The game of time horizons in economic development

This paper analyzes how economic openness and rapid technological change impact the capacity of public authorities to shape the long-term trajectory of economic development. While globalization and global capital flows challenge the strategic autonomy of small and medium-sized states, many crucial areas of public welfare—such as healthcare, culture, and social care—remain largely within the scope of national and regional policies. The text reviews key factors affecting the ability of public authorities to extend the temporal focus of economic development policy, exploring the interaction between immutable, slowly evolving, and fully controllable factors. Particular attention is paid to the phenomenon of “path dependence,” where historical trajectories create both obstacles and stabilizing effects for long-term strategies. The paper also discusses how trust, institutional quality, identity, and tradition influence the effectiveness of economic policies over various time horizons. By distinguishing between short-term, medium-term, and long-term policy horizons, the author demonstrates the need for institutional mechanisms and cultural assets that favor sustainable development. The analysis concludes that optimizing public policy requires not only financial and technical prowess but also an understanding of social values, cultural factors, and collective identity that shape both temporal consistency and the resilience of economic systems.