A MODEL OF THE NATIONAL ECONOMY WITHIN THE SCOPE OF THE ECONOMIC POWER BALANCE (THE LEGAL ASPECT)

Author
, professor, Kharkiv, Pushinska, 77

In heading

 Law;

Signed print

 26.02.2018

Issues number

 2018 - № 1 (32)

Page

 124-136

Type of articles

 Scientific article

Code UDK

 346.14:330.532(477)

ISSN print

 2411-5584

Abstract

 Problem setting. Economic literature considers a phenomenon of a national model of the market economy to be a well-established object of scientific research based on rather specific peculiarities of economic systems of the USA, Germany, Sweden, Japan, Singapore, South Korea, etc. (taking into consideration positive examples). The mentioned countries usually embody certain types of national market economies with determined specificity. What does affect specificity of national economic models?
Analysis of recent research and publications. It is worth mentioning that, with few exceptions, problematics of economic power, search for socially acceptable legal forms of economic power and the interaction between its bodies have not been thoroughly examined in juridical literature. Simultaneously, there are some scientific papers dedicated to development of the mentioned problematics, namely papers of V. V. Dementieva and O. S. Shnipko. Some issues of the phenomenon of economic power have been highlighted in the science of public administration, particularly in papers of F. I. Shamkhalova.
At the same time, matters of legal institutionalization, legal forms of the interaction between bodies of economic power, legal means of balancing such types of power in an economic system and providing economic democracy have not been researched in the legal science.
Paper objective. Ascertainment of the sense of the phenomenon related to economic power and its macro-bodies, a mechanism of division and balancing economic power within the national economic system as an independent and integral subject to legal regulation are a purpose of the article.
The main material presentation. Thus, the national model of the market economy is a way of organizing the economic life of a society grounded on the frameworks for market coordination of participators of economic relations, which establishes specific internal balances within the system between the main types of economic power and regimes of their interaction that conform to the social acceptable compromise between competitiveness and both social and ecological priorities in the economic sphere.
Simultaneously, factors, which enable to make the direct, conscious and correcting macroeconomic impact on parameters of functioning of the economic sphere, may be effective only if they are linked to authorities. Such peculiarity affects dynamics and intensity of investment, production and distribution relations. There are coordinated and balanced relations between closely interacted bearers of economic power. Nevertheless, there is no universal formula for such balance. Each national economy functions according to own qualitative parameters of such balance.
Hence, adoption and implementation of a substantiated economic strategy of development (it is a questionable issue) as well as organizational consolidation and structural institutionalization of all the macro-subjects of economic power in the national economic system supplemented by determination of priorities and establishing balances and counterbalances are primary problems concerned with formation of the national economic model.
Therefore, only creation of internal frameworks of the balance, restraints, counterbalances and effective interactions between the main bearers of macro-economic powers in the economic system of the society, which is the most important precondition of its manageability, may lead to undertaking an effective government economic strategy of economic development of the country in the direction of providing economic democracy.
Conclusions. Functioning of the economic system of the society depends on configuration of macroeconomic influences on a sphere of economic relations on the part of the bearers of many types of economic power.
The existing or potential bearers may include large domestic business, foreign transnational corporations, small and medium-size business, the government, the people of Ukraine, consumers, employees, the creative class, et al.
To perform own inherent functions, the bearers of economic power should have features of factual consolidation and legal institutionalization of own identity.
Relations of division, restraints and counterbalances, balancing and the interaction should be established between the bearers of economic power on the level of functioning of the economic system.
Specificity of the national model of the market economy consists in the peculiar nature of placing emphasis within the balance of economic power in favor of those types providing maximum competitiveness of the system.
Any formula of division of types of economic power and their balancing within the national economic system should ensure economic democracy as the final and profound sense of organizing the economic life of the society.
Short Abstract for an article
Abstract. The article considers internal inherent factors determining the content and direction of national economic models of different countries. The author points out that the specific formula of division and balancing economic power within the national economic system is such internal factor. The consolidated bearers of particular types of economic power, particularly such as large business, small business, owners of natural resources, owners of innovative products, employees, consumers, a government, etc., assume the authoritative macroeconomic identity under certain conditions. They directly and indirectly influence aggregated parameters of functioning of national economies. Legal consolidation of the mentioned bearers by the type of power, their legal institutionalization and formation of the system of interactions, restraints and counterbalances, which eventually enable to correct the socially necessary formula of division and balancing between the mentioned types of power within the national economic system, are key issues. The very formula will determine the main peculiarities of the national model of the market economy. Ensuring economic democracy is a key term of the viability of such model.

Keywords

 national model of the market economy; economic power; types of economic power; institutionalization of economic power; division and balancing economic power; economic democracy.

Reviewer

External reviewer

Article in PDF

 1 124-136

Bibliography

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Code DOI

 10.31359/2411-5584-2018-32-1-124

15.02.2018