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TERRA ECONOMICUS

THE NON-MARKET DRIVER OF A MIXED ECONOMY

TERRA ECONOMICUS, , Vol. 16 (no. 1),

The article deals with the analysis of the mixed economy’sarchitectonics, with the non-market sector as its core. The functional significance of the non-market sector in mixed economy is neglected by the modern market economists. The author suggests a model of themarket-in-equilibrium to illustrate the key points of the article. In particular, the author links the mission of a non-market sector in a mixed economy to the compliance between the commodity and the “money surplus” generated in the market sector. The main concern of the effective mixed economy is to provide sufficient financial support for the non-market sector, through the taxation of the private entrepreneurs.The article covers the issues as follows: weak theory cannot obstruct effective practice; “happy” sector of the mixed economy; unseen intrigue of the economy; the main systemic problem of the mixed economy; mixed economy needs market transformation of the non-market sector; the Achilles’ heel of mixed economy.The articlesuggests arguments for economists’ interest towards the non-market sector. It is argued that mixed economy’s effectiveness (due to its inherent features) becomes the main factor of the economic growth. The author argues that having the non-market sector not included in the mechanism of the mixed economy development, the theoretical framework of the mixed economy is impossible.

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PSYCHOLOGICAL FACTORS OF ECONOMIC BEHAVIOR: A SYSTEMIC VIEW

TERRA ECONOMICUS, , Vol. 16 (no. 1),

For the analysis of psychological factors of economic behavior the article suggests applying the system approach that allows to overcome the fragmentation of the study of the man and the society inherent in the various branches of science and become closer to the creation of a single coherent picture of the relationship of human behavior and the dynamics of the society. System models of the interaction of economic agent and market (in a broad sense ‒ the society) that reflect variants of dominance of one of the members of the «agent ‒ market» pair are developed. It is shown that consideration of both the agent and the society in the form of complex socio-economic systems is the most productive approach. So the system structure of the agent as a set of four interacting subsystems ‒ intentional (reflects agent’s intentions), expectational (reflects agent’s expectations), cognitive (reflects agent’s perception of the environment) and functional (reflects the agent’s behavior) is represented in the study. The concept of «soul» as a unique individual principle coordinating the four aspects of life activity of an economic agent is formulated. Characteristic features of the agent’s mind influence on their decision-making in the situation of socio-economic choice are analyzed. As an example, the agent’s behavior in two situations is considered ‒ in the situation of the agent as a producer (product selection for production) and in the situation of the agent as a consumer (selection of a new vehicle for purchase). According to the scheme underlying the concept of rationality, the agent forms goals and a set of acceptable alternatives of choice upon which to choose the best possible solution based on a certain criterion of optimality. The structural pattern-model of interaction between the man and the society is developed, the system structures of which are considered as isomorphic and consist of the following seven layers: mental, cultural, institutional, cognitive, organizationaltechnological, imitative and behavioral. The features of interaction between the same layers of these systems in the context of institutional changes are revealed.

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THE ARRIGHI’S CONCEPT OF CAPITAL ACCUMULATION CYCLES AND ITS APPLICATIONS

TERRA ECONOMICUS, , Vol. 16 (no. 1),

The article discusses the main elements of the concept of capital accumulation cycles created by Giovanni Arrighi in the 90s of the XX century. In particular, the author analyzes the problem of the relationship between power, strength and capital, the symbiosis of which acts as the essence of capitalism. The main attention is paid to the idea of Arrighi that capitalism throughout its history has sought not to initiate, but to limit competitive processes in order to ensure a high return from capital. Two stages in the formation of the capital accumulation cycle are discussed: territoriality, which may be internal and external, and capitalization, which in turn happens may be national and cosmopolitan. It is shown in what ways all known world capital accumulation centers (WCAC) – Genoa (Venice), Holland, Great Britain and the USA – provided comfortable business conditions and thereby regulated the amount of profit. Reveals the psychology of entrepreneurs that allow territorial expansion and coordination mechanism of group interests of the businessmen and power possessors. The importance of technological rationality for competition of the second–tier states with the acting WCAC is studied on the example of the UK–Germany and US–Japan country pairs. The basic concepts of capital accumulation cycles, such as signal and terminal crises, as well as local and systemic turbulence, are discussed. To explain the emergence of two phases of the accumulation cycle – territoriality and capitalization – the idea of the presence of the production-trade and financial sectors of the economy own cycles of development, which are in the against phase to each other is used. Particularly discussing the possibility of the occurrence of the fifth capital accumulation cycle with WCAC in China. The tragedy of the figure of Donald Trump, who, as an expression of America’s national interests, faces opposition from national capital, whose interests do not coincide with the policy of the President, is shown. Is addressing four global consequence of the onset of the fifth capital accumulation cycle.

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UNCERTAINTY IN A TRANSITIONAL ECONOMY: THE CASE OF THE CZECH REPUBLIC IN THE 1990S

TERRA ECONOMICUS, , Vol. 16 (no. 1),

The paper is concerned with the role of uncertainty in an economy undergoing an economic transition. We aim especially at the uncertainty of the Keynesian type. First, a framework for classifying different views on uncertainty is constructed based on literature dedicated to various types of uncertainty. We define risk, as it is commonly adopted in the mainstream economics and uncertainty, outlined by Knight and Keynes and worked up by the Post Keynesians, although for mainstream approach these two concepts are synonymous. This framework is subsequently applied on two cases of decision-making, which appeared during the transition process in the Czech Republic. We show that some important phenomena in Czechia in the 1990s took place under conditions of fundamental or ontological uncertainty. In particular, it was the voucher privatization and Tosovsky dilemma that fit the definition formulated before. Further, potential recommendations for economic policy emerging from the presence of uncertainty are outlined, and their aptness for the Czech transition process is evaluated. We demonstrate that certain outcomes could have been significantly better had the Czech government taken the aspect of uncertainty into account. Hence, we give real-life reasons for fundamental uncertainty being taken seriously and incorporated into economic theory or at least economic policy.

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THE PROBLEMS AND SOLUTIONS OF EDUCATING TECHNICAL TALENTS IN CHINA'S COMING ECONOMIC PROGRESS

TERRA ECONOMICUS, , Vol. 16 (no. 1),

China starts its vocational and technical education from the latter part of 19th century, with the intention of firstly developing strong national defense power against foreign invasion, through practical business organized by bureaucratic lords and important officials then. Later on, the education for technical talents was intended to realize modernization of China. However, the process of industrialization was interrupted by wars both within China and with China. From the contemporary history, we know that China has been moving towards a modernized superpower via the gradual advancement of industrial, agricultural, commercial and military modernization. Among these items and in the due process, education for technical talents played an important role. Since the adopting of Marxism from west countries, among which the USSR was the number one channel to pass Marxism to China, the question of combing Marxist ideology, western technology and Chinese culture began. Until today, Marxism plays the directing role, serving as tools of world outlooks and methodology to guide the technological education. When moving towards the technical superpower, China has to crack down the paradoxical predicament of individualization and socialization, knowledge and values, rigidity and creativity. Therefore, it is obvious that a critical pedagogy and critical culture are badly needed to support the education for technical talents.

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GLOBAL MIGRATIONS AND HEALTH ECONOMICS

TERRA ECONOMICUS, , Vol. 16 (no. 1),

the health sector, bringing not only resources for development but challenges as well. The increasing number and ethnic and religious diversity of immigrants in receiving countries of the global North contribute to the expansion and restructuring of the demand for medical services. Influenced by these processes transformation of the health sector, including the formation of a special segment of medical care adapted to the requests of migrants, in turn, increases the needs of the societiesrecipients for medical specialists, including those versed in socio-cultural features of illness and of treatment. The developed states actively attract health workers from developing countries to meet these needs. Emigration of medical personnel from the global South is associated with some positive effects for the donor countries caused by migrants’ monetary and social remittances, reduction of unemployment, development of medical education, etc. However, this process generates a much more serious detrimental impact on the provision of health services for the population left behind and the development prospects of the sending countries which are already affected by the acute shortage of such personnel. The massive inflow of asylum-seekers into less developed regions of the world poses a serious burden on the local health system, prompting humanitarian organizations to the formation of a parallel segment of health care for forced migrants. The presence of these problems, reinforced by the difficulties of employment of health professionals abroad, contradicts the widespread thesis that migration contributes to a more efficient use of resources on a global scale. To reduce the negative effects of the outflow of health workers from the South, the formation of the global governance of their movement is required.

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REGIONAL DEVELOPMENT: ADDRESSING THE PROBLEMS OF BUILDING AND REALIZATION OF SCIENTIFIC AND TECHNOLOGICAL CAPACITIES

TERRA ECONOMICUS, , Vol. 16 (no. 1),

The relevance of the study is due to the fact that the current economic state of the Russian regions is characterized by a number of problems of innovation and technological development and their significant differentiation. The most important question is who and what should become the driving force for the development of regions. The concept of the «triple helix» offers modern mechanisms of interaction between the state, business and universities as a driving force. At the same time, universities begin to play an increasingly important role in innovation processes, and their status and influence as subjects of socio-economic development are growing. In this paper, the entrepreneurial university is characterized as a key subject of the «triple helix» model, which plays a central role in the formation of the scientific and technical potential of the regions and in the transition of the subjects of the Russian Federation to innovative development. Recognizing this fact state forms the Russian system of higher education on new principles singling out groups of status universities and additionally financing them. This should contribute to the formation of a modern knowledge space in regions of different types that have different scientific and technical potentials, and on this basis to ensure regional development. The purpose of this article is to evaluate the interrelationships between the socio-economic development of regions (reflected by the GRP per capita indicator) and their scientific and technical potential characterizing the state ofthe knowledge (scientific and educational) space, the most important subjects of which are universities. As a result of the study, groups of regions are distinguished those are similar in terms of socio-economic development and the state of scientific and technical potential, as well as the role of universities in the formation of their knowledge space.

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INTANGIBLE RESOURCES OF THE REGIONS: EVALUATION OF THE USE OF CAPACITIES

TERRA ECONOMICUS, , Vol. 16 (no. 1),

The purpose of the article is to show the possibilities of applying the factor approach to assess the use of the regions’ intangible resources as a component of their modernization potential. Based on the analysis of theoretical approaches to the study of the region’s intangible resources, the article presents the structure of intangible resources, including human, intellectual, information, organizational and social resources. As the authors suggest, the effectiveness of the use of the region’s intangible resources is determined by summation of management influences, aimed at their transformation into the tangible results (i.e., increase in competitiveness and investment attractiveness of the region, GRDP growth). Two hypotheses have been put forward by the authors: 1) the groups of intangible resources suggested in the research can be measured by a set of indicators, and implement a system of «non-material» factors for assessing the level of modernization of the region’s economy; 2) selected indicators can be used to classify the regions by the level of use of intangible resources. Both hypotheses have been confirmed. To test the hypotheses, methods of factor analysis, correlation analysis and cluster analysis were used. Verification of the analytic tools has allowed the authors to classify the regions into four groups, depending on the use of the regional intangible resources, as well as to develop recommendations aimed at increasing effectiveness of their use. The research findings suggest that development of the institutional environment supporting the commercialization of research and development results is relevant to all Russia’s regions. The conclusion is made that it is possible to use the tools proposed in the article to implement the regional development strategies, i.e., to identify the growth-shaping and limiting factors of modernization development, as well as to identify potentially flagman regions as the areas for the neoindustrialization projects implementation.

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INFORMATION AS A STRATEGIC RESOURCE FOR REGIONAL DEVELOPMENT: INSTITUTIONAL AND TECHNOLOGICAL ASPECTS

TERRA ECONOMICUS, , Vol. 16 (no. 1),

Based on the empirical evidence, the article illustrates that dissemination of strategic management approach to economic development doesn’t provide high effectiveness of strategy implementation. The authors argue that the latter is largely determined by inadequate consideration of the peculiarities of the information economy, as well as by neglected role information as a strategic resource. The main directions of transformation of economic development influenced by the information economy imperatives are discussed. The paper identifies the key tools and technologies of the information economy that modify the activities of the economic actors. The key areas where information is to be used as a development resource are defined, including: increasing role of the ICT sector in the development of the modern economy; the impact of ICT on the economic agents’ performance; use of information in the process of economic development strategies implementation. As the authors suggest, despite a positive trend in each of the areas discussed, Russia is very much behind the leading countries in terms of development of the information society. The reason is that building and use of the capacities of the information economy needs a comprehensive solution which would integrate institutional and instrumental support for strategic development. So, on the one hand, use of the existing technologies of data mining, the decision support systems, techniques of quantitative and qualitative analysis will allow to increase validity of strategic decision making. On the other hand, building of appropriate institutional environment is a prerequisite for applied technological solutions in the strategic planning process. In addition, creation of integrated information technologies of new generation should be among the strategic priorities of economic development, with information and knowledge seen as a key driver for the regional economies’ modernization.

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