Changing the Paradigm of Modeling and Forecasting Socio-Economic Systems

Abstract

Modern socio-economic systems demonstrate instability, chaos, and unpredictability. What methodology should be used to modeling modern socio-economic systems? Constant changes and crises in the development of socio-economic systems require new approaches to the research of these systems. The feature of the approach to the study of socio-economic systems in modern conditions is the conversion from a linear to a nonlinear paradigm. The models of socio-economic systems are systems of nonlinear differential equations. Nonlinear differential equations demonstrate different modes of functioning of complex socio-economic systems. Nonlinear equations can have several qualitatively different solutions. This explains the existence of different ways of evolution of nonlinear socio-economic systems. Nonlinearity is a fundamental position of new paradigm of cognition and development. Nonlinearity is a general law of nature and means, first of all, non-observance of the principle of superposition. The whole cannot be the sum of its parts; the result cannot be the sum of efforts, the quality of the whole is not determined by the sum of the qualities of its parts, the reaction of the system is not proportional to the influence. For nonlinear phenomena, knowledge about the behavior of a part of an object does not yet guarantee correct ideas about the behavior of the object as a whole, and its response to changes in conditions may qualitatively depend on the magnitude of these changes. Non-linearity is the multivariance of the evolutionary paths, the presence of a choice of alternative paths and determining the rate of evolution. Nonlinearity is the irreversibility of evolutionary processes; nonlinear, indirect dependence of evolutionary processes on external influences. The article examines the topical issue of changing the paradigm of modeling and forecasting socio-economic systems. The necessity of transition from linear to nonlinear paradigm in economic research is theoretically substantiated. The features of the application of methods of nonlinear dynamics to the modeling of socio-economic systems are considered. The phenomenon of nonlinearity of socio-economic systems is studied.