The sustainable human capital development and financing of education in Europe and Ukraine

Abstract

Human capital is a key to unlocking a child’s potential and to improving economic growth in every country. But the COVID-19 pandemic threatens hard-won gains in health and education over the past decade, especially in the developing countries. The research is devoted to the analysis of the European experience of financing education for sustainable human capital development and provides practical recommendations for implementing tools for financing education for sustainable human capital development in Ukraine. In order to achieve the stated purpose theoretical bases, legislative and regulatory official documents were analyzed. The main problematic areas are: participation of adults in learning; the share of employed graduates; the low level average expenditure per pupil/student and others. The review shows that the most perspective approaches to financing education for sustainable human capital development are partnership of governments, local authorities, educational, business and household institutions; reform the mechanism of education funding. As a result, the roles of the EU and international organizations in the development of mechanisms and tools for financing education at all levels by different groups of actors have been identified. The objective need for cooperation of international organizations, state institutions, economic entities and human capital carriers to finance quality and affordable education is substantiated. The results of the study can be used in governance models. The study actualizes the value of human capital development and financing of education, and proves their impact on the sustainable growth.