National wealth in the context of the transformation of the socio-economic system

Chikhireva Natalia Viktorovna ORCID: 0000-0002-7415-1667 applicant; Department of Economic Theory; Federal State Educational Institution of Higher Education 'Financial University under the Government of the Russian Federation' 49/2 Leningradsky Ave., Moscow, 125167, Russia 4mrsrnv@gmail.com

Introduction

In the context of the transformation of the socio-economic system, national wealth becomes a conceptual category with multiple meanings and roles for society. First of all, national wealth plays an important role in ensuring the economic security of the country, allowing the state to have financial resources to implement its socio-economic programs and projects, as well as to overcome economic crises. Also, national wealth is the basis for the formation of the country's investment potential. It allows attracting foreign investment, developing infrastructure, technology and creating new jobs. For the social sphere of life and industries such as education, healthcare, national wealth is the basis for sustainable development. At the same time, there is a cyclical nature: investments in socially significant industries multiply national wealth. National wealth allows countries to adapt to changes in the socio-economic system. It allows the state to respond to new challenges and opportunities arising from changes in the global economy. To determine the role of national wealth in modern realities, it is necessary to determine the existing environment for the formation and functioning of national wealth, namely, to identify the stages of crisis phenomena and processes and identify the problems of the modern world socio-economic system and the Russian socio-economic system, in particular.

The study of the socio-economic system of the state is the object of research by many scientists and practitioners, since it is the socio-economic system that determines the institutional environment and the possibilities of functioning within this environment. The classical definition of a socio-economic system can be formulated as follows:

The socio-economic system is a complex of interrelated economic and social processes, institutions, norms and interactions that determine the way society is organized and functions in various spheres of life. Within the framework of this system, the methods of production, distribution and consumption of material goods are determined, as well as the regulation of social relations, including social structure, cultural norms, rights and obligations of citizens. The main elements of the socio-economic system include:

1. an economic structure that includes sectors of the economy, forms of ownership, ways of allocating resources and benefits, as well as a mechanism for regulating economic activity;

2. Social structure - includes class, ethnic, professional and other social groups, their relationships, the level of social inequality and mobility;

3. The institutional environment consists of laws, norms, rules and organizations that regulate the economic and social life of society;

4. Cultural and ideological aspects - form values, norms of behavior, expectations and ideals that influence economic and social actions and relationships;

5. The political system is connected with the management of society, the distribution of power and ensuring social stability and law and order.

Material and methods

In order to reveal the categories and the essence of these categories, the following research methods and approaches were used: dialectical, historical, cultural-value, existential.

The main part

The socio-economic system of each country is unique and develops under the influence of historical, cultural, geographical and other factors.

Within the framework of this article, the following definition of a socio-economic system is proposed.

The socio-economic system is an integrated whole that includes many levels and aspects of social existence, such as economic relations, social structures, cultural norms and ideological beliefs. The socio-economic system is studied with an emphasis on the fundamental principles governing its development and functioning, as well as its impact on human consciousness and social behavior. In many ways, modern reality dictates exactly this angle of consideration of the socio-economic system, because right now, in the age of digitalization, the development of Internet communication and informatization, there is a need to form the correct worldview of individuals.

Within the framework of the dialectical approach, scientists such as Hegel and Marx considered the socio-economic system through the prism of dialectics as a process of constant change and development occurring as a result of the collision of opposites (for example, the class struggle in Marxism). Here, the socio-economic system is understood as a dynamic structure in which contradictions between the forces of production and production relations lead to changes and social progress ^[1].

From the point of view of historical materialism, developed by Marx and Engels, the economic base (production capabilities) determines the superstructure of society, including its political, legal, ideological and cultural institutions. The socio-economic system is understood as a structure in which economic factors play a key role in determining the nature and form of social organization and development ^[2].

Proponents of the cultural-value approach, such as Max Weber, emphasized the importance of cultural and religious values in shaping socio-economic systems. For example, in his work Protestant Ethics and the Spirit of Capitalism, Weber explains how Protestant values contributed to the development of the capitalist spirit and economic relations in the West. In this approach, the socio-economic system is understood as the result of cultural and ethical choices that influence economic behavior and social institutions ^[3].

From the point of view of phenomenology and existentialism, the socio-economic system is viewed through the prism of human experience and perception. Here, attention is paid to the subjective meanings and meanings that people attach to economic and social phenomena, their impact on personal identity and freedom. The system is perceived not only as an objective structure, but also as a construct formed through human perception and action.

Philosophers consider the socio-economic system from the point of view of its justice, equality and moral legitimacy. It analyzes how the system contributes to social well-being, equitable distribution of resources and protection of human rights. Issues of ethics of economics and social justice, such as wealth and poverty, economic inequality and social responsibility, are becoming central to philosophical discussions ^[3].

Thus, it can be concluded that the socio-economic system is not just a set of economic and social institutions, but also a complex, multilevel structure that is formed under the influence of historical, cultural, ethical and spiritual factors. The transformation of the socio-economic system includes several key stages, each of which is characterized by certain changes in the economic and social structure of society.

Let's consider the main phases of the transformation of the socio-economic system (Table 1).

Table 1 – Phases of transformation of the socio-economic system

Let's consider the crisis phases using the example of the systemic crisis of 2007-2024, which began as a global financial crisis. According to the US Congressional Financial Crisis Inquiry Report on page 18, residential real estate prices in the United States fell by more than 30% in some regions, which led to an increase in the number of mortgage defaults ^[4], in 2009 stock markets around the world collapsed by more than 50%^[4], many banks and other financial institutions have faced difficulties in obtaining financing due to concerns about their financial stability. For example, the liquidity index of banks in the European Union reached its lowest level since 1992 in October 2008 ^[5]. Many industries, such as automotive and construction, have experienced significant production reductions due to declining demand. For example, car production in the United States fell by 37% in 2009 compared to 2008 ^[6]. These crisis phenomena reflect the phase of destabilization, which began to require awareness of the need for change. Unfortunately, the reforms that were undertaken were targeted in order to prevent current problems. An example is the reform of the banking risk management system and financial institutions in the United States in 2010 - the Dodd-Frank Act, which strengthened supervision of the largest financial institutions to prevent risks similar to those that led to the 2008 crisis ^[7]. In Europe, a similar reform was carried out in 2014, which strengthened capital requirements and management standards ^[8]. At the same time, it was not possible to cope with crisis phenomena at the short-term level. In this regard, the global systemic crisis began to be characterized by new stages and continued until 2024 (to the present day), acquiring a terminal stage. The terminal stage of the country's crisis is characterized by deep and protracted economic, political and social instability, which leads to serious consequences for the population and the state as a whole. According to the works of A.I. Fursov, a systemic crisis is a transition from one cycle to another, which has more severe consequences for the economy and society ^[9].

Any system has its own life cycle and finds itself in a crisis phase – this is due to the inability to apply established institutions in modern reality. Institutions require constant updating and adaptation, but they do not have time to change with the speed of system change. As a result of the crisis, the system either disappears or changes and adaptation take place. The phase of awareness of the need for change involves planning and forming an adaptive model relevant to modern living conditions.

The reform base is often short–lived - changes are introduced and a process of adaptation and stabilization occurs. After stabilization and adaptation, there is a phase of growth and development, stabilization of the institutional development model. The transformation process can take a long time and requires coordinated efforts on the part of the state, business and society as a whole. All subsequent changes related to changes in lifestyles (scientific and technological progress, demography and population structure, natural and climatic conditions, infrastructure) require an early change in the institutions of society. If institutional changes do not keep pace with the change in the social structure, then the system is in crisis again.

The modern socio-economic system has a number of key characteristics that determine its functioning and development in the context of globalization, technological progress and changes in social norms. Let's consider the main characteristics of the socio-economic system of modern society (Table 2).

Table 2 – Global socio-economic system

The characteristics presented in table 2 demonstrate how the socio-economic system adapts to modern challenges and opportunities, ensuring sustainable development and responding to changes in the world. It should be noted that within the framework of established institutions and trends in the development of the socio-economic system, opportunities arise to offset the harm resulting from economic activity, for example, by harming the environment (pollution of reservoirs, destruction of wildlife, etc.), an enterprise can actively promote environmental friendliness and support a green economy (present goods in eco-friendly packaging, invest in the environment in order to attract the media). As a result of the prevailing institutional traps, a global crisis arose, which turned from a financial crisis into a systemic one. The modern global socio-economic system is in a crisis phase. Since the global financial crisis of 2007, other aspects of the life of the world community have also become destabilized, which has led to political and military conflicts. High rates of digitalization and the growth of information flows form an ambiguous situation in which society strives to accumulate and increase national wealth in the face of changing business models, simplifying and reducing transaction and transaction costs, while facing the risks of information leakage, concentration of resources in large corporations, monopolization, and increasing social inequality.

The socio-economic system of Russia faces a number of complex problems that affect its development and sustainability. The key problems of the modern socio-economic system of Russia are presented in Table 3.

Table 3 – Problems of the modern socio-economic system of Russia

The problems of the socio-economic system of modern Russia are largely related to the crisis period of the 1990s and are associated with the demographic pit that arose during that period. In the present period, Russia is facing an uneven distribution of labor resources in the country, a personnel shortage, which entails both infrastructural limitations and technological backwardness. The slow development of domestic machinery and technologies leads to dependence on raw materials that are monopolized and, as a result, social inequality in society arises, suppression of small and medium–sized businesses, and a decrease in the quality of life of the population. These problems require an integrated approach and the implementation of strategies aimed at diversifying the economy, strengthening institutional structures and improving social protection of the population. With the formation of adaptive and effective institutions aimed at the security and well-being of society, it is possible to achieve points of growth of the national wealth of the Russian economy in conditions of external instability. Indicators of national wealth should include both quantitative and qualitative indicators. Information security should be considered separately, since in modern digital reality, the worldview of individuals should be directed at creative processes, individual development, both economic and cultural, values should be formed that together form the stability of the Russian economy.

National wealth in the modern socio-economic system of Russia is determined by a number of factors that include both tangible and intangible components. The main aspects determining national wealth include the elements presented in table 4.

Table 4 - Components of the national wealth of Russia

The national wealth of Russia is formed on the basis of existing resources and the labor invested in the development of the real sector of the economy. Despite the problems of the socio-economic system of Russia, presented in Table 3, there are points of growth and opportunities to overcome the crisis situation. It seems necessary to form institutions that will be based on the growth of indicators of the elements of national wealth presented in Table 4. At the same time, institutions should be aimed at preserving national security and natural resources, contributing to human capital. The growth of national wealth will be observed in the long term. In the short term, some indicators may decrease, which is the norm for preserving and stabilizing the socio-economic system. For example, careful mining and conservation of natural resources will lead to a decrease in the country's GDP in the short term. However, in the long term, this will lead to a reduction in commodity dependence and stimulate production. It seems that in modern realities, qualitative indicators of the level of national wealth of a country are becoming more significant than quantitative indicators, although it is not entirely correct to compare these indicators. At the same time, undoubtedly, one of the fundamental roles in determining the level of national wealth of a country is the security of individuals (economic, information, etc.).

It seems necessary to consider national wealth in the context of the formation and evolution of the socio-economic system, considering the current crisis as an opportunity and the formation of new realities of life. At the same time, it is necessary to analyze the dynamics, growth points and resources for the accumulation of national wealth in the space-time continuum. In this context, the line between national wealth and the total social product can be more clearly reflected. National wealth is the total value of all tangible and intangible assets owned by the population of a country, including natural resources, infrastructure, buildings, equipment, technology and human capital. The total social product (SOP) is the total value of all final goods and services produced in a country over a certain period of time, usually over a year. The SOP is the most important indicator of a country's economic activity and reflects the dynamics and potential of increasing national wealth over a certain period of time in a certain territory. SOP is the main source of national wealth, as it represents the value of all goods and services produced that can be used to meet the needs of the population and develop the economy. National wealth, in turn, is a factor influencing SOP. The greater the national wealth, the more resources are available for the production of goods and services, which can lead to an increase in SOP. National wealth can be expressed in terms of the total social product as follows:

NB =NB{0} + SOP–D (1)

where:

NB{0} - initial value of national wealth at the beginning of the period

SOP is the total social product for the period under review,

D - the amount of depreciation and losses of assets for the same period

NB{0} represents the value of assets at the beginning of the period under review. The SOP adds new resources and revenues that can be used to increase national wealth. D - reduce national wealth, as assets lose their value over time. This formula shows how the total social product affects the level of national wealth, taking into account the initial value of assets and losses from their depreciation.

The results of the study

The concept of a systematic analysis of national wealth in the context of the transformation of the socio-economic system is proposed. The necessity of using the cognitive capabilities of the evolutionary component of the theory of socio-economic transformation and the concept of the space-time continuum is substantiated. The implementation of this concept made it possible to identify qualitative changes in the characteristics of national wealth in these conditions:

a) Modern systemic transformations strengthen the perspective orientation of national wealth as an integral result of social reproduction;

b) The role of national wealth is increasing in ensuring an effective link between the current and future conditions of the economy and society;

c) The distinction between national wealth and the total social product is clearly highlighted;

d) New elements appear in the structure of national wealth that meet the requirements of the transformation of the socio-economic system, as well as the roles and structural positions of existing components of this wealth are changing.

The use of the obtained scientific results makes it possible to analyze changes in the content of national wealth in these conditions and identify changes in its composition.

Conclusion

Thus, it seems that national wealth in the context of the transformation of the socio-economic system is an important aspect of national security, since it determines the material basis for economic growth, social development and the country's defense capability. In the context of national security, national wealth includes all types of resources that can be used to ensure the security of society: natural resources, human capital, infrastructure, science and technology, industry. The period of transformation of the socio-economic system is associated with crisis phenomena. The modern crisis is characterized by the fact that it penetrates into all spheres of public life and requires a comprehensive change in existing institutions. It seems important, in the context of transformation and countering crisis phenomena, to form institutions that are aimed at preserving and accumulating the country's national wealth in the long term, which involves a large contribution to human capital, labor costs and the restoration of lagging industries. It is proposed to form a benchmark in the assessment of national wealth in relation to one's own country in a time continuum, resorting to comparative analysis between the national wealth of countries indirectly, as an additional analysis. Our own sustainable development and national security will be a priority.