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10and evaluating connection between them, there are difficulties in controlling profits and expenses. This complexity is usually unique to non-profit organizations.
However, measurement is important and possible, and managers must make significant efforts to carry them out. Here it is necessary, yet subjective, but effective development of standards that will help managers control processes within the organization, systematizing them by indicators specific to a particular activity. The development of indicative controls may be useful. Nonetheless, from the outset it should be recognized that the resulting system will never be a solid basis for planning or performance measurement, as does the rate of profit in commercial organizations.
The values of behavioral characteristics are twofold. First, most behavioral factors which impede necessary management control can be overcome through improved understanding and education. Second, if these problems are not overcome, then any improvement in technical characteristics will most likely not have a real impact on management control.
Conclusions. Non-profit organizations play a very important role in formation of public relations, and therefore the shoulders of managers have a huge responsibility and from their control activities within such organizations can depend on the fate of people and even their lives. Management control in non-profit organizations has many aspects in comparison with commercial companies, so its system is more complex and not always based on objective data. The anthropogenic factor plays an important role in the system of management control of non-profit organizations, so it makes sense for managers to think and make decisions about
its optimization or stabilization for the benefit of the organization.
REFERENCES:
1. Kutyeva D.A. Similarities and differences between non-profit organizations and commercial organizations / D.A. Kutieva, V.A. Makarova // Problems and prospects of development of economics and management: materials of the Intern. correspondence scientific-practical conference (Novosibirsk, May 22, 2013). - Novosibirsk: Publishing house "SibAK", 2013. - pp. 123-129
2. David W Young Management Control in Nonprofit Organizations, Cambridge, Massachusetts, 2012
3. Savchenko RO, Savchenko NM Management control of non-attributable organizations. Economy that power. 2019. No. 2. P. 53-57
4. For additional discussion, see Robert L. Burns, Elisabeth H. Bradley, and Bryan J. Weiner, Shortell and Kaluzny's Health Care Management: Organization, Design, and Behavior, 6th edition, Clifton Park, NY, Delmar Cengage Learning, 2012
5. KunleAkingbola, Sean Edmund Rogers, Alina Baluch Change Management in Nonprofit Organizations: Theory and Practice / Springer, 2019
6. Martha Golensky, Mark Hager Strategic Leadership and Management in Nonprofit Organizations: Theory and Practice / Oxford University Press, 2020
7. Tolmachova A. Features of the organization of internal audit of non-profit organizations / A.M. Tolmachova // Problems of theory and methodology of accounting, control and analysis: an international collection of scientific papers. Output 2 (40). - Zhytomyr: ZPTU, 2018. P. 59
SOCIO-ECONOMIC ASPECTS OF REPRODUCTION HUMAN CAPITAL IN RURAL AREAS
Utechenko D.
postgraduate student of Bila Tserkva National Agrarian University
(Ukraine)
Abstract
The article deals with the socio-economic conditions of human capital reproduction in rural areas. It is substantiated that the functioning of rural areas in economic turbulence is reflected in their condition, which requires an analysis of the main socio-economic indicators of the environment of human capital reproduction.
The socio-economic conditions have been systematized and their impact on the human capital reproduction in rural areas has been outlined. It has been pointed out that the human capital reproduction in rural areas is influenced by the demographic crisis, which is caused primarily by economic factors. Factors in the manifestations of the demographic crisis have been identified, which is accompanied by a natural and migration decline in the working population and the development of social infrastructure, particularly health care and education. The main components of social assistance to the rural population have been highlighted and the directions of their modernization have been outlined.
Keywords: human capital, reproduction, social factors, economic factors, rural areas.
Introduction. Human capital in relation to rural areas is a factor in the reproductive development of the economy and a necessary condition for the development of socio-economic environment. In addition, it is a structural component of this area, mostly forming its qualitative characteristics. Under current circumstances, we have identified human
capital as a resource of a strategic action plan to bring the territory out of a depressed state. In turn, qualitative and parametric quantitative characteristics of rural areas are determined by a set of problems of rural development, actualized in other related areas of their functioning. In this regard, dialectical unity as a sign of systemic interaction of two elements, human capital
and the socio-economic sphere of rural areas, are beyond any doubt.
The relevance and necessity of studying the existing socio-economic conditions of rural areas for the human capital reproduction are their special role in strategically important issues for the regional economy and national stability. The level of rural development depends on many macro- and microeconomic factors, which, in turn, are actualized by environmental conditions. The long period of neglect of the rural population has led to socio-economic degradation and land degradation.
The functioning of rural areas in economic turbulence is reflected in their condition, and requires an analysis of the main socio-economic indicators of the environment of human capital reproduction. It should be noted that the labor force acts as a link between two components of the rural sector: the agricultural and social subsystems. However, the key role of the social subsystem, which is considered secondary to the production one, is precisely that it should ensure the reproduction of the labor force in different dimensions - demographic, educational, professional, and its preparation for entering the labor market. The labor force (labor resources, human capital) is the most active and able-bodied part of the population, and, consequently, the main part of the entire gender and age structure of the population. The labor force is located mainly in rural areas, but can be employed not only in the rural sector, but also outside it. Thus, it is in rural areas various labour reproduction takes place, and at a certain stage the labor force is included in labor relations and its employment at enterprises, farms, institutions and establishments. It is therefore necessary to analyze in detail the rural settlement network, social living conditions of the rural population and trends in its reproduction at different stages and in different types of settlements.
The main phenomena, diverse and multidirectional processes, quantitative changes and qualitative changes in the human capital reproduction, beginning with the birth of the baby, its physical development, upbrining and education, vocational training and entry into the labor market mainly occur in families and settlements as the main centers of localization of the population. Consequently, this is where all the necessary institutions, establishments and other objects of the social service sphere should be located, and where human capital should be fully reproduced. In this regard, it is advisable to reveal the specifics and dynamics of changes in the structure of the rural population and the provision of social services to rural settlements.
Literature review. The emergence and development of the theory of human capital are connected with the names of famous American economists T. Schultz, G. Becker, L. Throw, J. Minser [1-4]. Ukrainian researcher O.A. Grishnova [5] points out that the increase of scientific interest in studying the processes of human capital reproduction is due to the general pattern of development of modern science in general, which manifests itself in the concentration of scientists on human research, as well as in the
recognition that enhancing human creativity, developing a highly skilled labour force, is the most effective way to achieve economic growth. The development of the theory of human capital, the study of its socio-economic aspects are devoted to the work of domestic scientists [6-10], where special attention is paid to deepening the understanding of the category «human capital» and the peculiarities of its formation and use. However, the study of the human capital reproduction in rural areas under the new conditions of decentralization and changes in socio-economic conditions of its reproduction requires further study.
Research methodology. The study is aimed to analyze the socio-economic conditions of formation and use of human capital in rural areas of Ukraine based on data from the State Statistics Service of Ukraine and the results of a sample survey. The specific objectives of the present study are: to identify the most significant socio-economic factors of the human capital reproduction and to analyze its impact on sustainable rural development.
The research has used general scientific methods, in particular: statistical, economic analysis - to identify the status and dynamics of such indicators as the number and structure of the rural population, employment and unemployment, socio-economic standard of living of the rural population; and tabular method to systematize statistical data.
A survey of the rural population has been conducted to examine the characteristics of the socioeconomic conditions for the human capital reproduction in rural areas. The optimal sample value (a 95% confidence interval with a 5 percent margin of error) was 256 respondents. The survey was conducted on the basis of a specially designed telephone questionnaire, through the distribution of informational questionnaires on the Internet and personal interviews.
The information base of the study was the data of state statistics on the population, its economic activity, own observations and surveys of the author conducted in the Uzyn united territorial community of Kyiv region.
Results of the research. The sustainable development of rural areas as a purposeful process of long-term (continuous) development with this potential in the future is a qualitative and equitable gradient of development in economic, ecological and social spheres of life. It doesn't only imply economic growth, but also improving the quality of human capital of rural areas, represented by the potential of knowledge, professional skills and abilities of rural residents [11].
For rural areas of Ukraine, a long-term period of unfavorable demographic changes is now coming, as the decline in the rural population reflects both the natural process of urbanization and the excessive outflow of young people, qualified personnel to cities due to the lack of necessary work, weak development of social infrastructure in the village, low availability of medical services. Cities have better conditions and opportunities for social movements such as obtaining professional education and choosing a job. However, having better living and working conditions, the city also places higher demands on the peasants.
Table 1
Dynamics of natural decrease of the rural population of Ukraine
Year Per 1,000 people of the current population
Number of births Number of deaths Natural increase, de- number of number natural increase, de-
crease (+, -) live births of deaths crease (+, -)
2000 147112 301013 -153901 9,2 18,8 -9,6
2010 171102 267105 -96003 11,9 18,6 -6,7
2011 173661 253563 -79902 12,1 17,7 -5,6
2012 179106 251352 -72246 12,6 17,7 -5,1
2013 173373 249815 -76442 12,3 17,7 -5,4
2014 161692 240557 -78865 12,2 18,1 -5,9
2015 145699 236047 -90348 11,3 18,0 -6,7
2016 138349 228997 -90648 10,8 17,6 -6,8
2017 126113 223574 -97461 9,9 17,3 -7,4
2018 115772 223933 -108161 9,2 17,5 -8,3
2018 % to
2010 79,0 74 ,0 X 100,0 93,0 X
Source: compiled according to the State Statistics Servi
The calculations given in Table 1 show that during 2000-2018 there are two trends that characterize the birth rate in rural areas, namely: 2000-2012 - growth caused to some extent by the presence of people of reproductive age in rural areas; 2013 - present - a decrease caused primarily by youth migration, due to objective and subjective unfavorable circumstances. At the same time, the same value of birth rate per 1,000 people of the current population is observed.
It should be noted that there is a negative trend of reducing the mortality of the rural population during the study period by 26%, per 1,000 resident population by only 7 %which is an indication of the persistence of the mortality rate of the rural population and the corresponding rural population. Consequently, the mortality rate during the period under review significantly exceeds the birth rate, both overall and per 1,000 inhabitants of the resident population, that contributes to the formation of a natural decrease in the rural population. We believe that the formation of such a situation has a significant impact primarily on economic factors.
Despite certain socio-economic changes in the rural community, the tradition of having many children in the rural household has been maintained, which is characterized by the influence of religious and ethnic traditions on their specifics, which has a positive effect on the birth rate of rural women compared to the national average. A period of rapid decline in the birth rate (19912001) has been found, primarily due to the economic crisis in Ukraine and the lack of state support measures aimed at stimulating the birth rate. During the period 2002-2012 there was a tendency to increase the birth rate, which is
of Ukraine
primarily due to increasing living standards and stimulating the birth rate at the state level in the form of surcharges for each child born. In 2013 to the present,a decline in the birth rate has been revealed, due to the deterioration of the economic situation in the country, external migration of the population in reproductive age and insufficient funding for State programmes to support the birth rate in Ukraine.
Dynamic processes in the socio-political life of the country lead to significant changes in the structure of functional and role orientations of the family, which occur latently, but continuously and steadily. The age of the small nuclear family with child-centered approach has come, which is a definite normative model accepted in modern society and acts as a social guideline, as a specific scenario for the implementation of life strategies of new generations [12].
Such trends in society are primarily influenced by economic factors due to the difficult economic situation in rural areas which has a negative impact on the number of rural households with children. It has been established that the number of rural households with children decreased by 12% between 2010 and 2018. Such a decline reflects the intensification of the negative trends of human capital reproduction in rural areas in the near future (Table 2). Table 2 shows that the proportion of households with children under 13 in the structure of rural households with children increased during the period of the study. This requires the development of a plan for the development of preschool and school institutions, providing health care facilities located in rural settlements with pediatricians.
Table 2
Dynamics of the number of rural households with children
Indicator year 2018 in % to
2010 2014 2016 2017 2018 2010 р. 2017 р.
Households with children (thousands) 1899,9 1627,2 1702,5 1697,7 1679,4 88 99
Share of households by age of children (%)
Under 3 years 8,7 21,1 19,6 16,1 17,6 8,9 1,5
3 to 6 years 28,9 29,2 33,3 31,3 30,5 1,6 -0,8
7 to 13 years 49,0 49,6 49,0 42,9 49,7 0,7 6,8
14 to 15 years 20,0 14,8 14,1 16,1 15,7 -4,3 -0,4
16 to 17 years old 17,4 15,4 12,6 17,5 12,6 -4,8 -4,9
Distribution of households by number of children (%):
one child 60,8 64,5 65,7 71,5 69,6 8,8 -1,9
two children 32,5 30,1 30,0 24,8 25,1 -7,4 0,3
three children 5,3 4,7 3,6 3,0 4,4 -0,9 1,4
four children 1,1 0,6 0,5 0,5 0,5 -0,6 0
five children and more 0,3 0,1 0,2 0,2 0,4 0,1 0,2
Total 100 100,0 100,0 100,0 100,0 0 0
Distribution of households with children by number of adults (%): 0 0
one person 6,4 6,9 5,1 5,2 4,7 -1,7 -0,5
two people 50,6 41,8 46,6 44,4 49,7 -0,9 5,3
three or more people 43,0 51,3 48,3 50,4 45,6 2,6 -4,8
Total 100 100,0 100,0 100,0 100,0 0 0
Source: compiled according to the State Statistics Service of Ukraine
The calculations in Table 2 confirm that the proportion of rural households with one child is quite high and does not provide even a simple reproduction of human capital. We agree with the scientists that «increasing the number of children in a family depends on material well-being, and not vice versa. Thus, concept of well-being does not include a family with several children» [13]. The proponents of this paradigm of declining birth rates believe that the process of its transformation has intensified under the influence of market reforms. It was during this period, as scientists emphasize, that the crisis of the family began, as there was a deformation of its main function - the reproductive one
[14].Thus, from the expanded reproduction of the family society, rural families moved to the contactracted reproduction.
In a knowledge-based economy, the quality requirements of children's human capital are constantly increasing, ie parents need reduce to a greater extent «own consumption (including free time) .. to increase time and resources for childcare and education, training and health»
[15].
We believe that the cost of child development will depend on the following. First, the woman's level of education,, the higher the educational human capital of the mother, the higher the costs associated with the birth of a child.
Second, by replacing paid work with unpaid childcare time, the family loses income in the form of a woman's
salary, and the higher the salary, the higher the value of the child.
Third, older people have significant life experience, which is reflected in the price of human capital and has a direct impact on the value of the child. It should be noted that under the existing circumstances, when not only the age of marriage is increasing, but the birth of a child, this factor is becoming increasingly important.
Fourth, the value of a child is identified by the order of its birth, since «an additional child reduces the benefits received by parents from each individual child» [15]. Evidence of this is the increase in rural household expenditures with the arrival of the next child. Thus, the total expenditures of rural households with 4 children and more are 30.3% higher than in households with one child (Table. 2). These data indicate an increase in all items of family budget expenditures, except for the item «Expenditures on educational services». Currently, large families enjoy certain social benefits when their children enter secondary special and higher education institutions, which significantly reduce the cost of education. The monitoring results of the functioning of large rural families show, they pay little attention to solving the problem of their children's access to higher education.
It should be pointed out that in large families health care spending are lower compared to small ones. This fact indicates that these families do not pay much attention to the
treatment of household members, as most large rural households are characterized by low incomes.
It has been found that the main item of expenditure of rural households, regardless of the number of children, is «expenditure on food and non-alcoholic drinks». This situation proves that the vast majority of agricultural household income is is spent on primary food expenditure, which tend to increase, indicating a reduction in the capacity to meet other types of needs.
The social policy of the state and the actions of the Government of Ukraine, which take measures for the social protection of families in which children are born, should be focused on solving the issues of poverty. According to the Constitution of Ukraine, the family, childhood, motherhood and fatherhood are protected by the state. It should be noted that under the current legislation every family with a newborn is ptovided with public assistance. Such assistance includes maternity benefit, childbirth benefit and childcare benefits.
The main components of social assistance received by rural families are child and low-income family benefits, which is characterized by a low level of material support for large families. It has been found that the principle of economically developed countries of the world is not implemented in Ukraine, and the number of children in the household reflects the level of material well-being of the family.
Most rural households with children have two or more adults during the study period. Thus, the burden of child-rearing of younger generation, financing education in specialized secondary and higher education institutions falls to adult members of the rural household.
The demographic crisis in rural areas, mainly due to economic factors, has led to the emergence of a number of rural settlements that are on the verge of extinction or have the prospect of extinction and are characterized by the absence children aged 0-5 and natural decline (excess of deaths over births).
Reducing mortality should be a priority of social policy, since the high level of irreversible losses poses risks for the nation's demographic and labor potential. At the same time, the mortality rate in rural areas remains unacceptably high. Mortality rates and structure are considered as important indicators of national health and reflects the state's attitude to its citizens, quality of life, the prevailing values and social attitudes of different segments of the population, the level of health care, the degree of access to high-tech health services, stereotypes of social behavior and the spiritual condition of society.
Let us consider the infrastructural support of the process of human capital reproduction in rural areas of the country. As of January 1, 2014, 9,741 rural settlements did not have health care facilities, the vast majority of which were villages with a population of up to 99 people. At the same time, the nearest health-care facilities are located 10 km from the village, and failure to receive emergency medical care in good time may lead to death. In addition, most emergency vehicles are not properly equipped to provide quality medical care.
According to the results of the survey of the rural population on quality medical care, the main reason for not receiving the necessary medicines, medical examinations and inpatient treatment is the high cost of such
treatment. Thus, for the period of 2010-2018, receiving medication as a basis for qualified treatment was largely inaccessible due to the high cost. In addition, surveys of the rural population indicate that one of the reasons is the lack of quality medical procedures due to the lack of a specialist. Today, even in settlements with a population of up to 999, health facilities do not have X-ray machines, ultrasound machines, etc. Only general laboratory tests are carried out, which significantly reduces the possibilities for providing qualified medical care.
According to the State Statistics Service of Ukraine, health care facilities are concentrated in rural settlements with more than 500 inhabitants. In accordance with the provisions of regulatory legal acts, their location is regulated depending on the concentration of the population. However, this does not take into account the condition of the roads, which directly affects the time of patient transportation to a medical institution and so on. Thus, today most rural settlements are not fully provided with the health care system and don't have access to quality health-care services on time.
Another important component of social services for the rural population is the pre-school education. Another important component of social services for the rural population is pre-school education. Studies have shown that inadequate provision of pre-school and school facilities is an important obstacle to the development prospects of rural settlements. According to the State Statistics Service of Ukraine, 17,813 rural settlements do not have pre-school facilities, mainly in rural settlements with a population of up to 199 people. Thus, the early childhood care is entirely the responsibility of one of the adult members of the rural household. In addition, the results of surveys of rural households have shown the quality of children's preparation for school is significantly lower compared to kindergartens.
In addition, the parents of young children do not consider taking them to preschools located in other rural settlements, primarily due to lack of time. This leads to the conclusion that children do not have the prerequisites to increase their readiness to study at school.
As of January 1, 2014, there are no schools in 15,008 villages, the vast majority of which have a population of up to 199. The nearest schools are 10 km away. Currently, with the implementation of the state target social program «School Bus», approved by the Resolution of the Cabinet of Ministers of Ukraine №31 dated 16.01.2000, the issue of transportation of children is practically solved. However, given the state of road traffic between settlements, especially in winter, children are more likely to be absent from school. The programme is financed from the state and local budgets, as well as from other sources not prohibited by law.
In the context of decentralization, the decision to open and close schools is made by the society, taking into account the possibilities of financing them and the need for them to provide educational services in the united community. Optimizing the school network is only partly a central government initiative - each community can refuse to close even the smallest schools [16]. However, the government is encouraging optimization through a new education subsidy formula, which
provides more funds for schools with sufficiently filled classrooms.
Optimization of the school network is possible by closing the understaffed schools with the organization of transportation of children to other nearby schools. Communities may also establish supporting schools (usually a large school in the administrative center of the community) after the closure of understaffed schools. It should be noted that supporting schools are institutions of general secondary education, which have a higher legal status and more authority than the regular schools. Supporting schools generally have more than 200 pupils and are equipped with modern equipment for the study of school subjects taught by qualified teachers. These institutions are attended by secondary and high school students, while primary school students usually continue to study in nearby small schools.
An important factor influencing the quality of human capital is the availability of cultural and leisure facilities in rural areas. Only about a quarter of Ukrainians (27%) believe that there are enough opportunities for children in their community for creative and artistic development. In addition, residents of large cities assess these opportunities five times more positively than rural residents. The results of the nationwide survey illustrates this [17]. Clubs, in particular, culture centres and village clubs are the main centers around which cultural life is concentrated in rural areas. The network of rural club exceeds 16,000, 80% of which are rural clubs. Within the existing culture centres there are various study groups, most often vocal, choreographic, theatrical and artistic. Quite often they are the only place of leisure and creative development for children and adults.
Most houses of culture and village clubs have not been repaired for decades, so they require major repairs, modernization of heating and drainage systems, upgrades of equipment and furniture. Such costs are disproportionately high for the budgets of newly formed communities.
In addition, the cultural sector has always been funded on a "residual basis" and today financial resources are allocated for solving urgent problems of the communities. Subsidies received by communities in the reform process were aimed at repairing the road surface, upgrading utilities, water supply and landscaping. Consequently, less financially prosperous communities are unable to maintain cultural institutions and offer quality cultural services to the rural population. As a result, a situation may arise in which depressed areas will be left without cultural institutions, cultural and artistic programs and projects at all.
Another urgent issue facing villages, settlements and small towns is the shortage of human resources. Low wages and lack of professional prospects in rural areas do not encourage the recruitment of specialists in the culture sector. In more affluent amalgamated territorial community, as well as in settlements that have become community centers, there is often at least a team consisting of director, artistic director, leaders of groups that organize cultural life in the community. At the same time, in small villages in culture centres and
village clubs, cultural life is sustained by the enthusiasm of only one person who has worked in this position all his life. It is obvious that under such conditions this factor is a deterrent to the development of human capital in rural areas and requires the development of a set of measures to change the current trend.
However, unlike other amalgamated territorial community, the Uzyn amalgamated territorial community managed to retain the staff of cultural institutions. As of 01.10.2019, there are 12 club institutions, 13 libraries, the organizational and mass work department of the public institution «Center for Development of Children and Youth» and the art school «Children's School of Arts» in the amalgamated territorial community. Within the cultural institutions there are 10 amateur groups, which the territorial community financially supports.
Conclusions. It is established that the policy of optimizing the network of medical and educational institutions in rural areas, slow development rate of social and engineering infrastructure of rural areas significantly reduce their attractiveness, and job cuts with a corresponding level of pay has had an impact on the increase in migration and the emigration of young people from rural areas. This situation is accompanied by rising the differentiation of the rural population by income and quality of life, which increases social tension, lumpenization of a large part of the peasants, increasing social exclusion of the rural population, which distorts human capital reproduction by reducing investment resources and increasing the impact of factors such as declining quality of education and health, declining quality of life, reducing economic and social needs and simplifying their structure.
The costs of education, culture and health care have been shown to be an investment in human capital, but the externalities of socio-cultural services are not limited to the accumulation of human capital as a factor of economic growth. It includes a social component -the development of socio-cultural services is a sphere of self-fulfilment of the human person as a means of satisfying their intangible values. The externality of the effect is reflected in the accumulation of human capital by each rural inhabitant, which is manifested in the multiplier effect on all spheres of life of the rural population. In addition, it manifests itself in influencing the next generation through the continuity of historical and cultural-national traditions.
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