Economic approach to human capital formation in management system of rural areas

The purpose of the article to reveal problems of ensuring intellectualization of human capital in rural areas in context of administrative reform related to deregulation and power decentralization. Research methods. To study an impact of human capital on effectiveness of rural areas we used systemic and evolutionary approaches requiring hierarchy of essential understanding of new public management, as well as conducting the holistic research with identification of various characteristics, direct and feedback relationships and dependencies that arise in the process of public administration for rural development. Research results. Efficient realization of the existing economic intelligence of rural areas demands creating qualitative characteristics and preconditions for knowledge-based management at the national level. The role of human capital in processes of public management organization for innovative rural development in Ukraine was considered. Its characteristic features and place in the system of public administration were synthesized. Elements of scientific novelty. Basic scientific principles for investing into human capital were revealed on the ground of financial and social aspects of management synthesis. It was proved that effective realization of the existing potential of rural areas requires creating qualitative characteristics and preconditions for knowledge of the basic management at the national level. Practical significance. It has been proved that innovative rural development is a complex, systemic phenomenon demanding significant changes not only in the field of technology, but also in management and society as a whole. Refs.: 27.