The Inequality of Human Potential in Urban and Rural Areas: Risks and Opportunities

The results of a study focused on identifying differences between the city and the countryside in terms of human potential and the conditions for its development and implementation are presented. For the purpose of this study, the authors’ human development index (HDI) is used, which includes the original measurement of its three components (longevity, educational potential, and standard of living). In the “educational potential” component, instead of the traditional index “share of students in the total population 7 to 24 years old,” the index “share of the population 25 years old or older with vocational education” is substantiated and applied. This makes it possible to consider the accumulated educational potential of Russian citizens, which can be realized both in the field of work and in other areas of their lives and more accurately reflects the educational opportunities of the population. In the “standard of living” component, instead of the particular index “GDP per capita according to PPP,” the use of the index “purchasing power of household disposable resources” is justified. It considers more accurately the purchasing power of resources actually spent on consumption by urban and rural households with account for their size and structure. It has been revealed that villagers lag behind townspeople in terms of the HDI and all its components. Having considered the living conditions of both groups of the population, the authors show that the most pressing problem is the lack of opportunities for most urban and rural residents to realize their needs for improving the quality of housing conditions that are below average standards. The results of this study are of practical importance and can be used in the preparation and updating of the most important state documents.