SOCIOECONOMIC STUDY: WHAT IS IT FOR, PARTS AND EXAMPLE - ECONOMY - 2024

The socioeconomic study is the analysis of population dynamics, demographic structure, the state of human health, infrastructure resources, in addition to economic attributes, such as employment, per capita income, agriculture, trade and industrial development in the study area.

The study of the socioeconomic component incorporates various aspects related to the prevailing social and cultural conditions, as well as the economic status of the study region.

Socioeconomics is the study of the relationship between economic activity and social life. However, in many cases, socioeconomists focus on the social impact of some type of economic change.

Such changes can include eviction due to work in progress, the closure of a factory, migration from the countryside to the city, market manipulation, and even the signing of trade agreements.

This field is considered multidisciplinary, using theories and methods from sociology, economics, history and the environment.

What is a socioeconomic study for?

The objective of a socioeconomic study is to carry out an impact evaluation for the achievement of socioeconomic development, in terms of improvements in indicators such as GDP, life expectancy, literacy, level of employment, etc.

This study is interested in the relationship within a community between economic and social components. These elements intervene in how the community behaves, such as its purchasing decisions.

It helps to identify, predict and evaluate the possible impacts on the socioeconomic and human interest parameters generated by the proposed project. This study makes it possible to measure all the social, environmental, economic and financial impacts of a project or a public policy in monetary terms.

To assess the impact on the socioeconomic environment, the most recent data available are compiled to outline the reference socioeconomic profile in the study area.

Ensure project efficiency

To guarantee the efficiency of the projects, the socioeconomic study is necessary in each phase:

Before the project

To give an objective character to the creation of social, environmental and economic value, prioritize investments and guarantee that the project has an optimal scale. The study is a prior requirement for the optimal use of resources.

During the project

To drive it and redirect it if necessary. The study makes continuous learning and future improvements possible. This requires experience, innovation and independence.

After the project

To be able to evaluate the performance of the project operation, to be able to communicate it and thus continue to scale.

Why study the socioeconomic impact

- Prioritize the choice of the project to be executed and guide the corresponding decisions.

- To convince of the usefulness of the projects or redirect the projects if necessary.

- To obtain financing for the project.

- Being able to communicate properly with interested parties.

Parts

Project recognition

The objective in this part is only to know the social and economic variables that will surround the execution of the project.

The main economic activities of the area to be studied should be defined and the most outstanding socio-cultural attributes determined with an integrating vision, bearing in mind the interdependence of economic, social and cultural variables.

Pre-feasibility

An initial identification must be made of the potential problems that the project will generate in its different implementation options.

The social infrastructure should be studied in order to determine the possible impact of the project under the existing conditions.

Feasibility

Actions are developed to plan the development of the project in the most harmonious way possible.

Diagnosis

It seeks to know the socioeconomic structure in the area of ​​influence of the project, its limitations and potential in relation to economic development.

The spatial distribution of the population, its social makeup, the organizational forms, as well as the levels of remuneration and employment with respect to the productive process developed in the area must be analyzed.

Programs and plans

When developing such programs and plans, their implementation must be justified, as well as determined:

- Temporal and spatial scope.

- General and specific objectives.

- Entities participating in its development.

- Costs involved.

- Financing lines.

- Entities responsible for its execution.

Design

Specific projects that materialize the selected programs and plans must be designed.

The goals of each one, the disbursement schedule, duration, executing entities and also the mechanisms that evaluate the fulfillment of the proposed objectives must be defined.

Operation

The monitoring program should extend to the control of projects formulated during design.

It is recommended to make an analysis of its operational impact, to establish the benefit of the socioeconomic study prepared and thus gather experience for future opportunities.

Example

Studies by the National Center for Education Statistics found that children from low-income families generally do not have the same availability of opportunities as children from high- or middle-income families.

For example, low-income families may not be able to pay for their children's participation in team sports, music classes, or private tutoring, all of which could lead to a prosperous future as well as provide a growing confidence to take on new challenges.

Furthermore, these children can only attend overcrowded schools where education is insufficient, understaffed, or considered inferior. Therefore, seeing no way to get on the road to a better future, they probably accept their financial condition as permanent.

Like their family members and peers, many will not even consider a post-secondary education and will thus be unlikely to rise above the poverty line in adulthood.

Impact

According to the American Psychological Association, the socioeconomic status of an individual can significantly affect their beliefs and attitudes, such as the perception of the opportunities and beliefs available in the directions of life.

For example, an individual from a wealthy social class is likely to have a greater chance of achieving a higher education and is expected to be followed by his peers and other members of his class.

When you complete higher education, you will have a greater chance of increasing your income, as well as having the opportunity to interact with people of a similar or more advanced social position, building profitable social networks.

In contrast, an individual living in poverty may mistakenly believe that higher education is unattainable. This conviction may be reinforced by their peers within the same socioeconomic group.

This belief can lead to less and less rewarding job opportunities, thus restricting that person's growth potential within society.

References

1. Mantras Resources (2019). What is Socio Economic Study? Taken from: mantrasresources.com.
2. R2V Pvt Limited (2014). Socio-economic Studies. Taken from: r2v.com.
3. Sandra Lim (2019). Social Economics. Investopedia. Taken from: investopedia.com.
4. G. Gómez (1988). Guide for the preparation of socioeconomic studies of projects of public interest. Dialnet. Taken from: dialnet.unirioja.es.
5. Citizing (2019). Socio-economic impact studies. Taken from: citizing-consulting.com.