Features of the influence on the economic dynamics of social institutions, formal and informal values
Authors: Andrushkiv Bohdan , Grushko Viktor , Hrushko Serhiy 
Published: March 2024

The article reveals the role of legitimate institutions and illegitimate institutions, formal and informal dominant values in providing the environment in which the economy functions and develops, certain characteristic features, the qualitative properties of which play a decisive role in the process of forming economic dynamics. The influence of personal interest, not limited by the framework of sociocentric morality, on the development of negative trends in the surrounding natural environment, the growth of social contrasts, the formation of a shadow economy, the spread of corruption, the increase of transaction costs, the inhibition of modernization processes in the field of production of goods, the accumulation of complications in the provision of quality services, etc. An analysis of the problems and threats caused by the stimulation of personal interest without its simultaneous subordination to public interests and coordination with them was carried out. It has been revealed how personal interest, unlimited by ethical norms, becomes the cause of the development of negative trends at the current stage of the evolution of the consumer economy, under the influence of both the stimulation of artificial needs of ordinary citizens at the bottom of the socio-economic pyramid, and the growth of the scale of quasieconomic activities of leaders in the accumulation of capitalist resources at its top. The role of sociometric morality, corporate ethics, and solidarity between people in increasing the effectiveness of the organization of subjects of economic activity of various forms of ownership, scale of activity, and level of capitalization is revealed. It was established that legal regulators alone are not enough to ensure a high level of organizational efficiency of the economy, since all the nuances in the complex web of a large number of economic interactions cannot be taken into account in the current laws, for which certain «blind spots» always remain, in which there is room for manipulation. Along with this, it was analyzed how due to «blind spots» not taken into account in the laws, a favorable environment is formed for the development of corruption and imitation activities in the economy, in which the redistribution of income, resources, property, capital, etc. replaces the production of necessary goods and the multiplication of real capital at the disposal of society. The role of social norms, which are formed on the basis of dominant values, in constructing the quality of the environment in which the economy functions, receiving from it, depending on its properties, either impulses for its development, or inertial paralysis caused by the dominance of redistribution over progress, is revealed. It has been established that the economic paradigm has changed from the focus on multiplying productive capital to consumer priorities, rent, and power acquired through accumulated signs of wealth (money and securities), which step by step lose the ability to adequately reflect economic reality.