Issue № 70. October 2018

Solving the Issue of Subjects Interests Harmonization in Socio-Economic Exchange: Institutional Approach

DSc (Economics), Professor, Graduate School of Engineering and Economics, Peter the Great St. Petersburg Polytechnic University, St. Petersburg, the Russian Federation.
E-mail: kichigin-oleg@mail.ru

Socio-economic development of the society is a complex network of social exchanges, subjects of which pursue their specific interests. Institutional approach views activities of each organisation as development of various transaction types, process of implementation of which is connected to the emergence and the necessity of lowering various types of transaction costs. The subject of this analysis is the conditions in which the subjects of the socio-economic development of the society form their interests. The aim of this analysis is to justify the possibility of harmonising these interests. This article analyses premises of the development of the specific interests, which are directly connected to the processes of emergence and growth of such organisations as the firm and the government. Harmonisation of these organisations interests fosters development of the society as it forms the basis for the development of institutions, which are directed at lowering transaction costs of social exchange. Institutional approach allowed coming to a conclusion that the harmonisation of interests is possible if the nature of these interests’ emergence and alternative ways of achieving them are defined. The results of the analysis can be utilised when forming and implementing various types of government’s socio-economic policy, aimed at improving nation’s welfare.

Keywords

Harmonisation of interests, social exchange, transaction costs, subjects of socio-economic development of the society.