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The purpose of the chapter is to study dynamics of development of economic conflicts and to develop a conceptual model of conflict of socio-economic system as an analog to the model of economic cycle.

The author compiles and analyzes the existing conceptual static model of conflict of a socio-economic system. The theoretical basis of the research includes the works of modern authors that reflect provisions of the theory of cycles and devoted to cyclic fluctuations of socio-economic systems. The methodology of the chapter includes the method of dynamic modeling of the process of development of socio-economic systems and the method of formalization (graphic presentation of the obtained results and conclusions). Also, the author uses the complex of general scientific methods within the systemic approach – induction, deduction, analysis, and synthesis.

It is substantiated that the existing conceptual static model of economic conflict, which treats it as a non-recurrent phenomenon in socio-economic system, contradicts its dynamic nature. Instead of this, similarly to the model of economic cycle, a conceptual dynamic model of conflict of socio-economic system is developed, which treats economic conflict as a process that develops according to a certain algorithm and is constantly repeated.

The offered conceptual model of conflict of a socio-economic system as an analogue of the model of economic cycle allows specifying the methodology of studying economic crises, which are manifestations/examples of economic conflicts. This model emphasizes the dichotomic nature of economic conflict (its probable negative or positive consequences), which allows for more precise treatment of economic crisis – which is usually considered to be a negative phenomenon. According to the offered model, crisis is not a phase of economic cycle but socio-economic process that is characterized by cyclic fluctuations. As is expected, the developed model will allow describing the practice of development of modern socio-economic systems with higher precision.

The purpose of the chapter is to classify socio-economic systems from the positions of manifestation of conflicts in them and to substantiate the scientific and theoretical concept “conflict-free” as a characteristic of the process of development of socio-economic systems.

Methodology of the research includes dynamic modeling of the process of development of socio-economic systems. The author uses the conceptual model of conflict of socio-economic system as an analog of the model of economic cycle. Also, a complex of general scientific methods is used – induction, deduction, synthesis, and formalization.

Examples of “conflict-free” socio-economic systems of Turkey and Japan are analyzed through the prism of dynamics of their GDP in constant prices in 2006–2022, and features of their “conflict-free” nature are determined at different phases of the conflict.

It is substantiated that “conflict-free” nature is a capability of socio-economic systems to avoid conflicts (caused by internal causes) and, in the case of their emergence, to use conflicts in their own interests – for optimization of the model of development and intensification of economic growth in future. A socio-economic system is considered “conflict-free” only if it possesses all the corresponding characteristics at each phase of its conflict (through the prism of the economic cycle). An opposition to “conflict-free” socio-economic systems is “conflict” systems, which do not have the above characteristics and this cannot prevent conflicts, caused by internal reasons, and remain destabilized in case of a conflict (show stagnation and are subject to the second wave of the crisis).

The purpose of the work is to determine the basic principles of “conflict-free” development of socio-economic systems.

The theoretical and methodological platform for the research includes the principles of crisis management of economic systems, proclaimed within the theory of economic cycles and the theory of economic growth – the principle of risk insurance, the principles of closed economy, the principles of post-crisis innovational development, and the principle of foundation on the real sector of economy. The author substantiates non-applicability of these principles to “conflict-free” socio-economic systems and determines the basic principles of “conflict-free” development of socio-economic systems, which differ from the existing principles of crisis management of economic systems. For this, the method of modeling of socio-economic processes and systems and the method of formalization are used.

As a result of the research, the basic principles of “conflict-free” development of socio-economic systems are offered – the principle of self-regulation of socio-economic system, the principle of sustainability, the principle of stability, the principle of balance, the principle of systemic management of conflicts, and the principle of moderate openness. Due to these principles, contrary to crisis management, “conflict-free” development remains accessible for any modern socio-economic systems.

The offered principles allowed determining the landmarks of development of modern socio-economic systems that strive for “conflict-free” character. Based on these principles, it is possible to develop a fundamental platform for studying “conflict-free” socio-economic systems.

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.

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.

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.

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.

This chapter presents a case study involving a socio-economic Organizational Development (OD) project carried out in a European subsidiary of a large multinational corporation traded on the New York Stock Exchange. This research case study, one of the 1,854 socio-economic interventions undertaken by the ISEOR research center, was chosen for its good illustration of the OD engineering process. It connects the dots between OD and financial performance, between immediate results and the creation of potential. We look at some of the tools and methods, such as overhauling loss and profit accounts and balance sheets with an eye on socio-economic balance, to illustrate socioeconomic tools at work and how they help enhance compatibility between the objectives of all stakeholders, including shareholders. With this case study, we also set out to provide food for thought on the contribution of socio-economic OD to the construction of socially responsible capitalism (Savall et al., 2015).

The purpose of the chapter is to develop methodological recommendations and to determine criteria of measuring “conflict character” of socio-economic system.

Due to large diversity of conflicts of socio-economic systems, the authors compile common methodological recommendations for all economic conflicts, but criteria of measuring “conflict character” of socio-economic system by the example of crisis as a manifestation/example of conflict for which statistical and information bases are available and its precise, objective, and authentic evaluation is possible are offered. The methodological tools of this work are based on the method of systematization, the method of classification, the method of comparative analysis, and the method of formalization of authors’ conclusions and recommendations.

Methodological recommendations and criteria for measuring the “conflict character” of socio-economic system are offered – they allow classifying “conflict” systems. As to the value of the index of conflict character, socio-economic systems with reduced conflict level, moderate conflict level, high conflict level, and very high conflict level are distinguished. They differ as to the capability to oppose internal crises, reaction to external crises, and the model of development of economic conflicts. According to the developed methodological recommendations and offered criteria, “conflict” level of socio-economic systems of developed countries – the USA and Germany, and developing countries – China and Russia is measured in the period of the 2008 global economic crisis.

Based on the offered classification, it is possible to forecast development and management of conflicts of various “conflict” socio-economic systems.

Socio-economic development is multi-faceted. The major facets consist of: income, level of education, level of health, quality of infrastructure, sex ratio, level of employment, industrial and agricultural development, and so on. In India, the progress of socio-economic development among the states is not even. This study makes a modest attempt to measure the socio-economic development among the states of India and highlight the disparity among them. In the same line of thought, a composite index based on several facets of socio-economic development has been developed in a holistic manner and the states are arranged accordingly based on the indices. Instead of studying the disparity of a particular facet across states, a composite index is a better measure. This study has utilized the varied dimensions of socio-economic development and a taxonomic approach to construct a composite index without making any assumptions on the raw data. The findings of the study also support the general perception of large disparity in socio-economic development status of the states in India.

The purpose of the work is to specify the fundamental treatment of causal connections between conflicts in socio-economic systems.

Treatment of causal connections between conflicts in socio-economic systems by the existing concepts is determined. Contradictions of the existing concepts are determined and the existing knowledge on causal connections between conflicts in socio-economic systems within the new (authors’) concept of economic conflicts is systematized.

It is shown that conflicts in economy are not necessarily of the social nature (emerge due to subjective reasons – influence of “human factor,” weakness and/or imperfection of the social institute of interaction of economic subjects, and their interest in conflicts), as they could be caused by objective reasons – deficit of resources and imperfection of the model of development of socio-economic system. Consequences of conflict in a socio-economic system are determined by the result of its solution and are related not only to participants of the conflict but to the system on the whole.

It is substantiated that the most preferable (connected to positive consequences) option is failure of both participants of the conflict, its quick overcoming, elimination of “human factor,” and involvement of third party into the process of solving of the conflict. Due to this, interest in conflicts will be reduced (undesired conflicts will be eliminated), the model of development of socio-economic system will be improved, its sustainability will be raised, and social institutes of interaction between economic subjects in the system will be improved. Further development of specified foundations of the developed concept of economic conflicts envisages its classification.

The purpose of the research is to develop methodological approach to evaluation of effectiveness of development of “conflict-free” socio-economic system.

The fundamental platform of the research is the classic approach to evaluation of effectiveness of managerial practice in socio-economic system.

A methodological approach to evaluation of effectiveness of development of “conflict-free” socio-economic system is developed; it envisages calculating the ratio of aggregate results (including advantages) from “conflict-free” development of systems to aggregate expenditures for management of conflicts. Successful approbation of this approach by the example of modern “conflict-free” socio-economic systems – Turkey and Japan – showed its readiness for practical application. The obtained results show that in Turkey in 2018 the effectiveness of development of “conflict-free” socio-economic system is acceptable (normal), as the value of the calculated Erbs index is in the interval (1,5;2), that is the results of managing the conflicts exceed the expenditures. In Japan in 2018, effectiveness of development of “conflict-free” socio-economic system is very high, as the value of the calculated Erbs index is in the interval (2;3) – that is, expenditures for management of conflicts are minimum, and results are very high.

Advantages of the developed methodological approach to evaluation of effectiveness of development of “conflict-free” socio-economic system, which emphasize perspectives of its practical application, are the detailed structure, variability, and universal character.

The purpose of the chapter is to describe the concept of conflicts of socio-economic systems on the basis of the theory and methodology of the systemic approach.

The authors use the provisions of the systemic approach.

It is determined that dynamic socio-economic system is susceptible to conflicts, which, according to the Systemic approach, are bifurcation points. The features of conflict that allow defining it as a bifurcation point are its short duration, violation of sustainability of socio-economic system, uncertainty of consequences, influence on the system on the whole (cascade effect), and multiplicity of scenarios of development of socio-economic system after the conflict.

Studying conflict with the help of the theory and methodology of the systemic approach allowed determining the fact that conflict is a violation of order in a socio-economic system (which specifies definition of conflict and its essence) and could be evaluated through the measure of the system’s order (which specifies methodology of conflict evaluation). Moreover, conflict in a socio-economic system emerges not at once – it is accumulated under joint negative influences of internal and external factors. Further, the performed research allows specifying the classification of conflicts, which is offered in previous chapters – according to scenarios of development of socio-economic system after the conflict, normal (leading to normal change of system), abrupt (leading to abrupt change of the system), and attraction (all following states of the system are sustainable) conflicts are possible.