Self-organization in social and economic systems: conceptual framework and axiomatics
Importance The article explores the ontology and evolutionary paths of historically limited socio-economic systems through their self-organization mechanism, being one of the core, significant, and current issues of economic analysis. Objectives The research pursues developing the theoretical basis and formally describes the evolution of complex socio-economic systems on the basis of their self-organization mechanisms in terms of their evolutionary dynamics and theory of adaptive management and the complexity theory. Considering objectives of the research, we clarified the substance of self-organization. Methods The research relies upon cognitive value of the political economy theory and methods of systems and economic analysis. The results allow proving that any system progresses and develops from the highest entropy (uncertainty) towards negative entropy (order), thus acquiring new ties and converting its structure in a cyclical and wave-like manner, i.e. self-organizing. Results We prove that power of correlation between growth inhibiting forces and, vice versa, change initiators (positive and negative inverse relations) play the key role in self-organization processes. The system grows and develops when positive inverse relation prevails. The article formally presents the main axioms of self-organizations of socio-economic systems, which are typical of the post-industrial phase of development. Conclusions and Relevance We systematize the main conclusions on the research. The outcome should lay the basis for accelerated development of the national economy when it reaches its post-industrial phase, thus increasing its internal and external efficiency. Practical results may be used by public authorities to formulate a strategy for socio-economic development of the nation.