Specifics of the Economic Institutions in the Social Area
Every economic system can be considered a formal social-economic structure. It changes, and under certain institutional conditions it can develop stable. In its logical unity the economic system includes the “real” sector of the economy and social area. The statement that in Bulgaria the economic and institutional transformation in the real sector is done faster in transition is well-known. This paper studies the specifics of the economic institutions in the social area. The theoretical base of the analysis is the neoclassical and institutional approach. The branches of the social area “produce” services, which are direct investments in the human capital. The role of the human capital in the times of the knowledge economy is increasing. The institutions are the sustainable norms and rules, which determine the behavior of the people, of the economic subjects. The institutions are the very organizations – firms, departments, state. The main thoughts in the paper are on whether the forming of human capital can be left in the power of the institutions on the competitive market. This would mean realization of the functions of the market, forming a balanced market price of the social goods, monopolization, etc. The dilemma concerns the issue how admissible this market is in this socially sensitive area. It is known that the market is “socially immune”. The article shows the main barriers to the full application of the market institutions in the social area. “Quasi” market forms of production and distribution of the main services are applicable here. The article defends another thesis as well – that there are factors requiring the application of elements of the market mechanism and the economic principles of behavior in the branches of the social area. “Building in” of the economic institutions in the branches of the social area should guarantee an optimal ratio between humanism and economization. The outsourcing and public-private partnership are some of the effective forms of management in the social areas.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): (2012)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: 3, Aksakov Str., 1040, Sofia|
Phone: (+359 2) 810 40 18
Fax: (+359 2) 988 21 08
Web page: http://www.iki.bas.bg
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:bas:econst:y:2012:i:2:p:177-185. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diana Dimitrova)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.