OBJECTIVE CONDITIONALITY OF THE SYMBIOSIS BETWEEN STATE AND MARKET IN THE CONTEMPORARY ECONOMY
Journal Title: Acta Economica - Year 2008, Vol 6, Issue 8
Abstract
The concept of market economy and private property being self-regulated is the starting point and key argument for crucial reduction in both economic and social functions of the state in contemporary economy. On this ground, only active private entrepreneurship enables economic prosperity, considering economic growth directly dependent on the level of freedom of the enterprise. Being market economy, private entrepreneurship and economic freedom found of undoubtful importance, this paper deals with objective dependence of contemporary economic systems under conditions of full cooperation between the economy and the state. This is not only related to the experiences of mixed economies, but also to the general experiences of economic systems. Actually, economic history has offered enough arguments in favour of the state as an irreplaceable factor of economic development. Some experiences of the most developed countries support the aforesaid, since proper symbiosis between the state and market has existed there enabling the goals scheduled to be reached. Two predominant economic models nowadays – Anglo-Saxon and GermanJapanese – featuring maximal efficiency while allocate resources and market economy as a basic regulatory instrument - prove continual state intervention, not only for market defections to be corrected but also for providing outer conditions for its functioning. Straightforwardly, with growing cooperation between the state and economy, the state has become not only the economic subject but also an inevitable element of the market system. Thus, no imposed conflict between the state and market did result, but proper partnership between the private and public sector in contemporary market economies.
Authors and Affiliations
Властимир Лековић, PhD
Keywords
Related Articles
- EP ID EP43634
- DOI -
- Views 266
- Downloads 0
CRISIS SOLUTIONS – GREAT TRANSFORMATION
This crises is the neoliberal system crises. At the beginning of the nineties, after the collapse of the socialism, liberal capitalism has been marked as the unchallenged winner and universal model of the future world or...
Impact of Business Performance Indicators on Share Prices on Stock Exchanges in Bosnia and Herzegovina
Business performance indicators resulting from ratio analysis are one of the key benchmarks of investment analysis on capital markets, both developed countries and countries with emerging markets. Direct and positive rel...
VARIANTS OF THE REPUBLIKA SRPSKA'S INVOLVEMENT IN THE WORLD ECONOMIC TRENDS
Globalisation of the world economy that has been present at the world scene for more than two decades obviously creates a challenge for all those economies and enterprises that want to play an important role on the world...
CURRENCY BOARD POLICY AND ECONOMIC DEVELOPMENT OF BOSNIA AND HERZEGOVINA IN THE CONTEXT OF EUROPEAN INTEGRATION
Bosnia and Herzegovina is a small and open economy in transition with great distrust in local authorities and institutions. The country applies a currency board as the only acceptable and optimal exchange rate system in...
Ethics problems of advertising
New competition is not between companies’ products but between their added values in the form of advertising, promotional activities, services, advices, etc. Advertising is one of the most frequent ways of promotional ac...