State regulation of economy as a factor of its stability and social orientation

Размещено на http://www.allbest.ru/

УДК 339.9

STATE REGULATION OF ECONOMY AS A FACTOR OF ITS STABILITY AND SOCIAL ORIENTATION

D.V. STEPANOVA

Relevance of the problem. The mediation process of economical life by state is the process of state regulation of economy. Gradually it becomes the economical development driving force. The necessity of market economy state regulation is a result of objective economic functions proper of the state. In terms of different forms of property the role of state regulation includes, on the one hand, securing of legal mechanism of their realization and, on the other hand, providing a directed impact on market characteristics responsible for economical system functioning as a whole.

Literature research. In the economical science there are two opposite approaches to the state's participation in regulation of processes - a classical theory and a Keynesian one. From the classical point of view the market mechanism automatically provides equality of demand and offer, thus making impossible durable distortions in economy such as production decrease, inflation and unemployment.

Unlike the traditional classical theory, an English economist John Maynard Keynes argued the objective necessity and practical importance of market economy state regulation. His theory is the analysis of connection and influence among different aggregated economical categories and figures, the research on how discrepancies between them affect the state of economy and also which way and to which extend methods of state interference may bring to accordance between these categories and figures in order to provide a constant economical development [1].

The main purpose. The aim of the present article is to research the state of social and economical development of Ukraine and the role of state regulation in its improvement.

Research results presentment. The economy of Ukraine as an object of state regulation is a complex of productive relations regulated by the current legislation. The operation of productive relations is determined by the economical mechanism. The economical mechanism may be defined as a complex of methods and means of commercial and administrative activity. It includes ownership relations, means of state regulation (tax policy, antimonopoly policy and prices control) and methods of commerce. The economical mechanism is highly flexible and corresponds to the form of state constitutional structure. The subjects of the economical mechanism operation are bodies of state administration. The objects of the economical mechanism operation are certain structural bodies defined by the following features: area of public production, components and region.

Being a complicated object of state regulation, modern economy requires a deeper investigation. An implementation of a two-pronged approach to its research - the organizational and structural approach and the functional one - allows to investigate economy as a complex.

Using of the organizational and structural approach and structuring of economy by territory makes it possible to analyze existing theories of regional administration.

At first the necessity of complex investigation of regional development resulted in the appearing of the term 'regional production complex'. Opinions on its components varied. On one side, regional production complex was treated as a separate regional formation having its independent development without any regulation from the side of ministries and departments. On the other side, regional production complex was considered to be the highest organizational form of commerce and production force and also the main structure forming element of national economy [2].

Besides the regional production complex the following notions were also introduced: 'regional commerce complex', 'productive region complex' and 'programme objective regional production complex'. These notions were introduced depending on the way of solving the problem of combining production and social interests. If the priority was given to the production and not the social development 'regional commerce complex' was meant. If the nonproduction sphere was excluded - 'productive region complex' was applied. The term 'programme objective regional production complex' was introduced to separate complexes from economical districts and regions.

In democratic countries there existed an understanding of the regional production complex as an approach. The basis to such vision was a systematic approach to the problem of complex formation. During the following researches of the problem of regional formations development scientists came to the conclusion of the necessity to introduce the terms of 'elementary regional formation' and 'elementary production system' [3].

Summarizing of the scientific researches makes it possible to come to the conclusion that regardless of various approaches existing the subject of the researches is the only one - single objects of national economy.

As a general notion there was introduced the one of 'regional social economical system'. It was understood as a various range form of space organization of social economical life of society in the shape of a productive or agricultural company, a city, a productive centre or a region [3]. In the definition the emphasis is put on the organizational aspect and the sense of the notion itself ('regional social economical system') is not disclosed.

Subsequent application of the two-pronged approach to investigating the object of administration - the economy - makes it possible to single out certain features of structuring. If produce the structuring in terms of economy management it is possible to single out a state and a market sector of economy. Depending on social economical and national historical conditions of development of each country the state regulates its economy providing an effective cooperation among its sectors. According to areas of public production there are the following structural units: branches, sub-branches, certain productions. According to the regional feature they are economical zones, economical districts, economical regions, local economical formations in the form of production centres, units and certain enterprises of productive and nonproductive areas of activity. The lowest stage of economy is represented by a single economic entity of a certain form of ownership.

The structuring of national economy may also be conducted according to its components. In this case the components are territory, natural conditions and resources, population, production, agriculture, services and infrastructure.

The process of structuring and the choice of characteristics being the basis of economy structuring depend on the aim and corresponding ways of achieving it. The ways of achieving the aim of structuring are chosen by the bodies of state administration. national economy territorial industrial

These ways depend on the object which is influenced by the bodies of state administration. If the object of influence is the economy structured according to its components and area of public production, the bodies of state administration develop a programme of rebuilding the economy. If the object of state administration is economy structured according to the regional principle, a state programme of regional economical policy is developed.

In the state regulation of economy there is a problem of optimal combination of branch and regional interests. But both problems constitute a part of a single unit - the process of economy regulation, thus it is impossible to solve them separately, argues P.Romanov. It is essential to set a task of state regulation optimization by combining regional and branch interests. By changing structural proportions, using the resource potential of regions rationally and stimulating their effective development the state provides optimal and stable functioning of economy and its social orientation [3].

In terms of social orientation of market transformations (articles 1, 13 of Constitution of Ukraine) the criteria of optimality is the social value - life, health, honour, dignity, untouchabil- ity and security of a person (article 3 of Constitution of Ukraine).

The administrative and legal aspect of the problem of state regulation of economy consists in providing an optimal combination of structural changes policy and regional economical policy by entities of state administration which are represented by the bodies of governmental authorities - legislative and executive ones - and by the bodies of local authorities. Bodies of judicial authorities act as arbiters in solving problems of normative support for cooperation among other bodies.

Taking into consideration the scale of economical problems, the effective functioning of regional economy is a priority because the industrial branch changes are based on regional features. However the separation of branch and regional problems is not acceptable. They have to be solved as a complex.

The current state of economy of Ukraine is characterized by considerable structural disproportions; it doesn't correspond to the needs of its people and doesn't provide them with normal conditions of life. In the budget for the year 2013 there was planned the increase of GDP by 3,4%, the inflation rate of 4,8% (from December till December) and the rise of exporting goods and services by 6,9%. However the situation on the world markets and political instability prevented from achieving the planned figures. Prices for metal goods - main exporting branch - decreased. On the whole export of goods and services (according to the data of balance of foreign trade) for the period from January till September, 2013 has fallen by 8,6% [4 ].

All the factor above mentioned caused a decrease in the volume of production by 5,2 % during 10 months. GDP of Ukraine has lowered by 1,3% comparing to the level of the corresponding period last year. In such terms it was impossible to implement the income plan - income from value added tax which provides the major part of budget didn't meet the expectations. VAT from goods produced in Ukraine decreased by 9,2 billion gryvnias and by 9,5 billion gryvnias from the imported ones.

The volume of direct foreign investments from the beginning of 2013 has risen only by 2,3%. Within this period foreign investors have invested 3,722 billion dollars, a third of which were provided by Cyprus, 9,7% by the Netherlands, 4,8% by the UK and 4,3% by the British Virgin Islands. Such statistics brings to the conclusion that more than a half of foreign investments is a capital return from offshore zones. The real investments didn't take place.

Not only branch and financial structure of economy of Ukraine is disproportional. There is a considerable difference among regions in the levels of industrial and agricultural production calculated per person. Specialists state that the difference is more than twice [4].

The disproportions of the secondary wave have gained destructive dimensions. They were caused by the reduction of production and investing activity, inflation and breaking of economical connections. There is an urgent necessity in forming the market structures.

Conclusions and prospects for research. As it is clear judging by the research of destructive changes in economy and factors which influence them, the main of them are the state's losing of its administrative positions and lack of control over the processes taking place. The world experience shows the necessity of strategic and regulative role of state in the formation of a socially oriented market economy. Recovering from crisis and renovation of national economy will be achieved by strengthening of the regulative and administrative role of state in the process of rebuilding the economy. The further research needs to look at determining limits between state interference into the economy in order to correct the disproportions detected.

List of references

1. Social and economical concepts of the countries of the world on the verge of the millennium. Power, economy, social sphere: International encyclopedia / international university «Sodruzhestvo»; under the scientific edition of M. A. Sevruk; prepared by M. A. Sevruk and others. -- Moscow, 2o0o. -- 191 p.

2. A. T. Hruschov. Geography of the USSR production / A. T. Hruschov. -- Moscow: «Mysl». -- 1979. -- 436 p.

3. V. V. Tsyganov. Intellectual enterprise: mechanisms of gaining capital and power. : Theory and practice of of managing the evolution of an organization / V. V. Tsyganov, V. A. Borodin, G. B. Shyshkin. -- Moscow : University Book, 2004. -- 767 p.

Annotation

The article describes the role of state regulation of the economy and theoretical approaches to these processes. The analysis of the structuring of the economy in the component lines. We consider a two-pronged approach in managing the economy and some signs of structuring the economy. The problem of territorial - industrial complexes in the state. Described disparities in defining the limits of state intervention in the economy.

Keywords: government, territorial-production complex, a two-pronged approach, socio - economic development.

У статті описується роль державного регулювання економікою та теоретичні підходи щодо цих процесів. Надається аналіз структурування народного господарства за компонентною ознакою. Розглядається двухаспектний підхід в управлінні економікою та певні ознаки структурування народного господарства та способи досягнення мети структурування. Аналізується проблема територіально- виробничих комплексів у державі.

Ключові слова: державне управління, територіально-виробничий комплекс, двухаспектний підхід, соціально-економічний розвиток.

Ключевые слова: государственное управление, территориально-производственный комплекс, двух- аспектний подход, социально-экономическое развитие.