Socio-economic aspects of human capital development in Russia and China

Abstract

Innovative cooperation is an important component of mutually beneficial bilateral cooperation. Such interaction between the two major global players such as Russia and China requires a well-balanced human development policy. The article reveals the complexity of the evolution of hu-man capital in RF and China. Based on the comparison of the socio-economic indicators and data from the UN Human Development Report, the author considers strengths and weaknesses of existing models of human development. The article shows the dominance of Russian Federation in economic and social indicators, such as per capita GDP, disposable income, inequality index, gender gap, education level. While important features of the modern China progress are making this country more capable in accumulating and making proper use of human potential. The main advantages of development of PRC are rapid growth of population incomes, thoughtful elimination of poverty and illiteracy, growth of the education level and life expectancy. The author highlights weaknesses in the development of partner countries: population decline, age and gender imbalances, significant gap in living standards, increasing burden on the healthcare system, drop in real incomes and insufficient funding for education and research. According to the human development index, the gap between Russia and China in the world ranking at this stage is 34 positions. However, the dynamics of changes in living standards over the past 30 years indicates a short time left until Russia remains a leader. Building a strategic long-term partnership with China requires from Russia more balanced policy in use of human capital.