HUMAN CAPITAL IN THE CONDITIONS OF THE DEVELOPMENT OF EMERGING GLOBAL VALUE CHAINS

Abstract

The article is devoted to studying the features of the development of human capital in the context of emerging global value chains. It is determined that the modern global economy is creating unprecedented challenges and opportunities for continued progress in human development. The world's production plays an important role in promoting social progress through the expansion of international value chains. Analyzing the process of transnationalization reveals that the dominance of production within global production chains attributed to transnational corporations (TNCs) promotes competition between countries for localizing the most productive links of the chains in terms of creating added value. This competition manifests itself in training, investments in infrastructure, the introduction of a favorable tax regime etc., as well as the requirement of placing a certain stage of a TNC's production process on the territory of a country as a condition of accessing its market. It is concluded that education has become a major resource that distinguishes economic actors that have the potential for prosperity under the influence of globalization from those, whose status is becoming increasingly marginal. Knowledge, whether it is highly specialized or more general, as reflected in the ability to solve problems, the ability to learn based on well-developed reading and computational skills has become a necessary condition for value-creating activities and for quickly switching from one kind of activity to another. Taking the international experience into account, the article proves that it would be beneficial for our economy to improve the redistribution mechanism of income formed from natural resource export, in order to promote human capital development, development of the technological base and strengthening (or developing) institutions and infrastructure required for the influx of investments into production of finished products with an initial focus on medium-tech small industrial business, then on the development of medium-tech industries, and at last on integrating large enterprises into global value chains