№ 2021/4
Institutional problems of economic developmentYAREMENKO Oleh 1
1Institute for Economics and Forecasting, NAS of Ukraine
Institutional mechanisms for overcoming the contradictions between globalization and localization
ABSTRACT ▼
Information technology and the formation of the global market have led to such destructive a complication of the environment, which generates global imbalances, the negative effects of conflict, reducing the level of institutionalization of the world economy, narrowing the time horizon of rational choice. This stimulates the search for alternatives to excessive complexity and conflict of development. The way out of this situation is localization based on the reproduction of identities. The desired effect of localization is the institutional provision of a more balanced distribution of resources / benefits of globalization, on the one hand, and the distribution of its risks and uncertainties, on the other. Identity is seen as the extreme level of structure of society, which is responsible for the integrity of social behavior of subjects as elements of the system.
The acceptable level of complexity of the global system is achieved in the ways of optimal localization. The basis of such localization is the recognition of the positive meaning of the identity factor, which generates different risk assess-ments, different time horizons of decision-making and different criteria for effective participation in globalization. The institutional mechanisms for the smart-localization of global development are economic sovereignty, institutional protection of the national producer, and social protection of the population. As a result, the global system has a choice of options to respond to challenges from uncertainty and threats. Globalization as unification and standardization is a more risky path because it limits variability and prevents the use of alternative cost estimation methods
Keywords:contradictions of globalization, institutions, identity, uncertainty, risks, hetero-geneity, localization, sovereignty, economic power
JEL: F01; F52
| Article in Russian (pp. 56 - 72) |
| Article in Ukrainian (pp. 56 - 72) |
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