On Measuring Aggregate Social Efficiency PDF Download

Speaking of efficiency as a key concept for any socio-economic activity, the focus is traditionally on economic efficiency, expressed in the "costs-effects (benefits)" correlation. Since every social activity is carried out with even more limited resources, the approach should be as to an economic activity. Moreover, "any purposeful activity in which the limited resources are allocated and combined between alternatives, as maximizing of the effect or cost minimization is possible" is considered as such. The ratio between costs and benefits of a resource or combination of resources to achieve a set, per-determined objective and on this basis the rationalization of the management decisions come to the fore. In this sense, the "cost-effect" correlation can be used as a "tool for planning; instrument for decision-making and environment for historical documentation of the decisions made".This fundamental principle, characterizing the economic efficiency is one of the sides to study the effectiveness of the activity. However, any activity is social by its nature and determines the need of measurability of the social effects. On this basis, the so-called social efficiency is more and more discussed in recent years. Unlike the economic efficiency, the social efficiency does not have so direct character, it is rather a more complex category and is difficult to express in one dimension. Another approach where efficiency is measured at the level of protection of the balanced interests of the state and society is also worth attention. The work of the state apparatus may be recognized as effective only in case if it successfully solves the problem for optimal protection of the interests of the population, social groups and every person. In this dual task, the most important part is the concept of efficiency of the state apparatus.According to this approach, the efficiency is expressed in expanding the opportunities for active civic life of every citizen, the society and the efficiency of the state. It is determined by a well-functioning activity system of the state organs, their ability to legally implement state interests and implement state policy on social and community development.