ECONOMIC POLICY OF THE STATE UNDER CONDITIONS OF THE GLOBAL TRANSFORMATIONS

Abstract

The effective functioning of the national economy is determined by its ability to respond adequately and flexibly to the challenges that arise at every stage of its development. Under current conditions, the challenges caused by the following factors are especially acute: (i) dynamic advancement of technological development; (ii) strengthening competition in the world markets; (iii) the need to meet constantly growing social needs; (iv) search for new approaches to ensure the effective complementarity of the sustainable development components; (v) strengthening the requirements for balancing the national interests with global development; (vi) the need for a weighted balancing between the permanent emergence of new opportunities and threats in the context of the rapid spread of crisis phenomena.
Globalization transforms the forms and functions of the state. The lessons of global development of the last decades make it possible to identify two interrelated, but at the same time, different directions of transformation directly focusing on this issue. At the beginning of the XXI century the global economy has entered a new era of development, as the contradictions are rapidly intensifying between transnational corporations and the state sovereignty as a form of organization and functioning of society. The deep-seated consequence of globalization is the restriction of regulatory functions of the states. At the same time, the states can no longer adequately protect national economies from imbalances and asymmetric shocks. As a result of liberalization, national governments are losing the opportunity to effectively use a range of macroeconomic instruments.
The place and role of the state under conditions of modern transformations are conditioned primarily, by the fact that the state is considered as a subject ensuring the organization and functioning of all elements of the socio-economic system. Speaking as a representative of society as a whole, the state itself establishes rules of functioning and market interaction of economic agents within the limits of certain economic order and supervises their observance. The basis for implementing a well-balanced economic policy should be the scientific identification of strategic priorities of economic development and the definition of conceptual approaches and tools on this basis in order to harmonize the interests of society.