State regulation of the market economy. Market regulation of the economy What are the features of market regulation of the economy

• Introduction
• 1. The role of the state in the country's economy. State functions
• 1.1 State as an economic entity
• 1.2 The functions of the state and the main instruments of state regulation
• 2. State intervention in the economy and the problem of limiting such intervention
• 2.1 Ways of state intervention in the economy
• 2.2 Limiting state intervention in the country's economy
• 3. Features of state regulation of the economy in Russia
• Conclusion
• Bibliography

Introduction

In modern conditions, the market economy has taken a leading position in almost all countries of the world and, with its potential, has proved its superiority in relation to other types of economic management at the national and global levels. But, as, for example, in a planned economy, so in a market economy there are flaws. The use of the principles of the "invisible hand" of A. Smith and "Pareto efficiency" does not always have such an effective effect on the development of the state's economy, as if the latter did not follow the laissez-faire principle, that is, it regulated the economy in a certain way. American scientists E. Atkinson and J. Stiglitz, in turn, note that "there is little reason to believe that the market could function in a situation that implies a situation of a non-state economy." Hence the question arose about the possible determination of the degree of influence of the state on the economy.

The purpose of this work is to study the issue of state regulation of a market economy.

To achieve this goal, we identify a number of tasks.

1. to study the role of the state in the country's economy, the functions of the state.

2. consider state regulation of the market economy.

3. consider state intervention in the economy and the problems of limiting such intervention.

Information for the study is educational and methodical literature, scientific economic publications.

1. The role of the state in the country's economy. State functions

1.1 State as an economic entity

In its most general form, the market is defined as a spontaneous order. Considering that it is impossible to cover all the facets of this most important economic category in a brief definition, we can say that the market is a way of interaction between producers and consumers, based on decentralization, an impersonal mechanism of price signals.

Under the conditions of the studied form of economy, market relations cover the entire system and all subjects of economic relations. The market includes both entrepreneurs and workers who sell their labor, and end consumers, and owners of loan capital, owners of securities, etc. The main subjects of the market economy are usually divided into 3 groups:

Households;

Business (entrepreneurship);

State (government).

The household is the main structural unit functioning in the consumer sector of the economy. It may consist of one or more people. Within the household, final products, material production and services are consumed. Households are the owners and suppliers of factors of production in a market economy. The money received from the sale of labor, capital, and other services is spent to meet personal needs (and not to increase profits).

A business is a business enterprise that operates for the purpose of generating income (profit). It presupposes an investment in the business of own or borrowed capital, the income from which is spent not simply on personal consumption, but for the expansion of productive activity. A business is a supplier of goods and services in a market economy.

The government is provided mainly by various budgetary organizations, which do not aim to make a profit, but implement the functions of state regulation of the economy.

The same person (an adult member of society) can be part of a household, a business, or a government agency. For example, employed by a government official, you are a representative of a government organization; by owning the securities of a corporation, you represent a business; spending your income for personal consumption, you are a member of the household. Accordingly, the modern market economy is a whole system of markets: goods and services, labor, loan capital, securities, foreign exchange markets, etc.

The most important conditions for the emergence of the market are the social division of labor and specialization. The first of these categories means that in any more or less numerous community of people, none of the participants in the economy can live on the basis of complete self-sufficiency with all production resources, all economic benefits. Different groups of producers are engaged in separate types of economic activity. This means specialization in the production of certain goods and services. Specialization, in turn, is determined by the principle of comparative advantage, i.e. the ability to produce at a relatively lower opportunity cost. This category is one of the central concepts in economic theory. Producers have different skills, abilities, are provided with limited resources in different ways. The principle of comparative advantage explains both the processes of specialization within an individual enterprise and internationally.

The condition for the emergence of the market is the so-called economic isolation of the subjects of the market economy. After all, the exchange of goods, created on the basis of the social division of labor and specialization, is completely independent, autonomous in making economic decisions, producers. Economic isolation means that only the manufacturer decides what to produce, how to produce, to whom and where to sell the created products. An adequate legal regime for the state of economic isolation is the regime of private property.

For the emergence of a market for any product, the value of transaction costs is also important. Transaction costs determine the conditions and boundaries of market activity.

And, finally, an important condition for the emergence of the market is the free exchange of resources. After all, the social division of labor, specialization and exchange can also exist in hierarchical systems, where the Center determines who and what to produce, to whom and with whom to exchange resources and manufactured products. Only free exchange, which exists in spontaneous (spontaneous) corridors, allows the formation of free prices, which will suggest to economic agents the most effective directions of their activity.

No one denies the need for the state to perform certain functions in the economic sphere. However, on the issues in what proportions state and market regulation should be combined, what are the boundaries and directions of state intervention, there is a fairly wide range of theoretical views and practical approaches corresponding to them - from complete state monopoly in the management of the national economy to extreme economic liberalism, when it is argued that the economy can be effective only in conditions of unrestricted private entrepreneurship. There are a number of intermediate options between these extreme options, for example, the Chinese version of a combination of market and state regulators, the so-called socially oriented market economy of Germany and Austria, the Swedish model of a mixed economy, etc.

A kind of economy in which there was an extremely high degree of state monopoly was built in our country by a centrally controlled economy. It was based on comprehensive directive planning, i.e. centralized solution of questions about how much and what to produce, what resources should be used, how much labor and capital should be spent, what wages should be, etc. The task of drawing up a balanced plan, linked in all respects, is practically unsolvable due to its colossal dimension and static nature.

But even in the unlikely event of a balanced plan, the system, where all the actions of economic entities are signed for five years in advance, turns out to be inactive, poorly adapting to changes. One of the reasons is that private initiative was excluded from the sphere of economy. All economic agents acted on the basis of the planned targets, orders and instructions.

In addition, any viable system presupposes the presence of forward and backward links. Such links underlie the market mechanism of self-regulation. The balance between supply and demand is established in the presence of direct (from production to the market) and reverse (from the market to production) links operating through a viable, flexible price system.

In the planned economy, there were, although deformed, direct links, but the reverse ones practically did not work. The absence of feedback at fixed and distorted prices made the system insensitive to the dynamics of consumer demand. One of the consequences of this is overproduction in some industries and shortages in others. Scarcity was the hallmark of a planned economy.

In any economic system, including a market economy, the state acts in a certain sense as an economic agent that has the right and the possibility of coercion, for example, in the field of tax policy, state legislation. Coercion, if used extensively by the state, nullifies all the advantages of free enterprise based on competition and market pricing.

The attitude to state intervention in the market economy was different at different stages of its formation and development. During the formation of market relations in the XVII-XVIII centuries. the dominant economic doctrine - mercantilism - was based on the recognition of the absolute need for state regulation, for the development of trade and industry in the country.

With the development of market relations, the class of entrepreneurs, which gained strength, began to consider state intervention and the restrictions associated with these as an obstacle to their activities. It is not surprising that those who came at the end of the 18th century. to replace mercantilism, the ideas of economic liberalism, which negatively assessed state intervention, immediately found a huge number of ardent admirers.

Regardless of the prevailing economic doctrines, no one has ever relieved national governments of responsibility for the economic situation of the country. Everyone agrees that the invisible hand of the market must be complemented by the visible hand of the state. An important stage in the theoretical understanding of the role of the state in a market economy was associated with the name of the outstanding English economist J. M. Keynes. The ideas put forward during the "Keynesian revolution" revolutionized the classical views on the market economy. They proved the impossibility of self-healing of the economic downturn, the need for state policy as a means capable of establishing aggregate demand and aggregate supply, and leading the economy out of crisis.

The classics proceeded from the thesis about the need for the state to perform traditional functions, realizing that there are areas that are beyond the reach of the competitive market mechanism. This primarily concerns the so-called public goods, i.e. goods and services that are consumed collectively. It is obvious that the state should take care of their production and organize joint payments to citizens for these products.

Among the problems that the market competitive mechanism does not solve are externalities, or side effects. When the production of any product leads to environmental pollution, then, as a rule, additional costs are required. At the same time, this may not affect the price of the product, which entailed such side effects. Externalities, or side effects, can be controlled through direct state control.

Economic practice revealed in the XIX century. and confirmed in the 20th century that there are situations, the so-called fiasco of the market, when market coordination does not ensure the efficient use of resources.

It should be noted that he "came down" to the problems of justice and equality. Unrestricted market distribution, fair from the point of view of the laws of the market, leads to a sharp differentiation of income, social vulnerability. When market distribution does not suit the majority of the population, it ends in extremely serious social conflicts. It is up to the state to adjust the distribution provided by the market. State intervention requires another market problem - unemployment. Conditions are necessary to reduce it or mitigate its consequences, if it is nevertheless inevitable

1.2 The functions of the state and the main instruments of state regulation

Regardless of the prevailing economic doctrines, no one has ever relieved national governments of responsibility for the economic situation in the country. In other words, everyone essentially agrees on the understanding that the "invisible hand" of the market must be supplemented by the "visible hand" of the state. The state is called upon to correct those "imperfections" that are inherent in the market mechanism. Accordingly, it assumes responsibility for creating relatively equal conditions for the mutual rivalry of entrepreneurial firms, for effective competition, for limiting monopolized production. The state also needs to direct economic resources to meet the collective needs of people, to create the production of public goods and services. The participation of the state in economic life is also dictated by the fact that the market does not provide a socially just distribution of income. The state should take care of the disabled, children, the elderly, the poor. As a rule, the market is not aimed at developments in the field of fundamental sciences, because this is associated with a high degree of risk and uncertainty, with huge costs. And in this area the intervention of the state is required. Since the market does not guarantee the right to work, the state has to regulate the labor market and take measures to reduce unemployment. Foreign policy, the regulation of the balance of payments, exchange rates also fall on the shoulders of the state.

In general, the state implements the political and socio-economic principles of this community of citizens. It actively participates in the formation of macroeconomic market processes.

The role of the state in a market economy is manifested through its functions, the most important of which are the following:

Creation of a legal basis for making economic decisions. The state develops and adopts laws that define property rights, regulate entrepreneurial activities, aimed at the production of high-quality products and medicines, etc.;

Economic stabilization. The government, using fiscal and monetary policy, seeks to overcome the crisis, the decline in production, reduce unemployment, smooth out inflationary processes;

Socially-oriented distribution of resources. The state organizes the production of goods and services that the private sector does not. It creates conditions for the development of agriculture, communications, transport, urban improvement, etc., determines spending on defense, space, foreign policy, forms programs for the development of education and healthcare;

Ensuring social protection and social guarantee. The state guarantees a minimum wage, old-age pensions, disability pensions, unemployment benefits, various types of assistance to the poor, indexes fixed incomes due to rising prices, etc.

The state influences the market mechanism through:

1) your expenses,

2) taxation,

3) regulation,

4) state entrepreneurship.

Government spending is considered one of the important instruments of macroeconomic policy. They affect the distribution of both income and resources. Large items are spending on defense, education, social security.

An essential element of expenses is transfer payments. This, as already mentioned, includes various types of benefits (for unemployment, for disability, for a child, for income support), old-age pensions, and war veterans.

Another important instrument of state policy is taxation. Taxes play a significant role in the redistribution of income.

State regulation contributes to the formation of economic relations and proportions, the coordination of economic processes and the linking of private and public interests. State regulation is carried out in various forms - legislative, tax, credit, subvention. The legislative form means that special legislative acts are adopted that provide relatively equal opportunities for competition, expand the boundaries of competition, and prevent the development of monopolized production and the setting of exorbitantly high prices.

Antimonopoly (antitrust) legislation is aimed at counteracting the monopolization of the economy, at stimulating competition. In particular, in the Russian Federation in March 1991, the Supreme Soviet of the RSFSR adopted the law "On Competition and Restriction of Monopoly Activities in Commodity Markets". This law provides for measures against the formation of large companies such as trusts and concerns, as well as against unfair competition. A social body has been created - the RSFSR State Committee for Antimonopoly Policy and Support for New Economic Structures. This Committee is instructed to exercise control over the fact that the formation of associations, corporations, concerns does not lead to monopolization in the market. It has the right to give permission for the registration of new large economic structures and for the re-registration of existing large organizations.

At the international level, competition is regulated by special interstate agreements, documents of the UN Commission on Industry and Trade, the European Economic Community and other organizations.

Tax and credit forms of regulation provide for the use of taxes and credits in order to influence the national volume of production. By changing tax rates, benefits, the government influences the narrowing or expansion of production, investment decisions. By varying the terms of credit, the state affects the decrease or increase in production. By selling securities, it reduces bank reserves, thus raising interest rates and consequently reducing production. By buying securities, the state increases bank reserves, while interest rates fall and production expands. The subvention form of regulation involves the provision of state subsidies or tax incentives to certain industries, enterprises (mainly such industries as agriculture, mining, shipbuilding, transport). The share of the subvention in the GNP of developed countries is 5-10%. By allocating subsidies, lowering tax rates, the state thereby changes the distribution of resources, and subsidized industries are able to recover costs that they otherwise could not cover at market prices.

Some Western economists believe that subventions disrupt the operation of the market mechanism, impede the adequate distribution of economic resources, and hinder the market's response to changes in demand and income on the demand side and to changes in costs and output on the supply side.

Public enterprise tends to take place in areas in which management is contrary to the nature of private firms, or in which huge investment and risk are required. State enterprises occupy significant positions in such sectors as energy, ferrous metallurgy, transport, and communications. The share of state entrepreneurship varies from country to country, but in these sectors it is quite significant, as evidenced by the data.

2. State regulation of the market economy: necessity and opportunities

2.1 The main stages of interaction between the market economy and the state

For a better understanding of the need for state regulation, let's take a short excursion into the past - into the history of interaction between the state and the market economy. This is all the more interesting because the emergence of the state in time coincides with the emergence and development of commodity-money relations.

History shows that the interaction between the state and the market economy has gone through a number of stages.

At the first stages, which were quite long by historical standards, the state interfered little in market relations and acted as a political, rather than economic, institution. For its existence, it taxed certain subjects with taxes or tribute. For foreign merchants, duties were usually introduced. In a word, the state, being a superstructural institution, was not yet part of the economic basis.

Only at the stage of formation of capitalism as a social system based on market relations, the state begins to actively intervene in the economy, acting as the most important factor in the initial accumulation of capital. Thus, it played a crucial role in the formation and strengthening of a new mode of production. Let us note the main manifestations of this role.

1. The state waged wars in order to obtain indemnities, to create the most favorable external conditions for the economic activity of the national bourgeoisie.

2. In accordance with the recommendations of the representatives of mercantilism, the state established duties that protected the national market from the dominance of foreign goods, fought for the abolition of such duties in countries to which national producers sent goods.

3. In order to accelerate the accumulation of capital, legislation was used, such as the laws "On vagrancy", "On the working day", "On wages" adopted in England in the 18th century.

4. The state gave private companies the right to monopolize the sale of certain highly profitable goods: vodka, tobacco, tea, coffee, salt, etc.

5. Profitable government, primarily military, orders were placed at private enterprises.

6. With the help of the army and the police, the state ensured internal order, protection of property rights in accordance with the principle "private property is sacred and inviolable."

At the stage of capitalism of free competition, when the economy is dependent on the regulatory role of the market, state intervention in it noticeably weakens. The state pursues a policy of laissez-faire, that is, a policy of non-intervention in the economy. Its activity is reduced to maintaining external and internal conditions for the smooth functioning of the market mechanism.

The state is engaged in protecting national borders (here, figuratively speaking, it plays the role of a “night watchman”), maintaining internal order through the use of a judicial and repressive apparatus, levying taxes on the maintenance of the state apparatus, issuing paper money and certain types of securities. According to the postulates of modern liberalism, the role of the state should be limited to such activities even today.

At the stage of monopoly capitalism, there is a noticeable increase in state intervention in the economy.

First of all, such intervention was due to the policy of colonial conquests and preparations for wars for the redivision of the world. In this regard, the state was engaged in the placement of military orders, the share of which in total demand grew noticeably, provided military-political and diplomatic methods favorable conditions for the export of capital by national monopolies, regulated the working and living conditions of workers.

The great crisis of 1929 - 1933, which occurred simultaneously with the accelerated development of the planned economy of the USSR, laid the foundation for the modern stage of interaction between the state and the market economy. There was an increase in state intervention in the economy, and an anti-crisis policy began to be pursued. In the 1930s in the United States, F. Roosevelt's New Deal, which included the centralization of the banking system, a ban on the export of gold from the country, state control over prices, and state lending to agriculture, made it possible to bring the country out of the crisis. Thus, in the United States (and in parallel in Sweden), a system of state regulation of the economy began to take shape. After the Second World War, this system also emerged in other countries with market economies. On the basis of this system, a "social market economy" began to take shape in European countries, in which the state becomes a necessary and active subject not only of economic, but also of social life.

2.2 Reasons for government regulation market economy

An appeal to the history of interaction between the state and the market economy allows us to identify a number of reasons that necessitated state regulation of the economy.

1. The presence in each country of public and mixed goods that cannot always be brought to the population through the market in full, especially those that are characterized by non-rivalry and non-excludability. These are personal and national security, transport services, education, healthcare, culture, etc. Such benefits should be provided by state law enforcement agencies, the country's army, the public road network, public education, health, culture, environmental authorities, etc.

2. Strengthening the social nature of the production of commodity goods. As a result, the economy becomes very vulnerable in the face of cyclical economic development, especially during times of crisis. There is a need for centralized public regulation of the economy. Moreover, the state is the only bearer of a conscious principle at the macroeconomic level. Other subjects - the population, firms, banks - are such only at the micro level. Their behavior as subjects of macroeconomics is often at odds with the public interest.

For example, we know that people in times of crisis tend to save more, rather than spend, in preparation for even worse times. This reduces aggregate demand and further aggravates the economic situation in the country. Firms behave in a similar way, nullifying investment spending during a crisis. Banks that increase the rate of interest when the economy enters a phase of crisis also contribute to this behavior. It can be seen that all these subjects behave rationally from the point of view of microeconomics, but not macroeconomics. The only entity capable of behaving rationally at the macrolevel is the state.

3. The emergence of negative external market effects, called externalities. External effects (externalities) are characterized by the occurrence as a result of market relations between some persons of damage or additional costs for other persons who are not the subjects of these relations.

The emergence of external effects is due to the fact that the economy exists in the external environment - social and natural, through which these effects manifest themselves. Accordingly, social and environmental externalities arise.

Social externalities include such phenomena as poverty, crime, unemployment, covering that part of the population that is outside the framework of market relations: the sick, the elderly, those with many children, and those who are professionally unsuitable. The state is forced to deal with all of them, providing them with material assistance. This ensures the necessary social instability in society for the development of the economy.

Environmental externalities are due to the fact that the market mechanism forces enterprises to reduce production costs, including environmental costs. As a result, the production of marketable products is accompanied by pollution of the natural environment and the occurrence of corresponding environmental damage, which is imposed on the whole society. Here, too, there is a need for a state environmental policy that forces enterprises to comply with certain standards for emissions of pollutants into the natural environment.

4. An important factor in state regulation of the economy is scientific and technological progress (STP). The implementation of many achievements of scientific and technical progress requires huge capital, which only the state is able to mobilize, especially since the return on the introduction of these achievements is not always fast. Scientific and technical progress requires more and more qualified labor force, which, again, can only be prepared on a large scale by the state, by developing a system of general and vocational education. Scientific and technological progress also imposes increased demands on people's health, which the state is forced to take on.

5. The state needs to intervene in the economy and in connection with the tendency to monopolize its most important areas, which violates the perfection of the market.

The market is becoming more and more imperfect and the state, through antimonopoly policy, seeks to prevent this trend.

6. Finally, state regulation is also developing under the influence of fierce international competition. Even large companies are not always easy to survive in this competition without government support.

In general, state regulation is necessary for a more sustainable economic, social, environmental and political development of society. It is ensured by maintaining the necessary macroeconomic proportions (primarily the ratio between aggregate demand and aggregate supply), ensuring social stability in society, maintaining a healthy environmental situation, and, finally, maintaining a balance of political interests in society and ensuring confidence in the government on the part of various parties, social movements.

2.3 Possibilities of state regulation of the market economy

By the middle of the twentieth century. the need for state regulation of the market economy was provided with appropriate opportunities.

These opportunities, first of all, include the expansion and strengthening of the public sector in the economy. This sector generates state property and funds that the state has.

The public sector itself arose with the advent of the state. The state has always had land, buildings, structures, equipment (primarily military), etc. There has always been a budget that was formed and used by the state and had an impact on the economy. However, the size of this sector was insignificant for a long time and did not have a significant impact on the economy. Thus, before the First World War, the share of the state in the national income of most countries with a market economy was 3-10%.

There were no radical changes after the war, except for the USSR, where the economy became planned. The situation changed radically after World War II. Many industrial and transport enterprises, communications, banks, scientific and educational institutions, healthcare institutions, part of the housing stock, public utilities, land, and forest land have become state property. True, if we take the state's share in the total means of production, then in different countries it is different: in the USA this share (excluding the Pentagon property) is approximately 2%, in England - 8 - 10%, in Germany - over 20%, in Japan and France - about 30%. The high proportion of state property was one of the reasons for characterizing the economies of many Western countries as mixed.

The expansion of state ownership was facilitated by the Second World War, which led to the emergence of many large military factories. In some countries, after the war, nationalization took place, that is, the transfer of a number of private enterprises to state ownership.

A significant role in the expansion of state ownership was played by the scientific and technological revolution, which led to the emergence of new and rather capital-intensive industries with a low rate of capital turnover. In addition, these industries required significant funds for R & D, which did not promise a quick return in the form of profit.

We are talking about nuclear energy, aircraft manufacturing, rocket science, the development of which was provided by the state.

Since the scientific and technological revolution required a new workforce, the state had to take over the development of education, health care, and social services. The aggravation of international competition led in some countries to the bankruptcy of entire industries that were of national importance: the coal and gas industry, metallurgy, and rail transport. The state was forced to take care of their preservation and development.

In addition, the state had to go for the nationalization of some enterprises that had a natural monopoly: railway transport, energy, communications.

The state budget played an important role in the formation of the public sector. Thanks to him, the public sector received funds for its development. The nationalization of private enterprises was carried out at the expense of the state budget by means of a buyout, new enterprises were created, including infrastructure-type enterprises designed to serve the private sector.

The state budget became the basis for public procurement of goods from private firms. For example, in the US, about 20% of GNP comes from government purchases.

Significant opportunities for the state to influence the economy are associated with the redistribution of national income. In a number of countries over 50% of the national income passes through the state budget. The impact on the economy is carried out both in the process of forming the state budget through tax policy, and in the process of its use through budget policy. If in 1870 government spending in 14 OECD countries was only 11% of GDP, in 1913 it was 13%, then in 1960 - 28%, in 1980 - 42%, in 2000 - 45%.

An integral part of the public sector are state-owned banks, which in a number of countries have become the head of the banking system. It became possible to purposefully influence the state on the money supply, on the credit activity of private banks.

In general, the presence of the public sector in the economy allows the state to use economic methods of influencing the private sector as the basis of a market economy.

Significant opportunities for state regulation are associated with the formation of a powerful administrative and legal system in countries with developed market economies. Not only theory, but also practice has shown that society does not need a market in general, but an organized market operating within the framework of certain laws and rules. In this regard, economic law has been developed, a system of legislative regulation of the national economy has developed.

The administrative-legal system made it possible to exercise control over monopoly markets, external market effects, and ensure the protection of national interests in international markets.

The possibilities of the state have also expanded due to the strengthening of its nationwide character as a superstructural institution. If before the state acted as an instrument of the political power of the ruling class, then in modern conditions it is called upon to be an instrument for balancing class and social interests, ensuring national harmony and social peace. Understanding the need for such a role for the state makes the ruling classes more tolerant of its intervention in the private sector.

The strengthening of the national character of the modern state was also facilitated by the formation of the so-called middle class - a rather significant part of the population with average incomes, which became a kind of balancer between the poor and the rich.

It is also impossible not to note the role of science, especially economic science, in the theoretical support of state regulation of the economy. Of particular importance are economic and mathematical methods that make it possible to model economic processes and thereby foresee the consequences of political and economic decisions being made.

2.4 Contradictions of state regulation of the market economy

State regulation of the market economy after the Second World War gave good results. In the 50s - 60s. they even began to talk about the fact that the Western countries had entered the "golden age" of their development, the "age of prosperity." The grounds for such statements were as follows:

The noted decades were a period of almost crisis-free development, especially for the countries of Western Europe and Japan;

Relatively high rates of economic growth were observed;

Employment was maintained at a consistently high level;

Income and standard of living of the population increased relatively quickly and steadily.

But by the end of the 60s. serious problems began to emerge, the roots of which began to be seen in state regulation of the economy. Scientists began to talk not only about the "defects" and "failures" of the market, but also about the "failures" and "defects" of the state.

Thus, the causes of inflation were found in the application in the post-war period of the Keynesian model of regulation, with its emphasis on fiscal policy measures. Indeed, in order to stimulate economic growth, the state often spent more money than was received in its budget in the form of taxes. The state budget deficit in many countries has become chronic and the main means of combating it has become the issue of money and government securities (government borrowings). All this could not but contribute to the growth of inflation.

Inflation was also associated with a policy of full employment. This policy assumed the involvement in production of all factors of production, including insufficiently efficient ones, but requiring remuneration at the level of efficient ones. Accordingly, the owners of efficient factors of production, primarily labor, demanded a higher price for them than for inefficient factors. The result was an "inflationary spiral". By the beginning of the 70s. inflation from creeping began to move into galloping.

The aggravation of the problem of inflation largely contributed to the fact that in the 70s. in countries with market economies, changes began to occur in the practice of regulating the economy. The Keynesian model was replaced by supply policy models. However, not without the impact of this policy, many countries faced such new problems as slapflation and stagflation.

Slapflation is characterized by a combination of economic recession, rising unemployment and high inflation, which is clearly contrary to the Philipps curve. Periods 1973 - 1975 and 1980 - 1982 characterized by a significant decline in production in almost all countries with market economies while maintaining inflationary processes.

Stagflation is characterized by a combination of economic stagnation, high unemployment and inflation. The one-way upward movement of prices, despite the unfavorable economic situation and even the decline in production - what has been called the "ratchet effect" - a phenomenon characteristic of stagflation.

In general, state regulation has encountered a number of contradictions.

1. The contradiction between the goals of state regulation. For example, it is necessary to simultaneously contain inflationary price increases and ensure full employment, which, as we have seen, is not always compatible. The contradiction between social justice and economic efficiency is highlighted, which is manifested in the fact that the desire of the state to achieve greater social justice through a more even distribution of national income leads to a decrease in the efficiency of production of the same national income. As a result, the "national pie" is not growing as fast, limiting the opportunities for increasing the incomes of the poorest part of the population.

2. Contradiction between models of state regulation. Basically, this is a contradiction between models that involve active state intervention in the economy, and models that involve very moderate intervention. As a result, in the policy of the state in the 70s - 90s. there was a kind of pendulum between dirigisme and liberalism, reflected in the successive replacement of representatives of dirigisme and liberalism in state power.

3. The contradiction between the instruments of state regulation.

For example, stimulating aggregate demand through fiscal policy can raise the interest rate and dampen net exports.

Narrows the possibility of exports and the policy of "expensive money". Excessive bank reserves, formed under the influence of government policy, do not always turn into loans, since banks limit them during a recession, taking care of their liquidity.

4. Contradictions caused by the presence of a time lag between the identification of problems existing in the economy, decision-making and the implementation of specific activities. The economy often reacts to these measures with a delay, and sometimes this reaction no longer corresponds to the economic situation that has changed since the decision was made.

All these contradictions appear as objectively inevitable, in connection with which the problem of choosing the optimal variant of state regulation arises. Economic science begins to play a large role in this choice. Its practical function is getting stronger and stronger.

3. State intervention in the economy and the problem of limiting such intervention

3 .1 Ways of state intervention in the economy

First of all, it is important to distinguish between two main forms: direct intervention through the expansion of state ownership of material resources, lawmaking and management of industrial enterprises, and indirect intervention through various economic policies.

The direct intervention of the state is the adoption of legislative acts designed to streamline and develop relations between the elements of the market system. An example of state regulation of the economy through the issuance of legislative acts is the provision on cooperation in France.

indirect intervention. Depending on the purpose of the intervention, economic policy measures can be aimed at:

Stimulation of investments;

Ensuring full employment;

Stimulating the export and import of goods, capital and labor;

Impact on the general price level in order to stabilize it;

Support for sustainable economic growth;

Redistribution of income.

To carry out these various measures, the state resorts mainly to fiscal and monetary policy. Fiscal policy is budgetary policy. It can be defined as a policy pursued by manipulating government revenues and spending. Monetary policy is a policy pursued by regulating the money supply in circulation and improving the credit sector. Both these areas of public policy are closely related to each other. However, this relationship in a market and centralized economy differs significantly.

Countries with a market economy are constantly looking for the optimal combination of state regulation and the functioning of a naturally formed market mechanism.

In a market economy, taxes play such an important role that it is safe to say that without a well-established, well-functioning tax system, an efficient market economy is impossible.

What exactly is the role of taxes in a market economy, what functions do they perform? Answering these questions, they usually begin with the fact that taxes play a decisive role in shaping the revenue side of the state budget. It is, of course, so. But the first place should be given to the function, without which it is impossible to do without in an economy based on commodity-money relations. This function of taxes is regulatory.

The market economy in developed countries is a regulated economy. It is impossible to imagine an effectively functioning market economy in the modern world, not regulated by the state. Another thing is how it is regulated, in what ways, in what forms.

State regulation is carried out in two main directions:

Regulation of market, commodity-money relations. It consists mainly in defining the "rules of the game", i.e. development of laws and regulations that determine the relationship between persons operating in the market, primarily entrepreneurs, employers and hired workers. These include laws, regulations, instructions of state bodies that regulate the relationship between producers, sellers and buyers, the activities of banks, as well as labor exchanges. This area of ​​state regulation of the market is not directly related to taxes.

Regulation of the development of the national economy, social production, when the main objective economic law operating in society is the law of value. Here we are talking mainly about the financial and economic methods of state influence on the interests of people, entrepreneurs, in order to direct their activities in the right, beneficial direction for society.

In market conditions, the methods of administrative subordination of entrepreneurs are reduced to a minimum, and the very concept of "superior organizations" that have the right to manage the activities of enterprises with the help of orders, commands and orders is gradually disappearing.

Maneuvering tax rates, benefits and fines, changing the terms of taxation, introducing some and canceling other taxes, the state creates conditions for the accelerated development of certain industries and industries, contributes to solving problems that are urgent for society. Thus, at the present time there is perhaps no more important task for us than the development of agriculture, the solution of the food problem. In this regard, collective farms, state farms and other agricultural production are exempted from income tax in the Russian Federation.

Another example. It is well known that a well-functioning market economy cannot be imagined without the development of small businesses. Without it, it is difficult to create an economic environment favorable for the functioning of commodity-money relations. The state should promote the development of small business, support it by creating special funds for financing small businesses, preferential lending, and preferential taxation.

Another function of taxes is stimulating. With the help of taxes and benefits, the state stimulates the technical process, an increase in the number of jobs, capital investments to expand production, etc.

The next function of taxes is distributive, or redistributive. Through taxes, funds are concentrated in the state budget, which are then directed to solving national economic problems, both industrial and social, financing large intersectoral, comprehensive targeted programs - scientific, technical, economic, etc.

With the help of taxes, the state redistributes part of the profits of enterprises and entrepreneurs, the income of citizens, directing them to the development of industrial and social infrastructure, to investments and investments. The redistributive function of the tax system has a pronounced social character. A properly constructed tax system makes it possible to give a market economy a social orientation, as is done in Germany, Sweden and many other countries.

3 .2 Limiting government intervention in the country's economy

Obviously, the modern market system is unthinkable without state intervention. However, there is a line beyond which deformations of market processes occur, production efficiency falls. Then, sooner or later, the question arises of the denationalization of the economy, ridding it of excessive state activity. There are important limits to regulation. For example, any actions of the state that destroy the market mechanism (total directive planning, all-encompassing administrative control over prices, etc.) are unacceptable. This does not mean that the state absolves itself of responsibility for the uncontrolled rise in prices and should abandon planning. The market system does not exclude planning at the level of enterprises, regions, and even the national economy; however, in the latter case, it is usually "soft", limited in terms of time, scope and other parameters, and acting in the form of national targeted programs. It should also be noted that the market is largely a self-adjusting system, and therefore it should be influenced only by indirect, economic methods. However, in some cases, the use of administrative methods is not only acceptable, but necessary. One cannot rely only on economic or only on administrative measures. On the one hand, any economic regulator carries elements of administration. For example, the circulation of money will not be affected by such a well-known economic method as the central bank lending rate until an administrative decision is made. On the other hand, there is something economic in every administrative regulator in the sense that it indirectly affects the behavior of participants in the economic process. By resorting, say, to direct price control, the state creates a special economic regime for producers, forces them to revise production programs, look for new sources of investment financing, etc.

Among the methods of state regulation, there are no completely unsuitable and absolutely ineffective. Everyone is needed, and the only question is to determine for each those situations where its use is most appropriate. Economic losses begin when the authorities go beyond the bounds of reason, giving excessive preference to either economic or administrative methods.

We must not forget that the economic regulators themselves should be used with extreme caution, without weakening or replacing market incentives. If the state ignores this requirement, launches regulators without thinking about how their action will affect the market mechanism, the latter begins to falter. After all, monetary or tax policy in terms of the strength of its impact on the economy is comparable to central planning.

It must be borne in mind that among economic regulators there is not a single ideal one. Any of them, bringing a positive effect in one area of ​​the economy, will certainly have negative consequences in others. Nothing can be changed here. The state using economic instruments of regulation is obliged to control them and stop them in a timely manner. For example, the state seeks to curb inflation by limiting the growth of the money supply. From the point of view of combating inflation, this measure is effective, but it leads to an increase in the cost of central and bank credit. And if interest rates rise, it becomes more and more difficult to finance investments, and economic development begins to slow down. This is how the situation is developing in Russia.

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Economic functions of the state. Theoretical concepts of state regulation of the national economy. The main forms and methods of state intervention in the economy of the Russian Federation. Tools and methods of state regulation.

Objective foundations for the need for state regulation of a market economy. Basic forms of regulation.

State regulation of the economy (GRE) in a market economy is a system of standard measures of a legislative, executive and supervisory nature, carried out by authorized state institutions and public organizations in order to stabilize and adapt the existing socio-economic system to changing conditions.

The state has always tried to interfere in the course of economic processes. However, systemic, constant such intervention of the state in the economy, i.e. actually GRE, is associated with the twentieth century. At the turn of the 19th - 20th centuries, in most countries there were objective changes in the nature of economic development, which predetermined the new role of the state in the economy.

Objective prerequisites for the GRE:

1. Strengthening the degree of interdependence of economic entities based on the deepening of the social division of labor.

2. Growing monopolistic tendencies.

3. Growth of negative consequences for the national economy as a result of economic crises.

4. Complication of property relations, which manifests itself through qualitative changes in this area, as well as through the quantitative growth of property entities.

5. Qualitative improvement of the productive forces of society, which is manifested, among other things, through the strengthening of the influence on the production processes of science and the level of qualification of the labor force.

6. Strengthening the degree of internationalization of economic processes.

7. Strengthening social and global problems, etc.

The main economic functions of the state.

• 
  creation and regulation of the legal basis for the functioning of the economy;
• 
  antimonopoly regulation;
• 
  pursuing a policy of macroeconomic stabilization;
• 
  impact on resource allocation;
• 
  activities in the field of income distribution;
• 
  activity of the state as a subject of property relations.

Market mechanism- this is a mechanism for the formation of prices and distribution of resources, the interaction of market entities regarding the establishment of prices, the volume of production and sale of goods. The main elements of the market mechanism are demand, supply, price and competition.

Another, simpler, definition says that the market mechanism is a mechanism for the relationship of the main elements of the market: demand, supply and price.

Supply is on the production side, demand is on the consumption side. These two elements are inextricably linked, although they are opposed to each other in the market. They can be compared to two forces acting in opposite directions. Depending on the specific market conditions, supply and demand are balanced for a more or less long period. This equalization of supply and demand can occur spontaneously and under the regulatory influence of the state.

It is important to note that the market mechanism manifests itself as a mechanism of coercion, forcing entrepreneurs, pursuing their own goal (profit), to ultimately function for the benefit of consumers.

The action of this mechanism is based not on persuasion, but on the natural desire of a person for well-being. Therefore, for the implementation of the market mechanism, nothing is needed except the freedom of producers and consumers. The fuller the freedom, the more effective the mechanism of self-regulation of the market economy.

In the market, sellers and buyers make exchange transactions at their own peril and risk. Everyone is afraid to miscalculate, to be deceived, to suffer losses. Everyone wants to sell high and buy low. The risk is expressed in the fact that the commodity producer seeks to anticipate demand, form it and release products at high prices when the market is not yet saturated. At this time, he runs the risk of being outdone by competitors, investing in the production of unpromising goods, producing more goods than the market requires, and selling goods for next to nothing. Thus, various kinds of conflicts spontaneously arise in the market, which are resolved with the help of the market mechanism. The economic situation of producers and consumers, sellers and buyers depends on market conditions, which change under the influence of numerous factors.

Demand is a generic term that describes the actual and potential buyers of goods. Demand can be considered as a form of manifestation of the needs of people, provided with a monetary equivalent. Demand does not express the entire set of needs, but only that part of it, which is supported by the purchasing power of people, i.e. cash equivalent. You can have needs, but not have money, then there is not much point in talking about consumer demand. Thus, it is assumed that buyers are not only willing, but also able to pay for the required quantity of goods, if any were available.

Often, demand is the amount of goods that will be bought by consumers at a given price in certain conditions of place and time.

Demand, being a solvent need, in practice can take various forms:

• Irregular– Demand based on seasonal, hourly demand (for example, unloaded traffic during the day, congestion during peak hours).
• Irrational Demand for products that are unhealthy or antisocial (cigarettes, drugs, firearms).
• Negative- demand, when a large part of the market does not like the product or service (vaccinations, medical operations).
• Hidden- Demand that occurs when many consumers want something, but cannot satisfy it, since there are not enough goods and services on the market (harmless cigarettes, safe residential areas, an environmentally friendly car).
• Falling demand- a constant phenomenon (the attendance of museums, theaters, etc. is decreasing).

There are also realized, unsatisfied, emerging, hype, prestigious, impulsive and other types of demand.

The market mechanism allows you to satisfy only those needs that are expressed through demand. In addition to them, there are also needs in society that cannot be transformed into demand. These primarily include the benefits and services of collective use, which in economics are called public goods (public order, national defense, public administration, etc.). At the same time, in a society with a developed market economy, the predominant part of the needs is satisfied through demand.

Offer is a general term used to describe the behavior of actual and potential producers (sellers) of goods.

Sometimes a supply is defined as a set of goods with certain prices that are on the market (or on the way) and which producers can or intend to sell (definition by V. Vidyapin and G. Zhuravleva). Thus, here the offer acts as a product that is on the market or can be brought to the market.

Another definition can be given: offer- this is the amount of goods that producers are ready to sell (sell) at alternative prices (definition by E.F. Borisov).

Price- monetary expression of the cost (value) of the goods. The value of the price of a commodity depends on the value (value) of the commodity itself, as well as on the ratio of supply and demand. Prices are set under the influence of a number of economic laws, primarily the law of value, according to which prices are based on socially necessary labor costs. The law of supply and demand influences the price. The mechanism of its action on the price is manifested when there is a discrepancy between the supply and demand of goods in the sphere of exchange.

The peculiarity of the market mechanism is that each of its elements is closely related to the price. It is its main tool, a tool for coordinating and adapting supply and demand to each other. The price of a product is a guideline on the basis of which entrepreneurs and consumers make their choice of what product to produce, what product to purchase. Prices carry information about the state of the market for consumers and for producers.

Competition- rivalry, competitiveness, the struggle between manufacturers, suppliers of goods and services for the most favorable conditions for production and marketing. It acts as a form of interaction between market entities and a mechanism for regulating proportions, contributes to maximizing profits and, on this basis, expanding the scale of production.

All elements of the market mechanism do not exist in isolation, but interact. Their interaction is a market mechanism. It is clear that demand is inextricably linked with supply, and both of them depend on the price level. Competition affects demand, supply and price levels. Thus, all elements of the market mechanism are in a single system.

1. What is the role of economic activity in the life of society? 2. Why economic growth is one of the criteria for economic progress

society?

3. What are the features of market regulation of the economy?

4. How to make production efficient?

5. What is required for business success?

6. What economic tasks does the modern state solve?

7. Who and how regulates cash flows in the economy

What is the role of economic activity in the life of society? Why is economic growth one of the criteria for the progress of the economy and society?

What are the features of market regulation of the economy? How to make production efficient? What is required for business success? What economic tasks does the modern state solve? Who and how regulates cash flows in the economy? Why does the economy need a labor market? Why do countries have to trade with each other? How can the producer and consumer make a rational economic choice?

I beg you, help me with a document on social studies, grade 10. I would do it myself, but I don’t understand anything anymore. For they asked 6 documents, help at least with

one please!)
Document:
From the work of modern Russian scientists-economists "Market and social consent".
By universal historical standards, the market mechanism cannot be considered as a completely ideal form. Increasingly, researchers note in this context the so-called "market imperfection", associated with the very problematic market capabilities in achieving an equitable distribution and use of resources on Earth, ensuring environmental sustainability, eliminating unjustified social inequality. only 4% of world wealth. Apparently, the future of the world economy should be associated with a more complex economic mechanism than the actual mechanism of the market. In this mechanism, an increasing role will belong, along with market exchange relations, to various more subtle mechanisms that involve the achievement of social harmony between the multitude of subjects of socio-economic relations.
Questions and tasks:
1) Why do the authors of the document characterize the market mechanism for regulating the economy as imperfect?
2) What evidence confirms the deepening social inequality in the world?
3) Using the content of the paragraph, suggest possible (except for market exchange) mechanisms for achieving social harmony between participants in socio-economic relations.

A regulated market economy is understood as an economy built on the principles of free enterprise, regulated by the state by taking the following measures: introducing and changing taxes, subsidies, targeted financing programs and other methods of influence.

Features of a regulated market economy

The fundamental specificity of a market economy is expressed in the fact that demand regulates the supply of the market, that is, what products and how to produce it is decided through. The following characteristics are typical for a regulated market economy:

• variety of forms of ownership of enterprises;
• the predominance of private ownership over the state;
• social inequality of citizens;
• limited impact of the state on the work of business;
• prices for goods are formed on the basis of customer demand, competitive offers and production costs of the enterprise;
• manufacturers seek to reduce the cost of goods, work and services, which directly affects the increase in purchasing power and the well-being of the population.

The goal of regulating the economy by the state is manifested in ensuring and maintaining the diversity of forms of ownership of institutions, as well as ensuring the principle of competitiveness of economic entities. The number of organizations of a monopoly nature should be kept to a minimum, and prices for goods and services should not be set by a single institution. One of the most important tasks of regulation is to reduce social inequality, which is caused by a market economy.

Regulatory methods

It is customary to allocate the following by the state:

• foreign economic (setting tariffs for exports and products, conclusion of international agreements);
• direct (creation of antimonopoly services and the legislative framework for regulating such activities, development and implementation of standards);
• indirect (regulation of the country's social policy).

Types of regulation

There are three types of state regulation of the market economy: financial, legal and social. carried out through the following measures:

• change in the tax burden on;
• adoption of state targeted programs to support and develop business projects;
• reduction of rates for newly formed and small enterprises by regulating the state refinancing rate and developing appropriate programs;
• setting tariffs (maximum) for housing and communal services and other types of work through the creation of regulated supervisory organizations.

Legal regulation of the market economy is ensured by the adoption of relevant standards, laws, regulations and other legal acts, the task of which is to regulate the activities of enterprises and ensure their competitiveness.

Social regulation is provided by indirect methods aimed at mitigating social inequality, which is a consequence of a market economy. Social regulation is provided by the following measures:

• provision of free education, health care (funding of these areas is partially or completely taken over by the state);
• infrastructure development;
• the introduction of social benefits for unemployment, in connection with temporary disability, disability and others;
• provision of benefits, including tax benefits, to large families, parents or guardians who support minor children.

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Read also: A. 4. What are the main indicators of the quality of regulation? Stage I: The rise of industry in the German states and the backwardness of agriculture. I. Features of the formation of a sectoral system of remuneration for employees of health care institutions II. Peculiarities of Accounting Operations for the Functions of the Chief Administrator, Administrator and Recipient of Federal Budget Funds Block III: 5. Features of the work of a social pedagogue with orphans and children left without parental care. III. FEATURES AND SOCIO-PSYCHOLOGICAL CHARACTERISTICS OF THE MILITARY TEAM III. The principle concerning the obligation under the Charter not to interfere in matters within the domestic jurisdiction of another State (principle of non-intervention). PR events for the media (types, characteristics, features).

Any market economy cannot exist and function without state regulation. As a rule, two different aspects are manifested in the state regulation of a market economy. On the one hand, it is necessary for the market itself, organizing and ordering the impact. It manifests itself in the state formation of a set of rules and the restriction of market activity, its support and updating, control over compliance. By organizing market relations, state bodies contribute to their organic integration into the system of social relations. State regulation of the market is carried out through legislation through state planning.

On the other hand, the state impact on the market is manifested through the withdrawal of part of the profit through the operation of the taxation system, through mandatory payments to the budget. By withdrawing the funds necessary for national needs and distributing them in a certain way, the state carries out its financial policy in order to simultaneously influence the market and market relations.

State regulation of the economy is carried out with the help of a system of standard measures of a legislative, executive and supervisory nature by authorized state institutions in order to stabilize and adapt the existing socio-economic system to changing conditions.

Public organizations can also indirectly participate in state regulation: consumer protection societies, trade unions, political parties, etc. The system of bodies that carry out state regulation is shown in Figure 1.

Figure 1 - The system of bodies that carry out state regulation

The most striking changes in the modern economy were reflected, first of all, in trading activities. Trade, acting as a link between various sectors of the national economy, did not remain outside state regulation. The modern mechanism for regulating the economic activity of trade can be represented as an integrated system of forms, methods, means by which the state influences the objects of trade.

The initial shortcoming of the approaches of various foreign schools and our compatriots to management issues was that they focused on any one element, and did not consider management efficiency as resulting and depending on many factors of activity. In this regard, the application of systems theory to management allows us to represent the organization in the unity of its constituent parts, which are inextricably linked with the outside world.

A systematic approach is also necessary for understanding state regulation. In addition, when considering the implementation of regulatory functions, it is considered necessary to use a process approach, because the work to achieve the goals is not some kind of one-time action, but a series of continuous interrelated actions. These actions, each of which is a process in itself, are very necessary for the successful operation of enterprises and trade organizations.

Consistency is also manifested in the fact that regulation is carried out according to a three-level management system: at the federal level, at the level of subjects of the Russian Federation (regional), as well as at the level of local governments. In each of them, appropriate structures have been created with all specific goals, objectives and functions.

The main task of state regulation of the market economy is the use of restrictive measures in case of overheating of the economic situation and the transfer of part of the effective demand in the form of a progressive income tax to the recession stage.

With the advent of neo-conservatism, the emphasis was shifted from managing efficient demand to stimulating factors of production. To do this, economists used such tools as the establishment of tax incentives for investments and tax cuts for wealthy citizens with savings. The consequence of this economic stimulus was an increase in the state budget deficit and an increase in external debt in the US economy, which unexpectedly led to economic growth in the mid-1980s. In the 90s. deficit financing was stopped, followed by an economic recession, which was soon overcome as the market system adapted to the new operating conditions.

As a result of changes in technological production capabilities, the abolition of a number of state restrictions on market functioning, a trend has arisen for the deregulation and liberalization of economic market structures in the West.

As market competition developed, the tasks of state policy changed from direct replenishment of “market failures” to a real understanding of the formation of a competitive environment and the formation of an institutional framework for modern entrepreneurship. In addition, the choice of the direction of state policy in foreign economic activity is of considerable importance. Since the measure of the development of the national economy is the competitiveness of domestic producers in the world market and participation in the international division of labor, the problem of creating national competitive advantages is inextricably linked with the choice between protectionist protection of the domestic market from increasing international competition or liberalization of foreign trade.

The goals of state regulation, being in close relationship, are unequal in terms of the scale of impact, significance and consequences. There are strategic and tactical goals. Among the strategic goals, the most priority are: ensuring the economic and social stability of the consumer goods market, economic security, and competitive advantages. Tactical (specific) goals may differ according to the objects of regulation, but should proceed from the linkage of public and private interests.

The specific goals of regulation are: the formation of market relations in the field of trade; formation of an integral system of trade services for the most complete comprehensive service to the needs of the population and the demands of the local labor market; creation of a regulatory framework that ensures the functioning and development of trade and, ultimately, ensuring sustainable economic growth. At the micro level at the enterprise level, specific objectives can be economic, social and environmental.

In general, the main task of state regulation is to maintain the stability of the consumer market and ensure its social orientation, which can be implemented using certain principles.

The application of the principles of the mechanism of state regulation of trade will depend on the model of a market economy that we want to have. In the conditions of a socially oriented market economy, the main principles are dynamism, consistency, stability, adaptability, flexibility, rationality (optimality), efficiency, responsibility, reliability, efficiency, and so on.

Along with them, in modern conditions of transition to economic methods of regulation and self-regulation, the principle of decentralized management of enterprises and organizations, which is derived from other principles and follows from the properties of the economic system, is becoming increasingly important. Decentralization of management is manifested in the absence of a state plan established by the center that is subject to mandatory implementation; state intervention in the operational and economic activities of organizations is not allowed.

Decentralization of management implies, in addition to delegating the right to make managerial decisions, modifying the functional structure of management, as well as changing the conditions for self-organization of an enterprise through the creation of independent structural units, which is associated with the transformation of organizational management structures, independently established operational and economic parameters of the activities of trade organizations.

Directly related to the goals and priorities of state regulation of trade are general and particular regulatory functions, but they can also be formulated independently due to their multidimensionality. Goals and priorities are realized through regulatory functions.

In the system of state regulation of trade, among the general functions, the creation of economic and legal conditions for the functioning of the regulatory mechanism should be considered the most important. As is known, a market economy objectively assumes high management efficiency due to the competent use of its laws, principles, and methods.

The transition from administrative-planning methods of trading activity to economic ones, carried out in the modern conditions of the country, methods applied to market relations has led to a sharp increase in the volume of legislative provisions intended to regulate commodity circulation. The gigantic scale of trading activity, the huge volumes of trade operations carried out in the country, the development of foreign trade relations oblige to take into account domestic and foreign new legal solutions, techniques, and means for regulating trade turnover.

The subject of regulation of trade law is trade and entrepreneurial activity to promote goods from manufacturers to retail organizations and other consumers using goods for business and other economic purposes. Economists in state regulation put socio-economic relations in the first place as the main components.

The performance of general and particular management functions is associated with the solution of specific problems using certain management methods. So, for the implementation of the marketing function, it is necessary to use methods for developing intra-company marketing programs and development forecasts, for the planning function, a number of methods of analysis, planning and forecasting, etc. are performed.

In the transition from distributive and directive management to regulatory influence, the system of state regulation of trade should be built: firstly, taking into account the financial and economic independence (autonomy) of the organization and, secondly, based on the conditions for decentralization of management, delineation of competence, powers and responsibilities between its various levels.

Improving the regulatory mechanism at the level of subjects of the Russian Federation and enterprises provides for the transformation of managerial structures of trade on the basis of a clear delineation of the functions of state regulation and direct operational and economic management, which involves the development of independent management and self-government by enterprises with various forms of ownership.

The next common function is the decentralized management of objects of the trade sector. The implementation of this function is aimed at pursuing a regional policy to meet the needs of the population in goods and services, participation in investment projects and programs for the socio-economic development of regions, state regulation of socio-economic development for territorial business entities, and bankruptcy prevention.

The social function of state regulation is of great importance in the context of the implementation of a socially oriented model of a market economy; the volume of redistribution of the total social product, taking into account various social groups, should be sufficient to achieve the goal of state regulation. The state should act as a guarantor of socially unprotected sections of the population (war veterans, disabled people, large families, etc.).

A developing society with a mixed economy is characterized by: the social orientation of the economy; rising living standards of various social strata and groups; performance by the state of the functions of supporting and developing the social sphere or providing the prerequisites for its development, creating systems of social guarantees and protection for various segments of the population.

An important general function is the function of strategic planning. Sometimes economists call it planning and forecasting. An obligatory function is an organizational one, which ensures a systematic approach to the implementation of reforms, the integrity of the state economic policy.

In a market economy, the role of the state is primarily to establish the "rules of the game", determine the strategic directions of development, maintain the normal functioning of regulatory mechanisms, and not to clearly regulate the activities of enterprises.

In state regulation of a market economy, two aspects seem to be the most important. The first necessary condition for ordering influence is regulation, a set of rules and restrictions on market activity. It is carried out through state planning, the publication of regulatory legal acts by the government. The development of a system of rules of economic behavior for all participants in the economic process is necessary to provide its objects with independence in entrepreneurial activity.

The second aspect is the state influence on the market through the withdrawal of part of the profits, income through the taxation system and other payments to the budgets. By distributing funds in the interests of national needs, the state implements its financial policy and influences the market.

The components of the organizational function are also: strengthening state control over the activities of organizations, especially those providing state orders; creation of information support and security of state regulation.

And the last common function is integration. A new feature of modern market relations is the transition to integration in all constituent areas of enterprise activity, which makes it possible to see the future development of the enterprise most clearly, to take into account the interests of the consumer and the manufacturer in a comprehensive manner. It is the implementation of new approaches in the state regulation of trade that is most effective through the mechanism of mutually beneficial trade and economic integration.

The purpose of the economic, organizational and managerial integration of regions is to ensure the stability of the functioning of the economies of the regions and economic growth, the security and sustainability of the development of trade organizations that are part of the integrated complex, by sharing the competitive advantages of the regions and their resource potential, including raising funds from the economic and financial activities of the subjects of integration.

The functions of state regulation of the sphere of trade are closely related to the forms (instruments) of its regulation: institutional, program; monetary; tax; price; licensing, quotas, etc. Figure 2 shows the instruments of state regulation.

Figure 2 - Instruments of state regulation

The market as a form of economic communication is established precisely in the course of the formation and improvement of economic institutions, which we understand in this case as regulators, tools of economic forms (government order, social and commercial order).