Algorithm of Transition of Modern Socio-economic Systems to a “Conflict-free” Path of Development

Abstract

Purpose

The purpose of the research is to develop the algorithm of transition of modern socio-economic systems to “conflict-free” path of development, which would be universal and would take into account specifics of each separate system.

Methodology

The methodology of the chapter includes a complex of general scientific methods – analysis, synthesis, induction, deduction, and formalization; and the method of structural programming, which is used for determining a preferable structure and sequence of stages of the process of transition of modern socio-economic systems to “conflict-free” path of development, with compilation of its block scheme.

Conclusions

The algorithm (in the form of block scheme) of transition of modern socio-economic systems to “conflict-free” path of development is offered. The first stage of this algorithm is adaptation of the principles of “conflict-free” development of socio-economic system to peculiarities of its development and adoption of these principles. At the second stage, monitoring and control over quality of institute of economic activities in socio-economic system are conducted (determination of problems). The third stage is improvement of institutes of economic activities in socio-economic system (solving the determined problems). The fourth stage is search and establishment of balance in socio-economic system. The fifth stage is determining the signs of “conflict-free” character and forecasting of scenarios of development of socio-economic system and evaluation of effectiveness of development of “conflict-free” socio-economic system.

Originality/value

The developed algorithm allows overcoming drawbacks of the existing algorithm of crisis management of economic systems and has such advantages as the possibility of application by systems of any level, application at all phases of economic cycle, consideration of specifics of socio-economic systems, and cyclic character.

Citation

Ostapenko, E.A., Gevondyan, A.V., Mishchenko, I.V., Shikhalieva, D.S. and Gurnovich, T.G. (2019), "Algorithm of Transition of Modern Socio-economic Systems to a “Conflict-free” Path of Development", Popkova, E.G. (Ed.) “Conflict-Free” Socio-Economic Systems, Emerald Publishing Limited, Leeds, pp. 315-320. https://doi.org/10.1108/978-1-78769-993-920191036