The new economic realities and the big challenges related to them require a systematic rethinking of the applied approaches, methods, models, management policies, and behavior in the most important part of society – the economy.
The fundamental values for successful strategies are contained in the definition of the content and goals of the modern paradigm called Sustainable Development. “Sustainable development is a process of change in which the exploitation of resources, the direction of investments, the orientation of technologies and institutional changes are in harmony with each other and increase the current and future potential to meet human needs and aspirations”.
The realization of the set long-term goals from a managerial point of view can be achieved by conducting an adequate policy for the strategic development of the country and, more specifically, by using medium- and long-term strategies for its sustainable development.
The main target requirements in these strategies are reduced to the triad: progressive restructuring (production-implementation and institutional-management) – growing productive potential – sustainable development of the economic system. With this system connection, the mutual complementarity between the three types of efficiency is ensured: allocative (a consequence of the redistribution of productive resources), technical and technological (a consequence of the economic use of these resources), and X (hicks) – organizational (a consequence of the improved integrative-coordinating activities ).
The investment assurance of the strategies through the mechanisms of market-competitive targeting of corporate investments should be supplemented by the creation and maintenance of a favorable business environment by the state – on the one hand, and, on the other – by the development of adequate science, infrastructure for the implementation of these strategies, education (and especially development of the nation’s qualification capital – knowledge, skills and professional abilities), health care, clean environment, etc. and especially a favorable institutional-management environment ensuring the dominance of market-competitive self-regulation in the development of the economy.
There are several methods for building strategies, and these methods can be summarized as:
a) the application of the analytical-descriptive approach
It has an empirical-intuitive and largely subjective character. The quantitative methods applied in this approach are mainly of the inertia-extrapolation type, and therefore the prognostic estimates obtained are very often not sufficiently reliable.
b) Through the systemic-structural approach
Complex systems, including the economy, are open systems. The existing main characteristics of the discovered complex systems determine the non-stationary nature of their development and the synergistic, multiplicative, and accelerating effects that determine them. The latter is a consequence of the change in the network of connections and interactions between the elements of the system. In the analytical-descriptive approach, development is seen as stationary, i.e. without taking into account the mentioned effects, respectively, without the qualitative changes ensuring the increasing productivity of the systems.
The most effective, however, is the iterative procedure for developing a highly effective strategy for the sustainable development of the economy. The initial methodological and informational toolkit is the reporting balance of inter-industry connections for the initial year, as well as the exogenously set (expected) increases – reductions in realized production by sub-sectors compared to their reached numerical values in the starting year. The inter-sectoral balancing of realized and produced output – common to the economy and for each sub-sector, is determined by applying the iterative procedure The iterative procedure for inter-sectoral balancing of realized and produced output as a methodological toolkit for developing a highly effective strategy for sustainable development of the country has the following advantages:
In the course of the iterative cross-industry balancing of the desired volumes of the realized and produced output in the future year, the multiplicative-accelerating interactions between the direct and reverse connections are involved, and in such a way that they are reached with a minimum of additional costs (additionally produced output).
In the iterative process, the system-structural interactions between the elements of the system caused by the factor changes are manifested.
The iterative procedure has the methodological advantages of an alternative to the problems of linear programming, through the solution of which the volume of production is optimized.