DOI:   10.36172/EKONOMISTI.2020.XVI.03.KVARATSKHELIA

Expanded Summary

This given article covers the topic of the factors causing the modern global crises and the anticipated consequences in the nearest future.

The history of the world crises obviously shows that during the crisis emerge new and unordinary realias pushing the mankind towards establishing an unusual and different order.  In the first instance it affects the basis of the society’s development, economy and perfection of its managing systems. The new phenomena require rethinking and reinterpretation and creation of the innovative theories. The existing difficulties and complexities challenge the progress of economy and well-being of the humanity.

In general, development of society is a dynamic and constantly changing process.  Such a change is progressive and keeps in step with the times and meets its requirements. It maintains creating of the new economical theories and its realization into practice. The stimulating factors for this processes, how paradoxically it may sound are the economical crises in spite of their origin. Arising out of the dynamism of history, proper realization and analysis of every phenomenon, if such occurs,  it  has its positive sides. We mean controllable crises and their consequences. Namely this, helps stimulating creation of the new concepts. 

From the multiple approaches and trends existing in the modern economic theories, one of the main is the concept of the sustainable development, which plays the crucial role in the process of overcoming crises.  We have to specially mention its firm basis, being supported by the sustainable development of the whole inner product per person, from the standpoint of diminishing of its discrepancy per person. Besides, the same appears to be one of the main assisting factors in overcoming poverty and equal distribution of the resources between the countries and population.  Additionally, development of the new innovative   approaches in economics is associated with this process.         

The sustainable development of economics is primarily correlated with the economic growth and economic prosperity. In   the existing theories this process is variously reflected and namely, here centralization of the economics, proportional distribution of the budget funds, unified approach towards the regions, keeping separate from the State power, transparency of the made decisions, necessity of maintaining the ecological abilities of the region and creating of the standard of life are meant.  

The theory of the sustainable development are fully met by the paradigms of the “region – market” of the regional economy and “region- society”. This is conditioned by the social, economic and ecological aspects, which requires formation and realization of the complex programs for the regional development.

The special significance of the theory of the sustainable development has been analyzed in the article based on the concept of the conference held by the World Bank in 2015, which covers the period till 2030.  In the article the aims and tasks of the sustainable development based on the paradigms of consensus are worked out. The need for the perfection of the theory is conditioned by the deadlock situation of the operative model of the market economy. The way out of this situation is the formation of the promising, new, target-oriented philosophy. 

On the modern stage, in the light of the dynamism of the society development the problem of the effectiveness of democracy dominant in most of the countries is high on the agenda, which requires its substitution by the more progressive model. Ecological and social indicators of the sustainable development of economy are also worth taking into consideration.

Remarkable is the fact, that today, in the world, the dictate of the dominance of macro economic indicator of the whole inner product, encourages the process of ignoring of the long-time outcome and tendencies, which may turn into the brake and hindrance for the socio-ecological and economic growing tendencies.  It was obvious from the opinions of the scholars and economics experts, that from the sustainable development angle working out of the new approaches is of a paramount importance.  In this case substitution of the production indicator with the well-being indicator simultaneously   taking into consideration   the three main components of the sustainable development – ecological, social and economic is crucial. The ongoing global crisis has revealed inefficiency of the   state mechanisms and market. This process made necessary formation of the new approaches and criteria for the optimization of the sustainable development between the State and market.  In such a case, the State is to control the prices and prevent emergence of the nonsufficient social reforms, violation of property rights and implementation and promotion of the wrong taxation system. These activities will support development of  one of the main trends – social sphere, the priorities of which is reduction of poverty, health care and education.

In the final count this is the precondition for the inequality reduction within the states and between the states being one of the global challenges of the modern times.