2024 (21), №2

State and Development of the National Economy as a Complex System: Revising Paradigmatic Foundations

For citation: 

Biryukov, V. V. (2024). State and Development of the National Economy as a Complex System: Revising Paradigmatic Foundations. AlterEconomics, 21(2), 230–252. https://doi.org/10.31063/AlterEconomics/2024.21-2.4

Abstract:

Radical economic changes highlight the importance of studying the fundamental aspects of national economic development, emphasizing the special role of the state. This article aims to clarify different strategies used to examine the economic role of the state and establish foundational paradigms for an alternative approach. It demonstrates that both mainstream and heterodox strategies are based on a common paradigm where economic entities are driven solely by private interests, positioning the state as an external entity that intervenes in the economy. This approach leads to the “tragedy of the commons,” where the state lacks a basis for regulating economic activity for the common good. The proposed paradigm rejects the traditional “homo economicus” model in favor of “homo economicus dualis,” recognizing the dual nature of economic actors. Within this approach, the focus is made on complex economic processes across three primary levels, assuming that people are the ultimate source and key actors of economic power. The state’s management of power relations is aimed at fostering sustainable economic development by balancing national and private interests. The article posits that the state, as the supreme authority on behalf of society, forms a system of property relations by establishing ownership and resource use rules. Consequently, the people, as the ultimate authority, also act as the supreme owners, making various institutional ownership forms manifestations of national ownership, of which all economic actors are co-owners. This understanding of the economic roles of the people and the state fosters realistic ideas about designing endogenous mechanisms for national economic development.

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Vitaly V. Biryukov — Dr. Sci. (Econ.), Professor, Professor of the Department of Economics and Management, Omsk Humanitarian Academy; https://orcid.org/0000-0002-3385-3603 (2A, 4th Chelyuskintsev St., Omsk, 644105, Russian Federation; e-mail: sciencebvv@gmail.com).

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