INSTITUTIONAL DETERMINANTS OF THE STATE ECONOMIC POLICY

Abstract

It has been determined that the theoretical and methodological basis of the institutional determinants of the State's economic policy is the matrix of institutionalism. The determining aspect of the formation of the theoretical and methodological foundations of institutionalism is the substantive characteristics of its essence. The directions of manifestation of the institutional nature of economic policy, which changes in the institutional dynamics of social development, are substantiated. It is determined that, according to the approach defined by representatives of traditional institutionalism, an institution can be expressed in the form of three complementary elements, namely: rules, standards of behavior and stereotypes of thinking. The author shows that representatives of neo-institutionalism believe that institutions are not so much a cultural or psychological phenomenon as a set of legal norms and informal rules which form the boundaries, restrictions and strictly direct the behavior of subjects in the system of economic relations. The analysis shows that the composition of institutions is extremely heterogeneous. Cultural traditions and values are the most inertial, as they are not able to automatically adjust following changes in formal norms or following the example of individual, albeit influential, actors. Even when positive changes occur, the process of institutional transformation requires a longer period of time. The tools for targeting different levels of institutions also differ. Regular changes to legislation can be adopted using administrative levers. If the new law is aimed at encouraging market participants to change their previously adopted informal behavioral patterns and to adjust informal rules, it will not require administrative decisions to implement it. The article reveals that the place and role of the State in the context of modern transformations is determined primarily by the fact that the State is viewed as an entity which ensures the organization and functioning of all elements of the national socio-economic system. It is determined that, as a representative of society as a whole, it is the State which establishes the rules for the functioning and market interaction of economic agents within a certain economic order and monitors their compliance. The basis for the implementation of a balanced economic policy should be the scientific identification of strategic priorities for economic development and the definition of conceptual approaches and tools on this basis in order to harmonize the interests of all actors. The quality of the institutional mechanism of the state's influence on the dynamics of national production is of great importance. This refers to such components as the index of economic freedom, the level of development of the financial sector, the index of liberalization of economic life, and the index of institutional structure.