In which sectors of the economy, types of economic activity should be used development-oriented socio-economic policy to stimulate the economic processes of the entire economy?
This issue is particularly important now, ie in the period of the forecasted slowdown in economic growth in many countries for 2019.
What types of business ventures should be supported by state bodies and co-financed from the state budget?
What types of public goods should be developed as part of a pro-development socio-economic policy?
What types of investment projects, eg in communication, energy and IT infrastructure, should be developed with state support?
What economic policy should be actively pursued by the state? Is monetary policy (eg purchase of assets lost by central banks from commercial banks), fiscal policy (eg lowering certain categories of taxes), housing policy (eg building housing for the poorest citizens), social policy (eg subsidies for setting up a business in the form of a micro-enterprise) etc.?
Please, answer, comments.
I invite you to the discussion.
Best wishes
Good thrust of thought. However, drop the normative (the ‘should’). Most of these emerging economies are strongly non-ergodic. So, investment must be made on an incremental and reflexive frame. Cf.
Article Public-Private Partnerships (PPP) on Moulding State Structur...
Preprint Public-Private Partnerships (PPP) in Africa: Harking the Holonomic
To me infrastructure creation and/or maintenance would get due weight. Secondly, in today's era of fast disruption, sharing of resources and aggregators models are becoming everyday news. Hence, any new concepts that has the potential to become very large, which also provides economies of scale, efficiency in supply chain, last mile inclusion, and the progressive taxation (e.g. Goods and Service Tax) with some targeted incentives would work effectively.
I think developing economis like India should focus on the developement of the labour intensive manufecturing sector that can create enough jobs. Structural reforms in agriculture sector also need to bring the economy on the development path.
In my opinion, construction is such a booming and developing sector of the economy. However, in the context of the current processes of long-term business cycles, the slowdown in economic growth recorded since the end of 2018 in many countries and in the context of the state of state finances, the following question is up-to-date: In a situation of a balanced state budget, a low level of indebtedness of the state finances and current economic realities, can a large-scale state-supported housing policy and social policy be promoted and promoted on a large scale?
In view of the above, it is also important to include in the above discussion also the following issue:
Does the housing policy based on the state-supported construction of affordable housing for citizens and the system of family-friendly benefits paid to raise fertility in society as part of social policy are good instruments for pro-development socio-economic policy?
In a situation of well-managed public finance, in a situation of a balanced state budget, whether the low level of national finance debt can be developed on a large scale, the aforementioned housing policy and social policy?
In a situation of well-managed state finance and current economic realities, can a large-scale state-supported housing policy and social policy be promoted on a large scale to improve housing and living conditions, raise the income and financial situation of citizens?
Can this kind of pro-development social and economic policy be a good solution to the situation of a decline in economic activity and the cyclically slowdown of the country's economic growth?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
Dear Colleagues and Friends from RG,
The above question inspired me to propose reflections and inspire discussions on the following issues:
Proposals for research topics in the field of finance and economics.
In recent years, the development of knowledge about finance and economics has been determined by many factors, which include, among others, issues of technological progress and changes in economic processes taking place in the microeconomic and macroeconomic areas. In the light of the above, I propose the following interesting research topics currently being developed in many different research centers in the field of finance and economics:
1. The development of various concepts of activating economic processes through the involvement and use of instruments of state interventionism, including selected, specific instruments used in selected configurations of budgetary, fiscal and monetary policy instruments. The growing importance of pro-development socio-economic policies that stimulate economic growth, including housing, social and social policies, etc. as well as specific formulas and instruments for financing these programs from public funds. Development of social and housing policy, etc. as key components of pro-development socio-economic policy in order to activate economic processes and counteract unfavorable faster and faster demographic processes of population aging. Analysis of the economic efficiency of investment projects carried out under specific socio-economic policies, including primarily the assessment of the economic effectiveness of financial expenditure from the state budget to finance specific development goals, activating economic growth of socio-economic policies, including housing, social and social policies, etc.
2. Analysis of the effectiveness of the use of state finances, the finances of public sectors of the state in the implementation of specific goals of interventionist, pro-development, anti-crisis, Keynesian socio-economic policy. The main objectives of the above socio-economic policy may include activating the growth of citizens' consumption and production, investment, entrepreneurship, innovation of enterprises in order to improve economic growth and protect the national economy against the global recession, which may deepen in connection with the trade wars conducted by the world's largest economies and an increase in the costs of transformation of the energy sectors consisting in the development of renewable energy sources and improvement of environmental protection techniques, including ultimately counteracting the negative effects of climate change, the globar warming process, which is moving faster and faster. Analysis of the economic efficiency of large investment projects carried out by the state, implemented as part of pro-development socio-economic policy in cyclical and strategic sectors, e.g. in the field of development of pro-ecological energy policy, housing policy, activation policy of entrepreneurship, innovation and entrepreneurship, etc.
3. Analysis of the growing importance of behavioral finances in the context of examining changes in consumer behavior regarding purchases of consumer goods and changes in the behavior of investors operating on financial markets investing in specific financial instruments, including capital market assets, and securities. Analysis of changes in the relationship of consumer behavior on the markets of goods and services caused by the impact of advertising campaigns conducted on the Internet, using new tools of Internet marketing used in new online media, including primarily on social media portals. The growing importance of economics and behavioral finance, including the analysis of the determinants of media shaping consumer opinions regarding company brand recognition, product and service offerings, etc. by increasing the importance of online information services, including social media portals. The growing importance of financial market psychology, the growing significance of behavioral factors influencing investment decisions of individual investors operating on capital markets and consumers making purchasing decisions on markets of popular products and services. On the other hand, I propose examining the changes in the significance of determinants shaping changes in the ratio of individual investors' share to institutional investors, i.e. mainly banks and investment funds investing their financial surpluses in securities listed on stock exchanges. Analysis of the increase in significance and impact of the involvement of ICT, Internet and Industry 4.0 information technologies to improve computerized transaction systems and the development of internet platforms enabling the conclusion of financial transactions via the Internet from mobile devices, including smartphones. Analysis of the increase in significance and impact of the involvement of ICT, Internet and Industry 4.0 information technologies in the context of studying the behavioral changes of individual investors operating on capital markets.
4. Determinants of the systemic credit risk growing since the 1970s in commercial and public financial systems of many countries, increase in the scale and frequency of emerging national and global financial and economic crises, increase in public finance indebtedness in many countries, decrease in productivity in the economies of many countries with simultaneous speculative increase in valuations of securities of companies listed on stock exchanges. The growing importance and improvement of management processes of credit risk management processes and other categories of financial, market, operational and economic risk. Analysis of the possibilities of improving financial risk management processes in connection with the use of ICT, Internet and advanced data processing industry 4.0 for analytical processes and changes in the importance of key financial and economic determinants analyzed in the microeconomic and macroeconomic areas.
5. Increased diversity in the economic development of developing and highly developed countries, including an increase in the scale of diversification of the examined comparative advantage factors, determinants of specific socio-economic policies, the scale of the impact of globalization processes, international financial institutions and globally operating transnational corporations. The growing importance of foreign capital and technology transfer in financing investment projects in developing countries. Analysis of the impact of international technology transfer and the cross-border flow of financial capital to finance the said technology transfer. Analysis of the importance and economic efficiency of international corporations based in highly developed countries, investment projects for the development of key infrastructure enabling economic development in developing countries.
6. Increasing the significance and scale of implementation of the principles of sustainable, pro-ecological development in economic processes, including the transformation of specific branches of the economy, e.g. energy sector towards green economy, i.e. the conversion of classic energy based on combustion of minerals into environmentally friendly energy based on renewable energy sources . The growing importance of financing eco-friendly projects of business ventures financed from green finance sources. Analysis of the significance and development opportunities, financing pro-ecological reforms in the energy sectors and other branches of the national economy, creation and implementation of ecological innovations into economic processes and other activities carried out as part of the transformation of classical economics into green economy by increasing the importance and participation in economies of development projects carried out according to the concept sustainable proecological economic development. Analysis of the effectiveness of financing pro-ecological reforms in the energy sectors and other branches of the national economy, the creation and implementation of ecological innovations into economic processes and other activities carried out as part of the transformation of classical economy into green economy, taking into account the sources of financing of Greek finance from state public finance funds, from commercial funds operating banks and investment funds, from the funds of citizens developing new pro-ecological economic enterprises in the form of startups financed e.g. from crowdfounding, etc.
7. Analysis of the economic efficiency of investment projects implemented by individual types of business entities and public institutions. Economic and financial analysis of development projects implemented by the state as part of the delivery of certain public goods and investment projects carried out by commercial entities, including corporations, SME sector enterprises, innovative startups, financial institutions and other economic entities. Analysis of improvement processes for conducting economic and financial analyzes conducted by specific business entities and public institutions for development-oriented investment projects using ICT, internet and advanced data processing industry 4.0 for analytical processes. Research on the effectiveness of the application of specific complex analytical models using the latest technological achievements, which include Business Intelligence analytical platforms, Big Data Analytics and Data Science analytical and database systems as well as artificial intelligence and other advanced data processing technologies Industry 4.0. A comparative analysis of the economic efficiency of investment projects implemented by individual types of business entities and public institutions.
8. Analysis of the determinants of the possibilities of increasing the efficiency of investment processes, financing development projects through the use of ICT, Internet and advanced data processing industry 4.0 for analytical processes. Impact of the implementation of ICT information technologies and advanced data processing Industry 4.0 to business processes implemented in enterprises and in their environment as well as to analytical processes related to economics, finance, banking, management, marketing etc. Impact of the implementation of ICT and Industry 4.0 information technologies to business entities for improvement organization management processes and increase in economic efficiency. Analysis of the increase in the efficiency of business processes, including the financing of investment projects with a simultaneous increase in the involvement of ICT, internet and advanced data processing industry 4.0 to business processes.
9. The growing importance of ICT information technology and advanced data processing Industry 4.0, including artificial intelligence, learning machines, cloud computing, Internet of Things, Big Data database technologies in business analytics used in research processes of companies, financial and public institutions , markets, branches of the economy, etc. The growing importance of conducting sentiment analysis on large sets of economic, financial, etc. information downloaded from the Internet and stored in Big Data database systems. Analytics carried out on large data sets using Business Intelligence, Data Science, Data Analytics, etc. Analyzing the possibilities of improving financial risk management processes by implementing the latest technological developments in analytical processes, which include Business Intelligence analytical platforms, Big analytical systems and databases Data Analytics and Data Science as well as artificial intelligence and other advanced data processing technologies Industry 4.0.
10. Development of internet technologies used in economic processes. The development of electronic internet banking, including mobile banking developed on mobile devices, including primarily smartphones. Improving techniques for transferring financial and sensitive data over the Internet. Security of data transfer on the Internet. Analysis of techniques used by cyber criminals and improvement of security systems and IT systems risk management processes, data transfer on the Internet. The use of blockchain technology and Industry 4.0 technology to improve cyber security systems. Analysis of the possibilities and determinants of the increase in security made remotely via the Internet of financial transactions and online settlements through the use of new Industry 4.0 technologies, including artificial intelligence, machine learning, blockchain and others. Analysis of the economic efficiency of financing research and development processes, the aim of which is to increase the security level of online transactions and settlements, financial operations carried out as part of electronic online banking and data transfer on the Internet.
In my publications I have described various issues in the field of economics and finance regarding the above-mentioned issues and determinants shaping economic, financial and other issues. I conduct research in this area. The conclusions of the research I published in scientific publications that are available on the Research Gate portal. I invite you to cooperation.
Please reply
I invite you to discussion
Thank you very much
Best wishes
Dariusz Prokopowicz
It should be used in all economic and social activities, whereever and whenever possible.
Education and health as accessible public goods. Education, because it equips the labor force to value-create. Health, because without it, the gains from education, not to mention the other sectors, will go to waste. The "products" of these two corresponding sectors seem to be on the polar opposites of the materialistic-abstract continuum. Nothing is as "materialistic" as health. Nothing is as "abstract" as education. Both require the kind of long-term commitment that a lot of policy-makers find unsuited to the prevailing political necessities. Education has evolved into being lifelong-learning, while health is now broadly-defined as wellness.
Ultimately if we go back to "first principles", wellness underlies everything. As they say, "Health is wealth". I suspect there is a inverse relationship between economic development (after a threshold is reached); that mental and emotional disorders will become prevalent, ultimately sapping and discounting the progress from growth and development. Education is the best insurance policy for wellness. Depending on the kind and quality of education, it could have a positive, reinforcing impact on a nation's health and wellness.
Article On the economics of happiness: The influence of income and n...
Article A Modern History of Happiness as Economic Policy
Article Income, Health, and Well-Being around the World: Evidence fr...
Dear Mirna Leko-Šimić,
Yes, I agree with your opinion that in a situation of economic downturn caused by the financial or economic crisis, pro-development, anti-crisis socio-economic policy should be applied in all economic and social activities, wherever possible. So now, in the context of the current decline in economic activity caused by the SARS-CoV-2 (Covid-19) coronavirus pandemic, this type of active state interventionist approach to the economy should be applied.
Best regards,
Dariusz Prokopowicz
Dear Shian-Loong Bernard Lew,
Yes, I fully agree that the education sector and the institutional health care system are particularly important areas in which a modern, developing state should invest in terms of long-term, effective socio-economic development and many other areas. The education and health care system should be constantly improved in order to adapt to the ongoing technological progress and to prepare and secure citizens for crisis situations, eg for such a pandemic situation (the SARS-CoV-2 [Covid-19] coronavirus pandemic) as we currently have. Thank you for the interesting, inspiring information and links to publications on this subject.
Best regards,
Dariusz Prokopowicz
As part of the anti-crisis socio-economic policy applied in 2020 to limit the effects of the economic recession, public aid interventionist programs were offered to commercially operating economic entities operating in various industries and sectors of the economy, and not only to those that were subject to lockdowns.
Regards,
Dariusz Prokopowicz