Oktay Mamedov

Southern Federal University,

Rostov-on-Don, Russian Federation

oktaj- mamedov@yandex.ru

TRADITIONAL ECONOMY: INNOVATIONS, EFFICIENCY AND GLOBALIZATION

Irina Movchan

Southern Federal University,

Rostov-on-Don, Russian Federation

ivmovchan@sfedu.ru

Oksana Ishchenko- Padukova

Southern Federal University,

Rostov-on-Don, Russian Federation

oaishenko-padukova@sfedu.ru

Monika Grabowska

Wroclaw University of Economics, Wroclaw, Poland,

 monika.grabowska@ue.wroc.pl

Abstract. North Caucasus is a diverse region at the border of Europe and Asia that belongs simultaneously to the modern  civilization and historical traditions, and is populated with numerous multi-language, multi- confessional nationalities that speak a variety of languages and follow diverse traditions, carefully guarding their distinctiveness. Our paper sets up a goal of studying the processes and the mechanisms of modernizing regional economy on the case study of this unique region.

The paper confronts the typical view about the similarity and differences of traditional economies supported by different economic research schools and opens opportunities for scientific (dialectical) analysis of a mechanism, non-customary in the modern society, of modernizing traditional economies inevitably  present in the “pore spaces” of the global economy. We substantiate a special methodology for studying traditional economies, characterizing their essence, showing the methodological difficulties of analyzing traditional  economies,  exposing the specifics of their system-wide organization, studying the non-economic sphere in a traditional economy, and describing the mechanism of modernizing a traditional economy.

Received: January, 2016

1st Revision: March, 2016

Accepted: May, 2016

DOI: 10.14254/2071- 789X.2016/9-2/4

JEL Classification: O11, O31, P30, R10

Keywords: traditional          economy,        modernization,            society, innovations, globalization, North Caucasus.