Methodological Approach to Assessing the Effectiveness of Management of Sustainable Economic Development

Abstract

Purpose The chapter’s purpose is to develop a methodological approach that provides a two-way review of the effectiveness of management of sustainable economic development and, therefore, allows both the results achieved and the costs incurred to be taken into account simultaneously (systemically). Design/Methodology/Approach The authors have developed a new methodological approach that allows a systematic assessment of the management of sustainable economic development from the point of view of efficiency as a ratio of results and costs. A set of indicators for assessing results and costs is proposed, their designations are introduced and evaluation formulas are proposed. Recommendations were made to bring the indicators to common units. A formula for calculating an integral indicator of the effectiveness of managing sustainable economic development has been developed. The matrix is proposed for qualitative interpretation of quantitative results of assessment of efficiency of management of sustainable development of economy in accordance with author’s methodical approach. Findings The developed methodological approach to assessing (monitoring) the management of sustainable economic development has the following advantages: completeness (simultaneous accounting of both results and costs), quantitative and qualitative assessment, logical structuring (both final and intermediate results are available for extended analysis), accuracy (taking into account not only efficiency, but also the feasibility of sustainable development from the standpoint of efficiency and lack of deficit of the state budget). Originality/value The results of the testing of the methodological approach developed on the example of developed and developing countries with the most developed institutions of public administration of the economy have demonstrated the great potential for practical application of the approach. In Russia, moderate efficiency of government management of sustainable economic development was revealed due to low performance (0.89) and budget deficit (0.008), despite the predominance of results over costs (5.84). The highest ratio of results and costs was achieved in the field of economic equilibrium (15.56), a moderate ratio in the field of flexibility and adaptability of the economy (1.27) and a low value in the field of economic stability (0.70).