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PROBLEMS AND PROSPECTS OF DEVELOPMENT OF HUMAN CAPITAL AS THE IMMANENT BASIS OF QUALITY OF LIFE OF THE RURAL POPULATION OF THE RUSSIAN FEDERATION
O. V. Glushakova*, N. V. Fadeykina, I. V. Baranova, and Yu. A. Ustyugov
Siberian Academy of Finance and Banking, Polzunova Str. 7, Novosibirsk, 630051 Russian Federation
* e-mail: [email protected]
Received August 17, 2016; Accepted in revised form September 30, 2016; Published December 30, 2016
Abstract: The agrarian sector plays an important role in ensuring the food security of the state and the improvement of quality of life of each person and all the society. The increase in the infrastructure, economic and social problems of development of rural territories against the background of the transition of Russia from the state planned economy to market relations caused the formation of migratory outflow and a decrease in the rural population, the reproduction of human capital of the individuals living in the rural area on a narrow basis. The problems and prospects of development of human capital acting as the main factor of sustainable development of social and economic systems in the rural territories are considered in the research.The paradigm reflecting new a vision of sustainable development of social and economic systems is proved: human capital is the quality of life the implementation of which will allow to provide the balance of social and economic processes of rural territories, and, therefore, their sustainable development. The trends of institutional transformations oriented to the provision of reproduction of human capital in the rural area on a wide basis are considered.
Keywords: Agrarian sector, rural territories, human capital, quality of life, sustainable development
DOI: 10.21179/2308-4057-2016-2-167-180
INTRODUCTION
The transition of Russia from the planned economics to the development of market relations caused not only the initiation of transformation reforms related to the formation of institutional bases of interaction of economic entities in the market conditions, creation and development of institutes of state regulation of economy and social sphere but also caused the origin and development of a number of stagnant processes, including that in the agrarian sector. The sustainable development of agrarian sector plays an essential role in ensuring food security of the state. The import substitution policy pursued now in Russia in the conditions of economic sanctions from the USA and the European Union countries related to the prohibition of import of a number of food products to the territory of the Russian Federation, and, first of all, food, is oriented to the support and stimulation of domestic producers, ensuring food self-sufficiency of the regions and their sustainable development. At the same time, the official data of a state statistical observation, and also the researches of Russian scientists confirm the availability of a number of problems in the development of rural territories which are related, first of all, to the restrictions in the field of ensuring reproduction of the human capital on a wide basis and the unsatisfactory level of indicators of quality of life of the citizens living in rural areas.
Foods and Raw Materials, 2016, vol. 4, no. 2, pp. 167-180.
The migration outflow has caused the revision and development of new trends of the state policy in the agrarian sector since 2001 focused on ensuring the sustainable development of rural territories and the improvement of quality of life of the citizens living in rural areas.
Thus, the Concept of Sustainable Development of Rural Territories of the Russian Federation for the period until 2020 was approved by Order of the Government of the Russian Federation dated November 30, 2010 No. 2136-r. The institutional basis for the adoption of this document was the Concept of Long-Term Social and Economic Development of the Russian Federation for the period until 2020 (approved by Order of the Government of the Russian Federation dated November 17, 2008 No. 1662-r) in which the main objectives of the state agrarian policy in the long term, and also the Food Security Doctrine of the Russian Federation were determined (approved by Decree of the President of the Russian Federation dated January 30, 2010 No. 120) in which the close attention was paid to the development of the main trends of the state economic policy in the field of sustainable development of rural territories. About 38 million people (27% of total number of the population of the Russian Federation) live in rural territories, at the same time the economically active population constitutes about 23.6 million people (62% of total number of
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people living in rural areas). The rural territories are the basic element of agrarian sector of Russia and perform a number of major national functions among which is a production function (the satisfaction of public needs for food), a demographic function (the country population reproduction is provided thanks to the population of rural territories, as well), labor resource (providing with a manpower of both the agrarian sector, and other industries of the national economy), a housing function (the importance of ecological factor for the population living both in urban and rural areas significantly increased due to the shift of accents in the perception of quality of life and the deterioration in the ecological situation), a spatial and communication function (the placement of various infrastructure facilities -highways, power lines, communication lines, etc. which require servicing in rural territories), a social control function (the rural territories are part of the Russian Federation, and it means that the tasks of observance of the legislative legal regime, safety and protection of law and order lie down on the administration of rural settlements). Thus, the importance of contribution of rural territories to ensuring sustainable development at the meso- and macrolevels is obvious.
One of the tasks formulated in the Concept of sustainable development of rural territories is the assurance of quality of life of the citizens living there. However the problem is that the concept of quality of life [1] are not considered both by the scientific community and bodies of authority and management in interrelation with the quality of the human capital which provided the formation of a consumer approach to the perception of quality of life and the concealing of the sources of its increase.
The social and economic nature of the consumer approach to the perception of quality of life originates from the Soviet command system of public administration, one of the proclaimed principles in which was "... the more and more complete satisfaction of the growing material and cultural needs of the people by the continuous development and improvement of social production" [2]. Even at that time, the blurring of the formulation concealed the role of each person in this process and provided the strengthening of the tradition of paternalism in the Russian society which is shown in the consumer behavior of citizens in relation to the state - the expectation of firm social guarantees and the needs for "fatherlike government and care" [3].
This circumstance requires forming an essentially other paradigm of quality of life, bringing the person to the foreground as the carrier of the human capital the quality of which acts as an immanent basis of quality of life of each specific individual and community living in a certain territory (the state, a region, municipalities presented by municipal districts, city districts, urban and rural settlements).
The research purpose is the consideration of the existing theoretical and methodological approaches to the determination of quality of the human capital and quality of life, the analysis of the current state and problems of social and economic development of rural
territories in the context of the possibility of reproduction of the human capital on a wide basis and the substantiation on this basis of a new paradigm of provision of quality of life.
OBJECTS AND METHODS OF STUDY
The processes proceeding in the agrarian sector of Russia in the context of their influence on the formation of the human capital as the immanent basis of quality of life act as an object of research. The research is based on the dialectic approach. In the course of research a system, process, institutional, evolutionary and other methodological approaches were also used which is caused by the complexity of categories of the human capital and quality of life and the need of justification of their interrelation and interconditionality.
The emergence of concepts of the human capital in the second half of the 20th century is related with the recognition of the role of science and education in the progressive development of society and ensuring the economic growth of states. The founders of the modern theory of the human capital are T. Schulz [4] and G. Becker [5]. At the same time, it should be noted that the ideas about the human capital were laid at the end of the 17th century. Thus, V. Petty in his work "Political Arithmetics" (1676) advanced an idea that a small country and even a small people can become equivalent to larger ones as a result of their location, trade and policy. The main merit of V. Petty in the formation of bases of theory of the human capital was that he approached the justification of the need of assessment of monetary value of productive properties of the human person and he was the first to assign the concept "equity" to them [6].
A. Smith in his "Research about the Nature and the Reasons of Wealth of the People" (1776) emphasized the difference between productive and unproductive work and the role of productive work in the increase in the annual product of any nation. A. Smith was convinced that the increase in the productivity of useful work depends, first of all, on the increase in the dexterity and skill of the worker, and already then on the improvement of machines and tools using which he worked [7]. Continuing to develop A. Smith's ideas, D. Ricardo introduces a concept of "the natural price of work", i.e. that payment for work which will allow to provide the reproduction of the worker without an increase or decrease in the number of his family [8].
K. Marx operated with the category "human capital", considering the savings of working hours in the production process as the production of fixed capital the person actually is [9].
Thus, the classics of political economy laid the foundation for the scientific analysis of human capabilities to work and their interrelation with the results of this work. However in these researches the human capabilities to work, including that to intellectual work, were not considered in interrelation with the emergence of new equipment and technologies. The sources of formation of mental abilities of the person remained neglected, too.
The founders of the theory of the human capital considered the specified concept in relation to the individual as an integral property immanent to him, and the source of his income. Thus, T. Schulz believed that the human capabilities are either inborn or learned, allocating at the same time such concepts as the inborn human potential and the human capital. The first, according to T. Schulz, is determined by an individual complex of genes of the person at the moment of his birth, the second is determined by the valuable qualities learned by the person which can be increased by the corresponding investments [4]. Schulz considered the human capital as a component of the person and associated it with a special form of capital as it is the source of future earnings or future satisfactions [4].
In turn, S. Fischer determines the human capital as the measure of the capability realized in the person to bring income which is determined by inborn abilities, talent, education and the gained qualification [10].
Thus, a value approach prevails in the theory of the individual human capital, and the capabilities of the individual, his knowledge, mental abilities, skills and experience are an integral condition of formation of his income.
The supporters of the theory of the individual human capital tried to explain the differentiation of capabilities of individuals. Some of them assigned it to a heritable and a biological factors, others - to the learned capabilities of the person and the differentiation of income caused by various levels of investments into their production [11].
In the course of understanding of the paramount role of the person in social development, a wider and wider range of components (civic consciousness, political and legal culture, good breeding and education, etc.) enters the human capital.
Subsequently the researchers begin to consider the human capital not only in relation to the individual, but also at the level of an organization which served as the beginning of development of the corporate human capital theory the representatives of which are L. Edvinson, M. Malone, F. Fukuyama and others within which the category of the human capital began to be used for the designation of one of production factors acting as the source of income and competitiveness of the company, its philosophy and moral values. Thus, F. Fukuyama notes that "... in modern conditions not only the ground, plants, tools and machines are the capital, but also the knowledge and qualification of people are, the value of which is constantly growing" [12].
In the conditions of globalization and increase in the differentiation at the level of social and economic development of individual territories the approaches to the research of the specified category change. The researchers begin to consider the human capital not only at the individual, corporate, but also at the national level [13], in relation to a specific social and economic system (the state, a region, a municipality).
Noskova K.A. and Noskova S.V. fairly believe that at the individual, organizational and regional levels the human capital can have interconnected factors
influencing the regional economy and business processes of the region [15].
The authors of this article hold the view that the results of functioning and the stability of social and economic system are directly related with the quality of its aggregate human capital - an integrated indicator accumulating the human capitals of individuals who are the active elements of social and economic system of this or that level of hierarchy [12].
Today the human capital is generally recognized by the scientific community as the main factor of social production acting as a basis of work, capital and economic growth (see S. Shojai [16], O. Galor and O. Moav [17] Podshivalenko D. V. [18] and others).
There are also some essentially other points of view of the category of the human capital. For example, professor A.I. Rofe is convinced that only those economic categories that can be measured are of importance for economic comparisons and calculations which is not the case for the human capital [19]. We beg to differ with the point of view of the scientist as the level of development of the human capital and its quality can be measured by means of the results of functioning of social and economic system of this or that hierarchical level.
The results of the social and economic development of certain countries and territories testify to the differentiation in the level and quality of the human capital. Already Simon Kuznets attached essential significance to the starting positions of the human capital, considering them as a limiter for the developing countries from the point of view of a possibility of use of the best practices of the countries with a high level of social and economic development [20].
In the process of development of economic science, researchers begin to consider the human capital in interrelation with the category of quality of life. However the performed analysis of scientific publications allowed to draw a conclusion about the essential differentiation of scientific points of view in the understanding of interconditionality of the specified categories.
The historical prerequisite of emergence of the concept of quality of life was the theory of wealth a bright representative of which was T. Mun (Thomas Mun) and which gained further development in the works by L. Walras (Marie-Esprit-Leon Walras) - the founder of the concept of general economic balance, V. Pareto (Vilfredo Pareto) - one of the founders of the theory of elites, J.St. Mill (John Stuart Mill) - a supporter of the ethical doctrine of utilitarianism, A. Pigou (Arthur Cecil Pigou) - a representative of the Cambridge neoclassical school, the founder of the theory of economic welfare. In the West, the concept of quality of life entered circulation in the middle of the 20th century [21]. During the same period of time domestic scientists proceeded a research of various aspects of quality of life [22].
The closer attention to the problem provided the study of laws of economic growth. The West German researcher E. Eppler in his work "Die Qualität des Lebens" specified the formation, in fact, of a new paradigm of social development according to which the
quality of life of citizens is the key factor of economic growth of the state, and not vice versa [23].
Such a formulation of the question turned out to be possible as the negative influence of the rapid economic growth on the major components of quality of life - income and its distribution, the national priorities, the environment, etc., became obvious. An especially deep alarm concerning a possible catastrophic crash for mankind because of the growth of the population, scales of production, irrational use of natural resources was heard in the work by Dennis L. Meadows «Dynamics of Growth in a Finite World» (1974) [24].
The considerable attention to quality of life was paid in the Fifth Report to the Club of Rome "The Purposes for Mankind" prepared under the supervision of E. Laszlo and published in 1977 [25].
Various aspects of quality of life were researched abroad by J.K. Galbraith (John Kenneth Galbraith), U. Rostow (Walt Whitman Rostow), D. Bell (Daniel Bell), J. Fourastie (Jean Fourastie), E. Eppler, R. Inglehart (Ronald Franklin Inglehart), A. Maslow (Abraham Maslow) and others. The works of such Russian scientists as V.A. Baburin, S.A. Bazhenov, I.V. Bestuzhev-Lada, N.A. Gorelov, O.V Glushakova, T.I. Zaslavskaya, N.V. Zubarevich, E.A. Morozova, V.V. Mikhaylov, N.M. Rimashevskaya, M.V. Udaltsova, V.A. Shabashev, L.N. Shcherbakova and others are devoted to the problematics of quality of life.
Despite the variety of points of view in the determination of essence and content of quality of life, a lot of researchers share one view that quality of life is a difficult social and economic category integrating such derivative categories as welfare, a mode of life, a lifestyle and the cost of life within itself (see O.V. Glushakova [1], E.V. Mukhacheva [26] and others).
Now the unanimity of views is generally reached in the scientific environment that quality of life is revealed through the needs of individuals and the levels of their satisfaction.
The authors of this article consider quality of life as a dynamic category and consider it to be the developed (in case of a certain level of development of social and economic system) life environment of individuals determining the degree of satisfaction of their requirements taking into account the subjective perception of their role and place in the surrounding reality. The dynamic nature of quality of life is shown in the continuous renewal (development) of life environment of individuals and society in general which is caused by the processes proceeding in the social and economic system, resulting from the movement of elements of the specified system.
The researchers treat the measurement of quality of life through the prism of an objective and a subjective component. To the objective components of quality of life the indicators are referred that characterize the state of the social, economic and ecological processes proceeding in the social and economic system of this or that hierarchical level, and the assessment is performed, as a rule, with the use of official indicators of state statistical observation (see, for
example, N.V. Zubarevich [27], O.V. Glushakova, V.V. Mikhaylov [28], A.V. Mukhacheva [26] and others). Lack of the specified approach consists in ignoring the satisfaction of individuals with the quality of their life. At the same time, in a lot of countries researches aimed at the accounting of the subjective component of quality of life are performed (scientific centers of the USA, the EU, International o rganizations). Thus, Economist Intelligence Unit allocates objective and subjective factors as the determinants of quality of life - material welfare, health, political stability and safety, family and public life, climatic and geographical life conditions, safe work, political freedom and gender equality. At the same time, sociological surveys are performed during the assessment of quality of life to detect the satisfaction of the interviewed respondents with the quality of life [29].
In spite of the fact that quality of life is considered by a lot of researchers in interrelation with the category of the human capital, their interconditionality is understood differently by scientists.
Quality of life is considered by a lot of scientists as the integral condition of development of the human capital determining its quality. This view is held by I.V. Gruzkov, V.N. Gruzkov [30], Yu.A. Korchagin [13] and others.
However, in our opinion, it is the quality of the human capital at the individual, regional or national level that determines the quality of life. Let us rationalize this position.
Scientists tried to prove the interrelation of efficiency and labor quality with individual qualities of the person even before the emergence of the theory of human capital. Thus, J.S. Mill noted "The moral lines of workers as deeply influence the efficiency and quality of labor, as their intellectual development does" [31]. At the same time, he paid great attention to the role of family in preparation of the person for labor activity.
S.G. Strumilin considers the interrelation of the formation of skill and the quality of the performed works in his researches. He notes that "for the measurement of labor quality the skill needed for each of these degrees of qualification is such a correlative value. The worker's labor quality and skill are closely interrelated, just as the result and the reason are" [32]. The worker does not only pay back his earnings in full by means of the product of his labor, but, moreover, he also designs a product for society - an additional product increasing together with an increase in the productivity of work and the qualification of the worker [32].
Thus, scientists relate the quality of work with the individual properties of individuals, such as their skill, the moral lines of workers, etc.
The characteristic of human capital, P.A. Shvetsov notes, is its personification which is expressed in the impossibility of its transfer from individual to individual and the disproportion of gain in the course of investment [33] which emphasizes once again the diversity of quality of human capital of individuals and its uniqueness.
Let us note that the personification of the human capital predetermines the unbalance of development of its components and, therefore, it's any quality in relation to each specific individual. It also results in the differentiation of social and economic systems (the state, a region, a municipality, an industry, an organization) from the point of view of the available aggregate human capital and, therefore, various opportunities of the specified systems in providing the adequate quality of life.
The quality of human capital is directly related to the possibility of individuals to perform the enhanced reproduction which is determined by the salary level adequate to labor results, the quality of housing conditions and medical care, the opportunities (first of all, financial) for providing balanced nutrition, sports activities, the organization of good rest, travel, the level of development of mental abilities of the individual, his professional competence, etc.
The most essential value from the point of view of providing the adequate quality of life in the structure of human capital, in our opinion, just belongs to the intellectual component. Let us rationalize this position.
The researchers pay attention to the interrelation between the quality of human capital and the knowledge assets of the individual. For the individual as an active element of social and economic system the unique properties which are absent in its other elements are inherent. First of all, it is the capability to create the cost exceeding the expenditures of its reproduction. Secondly, it is the capability to accumulate knowledge and to generate new knowledge. The higher the level of development of intellectual component in the structure of human capital of the individual the higher the capability of the individual to generate essentially new knowledge, and, therefore, his capability to produce products (works, services) with a higher percentage of added value.
In our opinion, the education system, thanks to which there is a process of transfer to the individual and his accumulation of already existing knowledge (the processes of preschool, basic general, secondary professional and higher education) and the generation of new knowledge, plays the primary role in ensuring the enhanced reproduction of intellectual component of the human capital.
The quality of the human capital as an immanent property of each specific individual acting as an active
element of social and economic system creates a quality of the aggregate human capital of the system in general. At the same time the amount of the added value is in many respects determined by the level of development of intellectual component in the structure of human capital of each specific individual which finally causes the results of functioning of social and economic systems (the state, a region, a municipality, an organization) and consequently - the amount of available resources specified by the systems, and, first of all, that of financial ones. It also results in the availability of opportunities for the satisfaction of constantly growing needs of each specific individual and all the society, and, therefore, of opportunities of improvement of quality of their life.
The aforesaid allows to formulate a new paradigm of sustainable development of the social and economic systems "human capital - quality of life ". Bringing the person to the foreground as the carrier of the human capital in the structure of which the most significant, according to the authors, is the intellectual component and allows to provide higher innovative, financial, investment, technical and technological, ecological and other results of functioning of social and economic systems of various hierarchical levels under the conditions of high variability of factors of internal and, in particular, the external environment, the all-round meeting of the requirements and ensuring the adequate quality of life of each specific individual and all the society.
RESULTS AND DISCUSSION
The stability and results of functioning of the agrarian sector as the components of social and economic system of the state are shown through its percentage and dynamics in the total amount of GDP. Despite the positive dynamics of results of functioning of the agrarian sector in GDP in current prices, its percentage in the structure of GDP has decreased in comparison with 2004 (-1.1%) (Table 1).
The index of agricultural production is characterized by high variability. The most essential fall of growth rates of the agrarian sector was observed in 1994 at the beginning of the transformational transition of Russia from planned economy to market relations, and also during the periods of crises of 1998 and 2009 and in 2012 against the background of Russia's accession to the WTO (Fig. 1).
Table 1. The dynamics of GDP and agrarian sector of Russia in 2004-2014, billion rubles [34]
Parameters 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GDP of Russia, in current prices, billion rubles. 13964.3 18034.4 22492.1 27964.0 33908.8 32007.2 37687.8 45392.3 49926.1 54103.0 58745.0
Percentage of agrarian sector in GDP, billion rubles. 837.9 937.8 1102.1 1230.4 1559.8 1568.4 1620.6 2133.4 2096.9 2272.3 2819.8
Percentage of agrarian sector in GDP, % 5.9 5.2 4.9 4.4 4.6 4.9 4.3 4.7 4.2 4.2 4.8
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Fig. 1. Growth rates of the agrarian sector of Russia in 2005-2014 [35].
The agrarian sector plays a significant role in ensuring food security of the state, however the official statistics testifies to an essential decrease in the level of the main indicators of activity of agricultural organizations. Thus, acreages in comparison with 1992 decreased in 2015 by more than 1.9 times (108.7 million hectares and 55.1 million hectares), cattle livestock - by 4.7 times (40.2 and 8.5 million heads), agricultural production - by 1.4 times (104.1 million tons and 76.2 million tons, respectively) [36].
The sustainable development of agrarian sector under the conditions of high variability of factors of the external environment, the possibility of deployment and use of innovative technologies are in many respects determined by the level of development and the quality of human capital which finally specify the quality of life of the citizens living in rural areas. In this regard, let us consider the conditions of forming and development of human capital as the main factor of
production and immanent basis of quality of life of the population living in rural areas.
There was a considerable decrease in the urban and an increase in the rural population in Russia in 19901992 under the conditions of transformational transition from planned economy to market relations. The similar tendency was caused by an increase in the crisis processes in the country, closing of a number of entities in urban areas, the growth of unemployment and an essential decrease in the average per capita income of the urban population. However, since 1993 the picture has been changing. There had been a sharp migratory gain of urban population and a decrease in the migratory gain of rural population up to 1996. The turning point - the excess of the number of people who moved from rural areas over the number of those who arrived to rural areas - was in 2001, and, since this period of time, the negative migratory gain of rural population continues to remain (Fig. 2).
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> Migratory gain of rural population ■ Migratory gain of urban population Fig. 2. Migratory gain of urban and rural population in the Russian Federation in 1990-2014 [37].
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The basic reasons of migratory outflow from rural territories are the existing infrastructure problems, lack of opportunity to get quality education and medical care, low income, unemployment interfering the reproduction of human capital on a wide basis. It should be noted that already S. Kuznets paid attention to the enhancement of negative migratory processes in rural territories because of the specified factors [20].
It is obvious that migratory processes provide a change in the ratio of the number of urban and rural people. According to the official data of Rosstat, there had been a decrease in the number (-1321.16 thousand people) and the percentage (-0.8%) of rural people up to 2013 and positive dynamics (Table 2) was outlined only in 2014.
The income of rural population is the most important condition of ensuring the reproduction of human capital on a wide basis. It is obvious that the obtaining of them is provided with the availability of possibility of employment of economically active population. The main financial source for the unemployed population is pension provision. At the same time, the average duration of unemployment for the persons living in rural areas despite the tendency
for decrease in comparison with 2009 was 5.5 months in 2014 (Table 3).
The salary level of agricultural workers is much lower than in other industries of national economy. Thus, in 2014 the average nominal accrued payroll in this industry was 17 724 rub which is 1.65 times lower than in processing productions and construction,
3.3 times lower than in the extracting industries and
1.4 times lower than in wholesale and retail trade [38]. The available resources of rural households are
1.6 times lower in comparison with urban households (15 802.3 rub and 25 347.5 rub in 2014, respectively). There is the similar picture of gain of savings which are 1.5 times lower in rural households than that in urban ones (Table 4). Lack of the available resources also causes a lower level of cash expenditures of rural households (in 1.71 times in 2014). The compensation of lower expense level is provided due to the self-produced food the influx amounts of which in rural households is three times higher in comparison with urban ones. However, despite the remaining essential difference in the available resources, their steady positive dynamics is noted in 2009-2014. For urban households the available resources increased by 1.83 times, for rural ones - by 1.87 times (Table 4).
Table 2. The number and ratio of urban and rural people in the Russian Federation [37]
Parameters 2005 2010 2011 2012 2013 2014 2015
Population, thousands of persons 143236 142865 143056 143347 143667 146267 146406
including
- urban 104848.75 105434.37 105718.38 106076.78 106600.91 108237.58 108469.82
- rural 38387.25 37430.63 37337.62 37270.22 37066.09 38029.42 37936.18
Percentage of urban population, % 73.2 73.8 73.9 74.0 74.2 74.0 74.1
Percentage of rural population, % 26.8 26.2 26.1 26.0 25.8 26.0 25.9
Table 3. Distribution of the unemployed persons living in rural areas according to unemployment duration [38]
Parameters 2009 2010 2011 2012 2013 2014
Number of unemployed persons living in rural areas, thousands of persons 846.6 699.4 867.0 493.9 424.9 382.2
including that with the following period of unemployment: no more than 1 month 121.1 94.5 75.7 61.5 56.1 56.1
from 1 to 4 months 284.4 244.5 201.5 187.7 153.1 145.6
from 4 to 8 months 186.3 155.9 121.4 113.5 91.5 82.0
from 8 to 12 months 127.4 97.5 80.8 86.4 62.6 48.4
12 months and more 126.3 106.9 87.6 64.8 81.7 50.1
Average period of unemployment, months 6.0 6.0 6.0 5.7 5.9 5.5
Table 4. Structure of the available resources of urban and rural households per month, rub [38]
Parameters | 2009 | 2010 | 2011 | 2012 | 2013 | 2014
Households living in rural areas
Total of available resources 8416.9 | 10128.7 | 11745.8 | 13320.3 | 14191.7 | 15802.3
including:
- cash expenditures 6639.0 8079.0 9424.8 10733.7 11383.7 12693.1
- cost of natural receipts of foodstuffs 780.4 840.9 886.4 912.1 944.1 974.7
- cost of natural receipts of non-foods and services 65.4 77.2 95.0 103.7 99.6 106.8
- increase in savings 932.1 1130.9 1339.5 1570.8 1764.2 2027.7
Households living in urban areas
Total of available resources 13869.4 | 16265.0 | 18291.1 | 20405.0 | 23645.0 | 25347.5
including:
- cash expenditures 12222.3 14357.5 16180.5 17908.5 20431.5 21788.8
- cost of natural receipts of foodstuffs 233.5 270.7 293.7 293.2 302.5 322.3
- cost of natural receipts of non-foods and services 105.1 114.1 153.7 159.8 165.9 164.3
- increase in savings 1308.5 1522.7 1663.3 2043.5 2745.1 3072.0
In the Russian Federation about 27.7% of the total number of pensioners live in rural areas (as of 12/31/2014) [38, p. 144]. It should be noted that the level of their granted pensions is much lower than this indicator for urban pensioners which is caused by lower income of the rural population in the period of labor activity (Table 5). The amount of pension provision of the average pensioner both in urban and rural areas does not allow to provide not only a worthy life for persons of pension age, but also the reproduction of human capital on a wide basis as, contrary, for example, to Switzerland where the coefficient of replacement of the lost income by pension is about 80%, in Russia pension does not provide the insurance function of loss of earnings (The long-term development strategy of the pension system of the Russian Federation: Approved by the Decree of the RF Government of December 25, 2012 no. 2524-r.). The current situation is related to the permanent deficiency of the Pension Fund of the Russian Federation and the need of its constant "feed" at the expense of transfers from the federal budget and the budgets of constituent entities of the Russian Federation, the aging of the population, the availability of practice of payment of illegal salaries to personnel for the purpose to avoid paying taxes for the budgets of the budget system of the Russian Federation and for state non-budgetary funds, the high tax load on persons occupied in economy (Table 5).
The low level of available resources determines also the amount of expenses for final consumption -the acquisition of foodstuffs, non-foods, the payment of various services, etc. In 2009-2014 the expenses for
final consumption in rural households were much lower in comparison with urban ones through all the expense groups. In 2009 the difference was 1.67 times, in 2014 there was an insignificant decrease in the gap -1.57 times. In rural households the expenses for food are on average 1.2 times lower than that in urban ones. The most essential gap in the expenses for the acquisition of non-foods was in the crisis year of 2009 - by 1.8 times, it was the minimum in 2012 - by 1.53 times. Of note is the growth of expenses for the consumption of alcoholic beverages both in urban and rural areas (by 1.76 times in 2014 in comparison with 2009) which provides cardiovascular diseases, a decrease in reproductive health, etc., and, thus, has a negative effect on the reproduction and quality of human capital. Let us note, however, that, despite the total growth of expenses for the acquisition of alcoholic beverages, this indicator in rural households is on average 1.6 times lower than that in urban ones (Table 6).
The analysis of consumption, nutrition and energy value of foodstuffs of households allows to draw a conclusion that the nutritious diet is more balanced in urban households. In rural households, due to the insufficiency of available resources, the consumption of bread products, potatoes, sugar and confectionery prevails while the consumption of fruit and berries, meat and meat products, milk and dairy products and eggs prevails in urban households. For this reason the energy value of consumed products in urban households is lower than the similar indicator of households of rural areas (2545 and 2766 kcal a day in 2014, respectively) (Table 7).
Table 5. Some indicators characterizing the state of the pension system of the Russian Federation
Parameters 2010 2011 2012 2013 2014
Income/expenses of the budget of the Pension Fund of the Russian Federation, billion rubles * 4610.1 5255.6 5890.4 6388.4 6075.5
4249.2 4922.1 5451.2 6378.5 6190.1
Deficit (-), surplus (+), billion rubles * 360.9 333.5 439.2 9.9 -114.6
Transfers to the budget of the Pension fund:
- from the federal budget, billion rubles * 2643.8 2379.8 2815.6 2843.2 2410.2
- from the budgets of constituent entities of the Russian Federation, billion rubles * 4.6 4.4 3.9 3.4 2.8
Number of pensioners in the Russian Federation, thousands of persons [38] 39090 39706 40162 40573 41019
Percentage of pensioners living:
in rural areas, % [calculated by the author regarding Reference 38] 30.04 29.65 29.49 29.10 28.93
in urban areas, % [calculated by the author regarding Reference 38] 69.96 70.35 70.51 70.90 71.07
Number of persons employed in economy per one pensioner, persons [38] 1.63 1.61 1.60 1.58 1.56
Average size of granted pensions of pensioners living:
- in rural areas, rub [38] 5609.5 6885.1 7436.7 8243.4 9008.1
- in urban areas, rub [38] 6421.4 7892.6 8622.4 9527.3 10445.5
Note. * - Laws on implementation of the budget of the Pension Fund of the Russian Federation: for 2010 dated 10/6/2011 No. 268-FZ; for 2011 dated 10/2/2012 No. 152-FZ; for 2012 dated 9/30/2013 No. 255-FZ; for 2013 dated 10/14/2014 No. 298-FZ; for 2014 dated 10/5/2015 No. 279-FZ.
Table 6. The structure of expenses for the final consumption of urban and rural households (on average per one member of household per month, rub) [38]
Parameters 2009 2010 2011 2012 2013 2014
Households living in rural areas
Expenses for the total final consumption 6074.8 7256.8 8156.6 9305.4 9739.5 10611.9
including
- expenses for food 2880.3 3222.7 3579.3 3842.8 4073.8 4457.0
- expenses on non-foods 2054.7 2609.3 2972.1 3700.2 3737.2 3967.0
- expenses on alcoholic beverages 101.1 118.7 131.7 150.8 157.5 178.0
- fees 1035.1 1295.0 1464.6 1604.8 1765.0 2001.1
- cost of the services rendered by the employer free of charge or at preferential prices 3.6 11.1 9.1 6.9 6.1 8.8
Households living in urban areas
Expenses for the total final consumption 10133.4 11693.3 12957.7 14369.0 15695.0 16648.4
including
- expenses for food 3419.6 3892.9 4252.3 4559.5 4911.8 5337.8
- expenses on non-foods 3733.9 4376.4 4958.3 5691.5 6250.9 6516.4
- expenses on alcoholic beverages 162.6 191.4 215.3 238.1 259.7 285.5
- fees 2798.0 3216.8 3515.3 3861.1 4249.0 4489.6
- cost of the services rendered by the employer free of charge or at preferential prices 19.3 15.8 16.6 18.8 23.7 19.0
Table 7. Consumption, nutrition and energy value and cost of foodstuffs in the households of urban and rural areas [38]
Parameters 2009 2010 2011 2012 2013 2014
Households living in rural areas
Consumption of staple foodstuffs, kg per year:
- breadproducts 121 122 117 116 113 112
- potatoes 80 76 72 75 73 70
- vegetables and melons 95 97 97 100 98 98
- fruit and berries 52 60 59 62 65 65
- meat and meat products 67 71 75 76 78 79
- milk and dairy products 243 245 245 249 249 249
- eggs, pcs 205 207 209 212 207 209
- fish and fish products 20 21 21 22 22 22
- sugar and confectionery 35 36 35 35 34 35
- vegetable oil and other fats 12 12 12 12 12 12
Nutrition value, g per day
- proteins 76 78 78 79 79 79
- fats 99 103 104 104 105 105
- carbohydrates 390 395 382 382 375 373
Caloric value, kcal per day 2767 2831 2794 2792 2766 2766
Households living in urban areas
Consumption of staple foodstuffs, kg per year:
- bread products 91 94 92 92 90 89
- potatoes 62 63 60 60 56 55
- vegetables and melons 95 96 98 100 96 98
- fruit and berries 68 74 75 79 81 80
- meat and meat products 76 82 83 85 87 87
- milk and dairy products 261 269 269 274 278 271
- eggs, pcs 213 226 220 223 221 218
- fish and fish products 21 21 21 22 22 22
- sugar and confectionery 30 31 31 31 31 30
- vegetable oil and other fats 11 11 11 11 11 11
Nutrition value, g per day
- proteins 73 76 76 77 78 77
- fats 99 105 105 106 107 105
- carbohydrates 319 331 326 326 323 319
Caloric value, kcal per day 2472 2587 2563 2577 2577 2545
Ensuring the enhanced reproduction of human capital from the point of view of the organization of leisure and rest, education, etc. implies the availability of comfortable housing conditions. However, in spite of the fact that the floor area per inhabitant in rural areas is larger than that in urban areas, the indicators of improvement of housing stock is at a low level and requires its improvement (Table 8).
The performed surveys of the citizens living in rural areas for the assessment of satisfaction with the quality of life conditions allowed to reveal that 16.4% of the respondents note lack of heat, 15.5% - excess humidity and dampness, 8.8% - lack of sunlight, 13.1% -problems because of a bad noise isolation. In general, only 5.3% of the respondents estimated the quality of their life conditions as "excellent", 41.3% - as "good", 46.2% - as satisfactory, 7.4% - as "bad" and 0.9% - as "very bad" [38]. According to the data of selective inspections of budgets only 24.9% of rural households are going to purchase other housing (or to exchange for other housing), 13.9% stand in a queue for the improvement of housing conditions, 4.2% expect to inherit housing, 50.3% build a new house or an extension to the existing house [38].
The availability and quality of medical services is one of the conditions of ensuring the reproduction of human capital on a wide basis and the formation of possibility of future earnings. The network of out-p atient and polyclinic organizations in rural areas develops generally at positive rates though the dynamics of their input in action is very volatile. On commissioning of the capacities of hospital organizations mainly negative growth rates (Table 9) are noted. It is not possible to receive the highly technological types of medical care as well as the consultations of highly qualified specialists in rural territories which means that it is rather difficult to provide the adequate reproduction of such a component of human capital as health. This fact confirms the high level of invalidization of persons living in rural areas which was 1.18 times higher in 2014 than the similar indicator for the urban population [38]. The higher level of invalidization is also provided by the remaining severe conditions of work of rural people. The results of research of working conditions in rural areas showed that 13.2% of the respondents consider their working conditions as arduous, 55.4% - as moderately arduous, and only 26% of the respondents consider their working conditions as easy [38].
Table 8. Providing with housing and the improvement of housing stock in urban and rural areas [38]
Parameters 2009 2010 2011 2012 2013 2014
Households living in rural areas
Total area of the premises on average per one inhabitant, sq.m. 23.4 24.0 24.5 24.8 24.7 25.0
Housing quality improvement - the percentage of the total area equipped with:
- a watersupply system 47 48 49 49 52 54
- wastewater disposal (a sewerage system) 38 39 39 40 41 43
- a heating system 59 60 61 61 64 65
- baths (showers) 28 29 29 29 31 33
- a gas system (a heating network) 74 75 74 74 73 73
- hot water supply 25 25 26 27 28 30
- floor electric stoves 3 4 4 4 5 6
- a water supply system, water disposal (a sewerage system), a heating system, hot water supply, a gas system or floor electric stoves together 23 24 25 25 26 28
Households living in urban areas
Total area of the premises on average per one inhabitant, sq.m. 21.8 22.1 22.5 22.9 22.9 23.3
Housing quality improvement - the percentage of the total area equipped with:
- a watersupply system 89 89 90 90 90 86
- wastewater disposal (a sewerage system) 87 87 88 88 88 84
- a heating system 92 92 92 92 92 88
- baths (showers) 81 81 81 81 82 78
- a gas system (a heating network) 67 67 67 66 65 62
- hot water supply 80 80 80 80 81 77
- floor electric stoves 24 25 25 26 26 25
- a water supply system, water disposal (a sewerage system), a heating system, hot water supply, a gas system or floor electric stoves together 77 77 78 77 78 74
Table 9. Commissioning of health care capacities in rural areas [38]
Parameters 2009 2010 2011 2012 2013 2014
Commissioning of hospital organizations, beds 1219 886 1625 1120 394 911
Growth rate, % - 72.68 183.4 68.92 35.18 2.31
Commissioning of out-patient and polyclinic organizations, visits per shift 3305 2587 5896 5971 5121 8429
Growth rate, % - 78.27 227.91 101.27 85.76 164.59
The formation of intellectual component of human capital begins from the first days of life of the individual. The essential role in this process belongs to the education system. G. Psacharopoulos and H.A. Patrinos pay attention to the enhancement of importance of education in the developed countries which is testified to by the its acceptance as one of the key indicators of development in the countries of OECD according to annual reviews of "Formation" of the Glance series and other program documents of OECD. Besides, the governments recently began to finance the researches devoted to the assessment of macroeconomic effects of investments in education [39].
According to official statistics, the number of organizations which perform educational activities according to preschool educational programs, supervision and care of children in rural areas was 23.8 thousand as of the end of 2014 (by 12.17% less than in urban areas). However, in spite of the fact that the number of pupils in the specified organizations is considerably lower (about 20.51% of their total number), the problem of provision with places for children in the specified organizations remains. The number of places per 1000 children aged from 1 up to 6 in rural areas is less by 167 than that in urban areas (660 and 493 places, respectively). The coverage of children with preschool education is much lower, as well. Thus, in urban areas and urban-type settlements this indicator is about 72.1%, and in rural areas it is only 46.1%) [38].
Of note is also the fact that if the commissioning of capacities of preschool educational organizations is characterized by steady positive dynamics, then for general education organizations this indicator is quite volatile and in 2012 it was at the lowest level (Table 10). The realization of model of continuous
professional education in rural areas is not possible due to lack of educational organizations of higher education. In this regard, there is a migration of youth to urban areas after the completion of education, however young specialists, as a rule, do not come back to rural areas which is caused by the existence of a number of infrastructure and other problems described above. For this reason the percentage of qualified specialists in rural areas remains extremely low. In 2014 this indicator was 3.2% of total of skilled workers of all branches - 71 539 thousand persons.
The insufficient level of available resources of households of rural territories also acts as a restraining factor of forming and development of human capital as the average consumer prices of educational services in the education system grew on average by 1.6 times in comparison with 2009. The maximum increase in prices is fixed in relation to such a type of service as education in general educational institutions of secondary professional education (by 1.8 times), the minimum - in the courses of professional education (by 1.4 times) (Table 11).
The formation of cultural component of human capital in rural areas is provided by means of public libraries and organizations of cultural and leisure type. The professional theaters the number of which, according to the Ministry of Culture of the Russian Federation, was 661 by the end of 2014 (+60 in comparison with 2009), and museums - 2731 (+192 in comparison with 2009) are located generally in large cities which limits the possibility of visiting them by villagers. As for public libraries and the library stock, these indicators are characterized by steady negative dynamics. The same situation with regard to the number of library copies per 1000 people of the rural population had been noted till 2013, inclusively (Table 12).
Table 10. Commissioning of health care capacities in rural areas, thousands of places [38]
Parameter 2009 2010 2011 2012 2013 2014
Preschool educational organizations, thousands of places 1.7 3.5 6.4 6.8 15.6 26.3
General education organizations, thousands of pupils' places 23.5 20.2 21.9 14.4 24.2 16.8
Parameter 2009 2010 2011 2012 2013 2014
Visit to a children's nursery and kindergarden, per day 53.44 54.86 56.97 61.66 67.30 76.56
Education in non-state general education organizations, per month 8134.97 9420.77 10002.34 11431.92 12008.43 14037.35
Education in secondary professional education institutions, per semester 13148.96 13981.86 16616.96 17639.59 19943.13 23731.83
Education in non-state institutions of higher education, per semester 22389.11 22983.61 24793.75 27358.44 28840.34 33030.85
Education in state and municipal institutions of higher education, per semester 24556.03 25520.38 28211.22 35273.32 38813.35 42331.74
Classes within the courses of foreign languages, per class period 135.80 148.21 181.84 206.34 221.36 236.85
Classes within the vocational training courses, per class period 76.99 82.21 79.70 90.33 97.26 107.07
Table 11. Average consumer prices of certain services in the education system, by the end of the period, rub [38]
Table 12. Some indicators characterizing the development of cultural institutions in rural areas [38]
Parameters 2009 2010 2011 2012 2013 2014
Total of libraries, thousands 46.7 46.1 43.2 40.8 39.8 40.1
including that in rural areas, thousands 36.2 35.8 33.2 31.1 30.3 30.6
Library stock, millions of copies 934 923 888 864 851 854
including that in rural areas, millions of copies 330 324 300 281 274 282
Number of copies of library stock on average per 1000 persons of the population in rural areas 8739 8660 8034 7554 7382 7429
An important role in ensuring the reproduction of human capital is played by ensuring information availability. Providing access to the INTERNET and the availability of the ICT equipment necessary for these purposes in households is quite essential under the conditions of formation of information society and transition to essentially new ways of obtaining information and knowledge in Russia.
However, according to the official data of Rosstat, only 60.8% of households have access to the Internet, and 62.8% - to ICT equipment in rural areas [38].
It is obvious that the specified problems stimulate the migratory outflow from rural territories. In particular it concerns the young specialists for whom both the possibilities of future earnings and infrastructural satisfaction are unsatisfactory.
The performed analysis allows to draw a conclusion that, despite the positive dynamics, there are still some essential gaps concerning a number of the indicators reflecting the conditions of development of human capital of urban and rural population. It follows from this that the problem of providing the quality of life for the rural population still remains open and requires its solution.
In Russia there is an active formation of the corresponding institutional environment now, first of all, legislative and legal in nature, focused on the solution of problems of sustainable development of rural territories.
Thus, in July, 2013 Resolution of the Government of the Russian Federation No. 598 approved the federal target program "Sustainable Development of Rural Territories for 2014-2017 and for the Period till 2020" as a logical continuation of provisions of the Concept of Sustainable Development of Rural Territories and the Food Security Doctrine of the Russian Federation accepted in 2010. This program provides the recommendations about the adoption of similar programs by the entities of the Russian Federation. Total funding of the program is 252 589.6 million rubles (in the prices of the corresponding years), including: federal funds - 139 206.5 million rubles (55%); consolidated budget resources of the entities of the Russian Federation - 74 562.7 million rubles (30%); non-budget resources - 38 820.4 million rubles (15%).
In the Strategy of Sustainable Development of Rural Areas of the Russian Federation for the period till 2030 (approved by Resolution of the Government of the Russian Federation dated 2/2/2015 No. 151-r) (hereinafter the Strategy) the basic provisions embodied in the Concept of Sustainable Development
of Rural Territories and the Food Security Doctrine of the Russian Federation were also further developed. Lack of the adequate state support of development of agrarian sector which is much higher in the developed countries is noted as one of the main problems in the Strategy. This circumstance constrains the modernization and innovative development of the industry, has a negative effect on the payroll rate and the forming of tax base of the local budgets. The shift of accents in the goal-setting of development of the major infrastructure of health care and education in favor of cost efficiency, but not of ensuring access of the population to the major social services, in fact, provides the violation of implementation of constitutional rights of rural people for education and medical care. It is noted in the Strategy that the solution of the existing infrastructure problems in rural areas, in particular, that of the development of road network and modern means of communication, proceeds at such a rate that does not allow to overcome in the nearest future the existing spatial and communication gap between urban and rural areas.
Among the purposes of state policy formulated in the Strategy and oriented to provide the sustainable development of rural territories there is employment, the increase in the level and quality of life of rural population taking into account modern requirements and standards. The instrument of control of achievement of stated purposes is the system of the indicators allowing to estimate finally the efficiency of strategy implementation. These include the achievement of stabilization of rural population at the level of 35 million people by 2030; the increase in life expectancy of rural population up to 75.6 years; the decrease in the migratory outflow of rural population up to 74.1 thousand people; providing the annual average rate of increase in agricultural production in the amount of 5.5 percent, etc. However nothing is stipulated in the Strategy about the need of development of human capital.
The existing budget restrictions the enhancement of which occured against the background of the imposition of economic sanctions from the USA and the European Union countries, and also of the fall of the prices of energy resources in foreign markets create risks of non-achievement of the indicators-purposes stated in the Strategy. This circumstance is caused by the fact that state and federal target programs as the instrument of achievement of strategic objectives of development provide several sources of financing. In particular, more than half of the total of financial
resources for the purpose of implementation of the federal target program "Sustainable Development of Rural Territories for 2014-2017 and for the Period till 2020" is provided at the expense of the federal budget which is essentially (about 50% of total of the income of the federal budget) dependent on oil and gas income.
The authors of the article are convinced that social and economic systems of all levels of hierarchy taking into account the limitation of all types of resources, shall have the internal sources of development allowing to provide the satisfaction of resource requirements of the system, including the financial ones which is just embodied in a new paradigm of sustainable development of social and economic systems - "human capital - quality of life".
The closer attention from the state to the processes of science and education will allow to provide development in the structure of human capital of the intellectual component and to increase the quality of human capital both at the level of a certain individual, and at the level of the state, region, municipality and industry which just predetermines the new opportunities of social and economic development of territories due to the activation of process of generation of new knowledge, the creation of innovative products with a high percent of added value, and, therefore, the solutions of the problems of reducing gaps under the conditions of development of human capital of the urban and rural population as an immanent basis of quality of life of each person and all the society.
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Please cite this article in press as: Glushakova O.V., Fadeykina N.V., Baranova I.V., and Ustyugov Yu.A. Problems and prospects of development of human capital as the immanent basis of quality of life of the rural population of the Russian Federation. Foods and Raw Materials, 2016, vol. 4, no. 2, pp. 167-180. DOI: 10.21179/2308-4057-2016-2-167-180.
