The 2020 Crisis: The Collapse of the Social Market Economy or the Path to a New Model of Sustainable Development

Abstract

AbstractPurpose: The goal of the work is to find opportunities and prospects for a successful exit of the global economy from the 2020 crisis, which avoids the collapse of the social market economy and embarks on the path to a new model of sustainable development.Design/Methodology/Approach: The work uses a set of general scientific methods within the framework of the system approach, including methods of induction, deduction, analysis and synthesis, modeling of socio-economic systems, as well as graphic representation of research materials.Findings: The change in the model of sustainable development under the influence of the crisis of 2020 is justified. A new - pyramidal model of sustainable development, emerging under the influence of the crisis of 2020, has been developed, in which the directions of sustainable development are more integrated.Originality/Value: It has been proved that the 2020 crisis is not necessarily led to the collapse of a social market economy - a fairly likely scenario is associated with setting humanity on the way to a new model of sustainable development. Its most important features will be, firstly, increasing the importance, prioritizing social and environmental goals and becoming their foundation for the realization of economic goals. Secondly, the recognition of the «failure of the market» with sustainable development and the assumption by the state of a key role in their implementation instead of creating «rules of the game».KeywordsEconomic crisis of 2020The social market economyA new model of sustainable developmentJEL CodesC31C33C38F63Q01Q56O11O12O31O32O33O38P25P48R11R13R58