The impact of inequality on the quality of human potential in Russia

In the framework of regression analysis of world countries’ data, regularities have been studied and estimates are given of the negative impact of income inequality and poverty on human development indices, schooling quality indicators, demographic indicators, global indices of competitiveness and innovation. The interrelations between all these indicators are analyzed. Human development implies expansion of functional capabilities and growth of abilities, knowledge and skills of people in all socially significant areas of human activity. To this end, it is necessary to transform the social environment, to improve social relations so that incentives, opportunities and mechanisms to support human development would be optimal. The structures of the social environment that are amenable to analytical and statistical description, modeling, evaluation and management are identified, with their levels described. The definition of human potentials as a totality of all that ensures the capabilities of a human being as an employee and a member of society, and is incorporated into them, including health, education, life expectancy, is given. At the same time, human capital is only a part of human potential. The examined statistical facts definitely show that the excessive inequality and massive poverty as one of its aspects that have become established in Russia negatively affect the quality of education, public health and demographic processes, as well as the development of innovations and the competitiveness of the country. In this connection, the question arises as to how to reform the relations of distribution in order to overcome these negative effects. The excess income inequality means that some of the resources that serve high incomes can be transferred to those who receive low incomes, so that the increase in productivity of those who receive low incomes will exceed the decline in productivity of those who have these resources removed. A conclusion was drawn on the need to reform the taxation system in order to mitigate the redundancy of inequality. Progressive taxation can be used as one of the types of resources for social progress in Russia aimed at stimulating human development.

human potential, index of human development, social environment, inequality, poverty, index of competitiveness, innovation index, modernization, quality of education, student assessment, life expectance, mortality in age 15–65

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