None of the Far Eastern Regions is a Leader in Human Capital Development

4 july 2016

The Analytical Center held a discussion about a draft report on human capital development in the Far East. A lot of attention has been drawn to the region in recent years and specialized development institutes have been set up. “In order for political instruments to work correctly, the problems the area is facing have to be appreciated at various levels and to achieve that a detailed analysis of the quality of the living environment needs to be carried out,” believes Deputy Head of the Analytical Center Mikhail Pryadilnikov.

“We plan to use the potential human capital development index to create a rating that will be included in the Report on human development in Russia. For the past 15 years the report was part of the UN Human Development Program but since 2014 it has been prepared and published by the Analytical Center,” said Mr. Pryadilnikov.

“The level of human capital development was assessed using such parameters as health, general factorized productivity, education and labor skills,” Analytical Center expert Sergey Nekrasov explained. “And when assessing the potential for human capital development, such factors were taken into account as living standards, the quality of the environment, rest and self-develop in.” The rating to be developed by the Analytical Center will make it possible to identify significant problems in the regions, which, when solved, can prompt large numbers of people to relocate to those regions,” Mr. Nekrasov explained.

“At the moment none of the Far Eastern regions is a leader in human capital development. They need additional investments in healthcare and education,” Mr. Nekrasov said. As for the human development potential index for the Far East overall, it shows that people generally earn a lot there, the living environment offers good quality and people have plenty of opportunity for recreation. But potential has to be realized and to that end, the level of education and labor skills of the population has to be increased and more high skilled labor has to be attracted to the region. Some regions in the Far East such as Primorsky Krai, Amur Oblast and the Jewish Autonomous Oblast, are characterized by low human capital development values for all the parameters included in the rating.

During the discussion the experts talked about ways to avoid systemic mistakes when creating the rating and offered proposals for how to refine it. The specialists also noted the advisability of replenishing the rating with statistical data and the findings of sociological surveys as these often reflect what the people themselves think about their living standards, the quality of their living environment and the services that they get.