MULTIDIMENSIONALITY OF PROBLEMS OF SOCIO-ECONOMIC DEVELOPMENT IN THE CONTEXT OF GLOBAL CHALLENGES: INSTITUTIONAL FRAMEWORK OF MODERNIZATION POLICY

The purpose of the study is to generalize the problems of socio-economic development in the context of global challenges and to highlight the systemic principles and contradictions of the implementation of the modernization policy from the standpoint of institutional perspectives and regulatory constraints. It has been established that one of the systemic problems of modern international economic development, and in particular Latin American countries, is the problem of productivity. The decline in productive capacity as a factor inhibiting economic growth and socio-economic development (including innovative, technological) is a factor in the loss of competitiveness of many OECD member countries and, in particular, EU countries. Among the key factors fueling this situation are economic institutions (protection of property rights, observance of the rule of law, ensuring the fulfillment of contracts, maintaining the solvency of the state), which form the business environment, thereby influencing productivity through a set of transmission channels. It is argued that the lack of so-called «anchor projects» in the region hinders the growth of countries’ productive capacity, which does not contribute to increasing the resilience of companies in the face of turbulence in supply chains and value chains on a global scale. It is noted that interconnected global challenges and problems necessitate the centralization of efforts to address or adapt to them: at the regional level, the volume of public investments in solving social problems, building sustainable infrastructure and modernizing basic services should be increased, while at the same time increasing transparency and cost efficiency. This involves recognizing the risks of international cooperation and partnership in terms of increasing external influence on financing domestic development (multilateral development banks, international financial institutions, and bilateral donors can provide not only financial resources, but also technical expertise and political support), recognizing the advantages of public-private partnerships, attracting donor capital on favorable terms, and developing financial innovations, as green, social, and sustainable bonds, blended financial instruments, and a set of impact investment instruments can contribute to the implementation of projects in the field of sustainable development, which corresponds to the goals of many strategies. The Sustainable Development Goals are considered as a tool for the unconditional demonstration of the accumulated achievements of the global community, but taking into account regional and country specifics, problems and challenges. Using the example of South Korea, two opposing points of view on the basis of successful economic development are analyzed. The components of “development regulation” in the political economy of South Korea are analyzed. The institutional pillars of modernization policy in LAC countries in the face of aggravating socio-economic challenges are identified. The impact of investments in research and development on the development of a sector with high modernization and transformation potential for structural restructuring of the economic development model is determined, especially with the support of such incentives as tax breaks and protection of intellectual property rights. The four pillars of South Korea’s economic policy are characterized. The emphasis is on the socially oriented component of economic policy, which is focused on combating the problems of inequality, poverty, and property stratification. It is established that the foundation of modern modernization policy is a new type of industrial policy, which is no longer based on production sectors, but on problems or challenges. It is identified that the innovative development strategies of Latin American and Caribbean countries include a focus on medium- and long-term planning. Thus, innovations become a component of a policy that covers all areas of management, requiring the introduction of new institutional mechanisms that facilitate the coordination of available resources and management skills at all levels of international economic policy.