Economic conflicts: causes, solutions

Human civilization has a great many achievements of a different nature. Among them is a market capable of effectively regulating economic conflicts. The life of society is impossible to imagine without market relations. The economic aspect of social life is one of the most important. However, it is common for society to periodically enter into various kinds of conflict situations, among which economic is not the last.

Economic Theory of Conflict

Acting in their own interests, people continuously adapt to changes in society, have the opportunity to choose, interact with each other. As a result, economic conflicts in the sphere of consumption and production can arise. Therefore, economic theory offers certain methods for resolving this type of conflict.

According to economic science, which establishes the relationship between the needs of people in society, human economic activity is prone to rationalism. Most people tend to balance their needs with incomes and ways to achieve them. This suggests that there is always the opportunity for favorable regulation of situations that cause economic conflicts of various types.

economic conflicts

Types

The concept of conflict implies a confrontation between the subjects of society with unequal necessary benefits of life, opportunities to ensure well-being, comfort in certain sectors of society.

The following types of economic conflicts are distinguished:

  • participants in domestic and family conflicts (husband, wife, children, etc.);
  • workers and employer;
  • enterprises and the power structure that regulates activities
  • entrepreneurs;
  • applying for rent (privileges and licenses);
  • cartel members;
  • different social classes and the economic conflicts between them due to social problems;
  • the state and the social strata of the state that are on public welfare: pensioners, low-income people, people with disabilities, students, unemployed and parents raising young children who do not have income;
  • professional categories of citizens with the goal of redistributing resources in their own interests;
  • plaintiffs in court and claim defendants;
  • federal center and regions in connection with resource problems;
  • political organizations that enter into economic conflicts because of disagreements;
  • countries defending economic interests.

social and economic conflicts

Component and Function

For the most part, the economic conflict has an objective component. The state is the main regulator of economic relations and performs a public function. He has at his disposal a powerful administrative, tax, customs and other tools of the public law industry. Society is a carrier of public interests and a subject of economic relations.

The functions of an economic conflict are the impact of the conflict or its results on opponents, their relations and on the social and material environment.

How do socio-economic conflicts develop?

The main reason for the occurrence of such situations is the inconsistency of economic interests. Before breaking out and resolving in full, the conflict goes through the stages of development:

  • contradictions are formed among the parties;
  • potential conflict grows into real;
  • conflicts arise;
  • stress relief and resolution of the situation.

It is often said that the cause of economic disputes is mercantilism, that is, the search for sources of wealth and its growth through implementation.

development of economic conflicts

What losses do socio-economic conflicts cause?

As a rule, economic disputes entail costs:

  • transactional to courts, organization of contracts, etc .;
  • losses during force majeure, etc .;
  • the costs of resolving a conflict situation itself, and the longer it lasts, the higher they are.

You can talk about a situation that entails the development of economic conflicts when:

  • feedback violation;
  • lack of control over agreements;
  • the absence of legislation describing the responsibility of the parties for violation of the deadlines or failure to fulfill the tasks and agreed obligations;
  • the presence of bills that have entered into force, but are not actually working.

essence of economic conflicts

The essence and reasons

All conflicts in the economic sphere can be divided in form into open and closed, and by type of interaction - in-person when direct interaction takes place, and in-person if there is a presence of third parties from any side.

The concept expressing the essence of economic conflicts arose in the mid-nineteenth century in German terminology and meant a clash of interests, serious disagreements, opposing views, contradictions between entities with prevailing objective conditions. The first meaning of the German word is “to come together”.

Conflict is a conscious confrontation of the parties involved in it. In the economic sphere, it arises from the use and appropriation of material and financial resources, organization, management, disposal of goods and their distribution.

All the causes of socio-economic conflicts are fundamentally a contradiction of economic interests. This is not only the level of people and enterprises, it can be various groups of people with the opposite direction of economic thought.

Objects and Subjects

The objects of science studying economic conflicts are money, production facilities, production factors (labor, land, information resources, capital), stocks, real estate, bonds, patents, copyright, credit products, etc.

The subjects in economic conflictology will be legal entities, individuals, government agencies, governments. The subject is: the processes that accompany the conflict and methods of settlement. Conflicts in the economy can occur at micro-, meso-, macro- and megaeconomic levels.

causes of socio-economic conflicts

The impact of globalization and the knowledge factor

Today, much is said about globalization, about the impending threat of a polarized world, where the gap between rich and poor is constantly growing. In this regard, international economic conflicts are inevitable, which are fraught with armed clashes. In order to avoid catastrophic consequences, it is necessary to observe international law, develop international trade, and build civilizational relations. Only in this case is it possible to increase the welfare of countries, regardless of their initial level of development and the monetary balance.

To unleash an economic conflict between different states, it is necessary to use expensive means of economic policy. Therefore, it is more profitable not to enter into confrontation, but to develop trade relations. The processes of globalization accelerate the development of scientific and technical progress (scientific and technological progress), which leads to the emergence of new tools for coordinating solutions to global problems and the sustainability of the world economy.

Economic confrontation between states was present at all times of the development of human society. The modern development of globalization aims to remove the very causes of economic conflicts, which can lead to open confrontations and the outbreak of war. However, countries have led and will continue to fight for markets, factors of production, and the factor of knowledge production, which leads to the development of the knowledge economy, has been considered especially important recently.

Knowledge is a factor of economic strength necessary for the growth of production. While maintaining a monopoly, the first discoverers of the knowledge economy will be able to have superprofits. As a result, control arises over high technologies and their export. This is especially true of advanced countries that pay increased attention to the protection of intellectual property. But because of liberalism in relation to copyright, conflicts arise in the economic sphere of knowledge. Accordingly, the struggle for knowledge and the establishment of one order or another regarding their dissemination is an important factor in international conflicts.

As the world's population grows, conflicts escalate. The struggle for resources is conducted to obtain the right to use them, in order to limit the capabilities of the enemy. This is especially true for energy sources. It is no secret that the power of states that are still considered to be developing is growing: China, India and others. As their power grows, conflicts will escalate. This is especially acute in the field of investment.

The causes of economic and political conflicts at the international level can be global demographic and environmental problems, the solution of which requires high costs and concerted action in the world community. However, there are controversial questions about the culprit of the problem and the distribution of the burden of costs to solve it. Today, the main conflict issue is globalization itself. There is heated debate between opponents and supporters of globalization. At the level of international relations, this is a conflict between countries that benefit from global processes and remain without it.

international economic conflicts

Overcoming problems

On the issue of overcoming economic backwardness and the impact on these processes of globalization itself, conflicting opinions have developed. Opponents believe that global change is beneficial only to developed and influential countries, expanding their influence at the expense of underdeveloped states, which as a result will remain infringed, which will entail economic conflicts. Examples of such confrontations are evident today. The world is so tense that it’s extremely difficult to talk about universal growing prosperity. The impoverishment of some and, conversely, the surpassing wealth of others - these are the results of today's international economic policies of many states. Only time will tell who was right - proponents or opponents of globalization. But for now, it seems that the opponents of the world community have an advantage in arguments.

Conflicts of an economic nature are different in their manifestation. Examples include economic blockades, competition, embargoes, strikes of various types, etc. It must also be understood that any consolidation of the social mass is accompanied by population growth and causes the problem of division of labor.

The ideas of the new international economic order, the requirements of developing countries regarding the world currency and international trade relations, formed the basis of the program to establish a new world order in the economy and in the world community as a whole. However, the proclaimed principles of the free market, equal opportunities in reality do not work and often turn against a weak partner. In addition, the existing system is not able to solve the global problems of modern society.

Developing countries want more access to the industrial markets of developed countries. They want to really control the activities of transnational corporations, expand the opportunities for the development of advanced technologies, eliminate economic pressure, become active participants in leading organizations in the international arena and, together with developed states, exercise control in international trade. The assistance provided by developed countries, strong on the world stage, is built on certain conditions and is related. And countries in need want this assistance to be unconditional.

As a result, all changes in the economic system on the international platform are so far carried out without mutual benefit. Many states are left face to face with their problems and act on the principle "saving a drowning man is the work of the drowning man himself." Such a concept is contrary to all the principles of the world community.

economic conflict between

Polarization and Security

The security of the international system is the way to resolve the economic conflict, when equality and mutually beneficial cooperation in the economic sphere are achieved. Collective economic security will be effective when it can meet the interests of all participants in international relations - the weakest and strongest. This suggests that economic partners with a less developed level of development will insist on the redistribution of income, the creation of favorable conditions in trade and the provision of benefits. Is this fully possible?

The polarization of the world to East-West or North-South is becoming too obvious. The availability of information in this light plays a significant role. Each side of the conflict situation always has not only positive traits, but also negative ones. Interpreting interpretations arise. The increase in the scale of the conflict is affected by the identity of each people, the difference in cultural and spiritual values. And in the context of global informatization, a significant difference, one might say, the whole gap between the welfare of various nationalities and segments of the population has become even more clear. In addition, she constantly reminds herself of herself. All this cannot but lead to an increase in tension and the development of economic conflicts of varying degrees of complexity.

From the point of view of neoclassical and classical economic science, the contradiction that arises among economic interests is a temporary phenomenon. Such discrepancies will disappear. Long-term plans will lead to the resolution of contradictions, to the emergence of a harmony of interests. The main thing in this matter is following the principles of a free economic policy and observing individual interests. Public interest should be the result of respect for individual interests. Therefore, the task of states on the path to resolving economic contradictions is the formation of conditions for the development of a free economy, without interference in the economic processes themselves.

From the perspective of economic liberalism, the world economy is a huge workshop where all participants in the process of creating wealth, the result of aggregate labor in all spheres of production, various professions and types of labor compete. This is a multi-level social phenomenon, where the division of labor, which facilitates the production process and gives high results, can become a true source of wealth.


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