The Systems Approach in a Global Perspective: The New Economy and Reindustrialization

Abstract

The existing economic model leads developed and developing countries to a stalemate. The global financial crisis of 2008–2009 revealed the instability and fragility of the current economic model. We can observe the consequences of the crisis (and its continuation) up to the present time. The problem is worse in those economies where the real sector of the economy has been steadily declining during recent years. The great dependence of developed countries on the global financial system, and, in particular, the IMF, causes unemployment to increase, deskills the working-age population, reduces the level of social welfare and aggravates problems of social tension. As for developing countries, they face the problem of attracting investors to the real sector of the economy. The latest economic and social crisis shows the high level of interdependence and demonstrates that all national economies are a united economic system, and that sustainable development is possible only if all work together.

Keywords:

• systems approach
• new economy
• reindustrialization
• new economic model
• social and economic development
• sustainable development
• balanced growth

Notes on contributor

Tikhomirova Olga, PhD, is a university professor and researcher with in-depth knowledge in sustainable development and system thinking and also accomplished researcher in a system approach in management. Olga is an author of more than 55 scientific articles and 10 books on management and entrepreneurship. The scientific fields of interest are the following: entrepreneurship and innovation, sustainable development and system approach, and evolution of social systems. From 2000 to current, she is an Associate Professor of Department of Production Management and Technology Transfer, Saint-Petersburg National Research University ITMO, Russia. She lectures and motivates students through in-depth lecture and discussion for developing their independent critical thinking and creativity.

Notes

1 High-tech industries means manufacturing of pharmaceutical products; manufacturing of office machinery and computers; manufacturing of electronic components, equipment for radio, television and communication; production of medical products; manufacturing of measuring, control and testing devices; optical devices, photo and video equipment and watches; manufacturing of aircraft and spacecraft.