Journal of Security and Sustainability Issues

Contemporary studies show that military power depends not only on manpower, weapons, or resources, but in many cases, success on the battlefield is determined by the potential of human capital, including knowledge, skills, competences, and other capacities [1; 2]. Using a cost-based approach, the author focuses on the input side assessing military human capital potential in the context of defence expenditure – economic development nexus in the Baltic countries, such as Lithuania, Latvia, and Estonia. The investigation covers the period between 2004 and 2020. Defence expenditure on personnel has been used as a proxy for military human capital potential, and real gross domestic product (GDP) per capita as a proxy for economic development. Research is carried out using econometric methods, including Spearman’s correlation analysis and Automatic Linear Modelling (ALM). The research results reveal that investments in military personnel have significant and positive impact on economic development in the Baltic states. Defence expenditure on personnel explains 63.7 percent of variation in real GDP per capita in Lithuania, 71.3 percent in Latvia, and 63.4 percent in Estonia. The author hopes that the findings of the investigation will extend the scope of research across the Baltic States and will be useful for the achievement of Sustainable Development Goals (SDG 8, economic g rowth).

The article aims to present financial analysis in determining the possibilities of human capital development, i.e., increase in the value of an enterprise through development of human capital. The market value of an enterprise is to a large extent dependent on its intellectual capital, including human capital. It may be said that human capital constitutes a ground for an enterprise’s development through work, creativity in operation, adjustment to a fast-evolving environment. Emphasizing the importance of the above content, as “hidden” assets of the enterprise, human capital is not fully included in the company’s financial reporting. Despite the often enormous intangible contribution into preparation, use of complex methods for selecting the right employees, implementation of an incentive system, performance evaluation and staff development, organizational procedures that absorb a series of activities to ensure growth of the company’s value and which should be included in its financial statements, are underestimated.

Increasing emigration leads to the loss of investments in human capital as well as to the constraint of the knowledge economy via a huge leakage of demographical and intellectual capacity, hence threatening national security, social and economic stability. The target of the article is to examine the Lithuanian emigrants’ attitudes toward national security by analysing the relationship between emigration and national security, by disclosing the reasons for emigration, and by investigating the emigrants’ stance on national security. Long-term emigration lasting longer than a year has a greater impact on the country since most of long-term emigrants do not return. This is confirmed by the data revealing that most of emigrants live abroad for ten years or longer. Short-term (for less than a year) emigration can be qualified as a search for temporary financial improvement. It becomes evident amid financial crisis during which the loss of job opportunities and emigration leads to an increase in search for personal income and new experience abroad. Ninety four percent of participants of this research identify themselves as long-term emigrants, and 76% of them have a higher education. It points to the loss of educational investment and qualified labour force. The research reveals that most of survey respondents do not expect to return, for they do not trust the authorities. In addition, they deem that it is not reasonable to increase funding for the Lithuanian Armed Forces. The results of the study allow conclusions to be drawn that emigration is a real threat to Lithuania’s national security.

The research work considers the essence and features of human capital accumulation at the company level in order to provide its economic security. The main components of intellectual capital in the format of human, organizational and customer capital have been studied. The managerial rationality of using the method of direct evaluation of intellectual capital and the method based on market capitalization has been proved. Both methods give the greatest organizational effect in providing economic security. The empirical study of using the quantitative assessment of human capital of a machine-building company has been carried out in order to strengthen its economic security.

Currently, it has become generally accepted in the leading countries of the world to consider human capital as the basis of the state, society and the economy. In the modern post-industrial society of the leading states of the world, the life and creative potential, human abilities are the core of all socio-economic processes, this is especially relevant in the context of the globalization of the world economy and the free flow of any capital, including human capital, both inter- and in-country. Meanwhile, in Kazakhstan, human capital is perceived as something burdensome and unnecessary. In Kazakhstan society, it is still not customary to talk about the priority of the quality of human capital in the process of creating products. Separate studies of recent years unequivocally indicate that Kazakhstan as a whole and Kazakhstani enterprises in particular will soon face serious difficulties in the area of human resources. Managers of enterprises, both in the public and private sectors, relate to the creation of conditions for the development of the human capital of their employees as a waste of time and money. Such a position essentially reflects not only the low level of management culture, but also strategic mistakes in doing business in Kazakhstan. On this basis, for Kazakhstan, the trends in the development of human capital are of undoubted interest and have practical significance.