An impact of human capital on the sustainable economic development

Abstract

Importance Leading scholars around the world express their concerns about a rapid economic growth that can but decline one day. It will inevitably deplete all possible resources, i.e. raw materials, human and natural resources. There is no need in striving to an uncontrollable economic growth, while it can be substituted with sustainable development and reduce disparity in economic development of nations. Objectives The research analyzes the effect of human capital on the sustainable development of economy. Methods We use statistical data of the World Bank and the UN Development Program. They underlie a cluster analysis of some States with different levels of human capital, socio-economic development and environmental situation. OriginPro 8.6 was used to visualize the data. Results Nowadays, developed countries demonstrate lower economic growth rates in comparison with developing economies, which retrofit their manufacturing sectors, implement the state-of-the-art technologies, involve cheap manpower and labor discrimination, low environmental standards. Having adopted the concept of sustainable development, developed countries pursue the compliance with it by moving their science and technologies forward, taking care of the living standards of the current and future generations, thus obstructing their economic growth. Conclusions and Relevance Currently, natural resources diminished almost to their depletion, and economic growth is mainly driven by innovative developments and discoveries. Sustainable development requires not only investment and new technologies, but also the revision of civilization priorities, refusal from certain benefits for the sake of the future generations to come.