Investment in education as a foundation for the development of basic competencies and the promotion of economic growth and social development.

Abstract

The article examines investment in education as a strategic driver of the development of the population’s basic competencies and the achievement of long-term economic growth and social development. The relevance of the study is determined by the need to enhance the quality of human capital in the context of digital transformation, technological change, demographic shifts, global competition, and wartime challenges, all of which require a reconsideration of the role of education as a key priority of public investment policy. The aim of the article is to substantiate the relationship between investment in education, the development of basic competencies, human capital development, and the achievement of long-term economic and social outcomes. Research methods. The methodological framework of the study is based on general scientific methods, including analysis, synthesis, systematization, comparison, and generalization of scholarly approaches to assessing the role of education in human capital development. A systems approach was applied, allowing education to be considered as an integrated system in which investments contribute to the development of the basic competencies required for individuals to adapt to contemporary socio-economic transformations. Results of work. The study reveals the significance of literacy, mathematical, scientific, digital, and civic competencies as interrelated components of human capital that foster analytical thinking, innovative capacity, digital adaptability, civic responsibility, and lifelong learning. It is argued that the integrated development of these competencies creates a synergistic effect that enhances workforce competitiveness and strengthens social resilience. The paper systematizes the main directions of investment in education, including the modernization of educational infrastructure, the development of teachers' professional capacity, the digitalization of the educational process, curriculum modernization, the advancement of STEM education, and ensuring equal access to high-quality education. A generalized framework is proposed to illustrate the mechanism through which educational investment, via the quality of the educational environment, the development of basic competencies, and human capital formation, contributes to economic and social outcomes. It has been established that the economic impact of educational investment is reflected in improving workforce quality, labour productivity, innovation performance, competitiveness, and sustainable economic growth, while its social impact is manifested in greater inclusiveness, stronger social cohesion, enhanced civic engagement, reduced social inequality, and increased societal resilience to contemporary challenges. The scientific novelty of the study lies in providing a comprehensive substantiation of the relationship between investment in education, the development of basic competencies, human capital formation, and long-term economic and social outcomes. In addition, the study systematizes the priority areas of investment in education and generalizes the mechanism through which educational investment is transformed into strategic outcomes for national development. The practical significance of the findings lies in their potential application in shaping public education policy, developing human capital strategies, identifying priorities for educational financing, and substantiating investment decisions aimed at ensuring sustainable economic growth and social development in Ukraine.