The Forecast Scenarios of Development of the National Economy in the Context of the Need to Improve the «Cost of Living»

• Main Authors: Kulakov Gennady T., Bondar-Podhurskaya Oksana V., Manina Ludmila І.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2017-04-01
• Series: Bìznes Inform
• Subjects: upgraded human development index; national economy; The Minsk Agreements; socially oriented sustainable innovative development; vital interests of population; cost of living; wages
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2017-4_0-pages-14_20.pdf

The article is aimed at elaborating and materialization of the forecast scenarios of development of the national economy in the context of substantiating the feasibility of improving the «cost of living» being the equivalent of the liability of public authorities for the value of human life. The article researches the phenomenon of the «cost of living» in the context of sustainable innovative development of a socially oriented development of economy as an axis for developing its forecast scenarios. Focus has been set on complementarity of the terms of «cost of living» and «sustainable development» in the context of satisfying vital interests of the population of Ukraine. It has been suggested that wages accounting as an equivalent to the «cost of living» should not be included with costs but with the value added, however, the growth rate of wages must not outpace the growth rate of labor productivity. For the first time on the basis of the interdisciplinary and intersectoral approach, as well as the index method, have been elaborated baseline scenarios of development of the national economy on the basis of the upgraded human development index: pessimistic, realistic, and optimistic forecasts.