FINANCIAL AND ECONOMIC ASPECTS OF LOSS HUMAN CAPITAL AND COMBATING THIS CHALLENGE OF UKRAINIAN HIGHER EDUCATION

559 ISSN 2306-4994 (print); ISSN 2310-8770 (online)  UD 330.142:331.52 Svyrydenko D. Doctor of Philosophical Sciences, Professor, Guangdong University of Petrochemical Technology, Maoming, China; e-mail: denis_sviridenko@ukr.net; ORCID ID: 0000-0001-6126-1747 Hots N. Doctor of Engineering Science, Professor, Lviv Polytechnic National University, Ukraine; e-mail: nataliia.y.hots@lpnu.ua; ORCID ID: 0000-0003-2666-2187 Kovtun I. Ph. D. in Public Administration, Associate Professor, Leonid Yuzkov Khmelnytskyi University of Management and Law, Khmelnytskyi, Ukraine; e-mail: ibkovtun@gmail.com; ORCID ID: 0000-0001-8530-8642 Panchenko L. Ph. D. in Philosophy, Associate Professor, National Pedagogical Dragomanov University, Kyiv, Ukraine; e-mail: rada@npu.edu.ua; ORCID ID: 0000-0001-8436-1206 Semeniuk R. Ph. D. student, National Pedagogical Dragomanov University, Kyiv, Ukraine; e-mail: romansemeniuk9@gmail.com; ORCID ID: 0000-0001-8518-8265 Dvigun A. Doctor of Economics, Professor, National Institute for Strategic Studies under the President of Ukraine, yiv, Ukraine; e-mail: dvigun.alla@gmail.com; ORCID 0000-0002-0168-8682

ISSN 2306-4994 (print); ISSN 2310-8770 (online) Apalkova and Lyzunova [7] studied the relationship between the level of education of the population and the level of its well-being. Savenkova and Svyrydenko [8] sees the outflow of intelligence as the main challenge of higher school. Smirnova and Simakov [9], Vasylieva and Rybka [10] study how to prevent this process. Machek [11] sees the main challenge for Ukrainian higher education in the predominant desire of students to study abroad. Tkachenko [12] details this by studying the perception of the EU by Ukrainian students and the need to adjust Ukraine's policy in the sphere of youth migration. This is more widely analyzed in the work of Shashkova et al. [13]. The issue of student youth migration worries not only Ukrainian scientists. Rudenko et al. [14] researches the problems of students in the new country and points out that moving for study creates a specialist's mobility in choosing a country for employment. Rudenko et al studied the change in the quality of human capital under the influence of the latest learning technologies in the Chinese experience [15]. The experience of Spain was studied by Marciniak [16], that of Germany -by Bond [17]. The impact of new technologies on improving the quality of human capital and the role of higher education in this issue was studied by Bykov [18] and Rudenko et al [19] studied the same impact later on in human life, which is important for changing the age threshold of workers in the country. Unsolved aspects of the problem. Despite a number of scientific studies of the problem, the impact of challenges to Ukrainian higher education and the threat of loss of human capital is insufficiently studied.
The purpose of the article. The purpose of the research is to analyze the impact of challenges and threats for the human capital of higher education taking into consideration all institutional components and to develop proposals for the formation of directions for the response of higher education to the challenges.
Research results. Analysis of the dynamics of changes in indices of human development and human capital (see Table 1) indicates a general deterioration of the situation in the country as a whole. At the same time, the observed increase in the specific value of the human capital index (per capita), according to this analysis, shows that this is also not a positive phenomenon because it means that the downward trend in the working population is greater than the downward trend in the human capital index. The declining population also radically changes the working conditions of higher education, as it reduces the number of students and undergraduates, which leads to a decrease in the number of teachers respectively. Thus, the number of higher education institutions for the period of 2010/2011 academic year decreased by 24%, the number of teachers in them by 68%. The natural effort of the HEI as a comprehensive institutional structure to prevent a decrease in the number of students as an institutional component leads to a tendency of reducing the quality of human capital of this institution. This, with a lag in time, leads to a decrease in the quality of all subsequent institutional categories -masters, graduate students and so on. That is, the problem of the quality of human capital in higher education should be analyzed for all institutional categories, which, in their entirety, form the institution of higher education, because these categories are emergent as elements of one system. An analysis of the existing threats of human capital loss and possible responses to them in higher education is conducted. Threats can be divided into direct and indirect. The direct ones, for example, include the migration of highly qualified teachers and the migration of young people who have become or could become students and post-graduate students. Further, a group of factors has been identified that can lead to a decrease in the quality of both teaching and student human resources.
This group of factors has both an objective and a subjective basis. Objectives include the reduction of the scientific experience of the teaching staff and, accordingly, the quality of teachers as scientists. This reason has several reasons -both a decrease in funding for research, which leads to a decrease in the number of scientists ( Fig. 1) and an increase in the workload of the teaching staff, and, above all, bureaucratic workload, which reduces opportunities for research. The reasons for this are that there is a decrease in public funding for research, which leads to a decrease in the number of scientists (see Fig. 1) Also an increase in the workload of the teaching staff, and, above all, bureaucratic workload, reduces opportunities for scientific activities. Another significant challenge consists in the fact that the economic crisis is reducing the number of jobs for highly qualified staff. The structure of vacancies today is as follows: the simple unskilled jobs ~ 16.2%, skilled workers with tools ~ 15.7%, specialists ~ 9.1%, professionals ~ 7.9% [1]. That is, specialists are in demand by 72% less than workers. This reduces the motivation to study in the HEI and obtain higher qualifications. The analytical study revealed a factor of imbalance in the financing of HEI students and the reproduction of highly qualified personnel from budgetary sources and the growth of the share of self-financing (Fig. 2).
According to the distribution of education costs by organizations that finance them (financial agents) and providers (service providers), higher education (short cycle, bachelor's degree, master's degree or their equivalent) under ISCED 5-7 is 25.76% funded from non-state sources. The share of funding for this level of education by private firms and corporations is only 1.02% and, according to statistics, the financial agent «Households» finances a fairly large share (24.74%) of total expenditures. Doctoral studies or its equivalent (ISCED 8) is already 47.57% funded from non-state sources. The share of financing of this level of education by private firms and corporations is 14.05% and 34.2% is financed by the financial agent «Households».  For comparison, «post-secondary» non-higher education (ISCED 4) is 6.57% financed from non-state sources and 3.75% by households. Moreover, the share of funding for training of both highly qualified personnel and students from non-state sources tends to increase from year to year and has a significant difference by region (Fig. 2). Also, in the process of analytical research a narrowing of the base of quality reproduction of qualified personnel was revealed. Thus, the number of the age group that served and serves as a basis for potential higher education is decreasing.
The next factor is a decrease in the welfare of the population and an increase in direct and related costs associated with training. The third factor is the reduction of employment opportunities in the specialty acquired during training.
There is a significant disparity by region in the ratio of the number of students studying at public expense and by contract. For example, for Odesa region this ratio is 2.26, and for Sumy region -0.95. The share of state-owned HEI students in the total number of students in the region  The study found a significant difference between those who completed post-graduate school and those who defended their theses. There is a tendency to increase enrollment in graduate school, and those who graduated from it and finished it without defending a thesis (Fig. 3). This indicates the indirect impact of the economic crisis and the lack of funds for self-financing.
The number of doctoral students or its equivalent decreased during the period under review by 37.39%, master's degree students by 37.53%, bachelor's degree students by 97.37% (Fig. 4). For comparison, the number of students in the short cycle of higher education decreased by 59%, after secondary non-higher education 2.28 times.

Fig. 4. Dynamics of the number of students in educational institutions of Ukraine according to the International Standard Classification of Education ISCED 2011
Source: it was summarized by the author using [1; 2]. A significant disproportion of the teaching staff of the HEI at the beginning of the 2020/21 academic year by region was revealed. Thus, 21.8% of staff work in Kyiv, 14.5% -in Kharkiv, 9.3% -in Lviv, 7.5% -in Odesa, 3.3% -in Vinnytsia, 6.3% -in Dnipro. This is not fully correlated with the population of the regions and with the volume of industrial production in the regions, which leads to a certain uneven impact on the human capital of the regions and the human resources of regional HEIs.
Distribution of scientific and pedagogical workers of the HEI with the rank of associate professor and professor by regions, respectively: 19.02% and 24.13% -Kyiv, 14.63% and 15.4% -Kharkiv, 8.52% and 8, 42% -Lviv, 7.2% and 7.8% -Odesa, 3.7% and 3.06% -Vinnytsia, 6.6% and 6.5% -Dnipro. This proves the discrepancy between the quality of human capital of HEI employees in the regions and the disproportion of distribution in accordance with the ranks of associate professor and professor by region. The study of the number of post-graduate students by region 33.46% -Kyiv, 13.43% -Kharkiv, 8.54% -Lviv, 6.26% -Odesa, 2.5% -Vinnytsia, 5.3% -Dnipro indicates that the disparity in quality will increase as regional centers lose the status of a scientific school.
According to the study, the direct losses of Ukraine from the migration of highly qualified personnel associated with government spending on their training (Fig. 5)  Doctoral studies or its equivalent with a tendency to increase. Direct losses of more than UAH 120 million are projected in 2021. A significant reduction in migrants in 2016 (more than 3.5 times) resumed in subsequent periods. In fact, all this leads to the irreversible financing of other countries with more developed economies by Ukraine. Thus, only half of the EU, the United Kingdom and the United States would have to spend $ 22.9 million to train an equivalent number of professionals that they acquired through migrationin 2020 only( Table 2). And these are only direct losses of Ukraine.

Fig. 5. Losses from emigration of highly qualified personnel, UAH million
Source: it was summarized by the author with using (http://www.ukrstat.gov.ua).
According to research, ~ 15% of highly qualified personnel implement innovations, ~ 50% contribute to this implementation. The outflow of specialists leads to a reduction in innovation, which is one of the significant consequences for the country's economy and, in fact, contributes to economic stagnation (Fig. 6). During the period 2010/2011 -2019/2020 academic years, the number of higher education institutions in Ukraine decreased by 24.2% to 281, the number of students decreased by 68.22% to 1266.1 thousand people.
Thus, despite certain strengths of higher education in Ukraine (established traditions, level of education of the population), weaknesses have been identified [20]. Weaknesses include the limitation of public funding to obtain certain qualification levels and, in general, higher education; reducing the quality of human capital in institutional categories (both students and teachers), which makes the institution of higher education more vulnerable to challenges ( Table 2). Unfortunately, the challenge lies also in the fact that the acquisition of higher education and appropriate qualification levels is not always equivalent to the rate of wages and the availability of jobs. The urgent requirement is to optimize public funding of human capital; to create regional funds for financing higher education, to form scientific schools and acquisition of higher qualification degrees to eliminate regional disparities in the development of the HEI.
Conclusion. The multilevel category of human capital by institutional structure (students, masters, post-graduate students, doctoral students, scientific and scientific-pedagogical staff) of higher education establishment, the importance of the higher education institution to restore human capital and economic indicators of human development determines the need for systematic analysis.
As education and training are one of the main tools for improving the quality of human capital, it is necessary to increase the share of public funding for higher education costs and the appropriate incentives for highly qualified personnel to reduce labor migration.
Determinant in increasing investment in human capital at all levels is, firstly, the high efficiency of such investments, and secondly, the growth of human capital is a factor in stabilizing the socio-economic situation in the country.
With this in mind, public policy should focus, on the one hand, on increasing the availability and improving the quality of higher education, on the other hand, on expanding the scope of highly skilled labor in all sectors of the economy.
The response of higher education to the challenges should consist in the introduction of new approaches and technologies for learning, high requirements for qualification selection, the creation of a modern system of lifelong learning and social partnership in ensuring the competitiveness of highly qualified personnel.