Assessment of Economic Development Level as the Basis to Analyze Society Welfare

Abstract

Big amount of welfare aggregates used in worldwide practice to assess the degree of material and spiritual public needs satisfaction do not reflect enough both objective and subjective constituents of the concept when making intertemporal comparison of the society welfare. This article presents the methodology to study a transformational economic system. The authors consider the systems approach to be the base of the issue study. According to this approach, the economic system development influences the society welfare. An integrated approach is fundamentally important during the transformative change at the analysis of economic system development direction and at the assessment society welfare. Regarding the society welfare analysis the author assumed that the majority of modern aggregates (such as Business cycle indexes, GDP, CIPI, KEI, Secondary Modernization Index, Innovation index, Secondary Modernization Index and Sector analysis) being applied to assess the satisfaction of material and spiritual public needs are lagging or coinciding.