The financing of the productive service through HCC*
Jiří Mihola, Radim Valenčík
We live in times where problems and conflicts accumulate and arise for various reasons. Their common feature is the fact that the steady development of our civilization has run into natural barriers created by the nature of the world we live in. Overcoming these barriers and finding solutions to these problems requires a change of the economic growth nature as we have tried to demonstrate. This change is not only necessary but – which is most important – even possible. This change can be described, defined and named differently. We believe that its most distinct feature is substantial growth in role of productive services, i.e. services associated with acquiring, maintaining and applying human capital (education, health care etc.).
In order to implement this change, it is necessary to reform the systems of social investment and social insurance (education funding, health care, pension scheme) so that the society can activate mechanisms that create feedback between economic effects of productive services and sources of their funding. It is important to minimize or to completely exclude redistributed institutional interventions. Such mechanisms can be created by utilizing HCC based on transfer price and mediated application of the transfer price principle. This shall allow the sector of productive services to stand on its own economic foundation and active competition to contribute to substantial enhancement of their effectiveness. Effectiveness in this case means a higher-quality and more productive way of living.
Although the economic growth may not seem exponentially dynamic and sustainable, the analysis of industrial revolution (birth of industry, growth in its role in economy) and its comparison with distinct growth in role of productive services sector demonstrates the opposite, even with increasing dynamics of proportional gains.
Elaboration of the changes related to overcoming the steady nature of the development, specifically the form of growth in role of the productive services sector, is considered relevant and worth professional interest. Individual countries have different initial conditions. There might be different opinions concerning a number of questions, which is why problems arisen in this area should be tackled as part of international cooperation.
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(To be continued)
* Následující text je zpracován s využitím materiálů prezentovaných na mezinárodní konferenci. Zařazujeme jej jako přípravný materiál na pracovní část 17. ročníku naší konference Lidský kapitál a investice do vzdělání mj. i vzhledem k tomu, že jsme její termín posunuli až na 5.12. a že se na její obsah dotazují i zahraniční zájemci.