| Economics | Socium | Environment |
|---|---|---|
Environmental Economics and Sustainable Development, 2021, 9 (28): 34-42
DOI: 10.37100/2616-7689.2021.9(28).5
UDC 336 : 330.15
JEL CLASSIFICATION: G 18, G 28, G 38, Q 56, Q 58
Igor Bystryakov
Dr. Sci. (Econ.), Professor,
«Institute of Environmental Economics and Sustainable Development of the
National Academy of Sciences of Ukraine»;
ORCID: https://orcid.org/0000-0001-6482-7099
Dmitry Klynovyi
PhD (Econ.), Senior Researcher,
Public Institution “Institute of Environmental Economics and
Sustainable Development of the National Academy of Sciences of Ukraine”;
ORCID: https://orcid.org/0000-0002-3034-8097
PRINCIPAL APPROACHES TO ENSURING ECONOMIC HOMEOSTASIS FROM THE POSITION OF SUSTAINABLE FINANCE
Abstract:The purpose of the article is to outline the basic principles of achieving economic homeostasis and determination of the basic principles of homeostasis of economic systems from the standpoint of the concept of sustainable finance. It was found that the determining factor for the sustainability of the economic system is to ensure both its system-wide homeostasis and homeostasis in each of the subsystems in social, economic and environmental dimensions, which can be realized through a specific system of sustainable finance.
It is determined that three factors should play an important role in the system of sustainable finance: building feedback mechanisms between the economic system and the environment and within its elements; creation of financial reserves and construction of channels of their direction on the needs of sustainable development; strengthening the links between finance and the real sector of production.
The concept of systemic homeostasis is considered in the context of sustainable development management as a balanced state of dynamic self-sustaining balance in the development of socio-ecological and economic entities, which are considered as living systems of organized complexity. The focus is on proactive forms of homeostasis management, the essence of which, in contrast to reactive forms, is to respond to changes in the interaction of the system with its environment actively and purposefully. Financial dominance is considered as a separate fundamental functional component of the sustainable management system, the role of which is to ensure effective distribution relations between the social, economic and environmental components of the economy, and within each of them through appropriate institutions, mechanisms and tools.
Principles of the dominant approach, functionality, vertical and horizontal integration feedback and self-sufficiency are proposed on the basis of the paradigmatic concept of sustainable finance. It is shown that their use will allow to build an internally stable financial component, which is capable to provide homeostasis in the socio-ecological and economic system and the rate of sustainable development at 3–4 % of annual economic growth.
Key words: economic homeostasis, dominant, sustainable finance, principles, sustainable development management.
Language version: Ukrainian
References
1. Kuznetsov, O.L., Kuznetsov, P.G., Bol'shakov, B.Ye. (2002). Sistema «priroda-obshchestvo-chelovek»: ustoychivoye razvitiye [The «nature-society-man» system: sustainable development]. Moskow; Dubna: Noosfera, Mezhdunarodnyy universitet prirody, obshchestva i cheloveka «Dubna» [in Russian].
2. Odum, E.P. (1975). Ocnovy ekologii [Fundamentals of Ecology]. Moskow: Mir [in Russian].
3. Stepanov, V. N. & Pishenina, T. I. (2013). Ob ustoychivosti i neustoychivosti sotsio-ekologo-ekonomicheskogo razvitiya (kontekst teorii gomeostazisa) [About the stability and instability of socio-ecological-economic development (the context of the theory of homeostasis)]. Ekonomichni іnnovatsii, 53, 261-268 [in Russian].
4. Miller, J.G. (1978). Living Systems. New York: McGraw-Hill [in English].
5. Miller, J.G. & Miller, J.L. (1995). Applications of living systems theory. Systemic Practice and Action Research, 8(1), 19-45 [in English].
6. Luman, N. (2011). Ponyattya tsili i systemna ratsionalʹnistʹ: shchodo funktsiyi tsiley u sotsialʹnykh systemakh [The concept of goal and system rationality: in relation to the function of goals in social systems]. Kyiv: Dukh i litera [in Ukrainian].
7. Maturana, H.R. & Varela, F.J. (2001). Drevo poznaniya: biologicheskiye korni chelovecheskogo ponimaniya [The tree of knowledge: The biological roots of human understanding]. Moskow: Progress-traditsiya [in Russian].
8. EU High-Level Expert Group on Sustainable Finance. (2018). Financing a sustainable European economy: Final Report 2018 by the High-Level Expert Group on Sustainable Finance. Secretariat provided by the European Commission [in English].
Article publication date: 2021
Date of online version: 2021
DOI: 10.37100/2616-7689.2021.9(28).5
UDC 336 : 330.15
JEL CLASSIFICATION: G 18, G 28, G 38, Q 56, Q 58
Igor Bystryakov
Dr. Sci. (Econ.), Professor,
«Institute of Environmental Economics and Sustainable Development of the
National Academy of Sciences of Ukraine»;
ORCID: https://orcid.org/0000-0001-6482-7099
Dmitry Klynovyi
PhD (Econ.), Senior Researcher,
Public Institution “Institute of Environmental Economics and
Sustainable Development of the National Academy of Sciences of Ukraine”;
ORCID: https://orcid.org/0000-0002-3034-8097
PRINCIPAL APPROACHES TO ENSURING ECONOMIC HOMEOSTASIS FROM THE POSITION OF SUSTAINABLE FINANCE
Abstract:The purpose of the article is to outline the basic principles of achieving economic homeostasis and determination of the basic principles of homeostasis of economic systems from the standpoint of the concept of sustainable finance. It was found that the determining factor for the sustainability of the economic system is to ensure both its system-wide homeostasis and homeostasis in each of the subsystems in social, economic and environmental dimensions, which can be realized through a specific system of sustainable finance.
It is determined that three factors should play an important role in the system of sustainable finance: building feedback mechanisms between the economic system and the environment and within its elements; creation of financial reserves and construction of channels of their direction on the needs of sustainable development; strengthening the links between finance and the real sector of production.
The concept of systemic homeostasis is considered in the context of sustainable development management as a balanced state of dynamic self-sustaining balance in the development of socio-ecological and economic entities, which are considered as living systems of organized complexity. The focus is on proactive forms of homeostasis management, the essence of which, in contrast to reactive forms, is to respond to changes in the interaction of the system with its environment actively and purposefully. Financial dominance is considered as a separate fundamental functional component of the sustainable management system, the role of which is to ensure effective distribution relations between the social, economic and environmental components of the economy, and within each of them through appropriate institutions, mechanisms and tools.
Principles of the dominant approach, functionality, vertical and horizontal integration feedback and self-sufficiency are proposed on the basis of the paradigmatic concept of sustainable finance. It is shown that their use will allow to build an internally stable financial component, which is capable to provide homeostasis in the socio-ecological and economic system and the rate of sustainable development at 3–4 % of annual economic growth.
Key words: economic homeostasis, dominant, sustainable finance, principles, sustainable development management.
Language version: Ukrainian
References
1. Kuznetsov, O.L., Kuznetsov, P.G., Bol'shakov, B.Ye. (2002). Sistema «priroda-obshchestvo-chelovek»: ustoychivoye razvitiye [The «nature-society-man» system: sustainable development]. Moskow; Dubna: Noosfera, Mezhdunarodnyy universitet prirody, obshchestva i cheloveka «Dubna» [in Russian].
2. Odum, E.P. (1975). Ocnovy ekologii [Fundamentals of Ecology]. Moskow: Mir [in Russian].
3. Stepanov, V. N. & Pishenina, T. I. (2013). Ob ustoychivosti i neustoychivosti sotsio-ekologo-ekonomicheskogo razvitiya (kontekst teorii gomeostazisa) [About the stability and instability of socio-ecological-economic development (the context of the theory of homeostasis)]. Ekonomichni іnnovatsii, 53, 261-268 [in Russian].
4. Miller, J.G. (1978). Living Systems. New York: McGraw-Hill [in English].
5. Miller, J.G. & Miller, J.L. (1995). Applications of living systems theory. Systemic Practice and Action Research, 8(1), 19-45 [in English].
6. Luman, N. (2011). Ponyattya tsili i systemna ratsionalʹnistʹ: shchodo funktsiyi tsiley u sotsialʹnykh systemakh [The concept of goal and system rationality: in relation to the function of goals in social systems]. Kyiv: Dukh i litera [in Ukrainian].
7. Maturana, H.R. & Varela, F.J. (2001). Drevo poznaniya: biologicheskiye korni chelovecheskogo ponimaniya [The tree of knowledge: The biological roots of human understanding]. Moskow: Progress-traditsiya [in Russian].
8. EU High-Level Expert Group on Sustainable Finance. (2018). Financing a sustainable European economy: Final Report 2018 by the High-Level Expert Group on Sustainable Finance. Secretariat provided by the European Commission [in English].
Article publication date: 2021
Date of online version: 2021