The Instruments for Assessing the Vulnerability and Resilience of Economies Around the World
Year: 2024
Type: article
Abstract: The need to ensure resilience as one of the key priorities of the economic policy of the countries of the world is growing in the context of modern instability. The article is aimed at analyzing approaches and systematizing instruments for assessing the vulnerability and resilience of economies around the world. The article argues that the creation of a resilient economy implies an understanding of what economic condition of a country can be considered sustainable, as well as the ability to measure the level of its vulnerability. The essence and main characteristics of vulnerability are studied. In particular, it is defined that the main purpose of vulnerability assessment is to identify the main sources of influence on the state of the economy, which relate to the possibility of achieving the desired results. The main criteria for assessing resilience are defined, including: adaptability, reliability, recovery speed, redundancy, flexibility, diversity. The carried out study of various methodological approaches to assessing the resilience of the economy made it possible to classify them according to certain characteristics, i. e., depending on: general goals of the assessment and the time frame during which the study was conducted; methods for determining the degree of compliance with stability criteria; methods of data collection used during the assessment; methods that have been used to assess resilience. Based on the general goals of assessment, approaches to resilience assessment can be divided into two general types: «formative» and «final». Most approaches to resilience assessment use one single method or a combination of methods to determine the degree of compliance with sustainability criteria, namely: assessment by baseline conditions; assessment by threshold values that reflect the goals of improvement and increase of resilience; assessment according to the principles of the best level of resilience; assessment by analogues (benchmarking); recovery rate score. However, despite the variety of assessment instruments and a large number of methodological approaches to determining the level of vulnerability and resilience, there is a need to form a comprehensive indicator that assesses the overall level of resilience of economies around the world, which will allow comparing the ability of countries of the world to absorb or mitigate losses, restore their state and ensure development after crises and shocks due to internal adaptive properties.
Source: Business Inform
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4406292818