The economy in the ХХІ century:transformation of the state’s role

Abstract

Background. The main feature of recent decades is the active development of globalization processes, and therefore it is impossible to ignore their influence on the transformation of the role of the state and the effectiveness of state regulation. The construction of a socially oriented economy and a democratic society, based on the innovative model of development, necessitates the urgent solution of the task of determining the new role of the state, which in turn is impossible without the search of the appropriate theoretical basis.
The analysis of recent researches and publications shows that despite the existence of certain scientific achievements, there is still no single point of view regarding the role of the state in the economy. Until now, the boundaries and the relationship between state and market regulation have not been clearly and comprehensively defined.
The aim of the article is to study theoretical and methodological principles of the transformation of the role of the state in the economy under the influence of the latest systemic challenges.
Materials and methods. In the process of research the general scientific and special methods were used, such as: historical and logical; method of retrospective and comparative analysis; system approach; analysis and synthesis.
Results. The key institution of the modern economy is the state. It should not directly interfere in business processes. However, its functions include the creation of such an institutional environment that is capable of ensuring the efficient functioning of an economic mechanism that stimulates innovative development and providing state support to industries that are strategically important for economic development and competitiveness of the national economy.
The various approaches to the role of the state in the economy at different stages of economic development were researched, to establish that it is necessary to perform certain functions in the economy of the country. However, there is a large discrepancy in the views of the limits and skills of state currents in the economy –from liberal to threshold state regulation of economic processes.
Conclusion. After analyzing the current trends of transformation processes, it has been found that for the effective development of the national economy in the 21st century, the strengthening of the role of the state in the economy should not be understood in the old sense as the establishment of a bureaucratic obstacle for entrepreneurship. The state, adjusting former mistakes of economic policy, has to take on the inherent functions of protecting the national economy from the adverse effects of globalization, stimulating innovation development, providing a rational, with a view to the future, the use of resources.