Factors and Determinants of the Development of Human Capital in Rural Areas in the Conditions of Global Challenges

Abstract

Abstract The development of rural areas is a complex and dynamic phenomenon, the effectiveness of which depends on food security and the economic activity of the population. The urgency of these issues is exacerbated by unprecedented challenges for Ukraine and the transformation of the legal field under martial law. The study aims to determine the factors and determinants of the development of human capital in rural areas in Ukraine, considering the experience of the EU countries in the conditions of global challenges. It is substantiated that the policy adopted in the state to ensure the development of rural areas based on the principles of inclusiveness should be based on balanced instruments, methods, and levers capable of minimizing external and internal threats to agribusiness. Essentially, people’s opportunities and abilities for economic and social activities, as well as for their own development, are critical. It has been proven that the determining factor in this process should be human capital. The motivation for economic activity in the village is singled out from personal factors. In its absence, all prerequisites for urbanization are formed. In this context, the upward dynamics of the indicator of the share of the urban population in the EU countries, which can become an obstacle to the development of business in rural areas, was analyzed and revealed. Attention is paid to the prospects of small businesses in rural areas. The relationship between the urbanization indicator and the human development index in Ukraine and the EU countries was studied.