Chapter 36 Methodological Approach to Evaluating the Effectiveness of Development of “Conflict-Free” Socio-economic System

Purpose The purpose of the research is to develop methodological approach to evaluation of effectiveness of development of “conflict-free” socio-economic system. Methodology The fundamental platform of the research is the classic approach to evaluation of effectiveness of managerial practice in socio-economic system. Conclusions A methodological approach to evaluation of effectiveness of development of “conflict-free” socio-economic system is developed; it envisages calculating the ratio of aggregate results (including advantages) from “conflict-free” development of systems to aggregate expenditures for management of conflicts. Successful approbation of this approach by the example of modern “conflict-free” socio-economic systems – Turkey and Japan – showed its readiness for practical application. The obtained results show that in Turkey in 2018 the effectiveness of development of “conflict-free” socio-economic system is acceptable (normal), as the value of the calculated Erbs index is in the interval (1,5;2), that is the results of managing the conflicts exceed the expenditures. In Japan in 2018, effectiveness of development of “conflict-free” socio-economic system is very high, as the value of the calculated Erbs index is in the interval (2;3) – that is, expenditures for management of conflicts are minimum, and results are very high. Originality/value Advantages of the developed methodological approach to evaluation of effectiveness of development of “conflict-free” socio-economic system, which emphasize perspectives of its practical application, are the detailed structure, variability, and universal character.