Doctor of Economics, Professor, Head of Finance Department of Kyiv National University of Trade and Economics
Doctor of Economics, Associate Professor, Professor of Finance Department of Kyiv National University of Trade and Economics
GOVERNMENT FINANCIAL REGULATION OF HUMAN POTENTIAL DEVELOPMENT
Background. Under instability of the global economy intensification of the role of state financial policy to create favorable conditions for human potential development and restoration of positive economic dynamics become important. The financial component of human potential development should provide a gradual increase in the level and quality of life, contribute to the improvement of the institutional structure of social sphere, labor productivity growth, raising the share of high technology and high-tech products in GDP. An appropriate level of validity of the priorities of state financial policies of human potential development will promote impact of structural changes in the economy and social sphere.
Analysis of recent research and publications. The works of foreign and local scientists are devoted to the question of financial security of human potential development. However, in today's economic transformation, it is important to study government financial regulation of human potential development in the social and economic development of a country.
The aim of the article is to outline the theoretical principles and improve methodological guidelines of the formation of public financial regulation of human potential development in terms of institutional reforms of the economy.
Materials and methods. The article used a set of approaches and methods, including systematic and structural, comparative and factor analysis, historical and logical, scientific abstraction, synthesis and functional analysis.
Results. The economic essence of government financial regulation of human potential as a component of social development, that requires the application of a set of norms, rules, methods, forms, mechanisms, instruments, and leverages of financial architectonics aiming to provide specific conditions for enhancement of a quality of institutional environment of an economic growth model and increase the human development level under conditions of strengthening influence of integration processes on macroeconomic dynamics is indicated. The approaches to institutional modernization of financial regulatory system of human potential development are suggested. A structural and functional model of government financial regulation of human potential development is proposed. Priority areas of financial regulation transformation of human potential, which will help create conditions for socio-economic development, were substantiated.
Conclusion.The priorities of the government financial policy of human potential development should be: forming a hierarchical system of state targeted social programs, development of institutional component of the financing of education, science, health, improving the efficiency of application of program budgeting in the budget process, increasing the efficiency of the relationship of the state budget to local budgets, improving the pension system. It is important to further strengthen the role of the financial component of human potential development processes to ensure economic growth.
Keywords:government financial regulation, human potential development, financial institutions, budget policy, fiscal policy, social policy, government target programs, program target method for budget planning, pension provision, state and private partnership, social and economic development.
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