Human Capital of Rural Regions of Modern China

Abstract

The purpose of the article is to analyze the results of actual theoretical and empirical studies of the process of accumulation of human capital in rural regions of China at the present stage of economic development. The PRC is still a country with a large proportion of the population living and working in rural regions. That is why the sustainability of the development of these regions and the country’s economy as a whole is largely determined by the peculiarities of the development of the labor resources of Chinese villages. The process of accumulation of human capital in rural regions plays an important role in China’s economic and social policy, as well as in solving the problem of ‘sannun’. The process of accumulation of human capital is influenced by three groups of interrelated factors: urbanization with Chinese characteristics, the level and quality of life, infrastructure and socio-institutional environment. The results of a comprehensive analysis of the influence of these groups of factors led to the conclusion that an elementary increase in public investment in the agricultural sector and rural regions of the PRC against the background of the development of free market relations, urbanization and income differentiation is not enough to ensure conditions for sustainable economic development and solving this problem. The role of human capital in the development of rural regions of China will increase only with the provision of opportunities to create an effective infrastructure and a favorable socio-institutional environment for its accumulation

Keywords

• human capital
• agriculture
• rural regions
• socio-institutional environment
• economic development
• the problem of ‘sannun’