ON THE PROBLEM OF FORMING MODERN MECHANISMS IN STATE REGULATION OF ECONOMIC PROCESSES

Abstract

The realization of the economic modernization of Ukraine’s national economy stipulates the development of effective governance mechanisms aimed at achieving the aims of constant development. Despite the admitted effectiveness of market mechanisms for regulating the most important parameters of economic processes, the practice of the world economy confirms that the state at all stages of its functining was to some extent forced to interfere in economic processes. Therefore, the problem of developing conceptual approaches to the formation of effective mechanisms in state regulation of economic processes is highly actual. Problems of forming mechanisms of state regulation of economic processes were studied by leading national and foreign scientists. The purpose of the article is to develop approaches to the formation of modern mechanisms in state regulation of socio-economic processes. The ensuring function of the public administration system is determined by a number of factors: the state organizes the economic order responsible for establishing general rules of economic activity and guarantees the stability of their implementation, it acts as an entrepreneur carrying out economic activities within established norms and rules, it objectifies and represents public intentions and interests. The main courses in state regulation of economic relations are: ensuring the legitimacy of business activities; protection of economic competition (antitrust activities); the creation of special (free) economic zones; investing in the economy. Property relations, which determine the balance of interests of the state, private proprietors, production management, and society as a whole, are the basic factor of controlling the complex socio-economic system. The control mechanism is a multi-level hierarchical system of basic interrelated elements and their typical groups (subjects, objects, principles, methods and tools, etc.), as well as ways of their interaction. This includes integration and disintegration, which influence the coordination of economic relations (interests) of the state, proprietors (participants and shareholders), creditors and personnel, including representatives of the higher corporation and society management. The following principles can be distinguished, which should be the basis for the formation and improvement of the mechanism of the functioning economy: • purposefulness — compliance of the mechanism with the aims of the functioning and development of the economic system; • consistency — ordering and structured interaction of all elements of the economic system; • the maximal realization of the economic potential; • adaptability — quick response to various changes in the external environment; • the complexity of the coverage of solving tasks; • interest concordance of the subjects in the management mechanism; • innovativeness: orientation of the organizational and economic mechanism of management of functioning on the innovative development of the branch. Problems in the formation of effective market mechanisms of the Ukrainian economy are determined by an attempt to create a self-regulating market system with purely economic approach and ignoring the essential social interests of broad segments of society. The most characteristic feature of the social situation in Ukraine is impoverishment of the country’s population, falling of the living standard of the greater part of it, deterioration of health and decreasing of average life expectancy. The main link in this chain of problems is the existing payroll system and it does not correspond to market conditions. Three factors should underlie the formation of mechanisms for state regulation of the economy: quality of life, human development and human capital. At the same time, special attention should be paid to the development of human capital, the formation of a socially responsible system for the distribution of income received, the creation of institutional frameworks for the effective management of socio-economic processes. Exactly the status of education, health care and the social consumption level are gaining more and more importance by the formation of state management tools in developed countries, in specialized international organizations and by evaluating national socio-economic systems focused on ensuring.