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Stagnating Socio-economic Systems

“Conflict-Free” Socio-Economic Systems

ISBN: 978-1-78769-994-6, eISBN: 978-1-78769-993-9

Publication date: 4 July 2019

Abstract

Purpose

The purpose of this chapter is to determine the essence of stagnating socio-economic systems through the prism of the theory of economic conflicts.

Methodology

Comparative analysis of conceptual approaches to treatment of stagnation of socio-economic systems – the theory of cycles, the theory of economic growth, and the theory of economic conflicts – is performed. According to the theory of economic conflicts, signs of stagnation of socio-economic systems are determined with the help of methods of horizontal and trend analysis. The research objects are leading developed countries (major advanced economies – G7), which, according to the existing scientific and economic paradigm, should not stagnate, and countries of the Commonwealth of Independent States (CIS), which, in the contrary, may show signs of stagnation. The analyzed indicators are growth rate of GDP in constant prices, growth rate of GDP per capita in constant prices, and the level of unemployment rate. The research is performed in the period of post-crisis restoration of modern socio-economic systems, including the forecast period (2010–2022) based on the data of the International Monetary Fund.

Conclusions

As a result of the research, the essence of stagnation of socio-economic systems is determined, and the following characteristics are given: emergence after crisis, negative influence on economy, universal nature, and manageability.

Originality/value

The obtained conclusions show opposition of stagnation and sustainable development. Stagnation is absence of economic growth and development, regardless of social and ecological costs of economic activities. Contrary to it, sustainable development means stable economic growth with low social and ecological costs of economic activities. That’s why stagnation of economy is a negative phenomenon. Unlike crises, stagnation could and should be avoided with the help of the corresponding (anti-stagnation) measures of crisis management.

Keywords

Citation

Bogoviz, A.V., Varlamov, A.V., Mishchenko, V.V., Pochestnev, A.A. and Talismanov, Y.L. (2019), "Stagnating Socio-economic Systems", Popkova, E.G. (Ed.) “Conflict-Free” Socio-Economic Systems, Emerald Publishing Limited, Bingley, pp. 219-225. https://doi.org/10.1108/978-1-78769-993-920191025

Publisher

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Emerald Publishing Limited

Copyright © 2019 Emerald Publishing Limited