THE PHENOMENON OF INSTABILITY AS A CHALLENGE TO ECONOMIC DEVELOPMENT

More than 20 years ago, the author of this monograph began to study the problems of economic development in conditions of instability. Already at that time, I proceeded from the statement that instability is an inherent property of economic development. The question was raised about the scientific definition and use of this property to achieve the goals of economic development. The monograph on «Instability and Economic Growth», published in 2000, in line with the European economic doctrine and its traditions, took into account a number of new factors that are inherent in a transitive economy and destabilize it, but are nevertheless linked to each other and shape economic growth and development via death of some of them and birth of others. The then built researchbased spider-like model allowed us to reveal the essence of the break of equilibrium in the examples of the economy of the former USSR and Ukraine, which eventually led to instability and the corresponding crisis phenomena, which we witnessed. Continued research in subsequent years confirmed the relevance of the problems of interconnection between volatility and economic growth. However, in our opinion, as of this period, the problem of instability became phenomenological. This means that instability in the economy went beyond its limited existence in the phases of economic crises and became a transcendental phenomenon, for the knowledge of whose essence it is necessary to pass from empirical dependence to the essential interpretation of the existence of instability, already as a phenomenon inherent in such interrelated phenomena as society, state, and economy. And it should not be about a single country, but as a phenomenon of global and national scale. In addition, there is an increasing risk of future instability in the world economy as a whole. This means that instability is progressive, expanding its influence on the society and state of most countries by virtue of a developing megatrend, which results in the formation of regional associations on the world map, within whom competition and confrontation are aggravated and national selfishness is manifested. «National egoism», as a megatrend, destabilizes unilateral and multilateral relations in their broad spectrum, thereby destabilizing the state of affairs in national states, as evidenced by people’s assessment of the state of affairs both in society and in personal perception. Revealing the content of instability in such a group of phenomena as society, state, and economy in our studies is related to the provision of proper conditions for economic growth as a result of mobilization of a person who is both a member of society, a citizen of the state and the player in the economy. In this case, we are speaking about the appeal to the primary experience, when a person’s behavioral morality in all its epistles is no longer a peculiar complement to the interaction between the economy, state and society, but a real condition for the achievement of their development. Thus, the present work is further developing the social approach to developmental problems proposed by the author in his 2009 monograph on «Society, State, Economy: Phenomenologies of Interaction and Development», which overcomes the economical approach to the organization of interaction between nature, society and the state. In the present work, the above departure from the economical concept consideration of the interaction between the above phenomena is considered by the author through the lens of socialization as a way of the individual’s assimilation of social forms and modes of activity, and formation, on this basis, of the human personality, its ability to self-development and development of internal mechanisms and incentives for individual activities in a social organization in which society, state and business will interact in a system of equal relations with voting actors, forming, on that basis, a new social quality of life of both individual, society and state. As a result, the author argues that socialization is an endogenously based factor of economic growth, which shows the way to overcoming the exogenous dependence in the development of Ukraine’s economy. In his monograph, the author reveals both the coherence and contradiction in the interaction effects between the national and global aspects of development, offering his vision of ways to overcome their contradictions through the national synergy of society on the basis of socialization. At the same time the author draws attention to the difference, since ancient times, between the types and ethnonational identities of the European continent and Kievan Rus, as well as the difference in the ways of their subsequent transformations. In the reality of space and time, this could not but affect the system of views and, accordingly, the formation of institutional identity in the sphere of economy and state, as well as people’s ways of life. The latter, in the author’s point of view, through personal awareness, in the process of life and via socialization, represent a sufficient condition for the modernization of economic activity, which provides the development of both economy, state and society through reorientation of internal forces from passive resource reception to their active use. The author proceeds from the fact that, according to Socrates and Plato, the individual with its freedoms is above social reality, the coherence with which is reached precisely as a result of socialization, which has a multidimensional basis and fundamental importance in the endogenization of development, since the endogenization of social progress is a source of economic growth. Accordingly, the present work reveals the problems of institutional conditionality of the endogenization of economic development, in particular in Ukraine, via the comparison of common and different traits between Ukraine and the EU countries. The present work highlights the results of researches on the formation of an adequate national developmental model in accordance with modern challenges and new features in the configuration and problems of geopolitical world map and transformation, in particular the architectonics of the European economic space. In this model, the author substantiates the decisive role of socialization of the individual with his values, interests and aspirations, which are interconnected in the society. As a result, integrity and ability to act based on public trust are formed. The latter problem is already revealed in the monograph on the Ukrainian realities of space and time in the interconnectedness of trust and development, which provides a reduction of social tension, which has become a significant feature of modern times, and its decrease forms a new social reality. Social reality is revealed in the present work in the interrelation between the components of the transforming social state, and it is shown how new social quality, which is a developmental resource, can emerge and which, in turn, is the result of interconnection and interaction between state, business and civil society. The transformation of the welfare state in modern conditions is consistently moving towards new features of the state, which along with the features of the welfare state are able to shape the ability of their citizens to act and play an active role in the market. The latter ability is achieved through the formation of citizens’ expanded capabilities, as well as the formation of enhanced opportunities for new status provisions for the country’s citizens, thus extending their freedom. This means that each individual’s erratic choices are replaced by a purposeful transition from one social elevator to another. The result is a transition from a welfare state to a paternalistic one, as the latter provides deeper and wider links of the human knowledge with the real world. In this, we see the role of the transformation of the state resulting in the initiation and implementation of the processes of the individual’s socialization and empowerment for vigorous activities. In order to reveal the content of the transformation of welfare state in the contemporary discourse, the present monograph also considers the definition of what the Ukrainian state is, using, for this purpose, a unified system of indicators. As a result, it is substantiated that presently Ukraine is a weak state with certain signs of sociality. This makes it possible to substantiate the interconnection between the future state, business and civil society in the context of the formation of a new social quality, whose achievement should be a result of e-governance and digital democracy. The latter phenomena, according to the estimates, are still in the stage of organizational formation in Ukraine, in the absence of understanding of the nature of e-democracy and its role in the processes of personal involvement in social life. In reality, opportunities are now being created for information provision for citizens instead of reorientation towards where both public opinion and public utility should be present. These processes are also hindered by the global monopoly that is taking place on the digital market. The author reveals and gives his interpretation of those processes, which should result in the transformation of the state so that its e-government contributes to the processes of people’s involvement in business, state formation and public life, without contradicting «the invisible hand» of the market, which at least should not conflict with personal and public interests. The monograph presents the results of studies on the problems of cosmopolitan universalism of the market in the system of human values, through which it organizes its economic activities. On the one hand, the author separates the approach to market cosmopolitanity based on market fundamentalism, and on the other, he reveals its sense, which leads to inequality that has macro and micro dimensions. As a result, he argued that, while the philosophy of cosmopolitan market universalism as such is acceptable in the global aspect, then for the national dimension, the legal regulation of relations arising in the market economy should consider both the contradiction and the unity of the global and national cosmopolitanization of the market phenomenon. National identification of institutionalized forms of the market is done via legal procedures and national legal and organizational systems that are not indifferent to global ones due to national peculiarities. Here a negative reaction to the cosmopolitan universalism of the market is manifested. That is why the author defends the position on the evolutionary-institutional support of economic development. For this purpose, he proposes a functional distribution of the powers, goals and actions of the main public actors in the models of democratic capitalism, which allows using an approach based on the evolutionary and institutional support of economic development. Concerning Ukraine, the author also considers the interrelation of economic and political preconditions for the reconstructive development of the economy, since, in the practice of Ukrainian reforms, political expediency often dominates over the economic one. Taking into account that in practical terms the contradictions in the course of reforms implementation, regarding the views on their procedures, are growing, the author suggests to use pragmatism as a tool for achieving a better future. This approach is often justified as one that is both a political economy of the future and current political practice in dealing with crisis phenomena, in particular with the modern ones. The monograph proves that pragmatism, in addition to being a time requirement, is at the same time a conscious economic, social and ethical action. According to the latter, the author presents his vision of those problems, which are connected with the necessity of having, in the system of management, a certain decency and reason together with the market environment determined by a functionally adjusted order, which is necessary also in state activity. Today, the content of pragmatism, in particular in the economic sphere, lies in designing, in parallel to the practice of the individual’s socialization of as a resource for the development of society, state and economy, a mode of economic management, which would properly consider the phenomenon of instability. The latter is a challenge to economic development both in this country and globally. According to the above, what today constitutes the content of pragmatism, in particular in the economic sphere, in order to form, along with the practice of socialization of the individual, which is a resource for the development of society, the state and the economy, a way of managing that would take into account the phenomenon of instability, which is a challenge for economic development both in the country and in the world. Revealing the content of the phenomenon of instability throughout the monograph’s text makes the author carry out the investigation not in a narrow purely economic interpretation, but to use, at the same time, the sociological, psychological, cultural and political dimensions of the research subject. Thereby, the mechanistic approach is abandoned, and a very contradictory approach is used, which determines a movement towards multi-vectority and uncertainty. This, in turn, means the absence of any template ways to solve the problems, so the author proposes transition to a new pragmatism, which is being formed and implemented in the process of socialization and formation of the nation’s cultural code. Dear reader! The extent to which the author managed to realize all said and unsaid is for you to judge. I will gladly receive your feedback. Studies in these areas are continuing.