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0THE EVOLUTION OF SCIENTIFIC VIEWS ABOUT THE ROLE OF THE STATE AND STATE REGULATION IN A MARKET ECONOMY
Suyunova Kamilla Bakhromovna
Associate Professor of the Department of "Marketing" Tulanboyev Akbarjon Akramjonovich
student of MR-222 group Samarkand Institute of Economics and Service
Annotation. The article contains scientific views on state intervention in the economy, substantiates the issues of determining the role of the state in the economy in the process of implementing economic reforms in the years of independence, as well as its role in regulating the economy by performing several functions. Serious attention is paid to the main principle of state intervention in the economy, namely the creation of freedoms for entrepreneurship and the balance of their responsibility to society. The create this balance, the work notes the need for a certain reduction in control, restrictive, prohibitive government measures in the context of large-scale economic reforms in Uzbekistan.
Keywords. Market economy, economic crisis, government intervention in the economy, economic reforms, monetary relations, supply, demand, entrepreneurship, profit, money-credit
Introduction. The history of the state intervention in the economy includes long period. During this period, its content changed and improved the peculiarities of the socio-economic development of the society. Depending on the stages of development of society, the state's attitude toward regulation has also changed.
There are several main theories about the role of the state in the economy: classical theory, Keynesianism and neo-Keynesianism, monetarism, institutionalism, Marxism, neoclassical theory, neoliberalism. In the early stages of the formation of commodity-money relations, the state's intervention in the economy is mainly through tax collection from the property of producers of goods and services. done. As commodity-money relations developed and production forces improved, the nature of the state's intervention in the economy changed accordingly and expanded more and more.
At the current stage of society's development, the role of the state in the economy and the determination of the level of its participation in economic processes are dominated by the scientific views of representatives of two main models: Keynesianism and monetarism..
During the transition to an economic system based on market relations in the years of independence in Uzbekistan, and especially in the framework of large-scale economic reforms that have been consistently implemented in the country in recent years, the problems of state intervention in the economy are gaining urgent importance. Most importantly, in the new economic situation in the country, comprehensive
reforms were an important step in getting rid of the complications of the planned economy, replacing the administrative command methods of economic management with modern methods typical of the free market economy. Reducing state intervention in the economy determines the essence of the state macroeconomic policy of the current period.
Literature analysis. Scientific views on the role of the state in the economy were initially reflected in the scientific views of mercantileists in the XVII-XVIII centuries. They put forward the idea that the state should regulate the economy for the development of trade and production in the country, and this idea dominated state policy until the end of the 18th century. Scientific literature has deeply analyzed the reasons for the crisis of the scientific views of the mercantileists on the role of the state in the economy. "If during the formation of market relations (XVII-XVIII centuries) the need for state regulation of trade and industry was recognized, then at the end of the XVIII century, state intervention was perceived as an obstacle to the development of market relations. This cannot but affect the development of economic thinking and the market economy led to the emergence of different approaches to regulation.
Thus, as commodity-money relations developed more and more, and interest in private property increased, the state's intervention in the economy began to be incompatible with the interests of the rapidly growing class of entrepreneurs in terms of number and quality. Entrepreneurs have become more inclined to liberalize the economy, to see the state's intervention in the economy as a force that hinders development and hinders it. These processes, that is, the growing conflict between the economic interests of the business class, whose position in the economy is getting stronger, and the state's economic regulation activities, created the ground for the emergence of a new economic doctrine.
The doctrine of the role of the state in the economy in the conditions of the market economy, created by the theorists of the classical economic school, dominated for almost 200 years as the main direction of the regulation of the economy in the conditions of market relations.
According to A.M. Babashkina, it is necessary to limit the level of state participation in the economy, the means of influencing small business: "The essence of state regulation of the economy is not to harm and support some enterprises and market participants with administrative means, but private initiatives and It is important to protect all forms of ownership. The task of the state is to "create the necessary conditions for the development of the activities of the state institutions that support the activities of the private sector", that is, to create the conditions that ensure the possibility of self-management of the market. Similar thoughts can be found in the scientific works of many fellow economists. For example, researchers R. A. and Sh. is required, its exceeding this standard may have a negative impact on market processes, and as a result, reduce production efficiency." In addition to supporting the idea of not allowing the state's intervention in the economy to exceed a certain limit, they emphasized that economic progress can be achieved by coordinating the methods of
state influence in the production process and self-management mechanisms of the market.
In our opinion, the opinion of the researchers about the influence of the state on the economy is worthy of attention. Indeed, excessive freedom of entrepreneurial activity can have a negative impact on the whole society (high prices, negative impact on the environment, poor quality of goods and services, etc.). Therefore, it is very important to achieve a balance: it is necessary to balance the freedom of the entrepreneur and his responsibility to society. In order to achieve such a balance, we think that the state's controlling, restrictive and prohibitive measures should be reduced to a certain extent. Because these are the ones that have a negative impact on the development of market participants.
The main part. In the textbook of economic theory, state regulation of the economy is interpreted as a system of indirect influence on the behavior of economic subjects based on the use of various instruments of stimulation or restriction of this or that activity. In some sources, we can find more concise definitions of this concept. For example, Russian economist Svetunkov M.G. found it necessary to define it as follows: "Regulation by the state is a system of legislative, executive and control measures aimed at achieving the goals envisaged by the state authorities". In this definition, the state's intervention in the economy is interpreted as a system of legislative, executive and control measures. in our view, it is appropriate to consider the state's intervention in the economy as an activity, therefore, it is more effective to describe the state's intervention in the economy as a quality aimed at the implementation of its (state's) legislative, executive and control measures.
In the process of theoretical research, we found it necessary to define this concept as follows, based on a critical study of the definitions given by other researchers and their generalization. Regulation of the economy by the state is an activity aimed at ensuring economic and social stability, strengthening the socioeconomic security of the state, sustainable economic growth, fair distribution of income, financial stability and stability of foreign economic activity..
The role of the state in regulating the economy is manifested through several functions:
- regulation of the market (ensurement of private property rights, provision of competitive conditions);
- filling in deficiencies (production of public goods, regulatory regulation of negative external effects);
- redistribution of resources (redistribution of income of individuals and firms through the tax system, redistribution of financial resources through the finance and tax systems).
The objective need for state regulation is explained by the fact that "the market mechanism cannot provide conditions for stable and stable development of the economy, creation of a positive socio-economic environment, protection of private property, restriction of competition and monopolistic activities" and it is related to:
- the market does not provide storage of non-renewable resources;
- the market is not capable of providing effective economic protection of the environment, only the state can force entrepreneurs to invest in ensuring environmentally friendly production;
- the market cannot regulate the targeted use of resources in the interests of the entire state (society);
- the market does not encourage the production of goods and services for collective use;
- the market does not guarantee the right of all citizens to work and earn;
- the market does not ensure the development of fundamental research in the field of science;
- the market is not focused on the production of socially necessary goods;
- the market cannot develop stably under the influence of inflationary processes.
During the implementation of economic reforms in Uzbekistan during the years
of independence, the issues of determining the role of the state in the economy took a central place in the formation of the economic system based on market relations. The reason for this is that the role of the state in the economy in terms of its essence (goals and tasks, functions, methods, implementation mechanisms, etc.) is fundamentally different from one another in the planned economic system and in the conditions of free market relations. Naturally, this situation created serious problems and difficulties in the formation of modern mechanisms of the state's role in the economy.
At the initial stages of economic reforms, the policy of gradually reducing the level of state intervention in the economy was chosen. In those times, the policy of reducing state intervention in the economy was carried out based on the privatization of state property and its removal from state ownership, development of small and private entrepreneurship, and the formation of a class of owners. At a certain stage of economic development, the task of reducing it was set: "We need to reduce the share and place of the state in our economy to a strategic and economic level." In our opinion, the active regulatory participation of the government can be considered as a necessary measure in the early stages of the transition to the market economy in our country, and at the current stage of economic development.
The importance of the Presidential Decree "On the strategy of actions for the further development of the Republic of Uzbekistan" in 2017-2021 in solving the problem of sharply reducing the level and share of the state's intervention in the economy in the country has become very important. In this important document, the task of liberalizing all spheres of life, including the economy, was defined.
In recent years, important measures have been taken in our country to drastically reduce the role of the state in the economy and to expand freedoms in business activities. In 2019, the President of Uzbekistan Sh.M. Mirziyoev's decree No. PF-5614 on "Additional measures to further develop the economy and increase the effectiveness of economic policy" can be highlighted. This decree envisages the implementation of important measures related to the elimination of excessive administrative obstacles in the conduct of business, improvement of the market and legal mechanisms of protection and guarantees of private property, reduction of the types of licensed
activities, increase of the role of local state bodies in the regulation of business activities. In our opinion, their implementation will be an important step in solving the problems of rapid development of entrepreneurship in our country. Because various administrative obstacles and excessive control work were one of the factors that greatly hindered the free development of entrepreneurship in the country.
The emergency situation in the economy in the context of COVID-19, which began in 2020, and the negative processes occurring in the standard of living of the population, in order to ensure social and economic stability, require the complete improvement of scientific views on the role of the state in regulating the economy, and the assignment of new tasks to it. Even in such an extremely difficult situation, Uzbekistan consistently continues to implement the strategic policy of reducing the state's participation in the economy.
The final part. In conclusion, the state's intervention in the economy is aimed first of all at eliminating the negative and anti-development consequences of the market economy, and on the other hand, it creates conditions and favorable opportunities for economic development and increasing the volume of the gross domestic product on the basis of supporting measures in the field of entrepreneurship.
In the conditions of the market economy, the state's intervention in the economy and its regulatory activities are more evident in the indirect management and support of entrepreneurship, especially small business and private entrepreneurship. Because the main role of the state in the economy is to protect economic freedom, while in entrepreneurship there is freedom of production, investment, and trade. Protecting these freedoms, regulating them at a certain level, supporting small business and private entrepreneurship when the need arises, creating favorable conditions for it to operate in conditions of intense competition are the main tasks performed by the state in this field. Today, the policy of sharply reducing the state's intervention in the economy is aimed at fulfilling these urgent tasks.
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