Justicein international economic relations

Abstract

Background. All the conflicts in the world, including economic ones, are based on the concept of justice. Therefore, it is necessary to clarify what shall meant by the justice of international relations, specifically, economic international relations(IER), and whereby to insert it into the theory and practice of IER.
The aim of the articleis to clarify the economic discourse of the concept of «justice»in the context of the theory and practice of international economic relations and to substantiate the proposals for improving the mechanism for achieving its acceptable level for IER subjects.
Materials and methods. Scientific works of domestic and foreign experts served as materials of the research.
Results. Justice is a moral categorical imperative of social behavior of people, due to realization of which the society remains in an agreed and non-conflict mode of development. Economic justice, including IER, is an equilibrium state of the economic system that is to be achieved through the distribution mechanism of resources and results of economic activity. The natural inequality of entities and the effectiveness of their activitiesis the basis of the mechanism. Justice complements the concept of «economic efficiency», expanding it to an understanding of the person to be a defining component of the economy, with all theirintentions accompanied with moral and social institutions.
The just relations shall be understood as a condition for all the parties to an agreement to be sure that no one would take actions that may lead to any loss to either party. The modeling of a mechanism for the formation of just IER is proposed to be based on the theory of repetitive games. The achievement of the Pareto-optimality is interpreted as the state of just IER. In order to incorporate justice into the economic discourse of the IER, the concept of «price of justice»is introduced, which refers to the price of a compromise between the interacting entities in relation to the achievement of a certain goal.
Conclusion. Justice is considered to be the foundation of the existence of any human community, as it determines the quality of the social (including economic) relations among its members. Justice motivates trust, and trust is a significant factor in economic development, since it minimizes transaction costs. The key to the development of IER is the constant search for compromise solutions to be a mechanism for ensuring justice and trust which would ultimately lead to their effectiveness in international economic cooperation.