Year: 2026
Type: article
Abstract: In conditions of significant changes in economic relations and increasing uncertainty caused by the transformation of the current globalization model, the demand for adequate economic theory grows. Strategizing, as an approach to managing uncertainty, is regularly used by various actors – from individuals to states and international organizations. The general economic theory of strategizing (GETS) is intended to fill the gap in the mutual influence of economic theory and strategizing. On the one hand, by generalizing the developments of leading schools of economic theory, and on the other, by overcoming methodological individualism (L. Mises) with the dialectical method (G. Hegel), the basic axiom of activity (BAA) is formulated: "Individuals and organizations act in an institutional environment". From the BAA follows the corollary about the purposeful activity of actors. Based on the BAA, key economic concepts such as profit, loss, means, capital, demand, supply, production, exchange, market, cost, good, value are revealed, and economics is defined as the science studying the relationship between goals and means. From the positions of GETS, the article presents four schemes of economic dynamics describing simple and expanded reproduction, as well as crisis of the first type (identification of goals with capital) and crisis of the second type (system crisis of compression of goals and capital), as well as demarcation of goal-oriented and strategic activity, wherein the strategic goal is defined as a reflected desired result, integrated into a strategy. Strategizing, as a process of forming and actualizing strategy, represents reflected goal setting. In the context of GETS, the concepts of "subject" and "object" are rethought: the subject is an actor having a strategy and means for its realization, and the object is an actor realizing the subject's strategy, thereby being a means of achieving another's goal. This allows redefining economics as the science studying relationships between subjects and objects. In the concluding part of the article, definitions are given for feudalism, capitalism and communism as economic systems characterized by dominant objectness, and for strategiarchy as a system characterized by dominant subjectness.
Source: Ekonomìčna teorìâ
Author: Oleksandr Vyshnevskyi
Institution: Institute of Industrial Economics
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7161629068