THE FORMATION OF HUMAN CAPITAL IN RURAL AREAS BY MEANS OF EDUCATION

Introduction. Human capital is a key factor in the economic development and social progress of a society. According to the theory of human capital, investments in education, health, culture, and other areas that contribute to the development of an individual’s abilities and potential lead to increased labor productivity and economic growth. The formation of human capital in rural areas is particularly important due to the specific challenges posed by social and economic conditions, infrastructure levels, and the accessibility of educational services. Methods. The research employed methods such as system-structural and comparative analysis, monographic analysis, social and economic analysis, and statistical data processing techniques. Results. One of the greatest challenges in forming human capital in rural areas is the limited access to quality education. To address this issue, it is necessary to develop and implement effective strategies for educational development in rural areas. This can be achieved by establishing modern educational institutions, enhancing the qualifications of teachers, introducing modern teaching technologies, and developing distance education systems. An important component of this strategy is the attraction of investments in rural education. A key role in the formation of human capital in rural areas should be played by sound government policies aimed at eliminating disparities between education in urban and rural areas. Discussion. Future research on this topic should include an analysis of the role of education in developing entrepreneurial skills, as well as an in-depth examination of national and regional education policies that support rural education. The role of public and local organizations in the formation of human capital in rural areas should also be explored. Keywords: human capital, rural areas, education, labour potential, government policy.