Koliada T.
PhD (Candidate of Sciences (Economics)), Associate Professor, Department of
Finance, University of State Fiscal Service of Ukraine, Irpin, Ukraine
Muzychenko G.
Doctor of Political Sciences, Professor, Department of Political Sciences and
Law, South Ukrainian National Pedagogical University named after K. D. Ushynsky,
Odesa, Ukraine
EVALUATION OF STATE INTERVENTION TO THE COUNTRY
ECONOMY BY GLOBAL DEMOCRATIC MARKERS
Introduction. The financial crisis of 2008-2009 has demonstrated the lack of
theoretical research on the state as a public goods and services producer and on the
optimal scale of state intervention to the institutional structure of the national economic
system as well. The ability of market relations subjects to adapt to new conditions of
economic instability, the state's ability to form an effective mechanism to compensate
for the global economic crises impact on national economic systems by evaluation the
country's resource potential necessary for achievement of the set goals, taking into
account available budget possibilities and emerging budget constraints depend on
solving these fundamental theoretical problems directly.
The dominant scientific paradigm of the interpretation of the essence of the
interaction of the state and the market, based on neoclassical approaches and views of
other economical schools’ representatives according to which the state is devoted to
increase the level of market efficiency by eliminating its "failures", proved to be
imperfect due to the inability to explain modern institutional transformations [1, p.112].
The globalization processes’ strengthening has substantially changed the
understanding of the public finances essence and led to the evolution of theoretical
approaches to their interpretation. The traditional public finance theory based on the
welfare and public choice focuses on the formation of the revenue and expenditure part
of the central (state) and local budgets, examines the mechanism of their interaction in
the context of financing public goods and services. A new theory of public finance
considers the interaction of the state and the market in the context of cooperation and
competition between public and private market agents regarding the provision of public
services and takes into account the need for concerted action of governments at the
national and international levels to address global development challenges, especially
in the face of aggravation of the crisis phenomena in the economy.
As A.G. Zeldner pointed: "We can endlessly argue about the state’s place and role
in the economy, but there is a period in the development of each country when only the
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