The Nature, Issues and Methods of Social Economics
This highlights that social economics is a system geared towards achieving economic and social development in a social market, rather than based on free market economic principles.
Definition of Social Economics
Social economy is a system of economic mechanisms, which ensures socially oriented economic growth in connection with economic oriented social development.
That is, the nature of social economics is the economic laws and regularities of producing social production and achievement of social harmony, social compromise between individuals, social groups, the society as whole and government, and the inseparable connection between economic and social relations. This is important to achieve the twin goals of steady or sustainable economic growth and stable increase in human well-being or welfare.
Principles of Social Economics
First principle of social economics is that there must be unity between socially oriented economic policy and economically oriented social development.
The second principle is the separation and integration of the national economy at the micro, meso and macro levels.
Third principle is a system analysis of the factors of the socioeconomic development.
The fourth principle is formation development of social partnership between and among labor, capital and policy as a necessary precondition for socioeconomic growth.
Objectives of Social Economics
Increase in socially active population in proportion to the entire population and effective use of human potential.
Sustainable and consumer oriented production of goods and services based on the increase in effective demand.
Creating favorable living condition;
Socialization of the economic environment on the basis of social partnership between and among businesses, unions and legal framework created by the government;
Social sector and market infrastructure development to enable to produce goods and services;
Training and re-training of workforce under the structural revamping of the national economy;
The identification and separation of labor-related incomes and social income as a proportion of GDP for the purpose of ensuring socioeconomic development and increase in the living standards of most of the population.
Social Sector
Social sector consists of group of branches, businesses and organizations whose purpose determine human living standards and way of life. The social sector includes education, culture, public health, sports, public catering, housing maintenance, mass transit,
Communications, labor safety, social safety and social order. Sub-systems of social and labor sectors consist of social-labor relations, who resolved labor disputes, determination of job responsibilities. As well, social sub-systems include employment of population, which involves employment, training and re-training and unemployment benefits. In addition, it involves labor remuneration such as wages, bonuses and fringe benefits.
Issues of Social Economics
The major issues of social economics are as follows:
Demographic dynamics
Territorial allocation of the population
Migration and freedom of movement
Economic environment
Formation of socioeconomic communities at the corporate and territorial levels
Education and culture
Science and Research activities
Public heath, tourism labor safety, sports
Effectiveness of economics, labor and social development
Criteria of Economic Growth in Social Economics
Macro level – GDP growth: Micro level – increase in the physical amounts of goods and services
Increase in business activities measured by number and value of business contracts signed
Unemployment benefits as a negative indicator of economic growth
Economic Growth in Social Economics
In micro level of the economy the economic growth is achieved by efficient use of resources, application of no-waste policy and the use of environmentally friendly technologies, decrease in current stocks, increase in rotation coefficient as well as rational use of productive capacities.
In meso-level the economic growth is achieved by strategic business development, job creation and other socioeconomic development projects.
In nacro level economic growth is achieved by optimization of the economic environment, creating investor friendly environment, and adequate financial and taxation policy and above all control of inflation and lowering unemployment level.
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