Human capital, social policy and economic development of society

Abstract

The economic development of society directly depends on the active social policy of the state. Progressive social policy is characterized by targeted investments in increasing the human capital of the nation. In turn, today it is precisely human capital that is regarded by many as one of the important indicators of the socio-economic development of a particular society. It must be said that every year various international organizations and institutions publish their own ratings on this indicator. In a general sense, this term refers to the economic value of the individual. Speaking from a purely economic point of view, we mean assets such as education, qualifications, skills, health and other things that employer’s value, such as loyalty, punctuality, etc. Thus, in this context, the focus is primarily on education and health. They are seen as the main sources of increasing the level of human capital. As a result, we can conclude that the issues of social policy and human capital are closely interrelated. The realization of the innovative potential of society is possible only under the condition of such a social policy that is aimed at encouraging the entrepreneurial, creative activity of the individual. The key role of political elites and national leaders in shaping the socio-economic mechanism of development and ensuring its sustainability was noted.
Key words: economic development, social policy, human capital, elites and masses.