зменшилася на 171 тис. осіб порівняно із квітнем 2019 р. Найбільше зменшення зафіксоване у сферах промисловості (-77,9 тис. осіб), охорони здоров'я (-49,7 тис. осіб), сільського, лісового й рибного господарства (-40,0 тис. осіб) тощо.

У Рейтингу глобальної конкурентоспроможності за версією Всесвітнього економічного форуму Україна 2019 р. займала 85-те місце з поміж 141 економік світу. Однак найкращі результати фахівці Форуму зафіксували в категоріях "Кваліфікація населення" (44 місце, 69,9 балів зі 100) та "Інфраструктура" (57 місце, 70,3 балів зі 100), що було значно вище від середніх значень країн з рівнем доходу нижче середнього. Особливо звертають на себе увагу результати підкатегорїї "Кваліфікація майбутньої робочої сили" - 26 місце, 72,6 балів зі 100. За Індексом розвитку людського потенціалу Україна 2019 р. займала 88 місце із середнім значенням індексу 0,750. Упродовж останніх 10-ти років збільшення даного індексу було мінімальним.

Водночас результати опрацьовувань Дослідного інституту фінської економіки (ETLA) свідчать, що для постійного підвищення національної конкурентоспроможності можливо використовувати інновації або застосовувати нові маркетингові стратегії. У Фінляндії основний метод підвищення конкурентоспроможності - інвестиціїв якість людського капіталу, інвестиції в освіту, що дає можливість готувати кваліфіковані кадри й розвивати якісне виробництво. Тому завдання збереження та процвітання людського капіталу стає головною умовою подальшого розвитку країни. Але в умовах повномасштабної агресії РФ в Україні, часткового зруйнування її господарства й масового переміщення населення це завдання стає життєво важливим.

Ключові слова: людино-орієнтована концепція, система освіти, інвестиціїв людський капітал, конкурентоспроможність.

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