IDEAS home Printed from https://ideas.repec.org/a/bal/journl/2256-074220184457.html
   My bibliography  Save this article

The Economic, Social, And Spiritual Efficiency Of The Economic System: Approaches To Assessment

Author

Listed:
  • Dmitrii Yadranskii

    (Ural State University of Economics, Russian Federation)

  • Viktor Chigrin

    (V.I. Vernadsky Crimean Federal University, Russian Federation)

  • Elena Chumak

    (Ural State University of Economics, Russian Federation)

Abstract

The article considers the categories of social, economic, and spiritual efficiency. The emphasis is made on the crisis of modern economic processes. The subject of the article is the contradictions arising in the process of increasing economic efficiency. Existing methodological approaches to the study of these categories are critically reviewed. The main goal of the article is to create the author's concept of overcoming the contradictions between the growth of economic and social efficiency in the conditions of modern economic organizations. The concept is based on the conflict paradigm. The methodological basis of the study consists of the concepts of foreign and domestic researchers dealing with the effectiveness of social reproduction. The main theoretical concept is neo-Marxism. The purpose of the article is to determine the methodology for reconciling contradictions arising in the process of managing the economic efficiency of an economic system. The thesis of P. Drucker on the inevitability of aggravating the economic crisis is considered as the cause of the conflict. In combination with the totality of such general scientific and special methods of cognition as dialectic, systemic, descriptive, theoretical modelling, the article reveals the main contradictions in the assessment of the growth of the economic and social efficiency of the economic system. The main conclusion of the article is the need to abandon the use of singlefactor methods for evaluating the effectiveness of the functioning of economic systems. The main problem is the fact that the growth of economic efficiency most often has a non-linear effect on the change in social and spiritual efficiency. Therefore, it is necessary to use at the same time changes in all three specified directions of efficiency, so one can determine the general vector of changes in the economic system. As a final conclusion, it was proposed to apply the efficiency rule proposed by Pareto to this assessment, according to which the system state is optimal when the value of each particular criterion describing the system state cannot be changed without deteriorating other system indicators. The article presents a table, in which the contradictory changes that are the result of a number of managerial influences are demonstrated for economic and social efficiency. A logical formula for determining the effectiveness of changes in the efficiency of the economic system, based on the indices of changes in individual quantitative indicators, is proposed. Criteria are defined that make it possible to quantify each of the blocks determining efficiency: economic, social, and spiritual. An assessment of possible indicators at the macroeconomic and microeconomic level is given. The article formulates a model for establishing the balance (optimum) of individual indicators of the total efficiency of the economic system. This model is based on the balance of economic interests of employers (owners) and social interests of workers, coordinated through culture, which is defined as one of the priorities of spirituality. A formula is proposed that enables the analytical establishment of the optimal (balance) state of the efficiency of the economic system. On the basis of the conducted research, it becomes possible to talk about a fair (reasonable) distribution of value added. In fact, at the theoretical level, an economic model for managing the socio-economic efficiency of the economic system is proposed, which creates the prerequisites for the effective management of the socioeconomic development of an organization in a permanent crisis environment.

Suggested Citation

  • Dmitrii Yadranskii & Viktor Chigrin & Elena Chumak, 2018. "The Economic, Social, And Spiritual Efficiency Of The Economic System: Approaches To Assessment," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(4).
  • Handle: RePEc:bal:journl:2256-0742:2018:4:4:57
    DOI: 10.30525/2256-0742/2018-4-4-380-386
    as

    Download full text from publisher

    File URL: http://www.baltijapublishing.lv/index.php/issue/article/view/525/pdf
    Download Restriction: no

    File URL: http://www.baltijapublishing.lv/index.php/issue/article/view/525
    Download Restriction: no

    File URL: https://libkey.io/10.30525/2256-0742/2018-4-4-380-386?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    efficiency; factor; productivity; economic; social; balance of interests; contradictions;
    All these keywords.

    JEL classification:

    • P47 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Performance and Prospects
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bal:journl:2256-0742:2018:4:4:57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anita Jankovska (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.