Topic No. 6 Basic concepts of the relationship between the market and the state

Introduction 3

1 The objective need for state intervention in the economy 4

2 Comparative characteristics of the main concepts and models government regulation economics 8

3 Use of concepts of state regulation of macroeconomic policy of the Republic of Belarus 16

Conclusion 29

References 31

INTRODUCTION

The state acts as the main institution of the economic and political system, which organizes, directs and controls joint activities citizens and their relationships with each other. In relation to other entities, the state has a certain status, which allows it to occupy a special place among economic agents. The role of the state in a market economy is one of the main problems economic theory, since it is generated by constant changes in the economy, requiring appropriate modifications of the scale and instruments of government regulation.

The market economy, while having some advantages, has a number of significant disadvantages. Some of them are uncontrollability, in which it is difficult to direct economic development to achieve national goals. That is why there is a need to use various forms and methods of state regulation of the economy, such as legal, financial and budgetary, credit, development of state target programs, indicative planning.

The state has a whole range of methods, means and forms of influence both on the economy as a whole and on individual economic complexes and sectors of the country, which are designed to direct the development of the economy and its economic entities in the necessary direction of national welfare, reduce the severity of the shortcomings of market relations, and protect the most vulnerable layers of the population and support the necessary sectors of the economy, industries and enterprises.

The above determines the relevance of the topic of this study, since the use of various concepts and models of economic regulation allows the state to choose the best of the alternative options for social economic development countries and ensure its implementation.

Target course work is to study the basic concepts of the relationship between the market and the state.

The tasks of the work are as follows:

1) reveal the need for government intervention in the economy;

2) spend comparative characteristics basic concepts and models of state regulation of the economy;

3) analyze the use of concepts of state regulation of the economy in the macroeconomic policy of the Republic of Belarus.

The object of this study is the economy of the Republic of Belarus, and the subject is state regulation of the national economy.

Information base The course work was based on the works of such scientists as Antonova N.B., Bazylev N.I., Shimov V.N. and etc.; analytical data from the National Statistical Committee; legal information; periodicals.

1 OBJECTIVE NECESSITY FOR STATE INTERVENTION IN THE ECONOMY

In a market system, the economic functions of the state are embodied in the policy of macroeconomic regulation. There are a number of important reasons for this.

1) the need to compensate for the shortcomings and weaknesses of the market. Both under capitalism and under socialism, the market is never omnipotent in resolving many vital issues, in particular those related to the environment, social justice, education and comprehensive personal development. Relying solely on the market can lead to negative results in these areas. After all, success here serves the interests of society as a whole. This is not always possible for an individual or an enterprise to provide.

Besides, market regulation through prices, growth rates and economic structure usually occur slowly and spontaneously. In addition, the enterprise and the individual usually do not have complete information, as a result of which microeconomic policy is characterized by a certain lack of planning. This is especially noticeable in industries with extended production cycles ( Agriculture, mining industries, etc.). Therefore, along with more efficient distribution of wealth, maintaining a balance between supply and demand and ensuring stable growth is difficult.

Relying only on the market mechanism, it is impossible to achieve a fair distribution of income. Although market exchange is conducted according to the principle of equivalence, people have different opportunities and their incomes, as a result, vary markedly. The unrestricted action of market mechanisms inevitably leads to social polarization, unemployment and social tension.

2) the need to regulate relations between macro- and microeconomics, the whole and the particular, the center and places. The economic activity of an individual enterprise, industry or region is conducted according to the principle of dispersal of responsibility, independent management and self-sufficiency. Each enterprise, industry and region pursues its own specific interests, which is why their activities are to a certain extent spontaneous and selfish in nature and focused on achieving short-term results. Along with this, enterprises are in a competitive relationship, and between the enterprise and the state there are contradictions between the interests of the whole and the particular.

Solving the listed problems in the conditions market economy requires active government intervention. And the state takes care of the functioning of the market economy, creates equal conditions for all business entities, determines the rules of their economic behavior, protects their interests, realizes the possibility of demonstrating the most effective aspects of the market mechanism and eliminates its negative consequences.

By optimally combining market and state regulators, the state in a market economy ensures the well-being of the nation as a whole, the protection of its interests, stability and strengthening of the economic system within the country and abroad. This determines the purpose of state regulation of the economy and the role of the state in a market economy.

Thus, state regulation of the economy is the purposeful activity of the state represented by the relevant bodies, which, through different ways, techniques, forms and methods ensure the achievement of the set goal and the solution of economic and social problems of the corresponding stage of economic development.

State regulation, to one degree or another, affects all participants in socio-economic processes who take part in the regulatory process, while at the same time being subjects of regulation. The main subject of regulation is the people, who elect their representatives to government bodies and thus indirectly participate in the regulatory process. All participants in the regulatory process differ significantly from each other in terms of the degree of involvement in it or the form of participation. There are carriers, exponents and executors of economic interests. Bearers of economic interests are individuals and legal entities, groups of people who differ from each other by regional affiliation, type of activity, profession, income, property, etc. .

Associations and numerous unions can act as representatives of economic interests. The executors of economic interests are: the state represented by various organs authorities, built on a hierarchical principle and representing three branches of government - legislative, executive and judicial; central bank countries.

The interaction of regulated subjects is also ensured through feedback. Main line feedback between the bearers and exponents of economic interests is trust or loss of trust, support by the bearers and exponents of economic interests of the economic policy pursued by the state.

The object of government regulation: may be the economy of the country as a whole or its individual regions, industries, spheres, enterprises. The objects of regulation are socio-economic phenomena, processes, and situations. In the very general view The objects of state regulation are macro- and microeconomics.

Within the framework of macroeconomic processes, the objects of regulation may be: business cycle, employment, money turnover, balance of payments, prices, R&D, competition conditions, social relations, personnel (training, retraining), foreign economic relations etc. In a market economy, the most important objects of regulation at the macro level are the closely interrelated aggregate demand, aggregate supply and aggregate production.

State regulation of the economy specifies the principles of state intervention in the economy to implement its strategic goals in the current period in the context of the following interrelated priority areas state activities:

Institutional policy to change the organization of the economy, create new or eliminate old economic, social and financial institutions, change their functions and connections;

Structural policy in the field of changes in macroeconomic proportions between final consumption and gross capital formation, government income and expenditure, exports and imports, sectoral and regional structures of the economy;

Investment and innovation policy to establish the scale of investment, their sources and areas of use, to create appropriate innovative activity and receptivity of business entities;

Monetary policy in the field of formation money supply and its units, resource base banking system countries, development stock market, management of credit resources, establishment of a currency convertibility regime and an effective exchange rate of the national currency;

Financial policy in the field of formation and use of state financial resources, management of public debt and budget deficit, control over intended use funds state budget, establishing effective tax system;

Customs policy in the field of formation of a balanced customs tariff policy, its impact on the country’s competitiveness and import substitution policy;

Policy in the field of supporting entrepreneurship and business activity in the country, to create conditions for high competitiveness of domestic producers;

Policy in the field of creation and effective use of the logistics system;

Politics in regulating property relations, social justice and social processes, in the development of social functions of the state; regional policy in relation to the economic integration of regions and their socio-economic development;

Foreign economic policy in relation to the export and import of goods and services, attracting foreign capital and export of capital abroad;

Security Policy environment, maintaining energy saving policies as an important factor in increasing economic efficiency and environmental protection;

Construction Policy economic security countries, regulation of the use of monetary factors, natural resources, food supplies, quality of nutrition and spheres of life of the population;

Defense Policy.

The priorities of state economic policy change depending on the historical stage of development of the country. For each priority area, corresponding goals are set, and a specific strategy for achieving them is developed.

Let us note that the scale of state regulation of a market economy and the depth of its penetration into socio-economic processes have limits determined, on the one hand, by the interests of the owners (and this, in fact, is the main argument limiting the scale of government intervention) and, on the other hand, by the possibilities the state itself. Within this framework, we can talk about the relative limits of the effectiveness of government regulation and the effectiveness of one or another measure (form, instrument, method) of its impact. For example, in the public sector and state income(budget, extra-budgetary funds), which are the economic basis of state regulation of the economy, have their own limits: the growth opportunities of the public sector are limited by the interests of private property, and the increase in state revenues is associated with the social boundaries of taxation, which affect the interests of almost all segments of the population, and with the conditions of the economy itself , the deterioration of which significantly reduces budget revenues. The coincidence of interests of the state and owners allows one to significantly expand the boundaries of state regulation, and vice versa, if they diverge, the boundaries narrow.

In fact, the depth of penetration of state regulation into socio-economic processes, the combination of market and state regulators, various combinations of forms and methods of regulation are distinctive features state regulation in diverse models of modern market economies.

2 COMPARATIVE CHARACTERISTICS OF THE BASIC CONCEPTS AND MODELS OF STATE REGULATION OF THE ECONOMY

During all periods of its existence, the state intervened to one degree or another in the economy. Therefore, economists began to study this problem. In the history of the development of world civilization, there have been different approaches to assessing the role of the state in the economy. These include Keynesian and classical theories. It must be emphasized that these models are alternative and the views of their representatives on the influence of various factors that violate or establish equilibrium differ markedly.

Let us consider the views of representatives of these schools on the need to intervene in the economy.

Keynesians are based on the fact that capitalism, and in particular the free market system, suffers from inherent defects, the most important of which is the Keynesian assertion that capitalism lacks a mechanism that ensures economic stability. The state, from a Keynesian point of view, can and should play a certain active role in stabilizing the economy; Discretionary fiscal and monetary policies are needed to mitigate shocks economic booms and the downturns that would otherwise accompany the development of capitalism. Through these actions, the discrepancy between planned investments and savings actually exists and causes fluctuations in business activity, expressed in periodic inflation and/or unemployment, can be minimized. Many markets are not competitive, which also leads to inflexibility in terms of lowering prices and rates wages. Consequently, fluctuations in aggregate Recommending to abandon the policy of non-interference in economic life and move to active state regulation of the economy, J.M. Keynes proposed directions and methods for such regulation.

He proceeded from the fact that the state has the power and must influence the independent variables of the functional connections of the economic process, i.e. on the propensity to consume, invest, and on preference for liquidity. J.M. Keynes believed that overall volume employment is directly dependent on investment and consumer demand and the rate of profit, but inversely dependent on the level of interest. It is through these functional connections that in a market economy it is possible to influence in the right direction the state of aggregate demand, employment, and national income, thereby forming an effective system of economic regulation.

The effectiveness of state regulation of economic processes, according to J.M. Keynes, depends on raising funds for public investment, achieving full employment, reducing and fixing the interest rate. At the same time, he believed that public investment in the event of a shortage should be guaranteed by the issue of additional money, and a possible budget deficit would be prevented by an increase in employment and a fall in the interest rate. In other words, the lower the loan interest rate, the higher the incentives for investment, for increasing the level of investment demand, which in turn expands the boundaries of employment and leads to overcoming unemployment.

The main instruments of government influence on the market are J.M. Keynes believed: flexible monetary and active fiscal policy.

J. Keynes saw the reason for the economy falling into the trap of equilibrium under conditions of underemployment in insufficient aggregate demand and believed that the government can influence the state of economic activity using monetary and fiscal methods. tax policy to change aggregate demand.

In the Keynesian theory of aggregate demand, investment demand is of decisive importance. Fluctuations in investment will cause large changes in production and employment. Among the most important factors determining the level of investment in the economy, J. Keynes identifies the interest rate. Interest rate growth, etc. equal conditions will reduce the level of planned investment, and, consequently, output and employment will fall.

Using monetary policy methods, the state can influence the interest rate, and through it the level of investment, supporting full time and delivering economic growth.

However, J. Keynes did not take into account the fact that the economy can fall into a special state in which an increase in the money supply does not cause a change in national income. This case is called« liquidity trap» .

« Liquidity trap» means that interest rate is at a fairly low level and its change is only possible in the direction of increase. Under these conditions, owners of money will not seek to invest it. A situation arises where even a very low interest rate does not stimulate investment and does not contribute to income growth. The entire increase in money is absorbed by speculative demand, i.e. money ends up in hands rather than being invested in the economy. Since the interest rate does not change, investment and income remain constant. The way out of this situation, Keynesians believed, is possible only by connecting fiscal policy.

The state, according to J. Keynes, has the necessary capabilities to support investment demand with the help of budgetary funds, stimulating business activity. In a system of countercyclical regulation, public funds (budget) can and should support the growth of productive consumption, ensuring an increase in aggregate demand and neutralizing the negative consequences of the propensity to save.

Since the use of budget funds occupies a large place in the Keynesian system of government regulation, J. Keynes gave a special place to taxes and the use of the tax system. He believed that the implementation of active investment activities requires redistribution of national income in order to increase budget revenues through taxes. To increase public investment at the expense of budget funds, it is necessary to withdraw part of the savings through the tax system. Active use of the tax system is an integral element of the Keynesian system of state regulation of the economy.

Although Keynesians recognize the importance of monetary policy, they believe that fiscal policy is a much more powerful and reliable stabilizing tool. Government expenditures, among other things, are directly included in total expenditures. And taxes are one short step away because the impact of tax changes on consumption and investment is assumed to be reliable and predictable.

Monetarists (neoclassicals) significantly diminish, or, to put it another way, extreme case, reject fiscal policy as a means of resource redistribution and stabilization. They believe that the absolute helplessness or ineffectiveness of fiscal policy is due to the crowding out effect. Monetarists reason as follows: suppose the government creates a budget deficit by selling bonds, that is, borrowing money from the population. But by borrowing money, the state enters into competition with private business for funds. Consequently, government borrowing expands the demand for money. However, the final effect of the budget deficit on total spending is insignificant.

The monetarist approach is that markets are sufficiently competitive and that the system of market competition provides a high degree of macroeconomic stability. The reasoning is based on the fact that the flexibility of prices and wage rates provided by market competition leads to the fact that fluctuations in aggregate expenditures affect the prices of products and resources, and not the level of production and employment. Consequently, a market system that is not subject to government intervention in the functioning of the economy is characterized by significant macroeconomic stability. The problem is that minimum wage laws, pro-union legislation, agricultural price support, pro-business monopoly legislation, and other government policies encourage and reinforce inflexibility in lowering prices and wages. The free market on its own can provide significant macroeconomic stability, but government intervention, despite its best intentions, undermines this ability. They consider public administration to be bureaucratic, ineffective, harmful to individual initiative, and containing political errors that destabilize the economy. In addition, centralized public administration inevitably suppresses human freedom. The public sector, in their opinion, should be as small as possible.

Thus, the model of government regulation proposed by J.M. Keynes, helped weaken cyclical fluctuations for more than two post-war decades. Already from the 30s. it is used in the practice of capitalist management, in the formation of economic policy in Great Britain, the USA and other countries. She continued until the end of the 70s. determined the main guidelines economic courses and economic policy in many countries of the world.

However, from about the beginning of the 70s, a discrepancy began to appear between the possibilities of state regulation and objective economic conditions. The Keynesian model was effective and sustainable only in conditions of high growth rates. High growth rates of national income created the possibility of redistribution without compromising capital accumulation.

But during this period, reproduction conditions deteriorated sharply. Keynesian ways out of the crisis only increased inflation. In this regard, there was new model regulation neoliberalism.

Neoliberalism as an alternative Keynesian model government intervention in the economy, arose in the 30s XX century. It was a kind of continuation of the classical theory.

Neoliberal theory is based on the idea of the priority of conditions for unlimited free competition, not despite, but thanks to a certain intervention of the state in economic processes.

If Keynesianism initially considers the implementation of measures of active government intervention in the economy, then neoliberalism is relatively passive government regulation.

Neoliberals advocate the liberalization of the economy, the use of the principles of free pricing, the leading role in the economy of private property and non-state economic structures, seeing the role of state regulation of the economy in its function " night watchman."

In general, neoliberal ideas of state regulation of the economy prevailed over Keynesian ones, starting around the 70s, when growing inflation processes, state budget deficits, and unemployment became constant for many countries. A clear manifestation of the priority of neoliberalism over Keynesianism in the 70s and 80s. is the systematic denationalization of many sectors of the economy that were previously in the sphere state economy.

Neoclassical synthesis represents a further development and, at the same time, in some way a “reconciliation” of approaches to the analysis of economic processes. If, for example, Keynes was quite critical of the ability of prices to respond flexibly to changes in market conditions, then representatives of the neoclassical synthesis sought to “rehabilitate” prices, proving that they contribute to the optimal distribution and fullest use of resources. Considering the problem of employment, supporters of the “mixed” system express disagreement with the “underemployment” put forward by Keynes. At the same time, the views of Keynes's opponents are being adjusted.

The main idea of the “synthesis” is to develop a more general economic theory that reflects changes in the economic mechanism, the results of recent research and everything positive that is contained in the works of predecessors.

The most famous representatives of the neoclassical synthesis are American economist Paul Samuelson (born 1915), American economist of Russian origin Vasily Leontiev (born 1906), English scientist John Hicks (1904-1989).

Features of neoclassical synthesis:

1) Neoclassical synthesis is characterized by expansion and deepening of research topics. This is not about a radical revision, but about the development of a generally accepted theory, the creation of systems that unite and harmonize different points of view;

2) Extensive use of mathematics as a tool economic analysis;

3) Proponents of the neoclassical synthesis clarified old problems and developed new ones in accordance with the changes occurring in the industrial basis and the mechanism of the market economy. Discussing with opponents, they sought to synthesize traditional views with new ideas and approaches.

Firstly, the theorists of neoclassical synthesis are reproached for unjustifiably narrowing the range of problems under consideration. Being active supporters of the mathematization of economic science, they are interested primarily and mainly in those issues that can be formatted and can be expressed using formulas and equations. And what goes beyond strict quantitative assessments, for example, clarifying the goals of social development, ways to achieve national harmony, turns out to be beyond the scope of pure theory.

Secondly, attention is often concentrated on secondary issues, on the consideration of particular changes and side processes. Radical, fundamental, structural changes are forgotten by economists neoclassical school. Quite often, very important processes, deep relationships, and long-term trends remain the lot of representatives of heterodox economics.

Thus, the views of Keynesians and monetarists on the private and public sectors are almost diametrically opposed. From the Keynesian point of view, the instability of private investment causes the instability of the economy, and the state plays a positive role by applying an appropriate stabilization device. Monetarists, on the other hand, believe that the state has a harmful influence on the economy; it creates rigidities that weaken the ability of the market system to provide significant stability; it carries out fiscal and monetary measures that, although they have a good purpose, cause the very instability they are intended to combat.

Today, there are several hundred different methods and instruments of government regulation, which differ from each other in the areas and scale of application, their use to solve global or private problems within the entire socio-economic system, and its individual elements.

The method of regulation should be understood as a method, a method of implementing regulatory influence, with the help of which the set social and economic goals and tasks.

A method may contain a specific set of tools that ensure its implementation. At the same time, in different conditions the same method can be implemented using a variety of tools.

Each method has its own advantages and disadvantages, which affect the scope of its application.

The regulatory influence of the state on economic and social processes involves choosing the most appropriate method from the entire set of existing alternative methods, replacing one method with another.

Many different methods require their specific systematization and classification. Today the economic literature presents various classifications methods based on various classification criteria: scale of application, content of the method, type of impact, etc.

Based on the form of state participation in regulating the economy and the nature of its influence on the object, administrative, administrative and economic methods, as well as direct and indirect, are distinguished (Figure 1.1). But it should be noted that they are closely related to each other, and there is always the question of finding the optimal combination of administrative, administrative and economic methods of state regulation between themselves and the existing market mechanism.

Figure 1.1 Methods of state regulation of the economy

Note Source:

Administrative and regulatory methods are based on the power of state power and include measures of prohibition, permission and warning. They, as a rule, are mandatory and are formalized in the form of legislative acts, orders, regulations, etc. These include the distribution of centralized investments or other state-controlled resources, licensing of certain types of activities, quotas for exports, imports, etc. For example, when the authorities are interested in stopping a certain type of activity, they can stop issuing licenses, and vice versa, to expand a particular activity, allow it to be carried out. Coercive measures include rules and conditions, compliance with which is mandatory for business entities.

Administrative and regulatory methods of state regulation are effective in the sphere of control over monopoly markets, in the field of ecology, in the development national system standardization and certification, in determining and maintaining the necessary parameters of the population’s life, etc. developed countries with a market economy, the use of administrative and administrative methods is limited, but in critical situations (military actions, crisis phenomena in the economy, natural disasters) their role is increasing.

Economic methods regulations affect the interests of the objects of regulation indirectly: through economic legislation, financial, monetary, credit system. In this case, there is no direct coercion or encouragement. The object of regulation is free to choose options for action, but is subject to and does not contradict current legislation.

The structure of the methods used depends on the forms of ownership of the objects of regulation. Direct and administrative-control are more often used in the management of enterprises of state and municipal forms of ownership. For enterprises of non-state forms of ownership, mainly indirect and economic methods of regulation are applied.

All of these methods are closely interrelated and complement each other. Through the correct use and combination of methods, the state ensures the solution of the tasks facing it and the achievement of the goals of the socio-economic development of the country, ensuring the highly effective system of state regulation.

3 USE OF CONCEPTS OF STATE REGULATION OF MACROECONOMIC POLICY OF THE REPUBLIC OF BELARUS

The strategic long-term goal of the socio-economic development of the Republic of Belarus is a progressive movement towards a post-industrial type society, taking into account national characteristics, to improve the level and quality of life of the population, improve the living environment based on the formation of a new technological method of production and a multi-structured economy with a significant role of the state in its transformation and reform.

This is the general goal. Its achievement presupposes gradual development economy of the Republic of Belarus, which is reflected in the forecast and program documents of the country.

Thus, according to the Program of Socio-Economic Development of the Republic of Belarus for 2011-2015. The strategic goal of the socio-economic development of the Republic of Belarus in 2011-2015 is to dynamically increase the level of well-being of the people on the basis of balanced and sustainable economic growth, ensuring rational employment of the population and bringing the well-being and quality of life of the citizens of the republic closer to the level of economically developed European countries. Achieving this goal is associated with accelerating institutional and structural transformations of the economy and improving all qualitative parameters of its functioning.

The main goal 20112015 is to ensure sustainable economic development of the country and, on this basis, increase the level of well-being of the people, bringing it closer to the level of economically developed European countries.

Main tasks for 2011-2015:

1) further improvement of the structure of the economy through the accelerated development of sectors of the socio-cultural complex, knowledge-intensive, resource-saving, export-oriented and import-substituting, environmentally friendly industries;

2) expansion of sales markets in countries far abroad by improving the quality and competitiveness of Belarusian goods, reducing production costs;

3) improving the mechanisms for transforming domestic savings into investments for priority sectors and productions, wider attraction of foreign direct investment and loans;

4) improvement financial results the work of state and privatized organizations, allowing to maintain a high level of scientific, technical and production potential;

5) development of market infrastructure providing rapid accumulation and the flow of capital into priority sectors and production.

The following priorities have been identified as priority areas of socio-economic development for the forecast period, which, on the one hand, develop the main areas of development at a higher quality level previous period, and on the other hand, they include new priorities that ensure the transition to an innovative path of development and the formation of a new post-industrial information society. These include:

Comprehensive harmonious human development, formation of effective systems of education, healthcare and other service sectors;

Innovative development national economy, energy and resource conservation;

Increasing export potential based on increasing the level of competitiveness of the national economy;

Improving the level and quality of life rural population based further development agricultural sector and agricultural towns;

Development of economic methods of land management to replenish local budgets;

Integrated development territories, small and medium-sized cities, taking into account the preservation and improvement of the environment;

Improving the structure and increasing the comfort of constructed housing based on improving its consumer and operational characteristics.

The implementation of these priorities will ensure the continuity of the socio-economic development strategy of the Republic of Belarus, intensify the transition of the national economy to an innovative path of development and, on this basis, significantly increase the level of well-being of the people.

The implementation of the main directions and targets of the country’s socio-economic development is largely predetermined by the presence of an effectiveorganizational structure of public administration.

The organizational structure of public administration concentrates the diverse capabilities of the state and represents a certain composition, organization and interconnection of system-forming elements.It is determined by the socio-political nature, social and functional role, goals and content of public administration in society And ensures the formation and implementation of the state’s managerial influence on processes occurring in society.

Fundamental featuresorganizational structure are:

having a goal;
presence of system-forming elements (control bodies);
the presence of an internal coordinating center that ensures stability and balance of the organizational system;
self-regulation provided by the center based on available information;
isolation (the presence of boundaries separating the organizational structure from outside world);
organizational culture based on norms of activity and behavior.

Self-forming elementorganizational structure standsgovernment agencya single power structure formally created by the state to implement the goals and functions assigned to it (for example, a ministry, a committee). State bodies, within the limits of their powers, are independent, interact with each other, restrain and balance each other. Management decisions are made and implemented there.

The versatility of the functions of the state, the variety of connections with society and the political, socio-economic, scientific, technical, environmental and other processes occurring in it determine the multidirectionality and diversity of the activities of government bodies, the methods and extent of their influence and participation in these processes. The organizational structure shouldprovide and regulate:

Completeness responsibilityeach management body for achieving the goals assigned to it goals and the functions assigned to it;

- balancethe goals of all links at the lower level with the goals of the higher level;

Complexity performing management functions in relation to the set goal horizontally and vertically;

Rational division and cooperationefforts between links and levels of the state apparatus;

- realization of rights and responsibilitywhen solving a management problem;

- full complianceexecution of the scope of competencies and rights.

The organizational structure of public administration is influenced by external and internal conditions and factors, socio-economic and political requirements.In many ways organizational structure depends on human potential information support, style of public administration, on the ability of the state apparatus to master modern scientific methods and technical means of management.

In accordance with the Constitution, the Republic of Belarus is unitary, democratic, social, rule of law. The head of state, the guarantor of the Constitution of the Republic of Belarus, the rights and freedoms of man and citizens is the President.

The President personifies unity of the people guarantees implementation of the main directions of domestic and foreign policy, is The Republic of Belarus in relations with other states and international organizations, accepts measures to protect the sovereignty of the Republic of Belarus, its national security and territorial integrity, provides political and economic stability, continuity and interaction of government bodies, carries out mediation between public authorities. The president in accordance with the Constitution of the Republic of Belarusissues decrees and orders,having binding force throughout the territory of the Republic of Belarus, as well asdecrees having the force of laws and ensures their implementation.The President creates, abolishes and reorganizes:

Administration of the President of the Republic of Belarus;

Government bodies;

Advisory and other bodies under the President. Determines the structure of the Government of the Republic of Belarus.

With the consent of the House of Representatives, appoints the Prime Minister, appoints and dismisses Deputy Prime Ministers, ministers and other members of the Government, and decides on the resignation of the Government or its members. With the consent of the Council of the Republic, the President appoints the Chairman and members of the Board National Bank and dismisses them from office. Appoints and dismisses the Chairman of the Committee state control. Appoints heads of republican government bodies and determines their status.

Government departmentsRepublic of Belarus include:

Parliament - National Assembly;

Council of Ministers;

Presidential Administration;

Judicial authorities and prosecutor's office;

State Control Committee.

The representative and legislative body of the Republic of Belarus is the ParliamentNational Assembly of the Republic of Belarus,consisting of two chambers: the House of Representatives and the Council of the Republic.

To conduct legislative work, preliminary consideration and preparation of issues within the jurisdiction of the House of Representatives, from among the deputies of the House for the term of their powers are formedstanding commissions:

- Commission on Legislation and Judicial Affairs;

National Security Commission;

Commission on state building, local government and regulations;

Commission on the problems of the Chernobyl disaster, ecology and environmental management;

Commission on Budget, Finance and Tax Policy;

Commission on Agrarian Issues;

Commission on Education, Culture, Science and scientific and technological progress;

Commission on monetary policy And banking;

Commission on Industry, Fuel and Energy Complex, Transport, Communications and Entrepreneurship;

Commission on Health, Physical Culture, Family and Youth Affairs;

Commission on Labor, Social Protection, Veterans and Disabled Persons;

Commission on Human Rights, National Relations and Means mass media;

Commission on Housing Policy, Construction, Trade and Privatization;

Commission on International Affairs and Relations with the CIS.

Right of legislative initiativein the republic there are the President, deputies of the House of Representatives, deputies of the Council of the Republic, the Government, as well as citizens with the right to vote, in the amount of at least 50 thousand people. The bill becomes law after adoption by the House of Representatives and approval by the Council of the Republic by a majority vote of full composition each ward.

Executive power in the Republic of Belarus is exercised byGovernment Council of Ministers of the Republic of Belarus.The Council of Ministers iscollegial centrala body exercising, in accordance with the Constitution of the Republic of Belarus, executive power and management of the system of government bodies and other executive bodies subordinate to it. In its activities, the Council of Ministers accountable to the President and responsible before the National Assembly of the Republic of Belarus. The competence of the Council of Ministers, structure, procedure for its formation and activities, functions, as well as management of the activities of republican government bodies are determinedLaw of the Republic of Belarus “On the Council of Ministers of the Republic of Belarus”.

The Council of Ministers of the Republic of Belarus includes:Prime Minister of the Republic of Belarus, Deputy Prime Ministers of the Republic of Belarus, Head of the Administration of the President of the Republic of Belarus, Chairman of the State Control Committee, Chairman of the Board of the National Bank, President of the National Academy of Sciences of Belarus, ministers, Chairman of the State Security Committee, Chairman of the State Border Troops Committee, Chairman of the State Customs Committee, Chairman of the Board of the Belarusian Republican Union of Consumer Societies.

The Council of Ministers of the Republic of Belarus has broad powers in the field of economics, social sphere, environmental protection, external economic activity, personnel policy, in the field of ensuring law and order. At meetings of the Council of Ministers the following are considered:

issues of preparation and execution of the republican budget, formation and use of state off-budget funds;
draft programs of economic and social development The Republic of Belarus;
main directions of domestic and foreign policy.

As permanent bodyproviding operational solution issues within the competence of the Council of Ministers is in effectPresidium of the Council of Ministers. In its composition - Prime Minister of the Republic of Belarus, his deputies, Head of the Administration of the President of the Republic of Belarus, Chairman of the State Control Committee, Chairman of the Board of the National Bank, Minister of Economy, Minister of Finance, Minister of Foreign Affairs.

Organizational and technical support for the activities of the Council of Ministers of the Republic of Belarus is provided byApparatus of the Council of Ministers.In accordance with the Regulations on the Government Apparatus, it provides advisory and methodological assistance to those subordinate to the Council of Ministers of the Republic of Belarus government agency and other government organizations.

Direct regulation of the socio-economic development of the republic is carried out by republican government bodies subordinate to the Council of Ministers of the Republic of Belarus.

To the republican government bodiesinclude: ministries of the Republic of Belarus; state committees (State Security Committee, State Border Troops Committee, State Aviation Committee, State Customs Committee),whose chairmen are ministers by status;committees under the Council of Ministers of the Republic of Belarus and state organizations, subordinate to the Government of the Republic of Belarus.

System of republican bodiespublic administration, subordinate to the Government of the Republic of Belarus, is built onfunctional and sectoral principles.It ensures regulation of the most important spheres of social life and states:

Economic sphere;

Social sphere;

Foreign economic and foreign policy activities;

Scientific and innovative activities;

Environmental protection and use of natural resources;

Sectors of the national economy.

To ensure the activities of the President of the Republic of Belarus, aAdministration of the President,carrying out information, organizational and technical activities and being a working body of the President. Its composition and activities are determined by the President of the Republic. Territorial bodies play an important role in the public administration system -local authorities and self-government,implementing public policy taking into account the interests of the population of the relevant territory, solving economic, social, environmental and other issues on the ground. The management activities of local government and self-government bodies are based on the currentConstitution of the Republic of Belarus And Law “On local government and self-government in the Republic of Belarus”.

Local government and self-government bodies include: local Councils of Deputies, executive committees, public self-government bodies.Councils of Deputies(rural, township, district in cities, city, district, regional Councils) arerepresentativelocal government authorities.

In the Republic of Belarus, three territorial levels of local councils have been established:

1) primary (rural, town, city district in cities of regional subordination);

2) basic (urban cities of regional subordination, district);

3) regional (regional and Minsk City Council).

Thus, a multi-level system of state regulation of the economy has been created in the republic, including analysis, forecasting and programming of directions and measures of monetary regulation in the long-, medium- and short-term aspects.

The results of the socio-economic development of the Republic of Belarus for 2013 indicate only partial implementation of the country’s socio-economic development program and are characterized by the following dynamics of indicators (Table 3.1).

Table 3.1 Fulfillment of the most important parameters of the forecast of socio-economic development of the Republic of Belarus for 2013

Index	Forecast	Fact
Index	Forecast	January	January March	January June	January-September	January December
Gross domestic product	108 , 5	103,3	103,8	101,4	101,1	101,1
Labor productivity by GDP	109 , 3	104,4	105,0	102,5	102,3	102,3
Export of goods and services	115 , 2	87,0	82,1	79,3	82,3	83,1
Balance foreign trade goods and services, % of GDP
Foreign direct investment on a net basis, billion US dollars
Reduction in GDP energy intensity, %			18,7	18,3	14,1	12,0
Real available cash income population	106,5	121,5	121,4	119,8	118,1	117,2
Commissioning of housing at the expense of all sources of financing, million square meters. m

Note

One of the main conditions for the transition to a market economy is a change in the role of the state as a regulator economic processes. In a planned economy, public administration played a decisive role in determining all economic proportions, while in a market economy the main regulator of economic proportions is the market. Therefore, during the transition period, on the one hand, there is a decrease in the degree of state intervention in the economy and state regulation of economic processes loses its comprehensive nature. On the other hand, the forms and methods of state regulation are changing, because the previous ones, which developed in the era of totalitarianism, are unsuitable for regulating the economy in a transition period. However, in a transition economy the role of state regulation is more significant than in the current one market economy. In the formed market system, the state only maintains the aura for economic development. In countries that have just embarked on the path of forming market systems, the market is in its infancy, its regulatory capabilities are not yet high enough. This necessitates more intensive government intervention in economic processes. The transition from a planned economy to a market economy does not occur automatically, spontaneously. The state is called upon to regulate the transition process, stimulate the creation of market infrastructure and conditions for its normal functioning. In addition, strengthening the regulatory role of the market certainly implies that the market itself should become the object of regulation by the state.

The role of the state in the economy is specified in its functions. Functions of the state - these are the main directions of its activity, through which the purpose of the state as a political organization that has achieved stability in society is realized. All functions of the state in transition economy associated with the formation and development of market relations. After all, the transition to a market from a highly centralized and administratively controlled economy must be purposeful, otherwise the revolutionary breakdown of the old mechanism will lead to economic destruction and stagnation, undermining statehood. Two groups of regulatory functions of the state can be distinguished. Firstly, a group of functions to create conditions for efficient operation of the market. Secondly, these are functions to supplement and adjust the actions of market regulators themselves.

The first group includes the function of providing a legal framework and creating general legal conditions for the economic activities of business entities, as well as the function of stimulating and protecting competition as the main driving force in the market environment.

The second group includes the functions of regulating distribution processes and redistributing income, adjusting the results of market processes, ensuring economic stability and stimulating economic growth.

These functions are inherent in both transition and developed market economies. If in a developed market economy the provision of a legal framework is implemented mainly by monitoring the application of current economic legislation and making partial adjustments to it, then in a transition economy it is necessary to re-create the entire economic base. This is far from a simple matter. After all, laws are developed, adopted and implemented by people who recently lived in conditions that today they are called upon to significantly change. In addition, much in the life of society is changing. When making laws, you need to be able to foresee the future, because legal basis management must be stable. Constant and significant changes in economic legislation have a destabilizing effect on the economy.

The state plays an important role in stimulating and protecting competition. Due to the underdevelopment of competition and extremely high level market monopolization, characteristic of the economy in transition, the implementation of this function takes on special importance. Firstly, we need laws that allow and encourage entrepreneurs to open new companies. Secondly, the process of privatization of existing enterprises must include the creation of competitive markets. Thirdly, domestic markets should be opened to foreign entrepreneurs. Fourth, there must be laws to encourage competition and prohibit monopolistic associations and agreements regarding prices.

The formation of a market system involves ensuring economic and political stability. On the one hand, this is necessary for the emerging domestic business, and on the other, to attract foreign capital.

The need for the state to implement the stabilization function is due to the crisis state of the transition economy, which is characterized by a decline in economic activity and a decline in production, a high level of inflation, severe financial position enterprises and a decrease in investment activity, unemployment and a drop in the standard of living of most of the population. In such conditions, a sharp “dumping” of economic problems onto market mechanisms of self-development based on the recipes of the monetarist doctrine will further worsen the market situation. In addition, it is not possible to use purely market forms, because the system market institutions, through which it would be possible to influence economic matter, is absent in a transitional economy or is in an embryonic state.

The state is called upon to play a significant role in the development of the market and its segments, institutions and infrastructure. The purposeful implementation by the state of the function of economic stabilization should ensure not only balance in the current conditions, but also a way out of the crisis. This can be achieved on the basis of the development and implementation of a scientifically based model of the formation and development of a market system, built taking into account the prevailing conditions, internal and external factors economic development.

The transition to a market economy is accompanied by a sharp increase in the differentiation of incomes of different segments of the population. Moreover, this process occurs against the background economic downturn and high rates of inflation, which exacerbate the problem of inequality, causing a decline in the living standards of the population. The state is forced to participate more intensively in regulating distribution processes occurring in a transition economy. The purpose of government intervention is to reduce differences in income between individual entities through their redistribution.

At the same time, the main role in reducing inequality belongs to transfer payments, since the possibilities for increasing taxation are limited. High taxes reduce conditioned activity. The possibilities of using transfer payments as a channel for income redistribution are also not unlimited. A significant increase in their size and duration of payments weakens incentives to work, which negatively affects both the economy and the social atmosphere in society.

Through certain financial and budgetary instruments (additional taxation or provision of subsidies), the state is able to prevent negative and stimulate positive, from the point of view of society, effects of private economic activity.

In those areas where the market is unable to fully satisfy social needs, in particular in " public goods", the state takes on this function. State intervention here is of an auxiliary nature and is intended to guarantee the necessary supply of goods that, for one reason or another, are not produced by the market or are produced insufficiently, for example, educational services.

The state performs regulatory functions through administrative or economic methods. Administrative, or direct, methods of regulation limit freedom of economic activity. They prevailed in command economy. Economic methods are adequate to the nature of the market. They directly influence market conditions and, through it, indirectly influence producers and consumers of goods and services.

The role of the state in regulating the transition economy. One of the main conditions for the transition to a market economy is a change in the role of the state as a regulator of economic processes. In a planned economy, public administration played a decisive role in determining all economic proportions, while in a market economy, their main regulator is the market. The peculiarity of a transition economy is that none of the coordination mechanisms economic activity is not dominant: centralized planning has already lost its comprehensive character, and the market self-adjustment mechanism has not yet fully worked.

Nevertheless, during the transition period, command-administrative methods of regulating the economy still remain. And not only due to inertia, but also because it is impossible to immediately abandon them. For a certain period, they coexist (as in a typical mixed economy) simultaneously with the methods characteristic of a market economy. However, as we move towards the market, on the one hand, the degree of state intervention in the economy decreases and state regulation of economic processes gradually narrows. On the other hand, the forms, methods and instruments of state regulation are changing, because the previous ones, which developed in the era of totalitarianism, are unsuitable for regulating the economy in the transition period.

However, in a transition economy, the role of government regulation is more significant than in an established market economy. In the formed market system, the state only supports the conditions for economic development. In countries that have just embarked on the path of forming market systems, the market is in its infancy, its regulatory capabilities are not yet high enough. This necessitates more intensive intervention in economic processes. That is why the role of the state in managing the economy in the transition period is strengthening in many respects.

Strengthening the role of the state in in this case is understood not in the sense of restoring, much less exceeding, its previous functions, but in the sense of mastering the current situation of collapse, overcoming it and managing the economy on different economic principles, especially since the transition from a planned economy to a market economy does not occur automatically, spontaneously. The state is called upon to regulate the transition process, stimulate the creation of market infrastructure and conditions for its normal functioning. In addition, strengthening the regulatory role of the market certainly implies that the market itself should become the object of regulation by the state.

Functions of state regulation of the economy. The role of the state in the economy is specified in its functions. The functions of the state are the main directions of its activity, through which the purpose of the state as a political organization that has achieved stability in society is realized. All functions of the state in a transition economy are associated with the formation and development of market relations. After all, the transition to a market from a highly centralized and administratively controlled economy must be purposeful, otherwise the revolutionary breakdown of the old mechanism will lead to economic destruction and stagnation, undermining statehood.

Two groups of regulatory functions of the state can be distinguished: to create conditions efficient work market and to supplement and adjust the actions of market regulators themselves.

These functions are inherent in both transitional and developed market economies, but if in a developed market economy the provision of a legal framework is implemented mainly by monitoring the application of current economic legislation and making partial adjustments to it, then in a transitional economy it is necessary to re-create the entire economic base. The legal framework of the transition economy, inherited from the command economy and focused on directive, centralized management of the economy, does not correspond to the new market model economy, it must largely be created anew.

Creating a new legal framework for business is far from a simple matter, because laws are developed, adopted and implemented by people who recently lived in conditions that today they are called upon to significantly change. In addition, much in the life of society is changing. When adopting laws, you need to be able to foresee the future, since the legal basis for business must be stable. Constant and significant changes in economic legislation have a destabilizing effect on the economy.

The state plays an important role in stimulating and protecting competition. Due to the underdevelopment of competition and the extremely high level of market monopolization characteristic of the economy in transition, the implementation of this function is of particular importance. After all, where monopoly power exists, the price mechanism cannot ensure the efficient use of resources. A monopoly disrupts market competition, making it untenable in some cases. Therefore, firstly, we need laws that would allow and encourage entrepreneurs to open new companies. Secondly, the process of privatization of existing enterprises must include the creation of competitive markets. Thirdly, domestic markets should be opened to foreign entrepreneurs. Fourth, there must be laws to encourage competition and prohibit monopolistic associations and agreements regarding prices.

The formation of a market system involves ensuring economic and political stability. This is necessary, on the one hand, for the emerging domestic business, and on the other, to attract foreign capital.

The need for the state to implement the stabilization function is due to the crisis state of the transition economy, which is characterized by a decrease in economic activity and a decline in production, a high level of inflation, the difficult financial situation of enterprises and a decrease in investment activity, unemployment and a decline in the standard of living of the majority of the population. In such conditions, a sharp “dumping” of economic problems onto market mechanisms of self-development based on the recipes of the monetarist doctrine will further worsen the market situation. In addition, it is impossible to use purely market forms, because the system of market institutions through which it would be possible to influence economic matter is absent in a transition economy or is in an embryonic state.

The state is called upon to play a significant role in the development of the market and its segments, institutions and infrastructure. It is the state that institutionally forms the structure of the market: the market for goods and services; financial market, which includes the interbank market, currency market, market valuable papers, market for medium- and long-term bank loans; labor market. The state is actively involved in the creation of market infrastructure: banks, exchanges (commodity, raw materials, stock), holdings, corporations, labor exchanges, etc.

The second group includes the functions of regulating distribution processes and income distribution, adjusting the results of market processes, ensuring economic stability and stimulating economic growth.

The state, apart from its functions, is purely transitional nature performs functions that regulate macroeconomic proportions and have a stabilizing effect on the economy. Economic methods of regulation are coming to the fore. Solving such macroeconomic problems as overcoming crisis phenomena in the economy, the decline in production, containing inflation, carrying out structural adjustment, and solving problems of social protection of citizens can only be realized through the flexible use of a set of fiscal and monetary policy instruments.

The purposeful implementation by the state of the function of economic stabilization should ensure not only balance in the current conditions, but also a way out of the crisis. This can be achieved on the basis of the development and implementation of a scientifically based model of the formation and development of a market system, built taking into account the current conditions, internal and external factors of economic development.

The transition to a market economy is accompanied by a sharp increase in the differentiation of incomes of different segments of the population. Moreover, this process occurs against the backdrop of an economic recession and high inflation rates, which exacerbate the problem of inequality, causing a decline in the living standards of the population. The state is forced to participate more intensively in regulating distribution processes occurring in a transition economy. The purpose of government intervention is to reduce differences in income between individual entities through their redistribution.

At the same time, the main role in reducing inequality belongs to transfer payments, since the possibilities of increasing taxation are limited. High taxes reduce conditional activity. The possibilities of using transfer payments as a channel for income redistribution are also not unlimited. A significant increase in their size and duration of payments weakens incentives to work, which negatively affects both the economy and the social atmosphere in society.

Through certain financial and budgetary instruments (additional taxation or provision of subsidies), the state has the opportunity to prevent negative and stimulate positive phenomena in the economy.

In those areas where the market is not able to fully satisfy public needs, in particular in “public goods,” the state takes on this function. State intervention here is of an auxiliary nature and is intended to guarantee the necessary supply of goods that, for one reason or another, are not produced by the market or are produced insufficiently, for example, educational services.

The state performs regulatory functions through administrative or economic methods. Administrative, or direct, methods of regulation limit freedom of economic activity. They prevailed in a command economy. Economic methods are adequate to the nature of the market. They directly influence market conditions and, through it, indirectly influence producers and consumers of goods and services.

Literature

Buzgalii A.V. Transitional economy. M., 1994.

Geiger Linwood T. Macroeconomic theory and transition economy: Textbook. M., 1996.

Course in transition economics: Textbook / Ed. L.I.Abalkina. M., 1997. Course in economic theory /Under the general title. ed. M.N. Chepurina, E.A. Kiseleva. Kirov, 1995.

Myasnikovich M.V. Formation of a market economy of the Republic of Belarus. Mn., 1995.

Fundamentals of the theory of transition economy (Introductory course): Proc. manual / Ed. E.A. Kiseleva, M.N. Chepurina. Kirov, 1996.

Market reform of the economy. Belarus. Mn., 1997. Issue. 2. Theory of transition economy. T.1. Microeconomics: Textbook. manual / Ed.

B. V. Gerasimenko. M., 1997.

Shimov V.N. The formation of the development of a socially oriented economy in the Republic of Belarus: current problems //Belarus, economics. magazine 1997. No. 1.

Economy in transition: Textbook. manual / Ed. V.V. Radaeva et al. M., 1995.

SECTION 2

MICROECONOMICS

One of the main conditions for the transition to a market economy is a change in the role of the state as a regulator of economic processes. In a planned economy, public administration played a decisive role in determining all economic proportions, while in a market economy the main regulator of economic proportions is the market. Therefore, during the transition period, on the one hand, there is a decrease in the degree of state intervention in the economy and state regulation of economic processes loses its comprehensive nature. On the other hand, the forms and methods of state regulation are changing, because the previous ones, which developed during the era of totalitarianism, are unsuitable for regulating the economy in the transition period.

However, in a transition economy, the role of government regulation is more significant than in an established market economy. In the formed market system, the state only maintains the aura for economic development. In countries that have just embarked on the path of forming market systems, the market is in its infancy, its regulatory capabilities are not yet high enough.

Two groups of regulatory functions of the state can be distinguished. Firstly, a group of functions to create conditions for efficient operation of the market. Secondly, these are functions to supplement and adjust the actions of market regulators themselves.

The transition to a market economy is accompanied by a sharp increase in the differentiation of incomes of different segments of the population.

In those areas where the market is unable to fully satisfy social needs, in particular in “public goods,” the state takes on this function. State intervention here is of an auxiliary nature and is intended to guarantee the necessary supply of goods that, for one reason or another, are not produced by the market or are produced insufficiently, for example, educational services.

The market system is a phenomenon in constant development. At a certain historical stage, the influence of the state began to be reflected in its evolution. Over the past two centuries, a wealth of experience has developed in the interaction of two economic institutions - the market and the state. In characterizing this socio-economic “tandem”, it is appropriate to note several of its typical features.

1. Both systems mutually determine each other. The market needs an infrastructure, a “playing field” with a set of certain rules, which only the state can create. It also provides a system for protecting players (from external and internal threats). The state needs the market to obtain the necessary resources (for the sake of self-existence and the implementation of the functions intended by society).

2. Institutions have a positive influence on each other. The counter-impact leads to the evolution and mutual adaptation of both systems. Over the centuries, the state has acquired a more liberal, tolerant (in relation to business) character. Businesses are also accustomed to the system of rules. Although tax concealment always persists, in general this phenomenon is becoming less active. Moreover, the interaction of the two institutions ensures the manifestation of additional results, which gives rise to the so-called synergistic effect. Government measures not only help the market neutralize a number of its shortcomings, but also provide an additional effect (expressed in the dynamism of the market economy). The magnitude of the resulting positive depends largely on the optimal combination of the forces of the two “agents”. It should be taken into account that a reasonable proportion (“market - state”) is determined by the historical conditions of development.

By way of illustration, we note that the assistance provided by the state to the market at the first stage industrial development- in the XVIII - early XIX V. (in the form of providing a system of legal norms, conditions of external and internal security, sustainable national currency, public system, i.e. collective goods) had a strong stimulating effect. This led to the fact that in the first half of the 20th century. economic dynamism has become excessive. By that time, the economic system had not yet developed a mechanism that, in the process of expansion, could automatically cause a “braking reflex” necessary to maintain the general economic balance between aggregate demand And aggregate supply. World economic crisis 1929-1933 should no longer be interpreted (from the standpoint of today’s understanding economic history) is definitely a glitch. It was the first signal demonstrating the power of the uncontrolled expansion of the market element.

3. Each of the two institutions has relative independence. This leads to the presence of different, sometimes opposing interests, caused by the fact that both institutions - both the market one (but lines of firms) and the state one - are systems built on a centralized hierarchy. Each of them (in addition to common goals) also has its own aspirations, encouraging independent expansion, its own “personal” income. These incentives become clear if we turn to the category of human egoism. As the classics noted political economy, the market (represented by a collection of firms) expresses the concentration of human will and desires. By analogy, the state can be viewed as a “large team of bureaucrats”, endowed (albeit with prescribed limitations) with the same weaknesses of human nature. As a result, clashes between private and public teams with opposing aspirations and interests are inevitable in a competitive field.

The most striking example of conflict of interests appears in the field of tax policy. This is based on the fact that the state (like any living system) strives for expansion. To implement it, resources are needed. Fundraising is provided through taxes. Hence the natural desire for growing tax exemptions (which can sometimes exceed purely functional scales justified by society). As a result, tax pressure increases, which opposes the interests of firms.

Another clear example confrontation of interests can be traced in the development of the phenomenon of bureaucratization. Legislative and executive activities carried out by the state objectively create the basis for a system of order in society, which is externally implemented through the adoption of laws, rules, regulations (and, accordingly, the creation of a circulation of documentation, which requires a lot of time). However, the excessive increase in “bureaucratic flows” and delays in decision-making also have a target motive that expresses the “personal interests” of the state. This interest is based on economic basis(the possibility of receiving “left” income) and a latent desire to demonstrate their power, administrative rights and functions. The latter gives the government official a blissful sense of self-worth.

A milder example of confrontation can be seen in the growing competition between the two institutions in the field of infrastructure development. In recent decades, material costs in this area have gradually begun to be implemented and private sector. This is due to the fact that many large corporations have acquired financial power sufficient to finance a number of infrastructure facilities (in the field of education, healthcare, transport, insurance, communications and information systems).

The interaction of the two institutions is also realized in a certain external environment, within which the influence of additional circumstances, globalization and world political processes is manifested (Figure 2.2.).

Figure 2.2. Interaction between market and state institutions

When analyzing the interaction of two institutions, it is usually customary to consider the influence that the state has on the market system. This is predetermined by the fact that market shortcomings necessitate the correction of a number of failures, which are difficult for the market itself to cope with. The regulatory process involves a series of aspects:

The state formulates impact goals and develops a strategy that should be optimal among a large group of alternative solutions;

The implementation of economic policy includes a set of subjects: state (Ministry of Finance, Ministry of Economy, Central Bank, local governments, legal authorities) and non-state;

The implementation of economic policy occurs through the use of certain mechanisms: financial (fiscal) and monetary policy,

The need for a wide range of state measures has led to the creation of experience of state action in several areas.

In a generalized form, the process of government regulation can be presented as follows (Figure 2.3.).

Figure 2.3. The impact of the state on the market system

Let us outline the general parameters of the state’s impact on the market system; let us turn to a brief description of those aspects that reflect the counter-impact of the market system on the state (Figure 2.4.).

Figure 2.4. The impact of the market system on the state and economic processes

The analysis of counter-influence encourages us to rely on certain similar structural components (goals, subjects, mechanisms, directions of implementation) that were used in the analysis of the impact of the state on the market economy.

When characterizing the counter-impact of the market system, it is necessary to take into account that this institution has a less clear structure compared to the institution of the state. It contains a dual nature, two principles coexist: spontaneity, on the one hand, and hierarchy, rigid organization on the other.

The multifaceted nature of the market encourages economists to look for ways of its influence on the economic system and the state in two relatively independent directions. The first way is implemented through the analysis of the role of the market environment as a spontaneous, spontaneous beginning. The second path is carried out along the lines of influence of firms and corporations, which presupposes clearly defined target (strategic) settings.

Questions for self-control:

1. What is a socio-economic system. Describe the types of socio-economic systems.

2. Describe the main models of socio-economic systems. What features can characterize Russian social - economic system?

3. What is National economy? Reveal the structure of the national economy.

4. What is a sector of the economy and OKVED?

5. What institutional entities can you name among the subjects of economic policy? What explains their diversity? Why in Russian practice a slightly different understanding of the subjects of regulation?

6. How does the choice of state economic policy goals depend on the political cycle in the country? How are popular and unpopular regulations distributed over the policy cycle?

7. What is typical for the regulation of macroeconomics by the state?

8. What is the target orientation of macroeconomic regulation by the market?

9. What are the specifics of the regulatory activities of firms? What is the content of direct and indirect methods of influencing economic policy states?

10. What are the similarities and differences between business and government in macroeconomic response?

11. What is the “market for corrupt services”? What is the scientific designation for the income appropriated by the bureaucrat?

12. If corruption has become one of the most pressing problems in modern world(as was discussed at the meeting of the G8 countries in 1999), can we say that it is an integral element shadow economy?

13. What is the meaning of the market for corruption services?

14. What is the content of the public services market in international level?

15. Why does the state seek to adapt elements of a market economy into its institution? How does it do this?

16. In recent decades, international market services for foreign investors. What product does the government offer to foreign clients? What benefits does it plan to receive as payment for its goods?

17. What is a public-private partnership? What goals are being achieved? What is the impact of business on economic processes in the country?

18. What changes occur in the division of labor between business and government when implementing partnerships? What is business focusing on, what is the government focusing on?

19. What does the term “alliance capitalism” mean?

20. Is the institution of lobbying a legal or illegal institution?

21. Which aspects of lobbying are justified for a market economy and which are not?

22. What is the relationship between the concepts of “lobbying” and “corruption”?

23. What aspects of lobbying are manifested in reality? economic life In your opinion, are they more definitely positive or negative?

24. According to analysts, so-called gaps in positions may arise in the actions of government authorities. What is it about? Why do these gaps hinder private business? What measures has business traditionally taken to overcome these problems?

25. Why are firms interested in the liberal mood of the population?

26. Why is the media such a desirable field for corporations? Can you name examples of who owns the largest economic newspapers and magazines in Russia?

27. What are the capabilities of the media in influencing the economic outlook of the population?

28. What classification of Russian media (newspapers, magazines, radio and TV stations) could you propose, dividing them into left-leaning (socially oriented) and right-leaning (liberally oriented)?

29. Under what party financing system (budgetary private) does business have a greater chance of influencing political parties(and through them - on the atmosphere in society)?

30. What two features of the Russian mentality are especially “convenient” for corporations for their influence on Russian customers?