№ 7/2021

Ekon Ukr. 2021 (7): 41–53https://doi.org/10.15407/economyukr.2021.07.041

УДК 338.242

JEL: E61, F02

SHAROV Oleksandr¹

¹Institute for Economics and Forecasting of the NAS of Ukraine, Research ID : http://www.researcherid.com/rid/
OrcID ID : https://orcid.org/https://orcid.org/0000-0001-8460-9996

THE STATE AND THE MARKET IN THE CONDITIONS OF MODERN GLOBALIZATION: STRUGGLE OF OPPOSITES OR SYNERGY OF INTERACTION?

State, market and globalization are three concepts, the interrelation and influence of which can be traced throughout almost the entire period of their existence. It is possible that, according to some anthropologists, in primitive societies the economy was not based on market relations, but the formation of market institutions is impossible without protection from the government (state or at least quasi-state) and even more so without direct creative intervention of the state. At the same time, however, it should be borne in mind that in the context of globalization there are ongoing changes both in the essence of the state and in the tasks that it must solve. Sometimes there are allegations of erosion or extinction of the nation-state, which are not yet true. Of course, the political and economic development of society makes its adjustments, but functions such as protection from economic aggression, legislative provision of fair competition, participation in large projects that can not be carried out by private business, remain essentially unchanged, although changing in form, primarily under the influence of internationalization processes.
Thus, it can be emphasized that the role of the state in the economy is not decreasing, but rather increasing due to the modernization and internationalization of its functions. What matters is not quantity but quality. But the role of the state should not be overestimated, the government and state managers should not be relied on in everything. It is necessary to clearly determine which state the country is building, and in view of this to implement appropriate economic policy with appropriate methods and tools.

Keywords:state; market; “invisible hand”; globalization.

Article original in Ukrainian (pp. 41 - 53)

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