EXPLICATION OF THE ESSENCE OF THE DEFINITION “DEVELOPMENT” IN RELATION TO SOCIO-ECONOMIC SYSTEMS

Abstract

The article presents an epistemological analysis of definitions that reflect various aspects of the economic category “development” used within the system approach. The analysis shows that these definitions mostly do not single out the features of the social component of the economic system and management tasks are defined from the subjective point of view of those who fall under managerial influence. It has been noted that this approach can be called mechanistic, since the behavioral characteristics of the social component are neglected and the management of the system is considered from the standpoint of one-vector influence of decision-makers. It has been argued that this negatively affects the effectiveness of development management due to the diversity of stakeholders’ interests. An explication of the essential content of “development” definition has been made and components that reflect the specifics of the socio-economic systems management according to the concept of “sustainable development” have been identified. Management of socio-economic system structural balance has been proposed to consider as a dynamic process of forming the optimal proportions of its future state, which is determined by the equal vectors of economic and other interests of its actors and their positions coordination meeting the priorities of sustainable development and competitiveness and following the principles of stakeholder interaction and social dialogue. It has been noted that the management of the socio-economic systems development should be carried out both from the standpoint of achieving structural balance of the system and taking into account the development goals of the system (increasing competitiveness through quality change).