INTEREST GROUPS AND SOCIAL ECONOMY

Andrius Guzavicius

Abstract


Impact of the action undertaken by the interest groups for the social economic prosperity is still the topic of the longterm scientific debates. According to some researchers the interest groups contribute to the boost of the society’s prosperity, while according to the others monopolistic structures tend to emerge due to the interest groups. Taking into consideration the scientific academic approach development of the uniform opinion on the role of the interest groups as the connecting element between economy and politics would be of high importance. The present opinion would facilitate process of the society’s judgment about the outcomes of the action undertaken by the groups.

During the recent 40 years the influence made by interest groups on the country’s social economic environment has been in the focus of attention. In the 6-th decade the formation of economic interest groups was analysed, in the eighth decade rent seeking theories made their influence. Rent seeking theory includes the analysis of interest representation effectiveness and resource distribution. In the 9 th decade research included the influence of interest groups on nation growth and recession. Later research embraced the influence of interest groups on the regional development of countries as well as on the policy of European environmental safety and on the economic growth of developing countries.

Evaluation of the efficiency of the action undertaken by the interest groups is of great importance for development of the uniform opinion, that in turn calls for objective evaluation of the profits received due to and costs spent by the entities for participation in the shared action. Papers of some economists provide analysis of both the interests groups and impact they make for the entities that make and implement strategic decisions. On the other hand, the lack of the analysis of the efficiency of the action undertaken by the interest groups with respect to the social economics, when evaluating the profits received from the shared action and the costs related to that with respect to the economic entity, as well as a shortage of the original patterns to demonstrate efficiency of the shared action undertaken by the interest groups are obvious.

Taking into consideration diversity of the forms of the action undertaken by the interest groups and after having completed the comparative analysis of the concepts on the interest groups, the below definition of the concept on the interest group is provided: the interest group is a union that joins different subjects seeking for the benefit, and that represents their interests as well as provides members of the group with the products of selective encouragement.

The costs incurred during the shared action is covered by the interest groups using the members’ fees collected and other purpose-driven contributions as well as means independently earned in a way of selling the products of selective encouragement. Membership in the interest group is based on the principle of voluntariness.


Keywords


interest groups; social economics; social responsibility; social enterprise; public goods

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Print ISSN: 1822-6515
Online ISSN: 2029-9338