Role and Place of Institutional Capacity in Socio-Economic Development
- Autores: Oleg Kichigin Oleg, Andrey Zaytsev, Nikolay Dmitriev
- Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 8, Nº. 10, 2023 (Ejemplar dedicado a: Continuous publication; e03787)
- Idioma: inglés
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Resumen
Purpose: The purpose of the study is to substantiate the place and role of institutional capacity in socio-economic development (SED), taking into account the regional context.
Theoretical framework: To conduct the study, it was highlighted that the SED of society and the state is a process, as a result of which new opportunities are created for the subjects of public relations in obtaining income from the use of the potential of the resource base in the field of rental relations. The effectiveness of such a process is directly related to the process of managing the development of economic potential, which determines its role and place in the SED of society and the state.
Design/methodology/approach: In the study, the following components are classified as structural elements of economic potential: resource and institutional potential. To clarify the methodological approach to assessing the institutional potential of SED, as a category of social relations, the terminological basis of this concept was considered. Institutional potential, as a scientific concept that expresses the development of the most general institutional ties in socially significant relations between subjects of public relations, is studied in the system of socio-economic transformation "resource-potential-capital", in which the institution is a resource. The place of institutional potential is determined by the direction of evolutionary changes in SED aimed at meeting the diverse needs of society. At the same time, the institutional transformation of its resource potential creates opportunities for the subjects of this process to receive income in various areas of social relations.
Findings: As a result of the study of the role of institutional capacity, a scientific rationale was obtained for managing the effectiveness of SED, which is associated with the result of its development. As a result of the process of transformation of institutional potential, it is an institutional rent, that is, the possibility of extracting monopoly income by the subjects of rent relations in the SED process.
Research, Practical & Social implications: The study of the terminological basis of the concept of "institutional potential", as a category of SED, allows us to expand the methodology of exploratory and fundamental research in the field of the influence of institutions on the evolution of social relations in relation to the problems of managing the processes of development of a competitive environment.
Originality/value: Clarification of the institutional potential concept, as well as substantiation of its role and place in the assessment and implementation of SED processes, allows us to propose mechanisms for adjusting institutions operating in society in order to increase the effectiveness of the SED institutional model.
