improving the standard of living of the vast majority of the population as a result
of reforms, reducing the income differentiation between rich and poor in the course of
reforms;
the conformity of the goals of reforms with the labor motivation of the majority
of the active part of the population;
ensuring the conditions for the maximum realization of the creative potential of
the population, enhancing the scientific, educational and cultural potential of the
society.
At the present time, one of the most difficult issues is the combination of market
and social justice. The principle of social justice requires that all members of society
have the necessary conditions for life, real access to culture and education, protection
in old age and in case of disability. In other words, the market economy should have a
social orientation. This includes the theory and practice of social market economy and
indicative planning.
Analysis of global trends confirms that states with a socially oriented market
economy have come to this system mainly through an evolutionary way. Economic
prerequisites for mergers, convergences and acquisitions were created. However, all
the processes were objectively conditioned, they had the necessary legislative base,
met socio-economic conditions and were aimed at more efficient solution of the tasks
set for the state and society. So, space exploration and education reform was carried
out under the leading role of the state in the United States, increasing the efficiency of
the coal industry in the UK was carried out through nationalization, and then
privatization, etc.
This practice confirms the conclusions that the formation of socio-economic
relations is carried out on specific social, political and economic prerequisites and is
supported by the majority of the population of the region or state.
Among the reformers, the supporters of the Polish version of the «shock therapy»,
the Chilean method, the methods of the Czech Republic and China prevailed among
others. There was a firm opinion that the change of forms of ownership will
automatically ensure the growth of production efficiency, unemployment will make
work effectively those who have a job, the independence of enterprises will oblige them
more rational use of productive capacity, financial resources will be directed to
innovation and investment, labor productivity will increase and, in general, production
will be more effective.
M. Porter in his work «International Competition» gives a list of determinants,
which in his opinion determine the competitive advantages of the country [5, p. 67]:
the strategy of firms, their structure and competition in the domestic market;
parameters of demand in the domestic market;
parameters of factors of production (resources) and infrastructure;
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