Научная статья на тему 'Role and significance of state regulation at the present stage of economic development'

Role and significance of state regulation at the present stage of economic development Текст научной статьи по специальности «Экономика и бизнес»

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PUBLIC SECTOR OF THE ECONOMY / MARKET FAILURE / STATE REGULATION / STATE ECONOMIC POLICY / STATE REGULATION MECHANISM / DIRECT AND INDIRECT METHODS

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Gersonskaya I.

The article considers state regulation of the economy as the main function of the public sector. The shortcomings of the market economy are cited. The role and importance of state regulation at the present stage of socio-economic development is substantiated. The directions of the state economic policy are summarized. Direct and indirect methods of state regulation are considered.

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Текст научной работы на тему «Role and significance of state regulation at the present stage of economic development»

ECONOMIC SCIENCES

ROLE AND SIGNIFICANCE OF STATE REGULATION AT THE PRESENT STAGE OF ECONOMIC

DEVELOPMENT

Gersonskaya I.

Candidate of Economics, Associate Professor, Associate Professor of the Economy and Finance Department, Russian Academy of national economy and public administration under the President of the Russian Federation, Lipetsk branch, Russia, Lipetsk

Abstract

The article considers state regulation of the economy as the main function of the public sector. The shortcomings of the market economy are cited. The role and importance of state regulation at the present stage of socioeconomic development is substantiated. The directions of the state economic policy are summarized. Direct and indirect methods of state regulation are considered.

Keywords: public sector of the economy, market failure, state regulation, state economic policy, state regulation mechanism, direct and indirect methods

The public sector of the economy is an integral part of the national economy, which is a mixed socioeconomic system. The state is no longer seen as a competitor to market relations, but on the contrary, a competent state economic policy plays a key role in ensuring economic growth [5, p.137]. The main functions of the public sector are the production of public goods and state regulation of the economy. Practice has proved the importance of the public sector in meeting public needs, ensuring national security, social protection of the population, providing them with the necessary public goods and providing public services.

In modern conditions of development, the role of the state sector of the economy in solving the main social problems is increasing. It serves as a regulator of the market economy, promotes innovation processes, and is designed to meet public needs and provide social protection for the population. At the same time, the public sector performs stimulating and controlling functions, as well as creates prerequisites for sustainable economic growth, both at the state and regional levels. The need for state regulation is caused by the imperfection of the market mechanism and the shortcomings of the market economy. Market failure is a situation in which the market cannot coordinate its processes through economic choice so that it can ensure the efficiency of distribution, as well as the full use of resources [2, p.6]. The shortcomings of the market economy include:

- socio-economic systems develop cyclically, which periodically leads to the emergence of crisis phenomena;

- market structures are not able to fully ensure the normal process of expanded reproduction;

- subjects of the market economy are characterized by instability, periodically there are «external effects» and «incomplete markets»;

- the emergence of monopolies in various sectors of the national economy leads to problems and the fight against monopoly power;

- the market economy is often characterized by the presence of factors of unfair competition and asymmetric information;

- business structures do not try to organize the production of public goods due to low profitability;

- the need for state support for basic scientific research and solutions to environmental problems;

- only the state provides social protection for the population, and measures are being developed to reduce inflation and unemployment;

- the need to meet public needs aimed at improving the quality of life and the level of public welfare.

Therefore, when the market economy itself is not able to cope with the crisis phenomena and negative trends that occur in the socio-economic system of the national economy, the public sector takes the necessary measures and develops a set of measures aimed at regulating the economy. It «... relies on the state's right to compel, which is manifested in the state's establishment of rules, requirements, incentives» [4, p.9]. In essence, state regulation is a set of governmental measures taken by the state to establish and eliminate the consequences of crisis phenomena in the national economy, as well as to stabilize the necessary socio-economic processes.

In recent years, have added new functions of the public sector was the expansion of the boundaries of state regulation aimed at strengthening the country's defense, information and environmental safety, issues of import substitution, especially for food products. Important issues in the system of state regulation are the development of human capital, the introduction of innovative processes and scientific and technical changes in the system of national economy. The presence of crisis phenomena in the economy, various socio-economic and social problems in the country, as well as the emergence of new state strategic tasks, become the main prerequisite for the transformation of the system of state regulation of the economy.

State regulation of the economy sets as its main goal the observance of the interests of the state, society as a whole, and socially unprotected segments of the population [8, p.116]. The purpose of the functioning of the system of state regulation of the economy is the development and formation by the state of an integrated set of legal, administrative, organizational, methodological, managerial and financial mechanisms that

would allow the national economy to function normally, eliminating or minimizing the negative consequences of existing market regulators in a timely manner. Therefore, the main tasks of state regulation are:

- development of the legal framework for conducting business by economic entities;

- distribution and redistribution of national income through the system of taxation, subsidies and social transfers;

- implementation of antitrust policy, restriction of monopoly power and maintenance of healthy competition in the market;

- financing of fundamental and applied research and development, support and implementation of innovative technologies;

- state control over inflationary processes, as well as price levels and organized business communities;

- reducing unemployment and maintaining employment, improving the quality of life and improving the demographic situation;

- improving the quality and availability of public goods, as well as regulating the process of expanded reproduction.

In order to determine the priority directions of state regulation, state authorities form a socio-economic policy, which is the main reference point for progressive social development. State policy is developed for the short-term or long-term perspective of development is a set of particularly important management decisions in the social and economic sphere and is aimed at «... achieving stabilization at the macroeconomic level...» [7, p.6]. It is the basis for the active implementation of state regulation mechanisms to achieve sustainable socio-oriented economic growth in the country. The state economic policy of Russia is the main reference point for industrial and social development. It is a set of particularly important economic decisions developed at the state level and aimed at achieving sustainable economic growth in the short or long term. The goals of state policy are determined based on the real socio-economic situation of the country, and its implementation involves the achievement of the most significant public goals set at the macroeconomic level.

This policy is characterized by different directions and types of government activities, and also has a different degree of influence on the dynamics of macroeconomic indicators of the Russian Federation. The main elements that form the state economic policy are: fiscal and monetary policy, information security and defense policy, foreign economic policy, innovation, technology and investment and industrial policy, social and environmental policy, employment policy, health and education, demographic policy, and a number of others. All elements of Russia's state economic policy are interconnected and complement each other. Without such a policy, it is simply impossible to ensure sustainable economic growth in the state.

All economic entities and society participate in the implementation of state policy. But first of all, its implementation takes place through the public sector of the economy, which includes authorities and management at all levels of the Russian Federation, state cor-

porations and enterprises, as well as budgetary institutions and socio-public institutions. Social, structural, innovative, and anti-crisis activities of government bodies are currently determining in the state economic policy [1, p. 166]. The formation of state policy and, consequently, the regulation of the national economy takes place in the following areas:

- the sphere of taxation of economic entities of the country, which constitutes the state fiscal policy;

- formation of the state budget, through which the accumulation of state revenues and their distribution occurs;

- monetary area characterized by state regulation of monetary circulation, credit relations and Finance;

- social sphere, which is regulated by providing state guarantees and protection of the population;

- foreign trade activity, where the state regulates business relations in the course of export-import operations.

The directions of state regulation are determined based on the real socio-economic situation of the country. At the same time, this regulation is focused on three interrelated aspects of the market economy, namely, the distribution of economic resources, the process of expanded reproduction and the financial sphere. The processes of state regulation of the economy can be strengthened during the period of crisis phenomena in order to eliminate the consequences of the economic crisis and relieve social tension. Such regulation, undoubtedly, often plays a constructive role [6, p. 50].

The main mechanisms of state regulation of the economy are fiscal and monetary policy, as well as foreign economic policy. The state's implementation of fiscal policy involves taking the necessary measures to fulfill the fiscal function and is aimed at stabilizing socio-economic development, eliminating negative trends in society and preventing crisis situations. Monetary policy is based on strict state control over the amount of money in the country. The state's foreign economic policy contributes to the effective conduct of foreign trade activities.

Government regulation methods can be classified into two main groups, namely, direct and indirect impact:

- methods of direct influence are based on the creation of a legal framework and its development, namely, the introduction of prohibitions and restrictions, the establishment of state quality standards, etc.;

- indirect impact methods are based on monetary and fiscal regulation, antitrust policy, etc.

Methods of direct influence are characterized by a strong influence of the state on economic entities, that is, «...the introduction of certain laws and restrictions by the state...» [3, 106]. These include business registration, licensing of certain types of activities, defining government contracts, setting standards, quotas, restrictions and limits, applying administrative enforcement measures, state control, etc. Methods of direct influence have an impact on the activities of the public sector of the economy, and, first of all, on the use of state property and budget funds.

Methods of indirect influence stimulate the entrepreneur in the process of making managerial decisions. These include monetary and fiscal regulation, the state's antitrust policy, macroeconomic forecasting, the development of state target programs, and the impact on the economy through state structures. At the state level, interest rates are set and conditions for lending to economic entities are developed, tax incentives are provided, price and tariff levels are monitored, monopoly power is restricted, and so on.

The objects of state regulation are defined as certain situations, industries and regions where problems may arise that are not resolved automatically [9, p. 212]. These include the structure of branches of the national economy, cash turnover in the country, inflationary processes, the level of employment, the environmental situation, fluctuations in economic cycles, social security of citizens, foreign economic relations, etc.

Thus, state regulation of the economy has the status of the most important element of the economic mechanism in the activities of the public sector as a means of achieving its goals. Its necessity is justified by the shortcomings of the market economy, the presence of large players in the market and the desire to strengthen monopoly power, as well as the need to produce public goods and the presence of a number of negative phenomena in the process of social development. At the same time, state regulation should not put the interests of the public sector of the economy above the private interests of households, as well as the business sector. State regulation should be aimed at achieving social stability in society and the economic well-being of the entire country.

References

1. Vorobyova I.P. Limits and problems of state regulation of the economy in the conditions of economic instability // Bulletin of science of Siberia. 2015. No. 2(17). Pp. 164-170.

2. Gadzhiev D.V., Gutieva Z.Y. State regulation of «market failures»: problems and ways to solve them // ECONOMICS. 2017. No. 2 (23). Pp. 5-9.

3. Kameneva S.S. «Fiasco» of the market and the need for state intervention in the market economy // Economics and business: theory and practice. 2018. No 11-1. Pp. 105-109.

4. Klimenko A.V., Minchenko O.S. State regulation of the economy: questions of theory and best practice // Questions of state and municipal management. 2016. No. 3. Pp. 7-30.

5. Mochalnikov V.N., Anokhina M.E. Model of state regulation of the socio-economic system // Bulletin of The Institute of Economics of the Russian Academy of Sciences. 2014. No. 3. Pp. 134-151.

6. Radygin A.D., Simachev Yu., Entov R. State company: the sphere of manifestation of «state failures» or «market failures»? // Economic issue. 2015. No. 1. Pp. 45-79.

7. Romashchenko T.D., Gersonskaya I.V. Keynesian concept of state regulation of the economy: limits of application in Russian realities // Bulletin of the Voronezh state University. Series: Economics and management. 2019. No. 2. Pp. 5-10.

8. Shmatkova E.M. Foreign experience of state regulation of the economy // Socio-economic phenomena and processes. 2013. No 9(055). Pp. 116-121.

9. Agumava D.R. State regulation of market economy // Economics and business: theory and practice. 2019. No 5-2. Pp. 212-214.

ЗАРУБ1ЖНИЙ ДОСВ1Д ОПТИМВАЦП СТРАТЕГ1ЧНОГО УПРАВЛ1ННЯ БУД1ВЕЛЬНО1

ГАЛУЗ1

Кононова О.€.

ДВНЗ «Приднтровська державна академiя будiвництва та архтектури», доцент кафедри фтан-

cie, облiку та маркетингу, кандидат економiчних наук, доцент

FOREIGN EXPERIENCE OF STRATEGIC MANAGEMENT OPTIMIZATION OF THE

CONSTRUCTION INDUSTRY

Kononova O.

Prydniprovska State Academy of Civil Engineering and Architecture, Associate Professor, Department of Finance, Accounting and Marketing, Faculty of Economics, PhD. of Economic Science

Анотащя

В статт розглянуто основш напрямки стратепчного управлшня будiвельноi галузi краш £С, США. В робот ввдзначаеться пвдхщ до використання стратеги коопетицп, яка широко застосовуеться в дгяльносп суб'екпв будiвельноi галузi Польщг Abstract

The article deals with the main directions of strategic management of the construction industry of EU countries and USA. The paper describes an approach to the use of co-op strategy, which is widely used in the activities of subjects of the construction industry in Poland.

Ключов1 слова: стратепя, управлшня, будiвельна галузь, стратепя коопетицп, стратепчна група. Keywords: strategy, management, construction industry, co-op strategy, strategic group.

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