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Fundamental Advantages of System-Structural Methodical Instruments for Elaborating Strategies for Development

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  • Assen Kovatchev

Abstract

The paper presents twelve fundamental advantages of the system-structural approach – as an alternative to the applied structure-indifferent approach (the latter is based on the inadequate premise “under equal other conditions”) when working out development strategies. The suggested approach is brought to acting methodical instruments (algorithm) in the form of iterative procedure. It is applicable only for the open production systems with compensation retroactions. The multiplicative effects and the action of the automatic stabilizers are realized with maintaining the dynamically changing balancing between desired results and resources needed.

Suggested Citation

  • Assen Kovatchev, 2010. "Fundamental Advantages of System-Structural Methodical Instruments for Elaborating Strategies for Development," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 87-96.
    • Handle: RePEc:bas:econth:y:2010:i:7:p:87-96
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    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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