Economic philosophy ecological-social market model of (National) economy

Abstract

Global social and economic reality brings into question the credibility of understanding the market and its laws thus far. Starting from an argument about the unsustainability of the current market model, the paper asserts the necessity to find new solutions, and one of such solutions is the development of an eco-social market economy. The ecological-social market is precisely the site upon which an intense exchange of goods needs to take place which would, retaining the elements of economic rationalism, encourage the sustainable development through the interaction of supply and demand based on the ecological and social platform. The initiator of any market economy is, before all, the urge to create profit, however, if we redefine the role of competitivity, we can create the preconditions for the reduction of the gap between the interest of individuals in the form of profit, and the society as a whole. When discussing sustainable competitivity, we mean the competitivity which in itself unites the key factors of economic, social, and ecological growth and development, necessary for the establishment of a sustainable system in which we live and trade with goods and money. The indicators of sustainable competitivity are therefore determined by the interrelations of fixed variables within them. With the simulation of the influence of classical market and ecological-social market on the consumer buying power, the paper develops and offers an application of market-development diamond as an instrument for measuring sustainable competitivity of an economy. By applying the selected mathematical equations, we define possible indicators of competitivity in the model of the eco-social market economy, which significantly contributes to the process of implementation of the concept of sustainable growth and development, all by eco-social and market economy.