A hard way of human capital integration into production chains of the economy

The article presents an outlook on the consequences of the economic reform of the 1990s. We see the reasons for its failure in the superficial understanding by the authors of the reform of the essential characteristics of the economy’s market model, and, the subsequent confounding of key pillars with secondary ones, which led to serious mistakes, first of all, the monstrous stratification of society, four financial and economic crises, and stagnation of economic development in last 5 years. We believe that the “soul” of the market economy is competition, not the form of ownership, that the economy and policy are inseparable from each other, that the engine of the modern economy is not a “physical force” of natural and labour resources, but a “soft, smart power” of human capital, as well as the institutions that contribute to the maximum fulfilment of human capital. All this is a prerequisite for the transition to the post-industrial economy in the country.