The Human, Innovation and Productivity Background of Economic Sustainability in Hungary in International Context

Abstract

Achieving sustainability is one of the most important tasks to be achieved in the present time. One may think firstly about environmental sustainability raising the question how production and consumption impacts the environment in the form of extracting raw materials from and loading waste back into the natural environment. Sustainability, however, is a wider concept, and can only be analysed as an interaction among diverse systems. At least four systems have to be considered: the economy, the environment, the human community (population) and society. It is not sufficient for that reason to investigate the impact of production and consumption on the natural environment, but it is equally important to examine the interactions among the economic system, human beings and society from a sustainability point of view. Special focus has to be put on the examination of how efficiently and productively are the human and social resources utilized by the operating economic models, how much they erode or contribute to the development of those resources. This paper examines the sustainability of the Hungarian economic models from the perspective of human resource utilization and productivity based on comprehensive statistical data analyses. It also investigates the interconnections of sustainability, innovation, productivity and competitiveness of the Hungarian economy from an international perspective, and suggests ways to create harmony among them. In conclusion the paper warns that economic sustainability can only be achieved through more innovation, more investments into human resources and consequently on the basis of significant productivity improvement. This would also lead to a more environmentally friendly, resource-efficient development economic model contrasted to the traditional environmentally damaging growth model.