Digital transformation of economic systems: opportunities and risks of socio-economic development

Relevance. Associated with the ambiguity and contradictions of the modern transformation of economic systems, expressed in digitization and virtualization of economic, social, and political spheres of societal life. The issues of virtualization and digitization of economic activities have been addressed by well-known scholars such as D. Bell, J.K. Galbraith, M. Castells, E. Toffler, and many others. At the same time, two main concepts of the digital transformation of national economic systems and the global economic system have emerged: Klaus Schwab's New Normal (Western concept) and the Social Credit System (Chinese concept). Aim. To reveal the dual nature of digital transformation of economic systems, demonstrate the opportunities and risks of socio-economic development and growth. Methods. Comparative analysis of the main concepts of digital transformation of economic systems, statistical analysis. Results. There are two main scenarios for digital transformation of economic systems. The first scenario assumes the development of a transparent decision-making mechanism by state authorities based on network interaction, implying the control of power by civil society. The implementation of digital technologies into the model of state governance will contribute to expanding the boundaries of human capabilities and reducing socio-economic inequality by enhancing the resilience of economic systems. However, digital technologies may also facilitate the strengthening of the state supervisory functions over society, potentially removing decision-making from civil society control and placing it solely in the hands of government authorities. In the latter case, the use of digital technologies may lead to increased instability in economic systems and development of imbalances in various areas of activity. Currently, it is challenging to predict all possible long-term risks in this regard. At the same time, there is already an observed interdependence of processes leading to polarization of society in all its forms (technological, economic, social, cultural) and an increase in the risks of significantly limiting the possibilities of transitioning to sustainable socio-economic development. This includes maintaining low average growth rates at the border of 1–2%, characteristic of economic systems in the 19th century. Conclusions. Digital transformation of economic systems should be aimed at increasing the transparency of governmental decisions, fostering civil society development through network interaction, reducing social inequality, and mitigating imbalances in the labor market. According to the authors, such a vector of digital transformation minimizes a significant portion of risks and will contribute to transition of economic systems towards sustainable socio-economic development.