Institutions as a factor in sustainable development

Abstract

For many years, the concept of 'sustainable development' has been the subject of interest both in theory (variety of interpretations) and the broader social and economic life practice. It is also the subject of legislation - the principle of sustainable development is a constitutional norm in many countries. The focus is present in various international agreements and regulations of regional integration groups, such as the EU. Sustainability can be considered from various perspectives and approaches, including institutional. Institutions are becoming less of a condition than a factor in development processes. At the same time, institutions are characterised by relative permanence (mainly cultural elements and social norms) and variability at different times. Persistence is a problem of institutional equilibrium, while variability results from technical, technological and social conditions and development needs. This interweaving of endo and exogenous institutional factors underpins the institutional determinants of sustainable development characterised by a peculiar balance between environmental, economic and social values. It is also the increasing interconnection of local problems with global change. Dynamic economic changes result from many factors, including technological change - mainly digitisation and containerisation. Development dynamics require openness to new institutional arrangements. The institutional system contributes to the realisation of sustainable economic development mainly by improving the quality of institutions, a kind of approximation to the desired institutional pattern. This takes place at various levels of analysis, both on a global, regional, state scale and on the scale of a particular economic entity - mainly an enterprise. In doing so, the institutional matrix is supplemented by new institutions reconciling the requirements of efficient management with environmental goals and social inclusion processes.