Changes in the population, problems of employment, satisfaction of the material and spiritual needs of a person, improvement of national relations, etc.

the main objective social policy is to increase the level and quality of the citizens of Russia on the basis of stimulating the labor and economic activity of the population, providing every able-bodied person with conditions that allow their labor and enterprise to ensure the well-being of the family. At the same time, the state fully retains its social obligations to pensioners, the disabled, large families, and disabled citizens.

The social policy pursued so far in our country does not meet the requirements of its target setting: there are no clear criteria for social guidelines, a mechanism for implementing social policy has not been developed, and as a result, its extremely low efficiency. The assertion that the social development of society, the improvement of the people's well-being is the main goal of social production and the basis of state policy, for many years was only a theoretical postulate, largely divorced from real life. This can be confirmed by the low standard of living of the population compared even with developing countries. The social situation continues to be tense and more and more complicated. Unemployment is on the rise and its hidden forms are developing (3-4 day employment, six months' leave, reduction in shifts, etc.). For some expert opinion, real unemployment is more than 10-1 million people. Moreover, we are talking about unemployment among the most highly professional work force far from old. here - a rare decrease in material well-being, apathy, disbelief, stress, an increase in crime.

The intellectual part of society, military personnel, women, children and old people are in a difficult situation. rises incidence and mortality, the birth rate is falling. The level of real incomes of the population in monetary terms is currently 40% lower than in 1991. Social poverty has arisen, the number of citizens with incomes below the subsistence level and mind (as of June 1997 - 402 thousand rubles) is about 25% of the population Russia. The differentiation of incomes has intensified, the illegal and non-labor basis of both essential and social stratification has sharply been outlined.

The way out is to improve the country's economy and revitalize the conditions for social activity, which allow solving these and other pressing problems of the life of the population.

Social justice, which means a measure of equality (or inequality) in the life situation of people, due to the level of material and spiritual development of society. Social justice is also real democracy and the equality of all citizens before the law, the actual equality of nations, respect for the individual and the creation of conditions for its development.

Social guarantees, which mean a society-guaranteed right to job security, access to education, culture, medical care and housing, care for the elderly, motherhood and childhood.

Raising the material and cultural standard of living of all members of society, improving working and living conditions, protecting environment

Social rehabilitation, which will begin the restoration of violated social justice. Sa m the word rehabilitation "about begins restoration, the return of the lost. Therefore, it is customary to talk about restoring health, rights, returning a good name. The problem has become especially acute in our time social rehabilitation of innocent victims (victims of war, repression, catastrophes, natural disasters, accidents, etc.). Here, social charity is closely related to social rehabilitation.

The development of social activity of all members of society, the disclosure, enrichment and use of all the creative abilities of a person, the combination of the consumption of material goods with spiritual life. Science, new technology, economic growth will never replace spirituality, although the latter without the former is impossible, admittedly, to implement.

A more complete account of the specifics of life and activities of such groups of the population as youth, women, the elderly in order to meet their needs and interests as much as possible.

And, finally, the cohesion of all the classes and social groups that make up society: the improvement of national relations, the flourishing of nations and nationalities, the strengthening of their all-round cooperation in the field of economy, culture, art, etc.

Priority directions of the social policy of the state

The most important priorities of the social policy of the state in modern conditions are: creation of optimal social infrastructure and its development; problems of protection and protection of the environment; policy of income distribution of the society; social and demographic policy; problems of employment and social protection of the population. The problems of state regulation of employment will be considered in the next chapter.

l Secondly, in the process of implementation ND is redistributed many times over both between its creator and between the person and the person employed in unproductive labor. Incomes resulting from redistribution are called derivatives. The main instrument for redistributing ND is the state budget. ND is also redistributed through the service sector.

IN last years even in some developed countries deepening inequality in the distribution of income. There is no need to talk about Russia.

Closely related to the problem of inequality is the question of poverty. Can poverty be defined? Obviously. It is possible to designate those boundaries of family income beyond which the reproduction of the population is not ensured. This level should act as a mini-mind of material security, or living wage(the so-called threshold or poverty line). More than 30% of Russians are below the poverty line. All population groups living below this line are poor.

The poverty line in the United States is determined by the Department of Commerce, based on the necessary objective human needs and the cost of living for a certain period. So, in 1990, the poverty line was estimated for a family of one person at $7,740 per year, for two people - $1046, for three - $13,078, for four - $15,730

Socio-degraphic policy. The central place in deography, as is known, is occupied by the reproduction of the population, which second occurs due to natural generational change, i. e. through fertility and fertility. True, the population of individual regions is changing due to its migration. Outside of Russia in other former republics, i.e. in the CIS countries, there are over 25 million Russians and about 4 million citizens of other nationalities. By the beginning of 1995, there were about 670,000 refugees in Russia. Therefore, the priority areas of the gaming policy are:

Social protection, guarantee and support of the population

Promotion to the market is impossible without the creation of a reliable system of social protection of the population, capable of ensuring the maximum possible neutralization of negative phenomena in the economy. That is, a mechanism should be created to protect the population from such social risk factors as unemployment and inflation.

Social protection- a system of measures aimed at creating conditions that ensure the economic and moral well-being of vulnerable, unprotected sections of the population, as well as providing them with additional rights and benefits:

On taxation and payment of pensions and benefits

For the construction and maintenance of housing, as well as its receipt and acquisition;

Public utilities and trade services;

Employment, training, retraining and working conditions;

On the use of services of communication institutions and sports and recreation institutions;

3) ensuring the safety of the environment and maintaining the environment at the required level;

Enhance targeting social support needy citizens on the basis of accounting financial situation families and declarative the principle of assigning benefits;

To create full-fledged conditions for the life of the family, women, youth, to improve the conditions for the life support of children;

Raise your role social insurance as an important mechanism for protecting citizens in case of loss of earnings in case of unemployment, illness, other social and professional risks;

Ensure stable financing of industries social sphere and social programs, to guarantee access to medical care, social services, education, culture and recreation for all citizens.

Reforms in the social sphere will be carried out in close connection with the economic transformations outlined in the concept of the medium-term program of the Government of the Russian Federation for 1997,000 "Structural adjustment and economic growth". Taking into account the forecasted indicators economic development in the coming period, there will be real opportunities to solve the set social tasks.

An annual increase in gross domestic product and investment in fixed assets, growth in industrial and agricultural production, further reduction in inflation and budget deficit, strengthening national currency, an increase in the share of household final consumption expenditures in the gross domestic product used.

A set of measures has been outlined aimed at implementing institutional reforms, progressive structural shifts in production, reforming tax system, budgetary and de gentle credit policy. On this basis, favorable conditions will be formed for the development of modern competitive industries and activities, primarily high-tech and knowledge-intensive sectors of the economy, small and medium-sized businesses, changes in the sectoral structure of production and its territorial division, improving the quality of products and production efficiency, increasing labor productivity, reducing production costs, creating new jobs

As a result, a reliable economic basis to increase employment and incomes of the population, expand tax base and increasing the amount of funds allocated for social needs and the development of the social sphere.

At the same time, more active use of social factors and planned measures to improve the material situation of people, increase cash income of the population, ensuring a rational structure of employment, improving the quality and competitiveness of the labor force will create favorable conditions for the sustainable development of the economy, an increase in production, and an increase in effective demand for goods and services.

Based on the predicted indicators of the socio-economic development of the Russian Federation for the period up to 2000, the planned goals of social policy can be implemented in stages.

l At the first stage (1996-1997), in the conditions of limited resource potential of the economy, it is necessary to implement a set of measures to stabilize the living standards of the population, gradually reduce poverty, reduce the gap in living standards between various categories population, preventing mass unemployment, strengthening the protection of labor and social rights of citizens.

The most important among these measures are:

Elimination and prevention of further arrears in the payment of wages, pensions and benefits;

Streamlining the current system of benefits and compensations, increasing the validity of their provision;

Formation of a system of state minimum social standards;

Legislative consolidation of the procedure for determining and using the indicator of the subsistence minimum, clarifying the methodology for its calculation based on the actual costs of food and non-food products, housing and communal services, transport, household, medical and other services;

Prevention of mass dismissal of workers from enterprises located in regions with a critical situation on the labor market.

When carrying out these measures, the main emphasis will be placed on improving the efficiency of the use of funds allocated for social needs, strengthening the targeting of social support, and wider attraction of extrabudgetary financial sources.

It is necessary to determine the procedure for interaction in the field of social policy between federal executive authorities, executive authorities of the subjects Russian Federation and local governments, federal ministries and departments, public and commercial organizations.

l At the second stage (1998-2000), when economic growth will begin and there will be material and financial opportunities to increase spending on social needs, objective prerequisites will be created for a real increase in the population's monetary income, the eradication of mass poverty, and the provision of an optimal level of employment. At this stage it is planned:

Raise the minimum state guarantees of wages and labor pensions to the level of the subsistence minimum, introduce a new social wage standard - the hourly wage rate;

Implement mechanisms for tariff regulation of wages in the non-budgetary sector of the economy on the basis of social partnership, revise the Unified tariff scale for remuneration of public sector employees, while ensuring approximation wage rates these workers to the level of wages in the manufacturing industries;

Revise the system of taxation of individual monetary incomes of the population in order to more equitably distribute incomes and reduce their differentiation;

Start Implementation integrated program creation and preservation of jobs;

Create a full-fledged system for protecting the labor rights of citizens on the basis of the new Labor Code;

Initiate large-scale pension reform;

Start reforming the social insurance system, introduce a new mechanism for insurance against industrial accidents and occupational diseases;

Improve the order of formation budget spending for social needs based on the introduction of state minimum social standards.

Subsequently, on the basis of a stable economic growth and strengthening the orientation of the economy towards a more effective satisfaction of human needs, it is necessary to create strong prerequisites for a sustainable social development, the formation of a society open to broad social integration, allowing people to realize their potential to the maximum extent.

Regulation of social processes in a market economy (on the example of Germany)

The content and goals of the social market economy

A social market economy is an economy that is oriented towards a person and the satisfaction of his needs, the need to adapt the economic policy of the state to a person, and not, conversely, a person to economic policy.

This path leads to a free, economically efficient, stable order in society. The legal social state must ensure economic freedom and social justice in the conditions of a social market economy. Therefore, the concept of a social market economy should reflect a combination of goals - freedom and justice.

The social market economy is built on competition, private initiative, self-interest and social progress. Each member of society has fundamental rights: to well-being and free all-round development of the individual, to human dignity.

Economic economic freedom includes:

1. The freedom of consumers to buy at their own discretion goods and services that are part of the social product (freedom of consumption).

2. The freedom of the owner of the means of production to use labor and money, resources and property, as well as entrepreneurial abilities at his own discretion (freedom of trade, freedom to choose a profession and workplace, freedom to use property).

3. The freedom of entrepreneurs to produce and sell goods at their own will (freedom of production and trade).

4. The freedom of each seller and buyer of goods or services to achieve their goal (freedom of competition).

Consider the example of Germany, how social justice is implemented through the main goals of the social market economy. These goals include:

1. Ensuring maximum high level welfare.

Means of achievement: economic policy focused on economic growth, on raising the level and quality of life of the people; establishment of an economically rational order and competition; full employment of the population; economic freedom of economic entities; Liberty foreign trade etc.

2. Ensuring an economically efficient and socially just monetary system and, in particular, ensuring the stability of the general price level.

Means of achievement: the existence of an independent Central Bank of Issue; "stability" of the state budget; alignment of the balance of payments and equilibrium in foreign trade.

3. Social security, equity and social progress(protection of the family, fair distribution of income and property).

Means of achievement: production in the maximum volume of a social product; government adjustment of the initial distribution of national income; setting social standards; a well-functioning system of social assistance, etc.

In a word, the social market economy should be based on the freedom of competition, private enterprise and state regulation of the economy.

Public Policy for Full Employment

The best guarantee against the risk of unemployment is the state employment policy. Policy success full time in the national economic aspect means the production of a social product in more, which significantly expands the basis for achieving the effectiveness of the social policy of the state. From the point of view of employees, this policy has a positive impact on their current income. This income guarantee has multiple effects:

It removes the need to provide unemployment benefits, social assistance and other types of assistance;

Constant concern for labor income forces, first of all, to personally take care of one's own life's blessings, as well as members of one's family;

Reduced economic dependence on the state.

All this together gives rise to faith in life and hope for the realization of one's needs through participation in economic sphere. Full employment also has a lasting effect on the labor market (labor force) and on employment conditions:

For full employment, as a rule, a state of rapid growth in labor incomes is characteristic (the supply of most professions and activities is reduced in labor markets; favorable conditions are created for negotiations with employers with the participation of the trade union, etc.);

Full employment increases the interdependence of the labor market (depletion of labor reserves in the regional and professional labor markets), affects the demand for labor in other labor markets.

In order to attract labor from other markets, employers must (have to) improve working conditions. Due to the danger of an outflow of labor, local employers are also forced to go for additional improvement of working conditions and wage increases.

Legal basis for the provision of social assistance

Legal basis for providing social assistance in developed countries, there is a law on social assistance, which reflects the goals, principles and types of such assistance. So, for example, in federal law In Germany, the goals of social assistance are defined as follows:

Social assistance is provided to ensure the means of subsistence, as well as in special life circumstances.

Acceptance of social assistance is intended to provide its recipient with a standard of living corresponding to human dignity.

Social assistance also has the following circumstance as its goal: to help to the maximum extent that a person does not take this possibility into account in his life. Everyone must rely primarily on his own strength, if he has any, of course.

When providing social assistance, it is assumed that, for example, the following principles are observed:

Must be in without fail the legal right to receive social assistance. Foreigners and stateless persons also have this right, but with certain restrictions on payments.

The beneficiary of social assistance must be reintegrated (i.e. returned) as a normal person into the community of people. The recipient should be helped to get rid of social assistance as soon as possible: one should be sent to work; another who does not want to work, to attach to work; the third - to cure the patient, restore his working capacity, etc.

Social assistance should be preceded by preventive (proactive) measures to overcome the critical situation in whole or in part.

Social assistance should be based on the fact that the recipient should take the initiative and be active in order to return to the community of people.

The system of social assistance must operate on the principle of an individual approach to each case of its provision.

The levers of social assistance should be turned on only when other possibilities for providing assistance to those in need have already been exhausted. It should be noted that there are a variety of types of social assistance:

Individual assistance in counseling on personal matters;

Cash payments to low-income families, provision of unemployment benefits, etc.;

Compensation of contributions to the pension insurance fund, payment for funerals and other ritual services;

In-kind assistance, such as providing work, assistance in vocational training;

Guardianship, medical treatment, inpatient treatment, etc.

During the economic reform in Russia, contradictions emerged in the choice of a model of a democratic society. The fundamental differences in the approach to this problem are based on three main issues: strengthening the role of the state, the correlation of different forms of ownership, the degree of solving social problems within the framework of the concept of "social justice". These issues are implemented when choosing a model of a market economy.

The most preferred model is socially oriented model of market economy. It is based on the free coexistence of various forms of ownership, a strong social function of the state, indicative planning and forecasting. This model is typical mainly for European, and especially for the Scandinavian countries, as well as Israel and Canada. This development path is chosen by China, South Korea, rapidly developing countries of Latin America and the Arab East.

Consequently, the strategy for further actions of the Russian Federation should be a movement towards modern forms of a socially oriented market economy.

LITERATURE

Law of the Russian Federation"On the Fundamentals of Social Services for the Population in the Russian Federation".

Program social reforms in the Russian Federation for the period 1996-1997.

medium term program of the Government of the Russian Federation for 1997-2000. "Structural Adjustment and Economic Growth".

Program Government of the Russian Federation "Reforms and Development Russian economy in 1995-1997".

Social Politics and the labor market: issues of theory and practice. - M., 1996.

Introduction in a market economy / Ed. A. Livshits and I. Nikulina. - M., 1994, Ch.13.

Dolan D. and Lindsay F. Market: microeconomic model. - St. Petersburg, 1992, Ch. 19.

Lampert X. Social market economy. German way. - M., 1993.

Basics market economy. Ed. V. Kamaeva and B. Domnenko. - M., 1991, Ch. 19.

Market economy. Textbook. - M.: Somintek, 1992, v.1, ch.14.

Textbook on the fundamentals of economic theory. - M., 1994, Ch. 16.

Market economy. Textbook. - M., 1993, Ch. 19.

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FEDERAL AGENCY FOR EDUCATION

GOU VPO KEMEROVSK STATE UNIVERSITY

Faculty of Economics

Department of Economic Theory

COURSE WORK

on the topic "Social policy

states in market economy»

Kemerovo, 2009

PLAN

Introduction

Chapter 1. The problem of equitable distribution in a market economy

1.2 Tasks of social policy

Chapter 2. Models of social policy of Western European countries

2.1 Classification of models of social policy in Western Europe

2.2 Social policy in Germany

2.3 Social policy in Sweden

Chapter 3. Using the experience of Western countries in the Russian economy

Conclusion

List of used literature

Application

Introduction

In Russia today there are extensive discussions on what models society should be built and function in a market economy.

The government influences the economy through legal restrictions, tax system, mandatory payments and deductions, the tax system, mandatory payments and deductions, public investment, subsidies, benefits, lending, the implementation of state social and economic programs. State regulation economy sets as its main goal the observance of the interests of the state, society as a whole, socially unprotected segments of the population and the rights of the individual in particular.

Along with the need to solve traditional social problems, such as unemployment, providing for the poorest families, education, etc., the problems associated with innovations are also brought to the fore - the problems of social security, social ecology, and neutralization of the negative consequences of globalization. We can state the fact of changing the content of social policy. Its task is not only to support the most socially disadvantaged groups of society, but also to provide an opportunity for everyone to realize themselves, to contribute to the creation of social wealth, having guarantees for ensuring their interests.

Models of social policy in Western Europe are the object of close attention, careful analysis, and sometimes criticism. The main principles on which they are based: social justice, social security, social cohesion, competitive economy. It should be recognized that there is still no unified, clearly formulated concept of European social policy, and social integration in the European Union lags behind economic integration. The principles of Western European social models make it possible to build on their basis a system of organization of society, where the tasks of each of the social partners would be outlined.

The implementation of these models involves improving the structure of society and its management. An important role here is played by the joint efforts of both institutions of state power and political parties, trade unions, non-governmental organizations.

Models of social policy are not something fixed, formulated once and for all. Rather, it is an ideal that society aspires to, in which changes are made to meet the challenges of the time. It is no coincidence that the social models of the countries of Western Europe are of such interest outside the continent. After all, they are built in accordance with enduring human and civilized values.

Our country has entered a broad period of democratic reforms, and not only in the social sphere. Far from always and not everything works out at once, just as not all ideas of social policy models can be used in our country. It is not necessary to speak simply about the export of social models of any countries.

In particular, when it comes to the welfare state and its role in social policy, the characteristics of the country and its traditions play a decisive role. If the latest European reforms in the social sphere are aimed at reducing the responsibility of the state and attracting other sources of financing for social services, then Russia faced the question: is a liberal policy in the social sphere necessary? For many decades, the state in Russia acted as a virtual monopoly in the field of social policy. Premature enthusiasm for liberalism led to many difficulties and failures in the reform of the social sphere. Regional imbalances and the weakening of the centralized approach led to serious negative consequences for the implementation of national social projects.

At the same time, studying the experience of Western European countries, its real achievements in the field of socio-economic development can serve as a serious reason for reflection and become an opportunity to derive real benefit for developing a concept welfare state in Russia and its strategy in the field of socio-economic development.

Chapter 1

1.1 The concept of a fair distribution of income

The presence of inequality between people is an indispensable feature of human society at any stage of its development. Throughout the history of mankind, there has not been a single social structure, only different criteria for social division in different eras. Social stratification is the process of formation of layers and its result.

A market economy tends to increase inequality in the distribution of national income among citizens. As the wealth of society increases, the social stratification of the population deepens. In a free market economy, only the owners get wealth economic factors labor, capital and land. The same numerous members of society who are deprived of production factors (elderly people who have ceased to work for hire, the disabled, children), as well as persons who have a labor force, but are not able to find a use for it in any period (the unemployed who have temporarily lost their ability to work due to illness), do not have the opportunity to ensure their decent standard of living.

Under the conditions of the formation of a market economy in Russia, the differentiation of the population in terms of income and material security has significantly increased - to such a scale that indicates acute social distress. The low wages of a significant part of the workers were the main reason fall in prestige in Russia professional competence, qualifications and quality of work. Under the current conditions, the level of income of workers does not actually depend directly on personal abilities, qualifications and dedication. It is more affected in which sector of the economy a person works and what is his degree of proximity to one or another channel of privileged distribution.

Short average level income testifies to the almost complete absence of the so-called "middle class" in Russia. Since the beginning of economic transformations in the country, the amount of personal (family) income of the population has become the most significant factor in social differentiation (Table No. 1).

The model of social stratification that has developed in Russia today characterizes a highly differentiated society, on one pole of which there is a small stratum of entrepreneurs who have concentrated a significant part of property and income in their hands, and on the other, a large part of the country's population living in poverty.

Table #1

Distribution of the total amount of cash income of the population of the Russian Federation

The changes that have taken place in the incomes of the population and the deepening of its property stratification have given rise to the following negative social processes:

Significant strata of the population are being created below the “poverty line” (first of all, older pensioners, large families, disabled people);

There is an outflow of qualified personnel from the manufacturing industry, the social sphere and science to areas of application of labor that do not require appropriate knowledge (small trade, repair work and so on.);

The state of health of the population is deteriorating, expressed primarily in a decrease in life expectancy, etc.

These changes, great inequality and the reaction of people to such changes can become a barrier to the further socio-economic development of the country. That is why one of the most important functions of the state is the implementation of social policy, ensuring the necessary level of social protection for both the population as a whole and each of its social groups. State intervention should be active in those important areas where market structures cannot ensure the efficient allocation of resources or where access to the basic, most important benefits and conditions for people's lives is not fair. The task of the state is to reduce poverty and inequality, and for this it is necessary to maintain a transparent and fair system of social protection, which is based on the principle of universal accessibility.

The main focus of social policy on present stage- all-round stimulation of economic activity, the formation of prerequisites under which each person will be able to provide sufficient living conditions for himself and his family with his work, energy, initiative and talent. This meets both the requirements of efficiency and the principle of social justice in society.

State policy in a market economy

Introduction

The problem of state intervention in the economy (market or distribution) is the main one for any state.

In a distributive economy, everything is simpler: the state assumes all rights and obligations for the production and distribution of goods and services. There is no need to talk about regulation here. In this case, we are talking about replacing the entire variety of forms of ownership with one single one - the state. However, this system proved to be ineffective in practice. There remains a market path of development. But in market economy the state has to constantly adjust the depth of influence. The state does not face the task of direct production and distribution of resources, goods and services. But it also does not have the right to freely dispose of resources, capital and produced goods, as is done in a distributive economy. The state must constantly balance, increasing or decreasing the degree of intervention.

The market system is flexibility and dynamism in decision-making both on the part of consumers and producers. Public policy simply has no right to lag behind changes in the market system, otherwise it will turn from an effective stabilizer and regulator into a bureaucratic superstructure that hinders the development of the economy.

The history of the evolution of ideas about the role of the state in the economy

Mercantelists

· Creation of an extensive zone of state entrepreneurship based on the formation of state and mixed enterprises;

· Widespread use of budgetary-financial and credit-financial regulators to stabilize the economic environment, smooth out cyclical fluctuations, maintain high growth rates and a high level of employment.

Keynes's model of state regulation allowed the weakening of cyclical fluctuations during the two post-war decades. However, since the early 1970s a discrepancy began to appear between the possibilities of state regulation and objective economic conditions. Keynesian model could only be sustained under conditions of high growth rates. High growth rates of national income created the possibility of redistribution without prejudice to capital accumulation. However, in the 70s. reproduction conditions deteriorated sharply. Phillips' law was refuted, which stated that unemployment and inflation cannot rise at the same time. Keynesian ways out of the crisis only spun the inflationary spiral. Under the influence of this crisis, a radical restructuring of the system of state regulation took place, and a neoconservative model of regulation was formed.

neoclassical theory

Theoretical basis The neoconservative model was served by the concepts of the neoclassical direction of economic thought.

The transformation of the model of state regulation was to abandon the impact on reproduction through demand, and instead - the use of indirect measures to influence supply. Proponents of supply-side economics consider it necessary to recreate the classical mechanism of accumulation and to revive the freedom of private enterprise. Economic growth is seen as a function of capital accumulation, which comes from two sources: own funds(capitalization of part of the profit) and at the expense of borrowed funds (credits). Therefore, the state must provide conditions for the process of capital accumulation and increase productivity.

The main obstacles on this path are high taxes and inflation. High taxes limit the growth of capital investment, and inflation increases the cost of credit and makes it difficult to use borrowed money for accumulation. Therefore, the neoconservatives proposed the implementation of anti-inflationary measures based on the recommendations of the monetarists and the provision of tax incentives to entrepreneurs.

Reducing tax rates should reduce state budget revenues and increase its deficit, which will complicate the fight against inflation. Therefore, the next step will be to reduce public spending, stop using the budget to support demand and implement large-scale social programs.

This includes the policy of privatization of state property.

The next set of measures is the implementation of the deregulation policy. This means the elimination of price and wage regulations, the liberalization (mitigation) of antitrust laws, the deregulation of the labor market, etc.

Thus, in the neoconservative model, the state can only indirectly influence the economy. The main role in the implementation of the country's economic development is given to market forces.

The functions of the state in the economy

State intervention in the economy pursues certain functions. As a rule, it corrects those "imperfections" that are inherent in the market mechanism, with which he is either unable to cope, or this solution is ineffective. The state takes responsibility for creating level playing field for the rivalry of entrepreneurs and effective competition, for limiting the power of monopolies. It also takes care of the production of sufficient public goods and services, since the market mechanism is unable to adequately satisfy the collective needs of people.

The participation of the state in economic life is also dictated by the fact that the market does not provide a socially just distribution of income. The state should take care of the disabled, the poor, the elderly. He also owns the sphere of fundamental scientific developments. This is necessary because, for entrepreneurs, it involves a lot of risk, is extremely expensive, and usually does not bring quick profits. Since the market does not guarantee the right to work, the state has to regulate the labor market and take measures to reduce unemployment.

The state implements the political and socio-economic principles of this community of citizens. It actively participates in the formation of macroeconomic market processes.

The role of the state in a market economy is manifested through the following key functions:

· Creation legal basis for acceptance economic decisions. The state develops and adopts laws regulating entrepreneurial activity, determines the rights and obligations of citizens;

stabilization of the economy. The government uses fiscal and monetary policy to overcome the decline in production, to smooth out inflation, reduce unemployment, maintain stable level prices and national currency;

· socially-oriented distribution of resources. The state organizes the production of goods and services, which is not engaged in the private sector. It creates conditions for the development of agriculture, communications, transport, determines spending on defense, science, forms programs for the development of education, health care, etc.;

assistance to important science and capital-intensive sectors of the economy in order to accelerate scientific and technical progress and strengthening on this basis the position of the country in the world economy;

holding regional policy construction of industrial enterprises in economically backward regions;

creation of jobs;

development of fundamental scientific research;

production of goods, which is a state monopoly by law.

State entrepreneurship should develop only in those areas where there is simply no other way out. The fact is, state-owned enterprises are often less efficient than private ones. A state enterprise, even if endowed with the broadest rights and responsibilities, always lags behind a private enterprise in terms of economic independence. In the activities of the state enterprise, there are both market and non-market motives coming from the state. Political motives are changeable, they depend on the government, orders of ministries, etc. Therefore, SOEs often find themselves in a complex and unclear environment, which is much more difficult to predict than market conditions. It is much easier to predict probable fluctuations in demand and prices than to predict the behavior of a new minister or official, whose decisions often determine the fate of an enterprise. They may have political goals behind them that have nothing to do with market behavior (the desire to increase budget revenues, the desire to retain staff and increase wages etc.).

Usually, state enterprises are not ready for market competition, because they rely not only on themselves, but also on a special attitude from the authorities (subsidies, tax incentives, sales guarantees within the framework of state orders). State-owned enterprises have no obligations to shareholders. All this negatively affects the dynamics of costs and prices, the speed of mastering new technologies, the quality of production organization, etc.

Competition in commercial activities cannot be tolerated also because private sector is drawn into corruption: through a bribe to an official, you can achieve greater results than by reducing costs.

If the economy is burdened with an excess of state-owned enterprises, their workers are in a difficult position. They are the first victims of government policy aimed at overcoming emergencies. Usually people working in the public sector are the first to feel the freeze on wages.

Problems and limitations of government intervention

Obviously, the modern market system is impossible without the intervention of the state. However, there is a line beyond which deformations of market processes occur, production efficiency falls. Then the question arises of the denationalization of the economy, ridding it of excessive state activity. There are important limits to regulation. For example, any actions of the state that destroy the market mechanism (total directive planning, all-encompassing administrative control over prices, etc.) are unacceptable.

This does not mean that the state absolves itself of responsibility for the uncontrolled rise in prices and should abandon planning. The market system does not exclude planning at the level of enterprises, regions, and even the national economy; however, in the latter case, it is usually "soft", limited in terms of time, scale and other parameters, and acts in the form of national targeted programs. It should also be noted that the market is largely a self-adjusting system, so it should be influenced only by indirect economic methods. However, in some cases, the use of administrative methods is not only acceptable, but necessary. One cannot rely only on economic or only administrative measures. On the one hand, any economic regulator carries elements of administration. On the other hand, there is something economic in every administrative regulator, since it indirectly affects the behavior of participants in the economic process. By resorting, say, to direct price control, the state creates a special economic regime for producers, forces them to revise production programs, look for new investments, etc.

Among the methods of state regulation, there are no completely unsuitable and absolutely ineffective. Everyone is needed, the only question is to determine for each those situations where its use is most appropriate. Economic losses begin when the authorities go beyond the bounds of reason, giving excessive preference to either economic or administrative methods.

We must not forget that the economic regulators themselves should be used with extreme caution, without weakening or replacing market incentives. If the state ignores this requirement, launches regulators without thinking about the consequences of their application, then the market mechanism begins to fail. After all, tax policy in terms of its impact on the economy is comparable to central planning.

Among economic regulators there is no one ideal. Any of them, bringing a positive effect in one area of ​​the economy, will certainly have negative consequences in others. Nothing can be changed here. The state using economic instruments of regulation is obliged to control them and stop them in a timely manner. For example, the government seeks to curb inflation by limiting the growth money supply. This measure is effective for combating inflation, but it leads to an increase in the cost of central and bank credit. And if interest rates rise, it becomes more and more difficult to finance investments, and economic development begins to slow down. This is how the situation is developing in Russia.

Deregulation and privatization

State intervention in the economy requires quite large expenditures. They include both direct costs (preparation of legislative acts and control over their execution) and indirect costs (on the part of firms that must comply with government instructions and reporting). In addition, it is believed that government regulations reduce the incentive for innovation, for the entry of new competitors into the industry, since this requires the permission of the relevant commission.

Due to certain imperfections, government intervention sometimes entails losses. In this regard, in recent years, the issue of deregulation of the economy and privatization has become more acute. Deregulation involves the removal of legislative acts that hinder the entry of potential competitors into the market, set prices for certain goods and services. For example, in the United States in the 1980s, deregulation affected trucks, rail and air transport. As a result, prices have decreased and passenger service has improved. The deregulation of freight, air and rail transport brought benefits to the American society, estimated at $39 billion to $63 billion, $15 billion, respectively. and 9 - 15 billion dollars. in year.

Privatization is the sale of state-owned enterprises to individuals or organizations, aimed at increasing economic rationality. It is caused by the fact that state-owned enterprises are unprofitable and inefficient. Western economists emphasize that the public sector does not provide such a powerful incentive to reduce costs and make powerful profits, as does private enterprise.

This once again proves that state intervention is needed only where it is vital. In all other cases, the market will more effectively solve the set economic tasks.

State regulation in agriculture

In the modern Western economy, agriculture is one of the most important areas of active intervention. In this area of ​​production, the main principle of the free market (the play of supply and demand) turns out to be useless. True, state intervention is far from a panacea.

In Western Europe, for example, governments traditionally pay great attention to the problems of the agricultural market, but neither producers nor consumers are satisfied with the state of affairs in the agricultural sector.

The source of the problem is that in developed countries, thanks to high performance labor production of agricultural products significantly exceeds the needs of the population.

The goals of state regulation in the field of agriculture include:

· Increasing productivity through the introduction of technological progress and rationalization of production;

Ensuring employment in the agricultural sector and creating an appropriate standard of living rural population;

· Stabilization of markets for agricultural products;

· Guaranteed supply of the domestic market;

· concern for the supply of agricultural products to consumers at "reasonable prices".

The state establishes and annually reviews the minimum prices for the most important agricultural products.

Thus, producers are protected from a sharp drop in prices. The domestic market is protected from cheap imports and excessive price fluctuations through a system of additional import duties. Therefore, in the EU countries, food prices are noticeably higher than world market prices. Expenses in connection with the implementation of the agrarian policy shall be borne by the state budget.

The functioning of this mechanism can be illustrated by the example of the grain market. The starting point is the approximate price recommended by the state. It is somewhat higher than the market price, which not only guarantees the income of farmers, but also creates incentives to expand production, as a result of which supply exceeds demand. When market price decreases to a certain level, the grain offered by farmers is bought up by the state at the so-called "intervention price" in unlimited quantities.

Thus, although each producer must bear the marketing risk himself, in practice this rule does not apply to producers of many agricultural products.

There are also mechanisms to protect against cheap imports and encourage exports. This means that an import duty is imposed on imports, equating the price of the product with the domestic price. When exporting, the state pays the exporters the difference between the domestic price and the world market price.

It should be noted that this policy provoked many problems. On the one hand, huge stocks of foodstuffs have been accumulated, on the other hand, the discontent of the peasants, who believe that their subsistence minimum is not provided. In this situation, large agro-industrial enterprises receive decent incomes, while small producers barely make ends meet.

Thus, agriculture remains a weak point of state regulation. However, apparently, the state of affairs in agriculture will remain unchanged.

Conclusion

The study of this topic provides abundant food for thought.

Very often, the state is the root cause of changes in the economic behavior of entrepreneurs. Decisions made by the government influence decisions made at the micro level. Government policy achieves its goal only when it encourages and does not dictate. When creating favorable conditions for entrepreneurs, their private interest will coincide with the interest of the state, that is, society. Consequently, the state should simply make more accessible to entrepreneurs that sector of the economy, which is the highest priority for it.

It should be noted that the state should not interfere in those economic spheres where his intervention is not necessary. This is bad for the economy.

It is difficult to overestimate the role of the state in the economy. It creates conditions for economic activity, protects entrepreneurs from the threat of monopolies, provides for the needs of society in public goods, provides social protection low-income segments of the population, solves issues of national defense. On the other hand, government intervention can, in some cases, significantly weaken the market mechanism and cause significant harm to the country's economy, as was the case in France in the late 70s and early 80s. Due to too active state intervention, capital outflow began from the country, and the rate of economic growth fell markedly. In this case, privatization and deregulation are necessary, which was done in 1986.

The main task of the state is to keep the "golden mean" in the sphere of influence on the market economy.

Bibliographic list

1. The role of the state in modern economic system // Economic questions. - 1993. - N 11.

2. Livshits State in a market economy // Russian Economic Journal. - 1992. - N 11 - 12; 1993. - N 1.

3. Planning and mixed economy// Issues of Economics. - 1993. - N 1.

4. The role of the state in the market economy // MEiMO. - 1992. - N 10 - 11.

5. Zastavenko, Reisberg State programs and the market // The Economist. - 1991. - N 3.

6. On the formation of a market economy // Finance. - 1994. - N 1.

7. State regulation and price control in the capitalist countries. - M., 1991.

8. Economics. - Tallinn, 1993.

9. Shishov A, Market economy: Textbook. - M., 1992.

Social policy - a set of measures aimed at creating conditions for meeting the needs of the population, improving its well-being and providing a system of social guarantees.
Social policy comes down to state assistance to a socially equitable distribution of income under market conditions in a mixed economy. It took a long time for the countries with market economies to recognize that the distribution of income is fair from the point of view of the market is unfair from the point of view of the universal. In market conditions, there is only one criterion of justice: any income received in free competition in the market of goods, services, capital and labor is recognized as fair.

From the point of view of the market, the high incomes of those who succeeded are fair, and the low incomes of those who went bankrupt or failed.
Even in the United States relatively recently (since 1937) a law on social security began to operate. His goal was to protect the American people from the economic hardship caused by old age and unemployment.
This system consists of 3 parts:

1. Pension insurance old age and survivors' insurance;
2. unemployment insurance;
3. Assistance to the elderly and other forms social security. IN economics It is generally accepted that technological progress and economic growth contribute to the growth of the well-being of members of society, but in reality everything is quite different. For example, in 1900 average value income per capita per year for Africa as a whole was 500 US dollars and was 9 times lower than in England (the richest country of that time). And in 2000, the average African per capita income was $1,290 and was lower than per capita income most rich country The US is already almost 20 times. (ME and MO, No. 1, 2001, p. 7-8). But even in the United States itself in 1998, 12.7% of the population was below the poverty line (ME&MO, No. 8, 2000, p. 84).

In the Republic of Belarus in 2000, 78.8% of the population had income per family member below the minimum consumer budget(BEJ, No. 2, 2000, p. 6).
And yet, it cannot be denied that social policy depends on the results of economic growth and is modern society the goal of economic growth.
Social policy is carried out at different levels of economic activity:

• at the firm level;
• at the regional level;
• at the national level;
• At the interstate level (UNESCO, UN).

For the formation of state social policy, it is necessary to determine the standard of living of the population. The standard of living of the population is understood as the level of consumption of material and spiritual goods.
To measure the standard of living, the "consumer basket" is taken as a reference point, which includes a set of goods and services that ensures a certain level of consumption. There is a "minimum level" of consumption and a "rational level" of consumption.
"Minimum level" - such a consumer set, the reduction of which puts the consumer beyond the bounds of ensuring normal conditions for his existence, i.e. below the poverty line.

”Rational level of consumption” - reflects the amount and structure of consumption that is most favorable for a person.
To develop a social policy, it is also necessary to use an indicator of the quality of life of the population.
To determine the quality of life, such indicators are used. as: 1. Working conditions and safety; 2. The state of the habitat; 3. Availability of free time for employees; 4. Cultural level of the population; 5. Physical development and health of citizens; 6. Personal and property security of members of the society.
In any modern state there is a difference in income and wealth.
Income - amount Money. received for a certain period of time and intended for the acquisition of goods and services for personal consumption.
Wealth is the wealth accumulated by the family financial resources. as well as real estate and durable goods.
The Lorenz curve is used to measure the degree of inequality in the distribution of income in a society.
Lorenz curve

The proportion of families (100%) is located on the abscissa. on the y-axis is the share of income (100%). The theoretical possibility of absolute equality is represented by the bisector OA. This means. that 10% of the population should receive 10% of all income. and 20% of the population - 20% of income. However, in real life, things look different. For example. 60% of the population receive 40% of the income. and 80% of the population receive less than 60% of income.
The Lorenz curve is represented by an arcuate "L" curve. The greater the bend in the arc, the greater the degree of inequality in society. However, the state can progressive taxation reduce the level of inequality between the rich and the poor. This is shown in Graph 1. Originally, the Lorenz curve was represented by the "L" curve. and then as a result of state social policy it will be an "L" curve", i.e. inequality will decrease.

The quantitative degree of inequality in the distribution of income can be calculated using the Gini coefficient.
KG=L/OBA. where L is the area of ​​the shaded area;
OVA - the rest of the triangle.
The Gini coefficient is in the range between 0 and 1. In the Republic of Belarus, the Gini coefficient was 0.270 in 2000 (Statistical Yearbook, 2001, Mn. Min. Statistics and Analysis of the Republic of Belarus, 2001, p. 138).
In addition, the decile coefficient is widely used to assess income differentiation.
The decile coefficient expresses the ratio between the average incomes of the 10% of the highest paid citizens of a given country and the 10% of the poorest citizens. In the Republic of Belarus, the decile coefficient was in 2000

1. (ibid., p. 138).

Social protection of the population in the Republic of Belarus is provided for in the "Main directions of socio-economic development of the Republic of Belarus for the period up to 2010":

1. Creation of targeted social protection;
2. Streamlining benefits, allowances and additional payments paid at the expense of enterprises and organizations by including them in tariff rates and official salaries;
3. Providing guarantees for citizens in the field of labor, social protection, education, health protection, culture, housing.
4. Normalization demographic situation, increased life expectancy, reduced mortality.
5. Ensuring effective employment of the population, improving the quality and competitiveness of the workforce;
6. Creation of economic and legal conditions for increasing labor activity, developing entrepreneurship and business initiative of the able-bodied population;
7. Raising the living standards of the population;
8. Improvement of the state and effective development of the social environment; Priority attention should be paid to improving the healthcare system as one of the most important priority areas of the country's socio-economic development. The main goal here is to meet the needs of the population in affordable medical and drug care.

Education is one of the most important components of the formation of human capital. Its main goals further development are the satisfaction of the needs of citizens in education, the harmonious development of the individual and creative abilities, the increase in the intellectual and cultural potential of the country through the creation national system education of the Republic of Belarus, meeting the challenges of a new stage in the development of society (BEZH, No. 2, 2000, p.10-12).

Source: Svetlitsky IS Economic theory: Electronic educational and methodical complex for students of all non-economic specialties. - Minsk: BSUIR. - 286 p. 2006(original)

More on the topic Necessity and essence of the social policy of the state in a market economy. income inequality. Lorenz curve. Gini coefficient:

1. Social policy of the state, its formation. Types and main directions. Lorenz curve and Gini coefficient
2. 96. The problem of poverty and income differentiation. Lorenz curve
3. 2.2. Necessity and essence of state regulation of property in a market economy. Denationalization and privatization
4. Chapter 1.6. THE ROLE OF THE STATE IN SOCIAL POLICY. FEATURES OF THE STATE AS A SUBJECT OF SOCIAL POLICY AND ITS CONSTITUTIONAL OBLIGATIONS IN THIS SPHERE
5. THE CRISIS OF ADMINISTRATIVE PLANNING SYSTEMS AND THE NEED TO TRANSITION TO A MARKET SYSTEM THE OBJECTIVES OF MACROECONOMIC STABILIZATION IN THE TRANSITION TO A MARKET SYSTEM INSTITUTIONAL TRANSFORMATIONS IN THE TRANSITION TO A MARKET SYSTEM SOCIAL POLICY IN THE TRANSITION TO MARKET SYSTEM

PLAN.

Introduction
1. The history of the evolution of ideas about the role of the state in the economy

• Mercantelists
• classical theory
• Keynesian theory
• neoclassical theory

2. The functions of the state in the economy

• antitrust regulation

3. Methods of state influence on the market

• government spending
• taxation
• state regulation
• state enterprise

4. Problems and limitations of government intervention

• deregulation and privatization
• state regulation in agriculture

Conclusion
List of used literature

Introduction.

The problem of state intervention in the economy is, in my opinion, the main one for any state, regardless of whether it is a market economy or a distribution economy. In a distributive economy, everything is simpler: the state assumes all rights and obligations for the production and distribution of goods and services. That is, there is no need to talk about regulation: the state simply has no one to regulate. In this case, we are talking about replacing the entire variety of forms of ownership and ways of answering the question "What, how and for whom to produce?" one single form of ownership - state, and the answer to the main economic question- strict centralization and distribution. However, this system proved to be ineffective in practice. There remains a market path of development. But in a market economy, the state has to constantly adjust the depth of influence. The state does not face such tasks as the direct production and distribution of resources, goods and services. But it also does not have the right to freely dispose of resources, capital and produced goods, as is done in a distributive economy. In my opinion, the state must constantly balance, either increasing or decreasing the degree of intervention. The market system is, first of all, flexibility and dynamism in decision-making both on the part of both consumers and producers. State policy simply has no right to lag behind changes in the market system, otherwise it will turn from an effective stabilizer and regulator into a bureaucratic superstructure that hinders the development of the economy.

1. HISTORY OF THE EVOLUTION OF IDEAS ABOUT THE ROLE OF THE STATE IN THE ECONOMY.

Mercantelists.

The history of state regulation dates back to the end of the Middle Ages. At that time the main economic school was the mercantelist school. It proclaimed the active intervention of the state in the economy. Mercantelists argued that the main indicator of a country's wealth is the amount of gold. In this regard, they called for encouraging exports and restraining imports.

classical theory.

The next step in the development of ideas about the role of the state was the work of A. Smith "A Study on the Nature and Causes of the Wealth of Nations", in which he argued that "the free play of market forces" (the principle of "laissez faire") creates a harmonious device "(Varga V. Rol states in a market economy, MEiMO N11, 1992, p.131).

In accordance with the classical approach, the state must ensure the safety of human life and property, resolve disputes, in other words, do what the individual is either unable to do on his own or does it inefficiently. In his description of the market economy system, Adam Smith argued that it is the desire of the entrepreneur to achieve his private interests that is the main driving force of economic development, ultimately increasing the well-being of both himself and society as a whole.

The main point was that for all subjects economic activity basic economic freedoms, namely the freedom to choose the field of activity, freedom of competition and freedom of trade.

Keynesian theory.

In the 30s of our century, after the deepest recession in the US economy, J. Keynes put forward his theory, in which he refuted the views of the classics on the role of the state. Keynes's theory can be called "crisis" as he considers the economy in a state of depression. According to his theory, the state should actively intervene in the economy due to the lack of mechanism market that would truly ensure the economy's way out of the crisis. Keynes believed that the state should influence the market in order to increase demand, since the cause of capitalist crises is the overproduction of goods.

He offered several tools. This is a flexible monetary policy, a new budgetary and financial policy, etc. A flexible monetary policy makes it possible to step over one of the most serious barriers - wage inelasticity. This is achieved, Keynes believed, by changing the amount of money in circulation. With an increase in the money supply real wages decrease, which will stimulate investment demand and employment growth. With the help of fiscal policy, Keynes recommended that the government increase tax rates and using these funds to finance unprofitable enterprises. This will not only reduce unemployment, but also relieve social tension.

The main features of the Keynesian model of regulation are:

• a high share of national income redistributed through the state budget;
• creation of a vast zone of state entrepreneurship on the basis of the formation of state and mixed enterprises;
• wide use of budgetary-financial and credit-financial regulators to stabilize the economic situation, smooth out cyclical fluctuations, maintain high growth rates and a high level of employment.

Keynes's model of government regulation helped dampen cyclical fluctuations for more than two decades after the war. However, since the early 1970s a discrepancy between the possibilities of state regulation and objective economic conditions began to appear. The Keynesian model could only be sustainable under conditions of high growth rates. High growth rates of national income created the possibility of redistribution without prejudice to capital accumulation. However, in the 1970s, the conditions for reproduction deteriorated sharply. Phillips' law was refuted, according to which unemployment and inflation cannot rise at the same time. Keynesian ways out of the crisis only spun the inflationary spiral. Under the influence of this crisis, a radical restructuring of the system of state regulation took place and a new, neo-conservative model of regulation took shape.

neoclassical theory.

The theoretical basis of the neoconservative model was the concept of the neoclassical direction of economic thought.

The transformation of the model of state regulation was to abandon the impact on reproduction through demand, and instead - the use of indirect measures to influence supply. Proponents of supply-side economics consider it necessary to recreate the classical mechanism of accumulation and to revive the freedom of private enterprise. Economic post is considered as a function of capital accumulation, which is carried out from two sources: at the expense of own funds, i.e. capitalization of part of the profit and at the expense of borrowed funds (credits). Therefore, in accordance with this theory, the state must provide conditions for the process of capital accumulation and increase the productivity of production.

The main obstacles on this path are high taxes and inflation. High taxes limit the growth of capital investment, and inflation increases the cost of credit and thus makes it difficult to use borrowed funds for accumulation. Therefore, the neoconservatives proposed the implementation of anti-inflationary measures based on the recommendations of the monetarists and the provision of tax incentives to entrepreneurs.

Reducing tax rates will also reduce state budget revenues and increase its deficit, which will complicate the fight against inflation. Therefore, the next step will be to reduce public spending, stop using the budget to support demand and implement large-scale social programs. This includes the policy of privatization of state property.

The next set of measures is the implementation of the deregulation policy. This means the elimination of price and wage regulations, the liberalization (mitigation) of antitrust laws, the deregulation of the labor market, etc.

Thus, in the neoconservative model, the state can only indirectly influence the economy. The main role in the implementation of the country's economic development is given to market forces.

2. FUNCTIONS OF THE STATE IN THE ECONOMY.

State intervention in the economy pursues certain functions. As a rule, it corrects those “imperfections” that are inherent in the market mechanism and with which it is either unable to cope on its own, or this solution is ineffective. The state assumes responsibility for creating equal conditions for the rivalry of entrepreneurs, for effective competition, for limiting the power of monopolies. It also takes care of the production of sufficient public goods and services, since the market mechanism is unable to adequately satisfy the collective needs of people.

The participation of the state in economic life is also dictated by the fact that the market does not provide a socially just distribution of income. The state should take care of the disabled, the poor, the elderly. He also owns the sphere of fundamental scientific developments. This is necessary because for entrepreneurs it is very risky, extremely expensive and usually does not bring quick income. Since the market does not guarantee the right to work, the state has to regulate the labor market and take measures to reduce unemployment.

In general, the state implements the political and socio-economic principles of this community of citizens. It actively participates in the formation of macroeconomic market processes.

The role of the state in a market economy is manifested through the following key functions:

1. creation of a legal basis for making economic decisions. The state develops and adopts laws regulating entrepreneurial activity defines the rights and obligations of citizens;
2. economic stabilization. The government uses fiscal and monetary policy to overcome the decline in production, to smooth out inflation, reduce unemployment, maintain a stable price level and the national currency;
3. socially-oriented distribution of resources.

   The state organizes the production of goods and services, which is not engaged in the private sector. It creates conditions for the development of agriculture, communications, transport, determines spending on defense, science, forms programs for the development of education, health care, etc.;

4. provision of social protection and social guarantee.

The state guarantees minimum wages, old-age pensions, disability pensions, unemployment benefits, different kinds helping the poor, etc.

Antitrust regulation.

The antimonopoly activity of the state is one of the most important areas of application of state intervention. Regulation develops in two directions. In those few markets where conditions prevent the efficient functioning of the industry under competition, that is, in the so-called _natural monopolies, public regulatory bodies are created by the state to control their economic behavior. In most other markets where monopoly has not become a necessity, public control took the form of antitrust laws. Next, the features of regulation of activities will be considered. natural monopolies.

A natural monopoly exists when one firm can supply the entire market at a lower cost per unit of production achieved through scale. This is typical for public utilities, where large-scale activities are necessary to achieve a low price.

Two options can be used to ensure the acceptable behavior of such monopolies: state ownership and state regulation.

For natural monopolies, a "fair" income is usually set, that is, a price equal to the average gross cost. However, this entails a lack of incentive for the enterprise to reduce costs.

Thus the goal industry regulation is to protect society from the market power of natural monopolies by regulating prices and quality of service. But it is necessary to use direct regulation only where it does not lead to a decrease in production efficiency. Regulation should not be applied in cases where competition can provide a better supply of products to society.

Another type of control is antitrust laws.

This form of control has rich history. In 1890 The famous Sherman Act was passed, prohibiting any kind of collusion and any attempt to monopolize any industry. However, this wording was rather vague, which did not allow a clear definition of the crime. The next step was the Clayton Act of 1914. In principle, it was a continuation of Sherman's law and only clarified some of its points.

In the same year, the Federal Trade Commission was created. Her competence included monitoring the implementation of the above laws, as well as investigating dishonest actions on her own initiative. The Federal Trade Commission Act expanded the range of illegal behavior and gave an independent antitrust authority the authority to conduct investigations.

A large number of antitrust laws and various amendments to them prove the extreme importance of these laws for society. Indeed, uncontrolled monopoly power can bring significant losses to society through the use of unfair competition, which will cause bankruptcy of small producers, consumer dissatisfaction with high prices, and often poor quality of goods, a lag in scientific and technological progress, and many other negative consequences. But, on the other hand, antitrust laws should not punish large producers who do not use illegal methods of competition. If this condition is not met, then the incentives for entrepreneurs to make their enterprise stronger and produce more products will be significantly reduced.

Thus, the state acts as an arbiter that selects the optimal (and most efficient) balance between monopolies and competitive industries. In different periods of history, this ratio was different for different countries, adjusted to the specifics of the development of the economy, and the state must skillfully and effectively use this mechanism.

3. METHODS OF STATE IMPACT ON THE MARKET.

The state influences the market mechanism through its spending, taxation, regulation and public enterprise.

Government spending.

0 are considered one of the important elements of macroeconomic policy. They affect the distribution of both income and resources. Government spending consists of government purchases and transfer payments. Government purchases are, as a rule, the purchase of public goods (defense costs, construction and maintenance of schools, roads, scientific centers, etc.). Transfer payments are payments that redistribute tax income received from all taxpayers, to certain segments of the population in the form of unemployment benefits, disability payments, etc. It should be noted that government purchases contribute to national income and directly use resources, while transfers do not use resources and are not related to production. Public procurement leads to a reallocation of resources from private to public consumption goods. They enable citizens to enjoy public goods. Transfer payments have a different meaning: they change the structure of the production of consumer goods. Amounts taken in the form of taxes from some segments of the population are paid to others. However, those to whom transfers are intended spend this money on other goods, and this is how the change in the structure of consumption is achieved.

Another important instrument of state policy is taxation. Taxes are the main source budget funds. In countries with a market economy, various types of taxes are levied. Some of them are visible, for example income tax, others are not so obvious, as they are imposed on producers of raw materials and affect households indirectly in the form of higher commodity prices. Taxes cover both households and firms. In the form of taxes, significant amounts enter the budget (for example, in the United States, about 30 percent of the total cost of goods and services produced).

One of the main problems is the fair distribution of the tax burden. There are three main systems based on the concept of progressive taxation.

1. the ratio of the amount levied in the form of tax on the income of a particular employee to the value of this income.
2. proportional tax (the amount of tax is proportional to the income of the employee);
3. regressive tax (as a percentage, the tax is levied the lower, the higher the income of the employee);
4. progressive tax (as a percentage, the higher the income, the higher the tax).

It seems to me that a progressive tax is the most fair, but the percentage increase in the tax should not be significant so as not to weaken the incentives for work, and, consequently, for greater earnings. As a rule, income tax is built on this principle. However, sales taxes and excise taxes are in fact regressive, as they are in most cases passed on to consumers, in whose income the same amount occupies a different share.

The task of the state is to collect taxes in such a way as to meet the needs of the budget and at the same time not cause discontent among taxpayers. When tax rates are too high, massive tax evasion begins. At the present stage, such a situation is taking place in Russia.

The state does not have enough funds, it raises taxes, entrepreneurs increasingly evade paying them, therefore, less and less funds go to the budget. The government raises taxes again. It turns out vicious circle. I believe that in this situation it is reasonable to lower taxes. This will reduce incentives for non-payment, make honest business more profitable, lead to higher government revenues and reduce the level of criminalization of business.

State regulation.

0designed to coordinate economic processes and link private and public interests. It is carried out in legislative, tax, credit and subvention forms. Legislative form regulation governs the activities of entrepreneurs. Antitrust laws are an example. Tax and credit forms of regulation involve the use of taxes and credits to influence the national output.

By changing tax rates and benefits, the government affects the narrowing or expansion of production. When changing the terms of credit, the state affects the decrease or increase in production.

The subvention form of regulation involves the provision of state subsidies or tax benefits to certain industries or enterprises. These usually include industries that form General terms for the formation of social capital (infrastructure). On the basis of subsidies, support can also be provided in the field of science, education, training, and in solving social programs. There are also special or targeted subsidies that provide for the expenditure of budget funds for strictly defined programs. The share of subventions in the GNP of developed countries is 5-10 percent. By allocating subsidies, reducing tax rates, the state thereby changes the distribution of resources, and subsidized industries are able to recover costs that cannot be covered at market prices.

State business.

It is carried out in those areas where economics is contrary to the nature of private firms or where huge investments and risks are required. The main difference from private entrepreneurship is that the primary goal of state entrepreneurship is not to generate income, but to solve social and economic problems, such as ensuring the necessary growth rates, smoothing cyclical fluctuations, maintaining employment, stimulating scientific and technological progress etc. This form of regulation provides support for unprofitable enterprises and sectors of the economy that are vital for reproduction. These are, first of all, branches of economic infrastructure (energy, transport, communications). The problems solved by state entrepreneurship also include the provision of benefits to the population in various fields social infrastructure, assistance to vital science and capital-intensive sectors of the economy in order to accelerate scientific and technological progress and strengthen on this basis the country's position in the world economy, the implementation of regional policy - the construction of industrial enterprises in economically backward areas, the creation of jobs, environmental protection through introduction of non-waste technologies, construction of treatment facilities, development of fundamental scientific research, production of goods, which is a state monopoly by law.

I believe that state entrepreneurship should develop only in those areas where there is simply no other way out. The fact is that compared to private state-owned enterprises are less efficient. A state enterprise, even if endowed with the broadest rights and responsibilities, always lags behind a private enterprise in terms of economic independence. In the activities of the state enterprise, there are certainly both market and non-market motives coming from the state. Political motives are changeable, they depend on the government, orders of the ministries, etc. Therefore, SOEs often find themselves in a complex and unclear environment, which is much more difficult to predict than market conditions. It is much easier to predict probable fluctuations in demand and prices than to predict the behavior of a new minister or official, whose decisions often determine the fate of an enterprise. They may have political goals behind them that have nothing to do with market behavior (the desire to increase budget revenues, the desire to retain staff and increase wages, etc.).

As a rule, state-owned enterprises are not ready for market competition, since they rely not only on themselves, but also on special treatment from the authorities (subsidies, tax breaks, sales guarantees under government orders). State-owned enterprises have no obligations to shareholders; they usually do not face bankruptcy. All this negatively affects the dynamics of costs and prices, the speed of mastering new technologies, the quality of production organization, etc.

Competition in the sphere of commercial activities is also unacceptable because the private sector is drawn into corruption: through a bribe to an official, more results can be achieved than by reducing costs.

If the economy is burdened with an excess of state-owned enterprises, their workers are in a difficult position. They are the first victims of government policy aimed at overcoming emergencies. Usually people working in the public sector are the first to feel the freeze on wages. Apparently, this is why the wave of privatization that swept through the economies of Western countries in the 1980s did not cause widespread protests from the bulk of those employed in the public sector. People expected that, having freed themselves from state pressure, they would be able to fully use the advantages of a market economy and become co-owners of private enterprises.

4. PROBLEMS AND LIMITATIONS OF STATE INTERVENTION.

Obviously, the modern market system is unthinkable without state intervention. However, there is a line beyond which deformations of market processes occur, production efficiency falls. Then, sooner or later, the question arises of the denationalization of the economy, ridding it of excessive state activity. There are important limits to regulation. For example, any actions of the state that destroy the market mechanism (total directive planning, all-encompassing administrative control over prices, etc.) are unacceptable.

This does not mean that the state absolves itself of responsibility for the uncontrolled rise in prices and should abandon planning. The market system does not exclude planning at the level of enterprises, regions, and even the national economy; however, in the latter case, it is usually "soft", limited in terms of time, scope and other parameters, and acting in the form of national targeted programs. It should also be noted that the market is largely a self-adjusting system, and therefore it should be influenced only by indirect, economic methods. However, in some cases, the use of administrative methods is not only acceptable, but necessary. One cannot rely only on economic or only on administrative measures. On the one hand, any economic regulator carries elements of administration. For example, money turnover will feel the influence of such a well-known economic method, as the central bank lending rate, not before an administrative decision is made. On the other hand, there is something economic in every administrative regulator in the sense that it indirectly affects the behavior of participants in the economic process. By resorting to, say, direct control over prices, the state creates a special economic regime for producers, forces them to revise production programs, look for new sources of investment financing, and so on.

Among the methods of state regulation, there are no completely unsuitable and absolutely ineffective. Everyone is needed, and the only question is to determine for each those situations where its use is most appropriate. Economic losses begin when the authorities go beyond the bounds of reason, giving excessive preference to either economic or administrative methods.

We must not forget that the economic regulators themselves should be used with extreme caution, without weakening or replacing market incentives. If the state ignores this requirement, launches regulators without thinking about how their action will affect the market mechanism, the latter begins to falter.

After all, monetary or tax policy in terms of its impact on the economy is comparable to central planning.

It must be borne in mind that among economic regulators there is not a single ideal one. Any of them, bringing a positive effect in one area of ​​the economy, will certainly have negative consequences in others. Nothing can be changed here. The state using economic instruments of regulation is obliged to control them and stop them in a timely manner. For example, the state seeks to curb inflation by limiting the growth of the money supply. From the point of view of combating inflation, this measure is effective, but it leads to an increase in the cost of central and bank credit. And if interest rates grow, it becomes more and more difficult to finance investments, economic development begins to slow down. This is how the situation is developing in Russia.

Deregulation and privatization.

State intervention in the economy requires quite large expenditures. They include both direct costs (preparation of legislative acts and control over their execution) and indirect costs (on the part of firms that must comply with government instructions and reporting). In addition, it is believed that government regulations reduce the incentive for innovation, for the entry of new competitors into the industry, since this requires the permission of the relevant commission.

According to American experts, the state impact on economic life leads to a drop in growth rates by approximately 0.4% per year (Lipsey R., Steiner P., Purvis D. Economics, N.Y. 1987, P.422).

Due to certain imperfections, government intervention sometimes entails losses. In this regard, in recent years, the issue of deregulation of the economy and privatization has become more acute. Deregulation involves the removal of legislative acts that hinder the entry of potential competitors into the market, set prices for certain goods and services. For example, in the United States in the 1980s, deregulation affected trucks, rail and air transport. As a result, prices have decreased and passenger service has improved. The deregulation of freight, air and rail transport has brought benefits to the American society, estimated at $39-63 billion, $15 billion, respectively. and 9-15 billion dollars. per year (Economic Report of the President, Wash., 1989. P. 188).

Privatization - the sale of state-owned enterprises to individuals or organizations - is aimed at increasing economic rationality. It is caused by the fact that state-owned enterprises are unprofitable and inefficient. Western economists point out that government sector does not provide such a powerful incentive to reduce costs and obtain powerful profits, as does private enterprise.

For an entrepreneur - one of two things: profit or loss. If a private enterprise suffers losses for a long time, then it is closed. A state-owned enterprise is assisted, so it may not seek to increase its profitability.

This once again proves that state intervention is needed only where it is vital. In all other cases, the market will more effectively solve the set economic tasks.

State regulation in agriculture.

In the modern Western economy, agriculture is one of the most important areas of active intervention. In this area of ​​production, the main principle of the free market, namely the play of supply and demand, turns out to be practically inapplicable.

True, state intervention is far from a panacea. For example, in Western Europe, governments traditionally pay great attention to the problems of the agricultural market, but neither producers nor consumers are satisfied with the state of affairs in the agricultural sector.

The source of the problems is that in developed countries, due to high labor productivity, the production of agricultural products significantly exceeds the needs of the population.

The goals of state regulation in the field of agriculture include:
a) increasing productivity through the introduction of technological progress and rationalization of production, the most efficient use of all production factors, especially labor;
b) ensuring employment in the agricultural sector and an appropriate standard of living for the rural population;
c) stabilization of markets for agricultural products;
d) guaranteed supply of the domestic market;
e) concern for the supply of agricultural products to consumers at "reasonable prices". (V. Varga "The role of the state in the market economy" - MEiMO, 1992, N 11, p. 139.)

The state establishes and annually reviews the minimum prices for the most important agricultural products. Thus, producers are protected from a sharp drop in prices. At the same time, the domestic market is protected from cheap imports and excessive price fluctuations through a system of additional import duties. Therefore, in the EU countries, food prices are noticeably higher than world market prices. Expenses in connection with the implementation of the agrarian policy shall be borne by the state budget.

The functioning of this mechanism can be illustrated by the example of the grain market. The starting point is the approximate price recommended by the state. It somewhat exceeds the market price, which not only guarantees the income of farmers, but also creates incentives to expand production. As a result, supply exceeds demand. When the market price drops to a certain level, the grain offered by the farmers is bought up by the state at the so-called "intervention price" in unlimited quantities.

Thus, although each producer must bear the marketing risk himself, in practice this rule does not apply to producers of many agricultural products.

There are also mechanisms to protect against cheap imports and encourage exports. This means that an import duty is imposed on imports, equating the price of the product with the domestic price. When exporting, the state pays the exporters the difference between the domestic price and the world market price.

It should be noted that this policy provoked many problems. On the one hand, huge stocks of food have been accumulated, on the other hand, the discontent of the peasants, who believe that their subsistence minimum is not provided. In this situation, large agro-industrial enterprises receive decent incomes, while small producers barely make ends meet.

Thus, agriculture remains a weak point of state regulation. However, apparently, the state of affairs in agriculture will remain unchanged.

CONCLUSION.

The study of this topic provides abundant food for thought. Very often, the state is the root cause of changes in the economic behavior of entrepreneurs. Decisions made by the government influence decisions made (or not made) at the micro level. Government policy achieves its goal only when it encourages and does not dictate. When creating favorable conditions for entrepreneurs, their private interest will coincide with the interest of the state, that is, society. Consequently, the state should simply make more accessible to entrepreneurs that sector of the economy, which is the highest priority for it.

It should be noted that the state should not interfere in those areas of the economy where its intervention is not necessary. This is not only unnecessary, but also harmful to the economy.

In general, it is difficult to overestimate the role of the state in the economy. It creates conditions for economic activity, protects entrepreneurs from the threat of monopolies, provides for the needs of society in public goods, provides social protection for low-income sections of the population, and solves issues of national defense. On the other hand, government intervention can, in some cases, noticeably weaken the market mechanism and cause significant harm to the country's economy, as was the case in France in the late 1970s and early 1980s. Due to too active state intervention, capital outflow began from the country, and the rate of economic growth fell noticeably. In this case, privatization and deregulation are necessary, which was done in 1986.

It seems to me that the main task of the state is to keep the "golden mean" in the sphere of influence on the market economy.

LIST OF USED LITERATURE.

1. V. Papava "The role of the state in the modern economic system", Questions of Economics, N 11, 1993.
2. Livshits "The State in a Market Economy", Russian Economic Journal, N 11-12, 1992, N1, 1993.
3. S. Holland "Planning and mixed economy", Questions of Economics, N 1, 1993.
4. V. Varga "The role of the state in the market economy", MEiMO, N 10-11, 1992.
5. Zastavenko, Reisberg "State programs and the market", Economist, N 3, 1991.
6. I.P. Merzlyakov "On the formation of a market economy", Finance, N 1, 1994.
7. E. Chuvilin, V. Dmitrieva "State regulation and price control in capitalist countries", Moscow, "Finance and Statistics", 1991.
8. K. McConnell, S. Brew "Economics", Tallinn, 1993.
9. V. Maksimova, A. Shishov "Market economy. Textbook", Moscow, SOMINTEK, 1992.