Abstract
Recent global economic and social challenges confirm the existence of a number of systemic problems in socio-economic relations. Thus, the spread of the concept of sustainable development, which combines social, environmental and economic aspects, became a characteristic feature of the global development trend in recent decades. Highly developed world countries are currently implementing the principles of social economy (a special state management model for socio-economic development) in their policies with the aim to overcome abovementioned challenges and to reach the millennium development goals. The implementation of these principles, realized by the state management in these countries during the last decades, enables us to evaluate the available results and highlight the characteristics of individual national business models of social economy. The study of the most important social and economic global indicators by means of modeling, clustering and regression analysis made it possible not only to emphasize the most important indicators characterizing socio-economic development, but also, taking into account the establishment of interrelationships between social and economic parameters, to single out separate groups of countries (exclusively the European region has been selected for the research) united by common principles and methods of social and economic policy and its implementation outcomes. The obtained results allow us to predict further trends of socio-economic development of separate groups of countries taking into account the available material and technical resources, the situation on the labor market and the level of competitiveness of national labor resources, the features of the functioning of the monetary and tax systems, etc. Given the results of clustering, it was possible to identify both specific models for socio-economic development specific to certain groups and their inherent tendencies of functioning. Besides, a set of specific methods and mechanisms of government control which are common and the best suitable for these systems is determined.
Highlights
The social market economy is a prevailing economic system common for industrialized countries since the middle of the twentieth century
An economy with high living standards and high social spending is an example of a liberal society that has reached a high level of material well-being that would allow significant allocations to help the poor, financing health care, education and other social sectors; there is a lack of mechanisms for reconciling interests of independent social groups existing within this economic system
Other economic systems (e.g., Switzerland, Austria or Belgium) orient their socio-economic and legal mechanisms towards concerted action to achieve social cohesion and high living standards for the majority of the population, they are inferior to the leading indicators of the income levels and quality of life in market economies (Dumitru, 2013)
Summary
The social market economy is a prevailing economic system common for industrialized countries since the middle of the twentieth century Such a system is characterized by a high level of social and economic well-being of citizens, as well as the existence of a perfect system of socio-economic institutions that govern the functioning of all elements of this system in order to achieve the goals of social justice, security, high standards and quality of life. Other economic systems (e.g., Switzerland, Austria or Belgium) orient their socio-economic and legal mechanisms towards concerted action to achieve social cohesion and high living standards for the majority of the population, they are inferior to the leading indicators of the income levels and quality of life in market economies (Dumitru, 2013). Any effective social economy takes into account and is characterized by national features that reflect the history of the country, the traditions of the people, the national mentality, the system of upbringing and the attitude towards solidarity, collectivism/individualism, national features of business culture, etc
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