The Socio-Economic Development and Its Relationship with the Indicators of Empowerment, Economic Freedoms and Opportunities

• Main Authors: Matiuk Тetiana V., Poluiaktova Olha V.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2021-05-01
• Series: Bìznes Inform
• Subjects: socio-economic development; human development index; democracy index; economic freedom index; intellectual capital
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2021-5_0-pages-22_28.pdf

The article analyzes the key aspects and factors of the socio-economic development of society. On the basis of the studied theoretical approaches, the essence of the concept of «economic development» is specified. The most important components of the new quality of growth are defined. Both the need to and possibility of supplementing the indicator of the country’s success in socio-economic development (HDI), which is annually calculated by UNDP and reflects the relationship between the assessment of longevity in the country, the level of literacy and education of the population and the standard of living, indicators of empowerment, economic freedoms and opportunities, is substantiated. Based on the correlation analysis of indicators of the human development index, on the one hand, and the human development index, taking into account indicators of empowerment, economic freedoms and opportunities, as well as the index of life satisfaction, political and economic freedom, on the other hand, it has been proved that there is a direct strong connection between these indicators. This testifies the direct impact of the extent of life satisfaction, economic independence and political participation on the socio-economic development of society. A comparison of the composition of the resulting clusters with the rating of countries by the level of human development within the traditional HDI showed that there are certain differences. Thus, the largest number of countries with a very high level of human development when applying indicators of empowerment have lost their status. Similar results are observed for many other countries that, according to the HDI rating, taking into account empowerment, found themselves in a lower level of human development in a group of countries. The research showed that none of the countries moved in the ranking to a higher group. The obtained results confirmed the hypothesis that there is a fairly strong relationship between the levels of overall satisfaction with life, democracy and economic freedom and socio-economic development.