THE STATE OF HUMAN CAPITALAS A FACTOR OF RUSSIA'S ARCTIC DEVELOPMENT

Today, a vital criterion of a nation's economic competitiveness implies strong human capital. Russia, with its huge area, faces a challenge of uneven social and economic progression by regions. Hence, investing in the Arctic is a priority enshrined in Russia's 2025 Strategy for the Economic and Social Development. The social and economic level of the Arctic is worse comparing to other regions with more beneficial conditions. The Arctic offers various mineral resources with many reserves still unexplored. The Arctic's natural wealth and technology innovations alone cannot drive its economic sustainability. The paper sets a relevant goal of identifying factors that contribute to the Arctic's human capital as the region cannot progress without a skilled workforce capable of living and working in the extreme North. Russia will be able to unlock the resource potential of its Arctic territories only if it creates a sizeable population and talent pool with the capacity required to address the economic challenges faced by the region. Therefore, a good social infrastructure is critical for robust human capital - it directly affects the economic enthusiasm of people developing the potential of the Arctic Zone of the Russian Federation. The state policy should be formulated using a system approach to implementation methods of socio-economic programs in the Arctic zone of the Russian Federation. (C) 2019 Published by Future Academy www.FutureAcademy.org.UK