Problems and Ways to Increase Financial Stability of the Territory
The results of long-term researches of authors have shown, that there is no uniform opinion among economists both concerning concept “stability of economic system”, and concerning its maintenance.
The considerable part of economists consider economic stability as a system, capable to resist internal and external influences. From the position of mathematical theory of stability such approach is the most justified. But if economy must constantly return to its initial condition, it is impossible to speak about its development. In addition, the impact of factors of positive direction in the economy means an improvement in the stability of the economic system, although from the position of physical systems – this is still instability.
Another approach to the definition of stability as the ability to simultaneously solve the problems of stabilization and development, in our view, is too vague. What is stabilization and development of economic system? Unfortunately, the authors do not provide a concrete answer to this question.
A number of scientists propose to identify zones or areas of stability when defining economic stability. Nevertheless, this approach is not without disadvantages. The most important one is the need to identify sustainability parameters for each specific territory. Therefore, comparative analysis between territories of the same level may not be comparable.
Along with the existing disagreements in the definition of the concept of “sustainability of economic systems,” there is a dispute among economists about the validity of applying the term “sustainability” to economic systems. Opponents express the opinion that stability in the economy does not exist and it is impossible to define it, based on the nature of economic relations. Indeed – the economic system is characterized by constant changes within itself, deterioration or improvement of its parameters can mean a constant development of the system, but not a loss of stability.
Arguments of opponents of application of the term “stability” to economic systems are quite reasonable, and if we consider the system from the position of influence of external and internal factors on it, then they are fair. However, if to analyze economic systems from the position of stability according to A. M. Lyapunov, then all questions about application of the theory of stability, in our opinion, should disappear, as use of ideal trajectory of development determining stability or instability of development, is quite adequate to describe economy of territory.