THE FUNCTIONS AND ROLE OF THE INSTITUTIONAL ENVIRONMENT IN ENSURING THE GOALS OF THE DEVELOPMENT OF SOCIETY
DOI:
https://doi.org/10.32782/2786-8273/2024-6-26Keywords:
post-industrial transformations, institutions, institutional environment, components of the institutional environment, functions of the institutional environmentAbstract
Introduction. The institutional environment plays the most important role in ensuring the needs of the progressive development of society because the successful functioning of institutions contributes to ensuring legal stability and security, social justice, support of the economic activity of subjects and increasing its efficiency, support for innovation and technological development, which creates conditions for the economic growth on an innovative basis. Although in modern scientific literature, the functions and role of the institutional environment at both the macro and micro levels are considered in sufficient detail, the specified issue is not finally closed, and the list of functions of the institutional environment is not exhausted. The purpose. For a deeper understanding of the essence of the institutional environment as a set of basic economic, political-legal, social, socio-cultural, ecological and innovative institutions, the purpose of the article is to define the set of functions of institutions that form its integrity. Methods. The results were obtained by applying the methods of systems theory in its structural-functional version – for researching the structure of the societal system as a basis for understanding the essence and functions of the institutional environment; the method of comparative analysis – in the study of the general and special in approaches of scientists in determining the functions of the institutional environment. Results. Considering the institutional environment as a set of basic economic, political-legal, social, socio-cultural, ecological, and innovative institutions, i.e. formal and informal rules, norms, procedures, restrictions, beliefs, and customs that lie in the value-cognitive, normative-legal, and regulatory plane, and which jointly determine the vector of socio-economic development of society, it is proved that the list of functions of the institutional environment can be expanded. Thus, based on the author's definition of the essence of the institutional environment and based on the author's position regarding its structure, it is proposed to supplement the list of specified functions at the expense of such functions as the environmental protection function, the innovation function, the function of democratization of society, the control function, the function of justice and security, the function of conflict resolution, the function of reflecting society's culture and morality, the transformational function, the function of preserving culture, the function of ensuring equality and justice, the function of social equalization, as well as the function of social ties and inclusiveness. Conclusions. Since the institutional environment as a system realizes its goals and tasks with the help of the functions performed by each of its elements, an important issue is the coordination of these functions, because they can both support and disrupt the integrity of the system depending on how effectively they interact to agree and adapt to changes. Therefore, the successful performance of functions by the elements of the institutional system is key to ensuring the stability, development, and adaptation of society in the conditions of post-industrial transformations.
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