THEORETICAL APPROACHES TO THE STUDY OF STAGES OF MARKET ECONOMY DEVELOPMENT

Abstract

Market relations have been considered since the period of primitive society. Its economy cannot be called market one, however even in the times of natural economy there existed an exchange of consumer goods, which resulted in a special kind of activity – trade. It was for the convenience of the exchange that people invented money, and over time, there also a banking industry arose. Economic institutions, as dominant in human relations, are gradually changing political and social institutions, and with them the formational structure of society is also changed.
Classical school of economic science theoretically comprehended the principles of bourgeois society, which became a market economy. Under its conditions, labor and consumer goods are not just the wealth of society. Labor determines the value of these benefits, makes them a capital, that is, the value that brings added value (profit). The pursuit of profit and the entrepreneurial spirit of the owner of capital have determined the progressiveness of capitalism, as well as the essence of the capitalist mode of production.
Over time, the capitalist mode of production under conditions of economic freedom faced a number of hard-to-solve problems: first of all, with regard to the achievement of social equality and justice and the lack of necessary democracy not only in political and social life of society but also in management of production. This involves social transformation (socialization) of the market economy, as well as political and social institutions of society as a whole. So, modern economic institutions are becoming more dependent on them than they were before. Evidence of this is economic consequences of numerous socio-political events of the late 20th and early 21st centuries: collapse of the USSR, migration of population in many countries, separatism, terrorism, arms race, Brexit, and so on.
Thus, the study of the current stage of market economy today must be carried out in conjunction with the analysis of development of political and social institutions. It is also important to take into account the effectiveness of global economic management and assess the effectiveness and influence of leading international organizations (UN, IMF, ILO, World Bank, WTO, etc.). Only such systematic research can identify problems and outline the ways of civilizational transformations of developed capitalist and developing countries that have embarked on the path of development of market economies