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From "Failures of the Market" to "Failures of the State": Once Again to the Question of Social Justice in Economy

From "Failures of the Market" to "Failures of the State": Once Again to the Question of Social Justice in Economy

Journal of Economic Regulation, , Vol. 7 (no. 2),

Principles of social justice don't belong only to area of morals, their practical embodiment in economy and the social sphere determines the content and a configuration of institutional system. Ensuring equal opportunities, investment into the human capital, elimination of disproportions in distribution in the direction of bigger compliance of private and public profits play a crucial role in neutralization of "failures of the market". In the paper it is shown that actions of market forces in modern Russia are insufficiently balanced by actions of the state institutes for control of an excess inequality, creation of the competitive environment and counteraction to rent-seeking behavior of certain players. In the country there was unfairly high level of differentiation of the population according to the income which formation is influenced by the institutional environment, there is a process of an institutionalization of poverty. The corresponding quantitative estimates and intercountry comparisons confirming this conclusion are given in the paper. It allows to talk about "failures of the state" and signs of "standard capture" in modern Russia. In the paper the conclusion is drawn that such situation when institutional and market mechanisms in common work for restriction of equal opportunities and increase in distinctions in the level of the income and wealth can't allow. Coordinated actions on change of the situation which can provide minimization of failures of the state are necessary. These actions are in a foreshortening of a question of restoration of social justice.

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Ethical Factors of Social Capital Increasing in Russia

Ethical Factors of Social Capital Increasing in Russia

Journal of Economic Regulation, , Vol. 7 (no. 2),

Authors’ definition of social capital as an institutional and ethical category, determined by the structure of moral and ethical features of economic agents is considered. It is shown that the level of social capital directly depends on the prevalence of such features of economic agents as honesty, fairness, responsibility, humanity, patriotism. Despite the fact that the level of social capital is currently evaluated through qualitative (personal, expert) methods, it is possible to identify its impact on specific economic indicators. For the analysis based on the elements of social capital and other indicators of socio-economic development the authors used Russian official statistics, international organizations data and sociological surveys results. Considering the advantages and disadvantages of correlation and regression analysis and mathematical methods in Economics in general, the authors set the task not to construct a multifactor model of economic and non-economic indicators interrelation, but to confirm their close ties according to the purpose to substantiate the necessity of the government social and economic policy improvement by taking into account the influence of institutional and ethical factors that have long been investigated outside the pure economic science. Key factors of social capital increasing include honesty, trust, fairness, but their level in Russia remains extremely low due to cultural and historical peculiarities of national development, that can be proven by economic crimes and the shadow economy statistics. Great attention is also paid to social responsibility and patriotism, which are of particular importance in the current geopolitical environment and can be combined in the sense of national economic responsibility.

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The Social Control of Food Quality in Russia: Theory and Practice of Self-Regulation

The Social Control of Food Quality in Russia: Theory and Practice of Self-Regulation

Journal of Economic Regulation, , Vol. 7 (no. 2),

The paper describes the transformation of the mechanism of quality control for food products in Russia. It is shown that global trends of deregulation have been leaden to shift from state regulation mechanism of self-regulation in Russia. It was assumed that the organization of self-regulation and organizations of consumer rights protection form the basis of social control mechanism. They contribute to standardization, advocate for the interests of bona fide consumers and producers, organize voluntary certification program. However, in fact, in terms of information asymmetry and the weakness of the non-government mechanisms originated in the failure of the system of quality assurance. The authors explained the situation from the standpoint of the institutional approach. We give some recommendations for improving the efficiency of the regulatory system in Russia. In conclusion, the subject-functional diagram showing the mechanism of social control food quality is presented.

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Mechanisms to Support Private Enterprise in the System of State Capitalism

Mechanisms to Support Private Enterprise in the System of State Capitalism

Journal of Economic Regulation, , Vol. 7 (no. 2),

Some of the main problems in developing the institute of private enterprise in Russia are ineffectiveness of government support and lack of competence among the entrepreneurs themselves. In the paper the author analyzes the existing mechanisms of business development for small and mediumsized businesses, which in case of effective implementation will drive up the share of self employment, tax revenue and quality of life. The aim of the paper is to develop methods and tools for development of private enterprise institute pursuing the task of forming a highly developed modern society. The mechanisms of support for small entrepreneurs in China, as well as problems of search funds and mittelshtands mechanisms were considered. The practical significance lies in the analysis of the existing enabling mechanism for small and medium-sized businesses with the purpose of development of new mechanisms of transformation of economic systems in Russia.

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Methodical Approaches and Mathematical Research Tools of the Correspondence Degrees for Those Trained In Accordance With the Federal State Educational Standards and the Last Requirements of the Bologna Process

Methodical Approaches and Mathematical Research Tools of the Correspondence Degrees for Those Trained In Accordance With the Federal State Educational Standards and the Last Requirements of the Bologna Process

Journal of Economic Regulation, , Vol. 7 (no. 2),

The instrumentality and methodical approach to solving the problem of matching students to the federal state educational standards, as well as problems of conformity with the essential requirements of the Russian standards of the Bologna agreement is offered in the paper. Tools to address both objectives are based on the provisions of pattern recognition theory. A graphic illustration is presented and the mathematical apparatus of construction of the feature space is given in order to simulate the degree of affiliation to the selected object class. Reference values, which student should achieve, are specified for a given level of student learning in this space. Similarly educational standard is compared with the requirements of the Bologna process. The authors propose methodological support of the study of the federal state educational standards compliance to the Bologna process, including the completeness verification, analysis consistency to each other and other legislative acts, check refinement of educational standards adopted international educational system (Bologna process) in quality and content. Actions have been developed by benchmarking of existing educational standards.

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The Role of National Clusters in the Development of Global Value Chains

The Role of National Clusters in the Development of Global Value Chains

Journal of Economic Regulation, , Vol. 7 (no. 2),

In modern economic literature there are many publications concerning innovative development of clusters and global value chains (GVCs). But still the interaction between these two structures is not studied completely. What are the main features and mechanisms of their interaction? Can clusters stimulate companies’ involvement in GVCs? Do they facilitate competition between participating companies and countries? These are just a few of those issues that are covered in the article. The efficiency of incorporation to GVCs depends both on the type of embedded cluster, and the management of particular links within the chain. In order to explain the cooperation between companies, the institutional approach is used, paying much attention to the issues of moral risks in the context of multiply goals, the effect of gauge, and the development of long-term relational contracts among agents. Thus, the recommendations concerning the role of clusters and GVCs for the raise of competitiveness of countries are provided with regard to the integrated research of global suppliers and customers’ motives.

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Factors of Public Procurement: Evaluation of an Influence into the International Comparison

Factors of Public Procurement: Evaluation of an Influence into the International Comparison

Journal of Economic Regulation, , Vol. 7 (no. 2),

There was a tendency to expand the using of state regulation tools and increasing the scale of the public sector of economy In XX century. Statistically, it is characterized by increasing of indicators of public expenditures and procurement of products for public use. The amazing thing is that countries which are different from each other in terms of the formed institutional environment, reflect the same trends of maintaining the scale of public purchases market. Analysis of the factors influencing on purchases for public use, allows to identify the causes of the government’s interests in expanding of government intervention in the economy and the use of this tool in the development of economic policy.
 
In the paper reviewed the impact of a number of institutional and technological factors such as The Corruption Perceptions Index, government debt, the percentage of water surface area, Gini coefficient, unemployment and Ease of Doing Business Index on public purchases. Assessment of the impact of these factors was carried out on the volume of public purchases in the framework of an international comparison of procurement practices. Justification of the results was suggested in terms of the existing approaches to macroeconomic policy.

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Regional Specifics of Human Capital Reproduction on the Case of North Caucasian Federal District

Regional Specifics of Human Capital Reproduction on the Case of North Caucasian Federal District

Journal of Economic Regulation, , Vol. 7 (no. 2),

The paper is devoted to hot issue at the moment to the problem of the huma capital reproduction. The author considers the theoretical issues and practical aspects of human capital at the meso-level in the case of the North Caucasian Federal District. The district is seriously fallen behind in terms of human capital reproduction of the national average. However, despite the low levels of socio economic development in the whole the district holds a leading position in relation to demography and health protection. From author’s point of view, this is due to ethno-cultural characteristics of the human capital in the area. The regional specificity of human capital is revealed on the basis of the analysis.

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Strategy of Commercial Real Estate Market Development and Interests of the Region: Rostov Region

Strategy of Commercial Real Estate Market Development and Interests of the Region: Rostov Region

Journal of Economic Regulation, , Vol. 7 (no. 2),

The author discusses the features of the development of commercial real estate market in the Rostov region on the assumption of a relationship between the vector of entrepreneurial activity and the dynamics of supply and demand of real estate in the context of the public interest. The urgency of the problem is due to the institutional nature of commercial real estate in business development, which is neglected in the practice of public exposure due to lack of methodological support and instrumentality. Based on the self-organization of these dynamic models related economic systems in the economy of the region, a logical assessment of the trends of development of business in the consumer market in the context of the real estate needs as infrastructure is given. It allows to identify the main patterns of development and its specific regional features. Statistical evaluation of the cost of renting and buying commercial real estate in Rostov-on-Don city has helped to identify new strategies for business development, requiring the transformation of commercial property types, proposed in the framework of regional program with a focus on five trends of Global Power of Retailing 2015.

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The Ratio of Instrumental and Terminal Values of Work Motivation of the Population (Case Study of Vologda Region)

The Ratio of Instrumental and Terminal Values of Work Motivation of the Population (Case Study of Vologda Region)

Journal of Economic Regulation, , Vol. 7 (no. 2),

The paper analyses work motivation of Vologda region’s population with a special focus on defining the role of material needs as the major factor motivating to labor. The study shows that the majority of the population can be characterized by instrumental attitude to work. It is expressed by the predominant position of material needs over non-material in employment, labor, job change and searching for secondary employment, which consequently leads to employees‘ low level of social attitude, unwillingness of increasing labor activity. In conclusion it is stated that under such conditions the value of labor process itself decreases, which undoubtedly leads to losses in labor productivity.

Views: 881

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Cluster Policy As an Instrument of Public Management: Regional Aspect

Cluster Policy As an Instrument of Public Management: Regional Aspect

Journal of Economic Regulation, , Vol. 7 (no. 2),

The paper presents the research results related to the effectiveness of the new public management instruments of innovative development, which is a regional cluster policy. The experience of implementation of cluster policy in the Rostov region is analyzed, problems are identified and priorities are defined, the solution of which will allow to increase the competitiveness of the region. The identified problems should be carried out in two stages: at the first stage (2016–2017) it is important to complete the implementation of measures to improve the regulatory framework of the Rostov region in the field of cluster and innovation development, investment and socio-economic policy; in the second (2018–2020) to conduct activities aimed at the formation of public authorities of the region a favorable economic and legal conditions for development of cluster infrastructure. Scheme of innovation cluster with government participation that satisfies the principles of public administration is proposed.

Views: 1099

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