the economies of most countries of the world are mixed, which carries out regulatory functions as the market itself, and the state.This market failure and some external factors have caused the active participation of the state in economic life.Any government in all historical periods are always performed economic functions (collection of taxes and duties, protection of property, the organization of cash flows), but only in the twentieth century.functions and role of the state have changed greatly.The public sector in a market economy produces a significant portion of the national product.The government regulates the economic processes and the redistribution of income.Market imperfections often affects the entire economy and the entire market mechanism ceases to ensure the effective distribution of the different resources in the community.In order to prevent crises in the economic sphere, we need to strengthen the state's role in controlling most of its processes.The fiasco of the market - it is his failure, when violated all the mechanisms of the normal functioning of the economy.To this can cause the following reasons:
- misallocation of resources available;
- monopolization of the economy (in this case dominated the markets with imperfect competition);
- inability of market participants to environmental protection and conservation of resources trudnovosproizvodimyh;
- lack of market interest in producing a variety of public goods;
- unequal income distribution;
- lack of mechanisms that take into account the external effects;
- unstable macroeconomic development.
pursuit of an effective market economy, the state enters the economy and implement measures of economic and administrative measures which ensure conditions for achieving the main macroeconomic objectives.Fiasco - is the introduction of state regulation of economic processes.It performs the following economic functions:
- provide the necessary legal framework, under which will operate effectively market system.The adoption of laws that protect property rights, regulate relations between labor and employers, the government and entrepreneurs, as well as ensure compliance with contracts is key to the efficient functioning of the economy.Mandatory, reasonable, sustainable for all participants in the legislation provides an opportunity for all economic actors to make a free choice and to plan activities.In carrying out this function, the government contributes to the reduction of transaction costs, which leads to the most efficient allocation of resources;
- environmental protection for the purpose of environmental protection throughout the human habitat;
- protecting the competitive environment.When restricting competition and raising the level of monopolization of markets reduced the effectiveness of the redistribution of resources, leading to a net loss of the whole society.For this reason, the government has an active anti-monopoly policy, which aims at preventing the creation of new and existing anti-monopolies.The fight against so-called "artificial monopolies" is held along with the economic regulation of natural monopolies;
- price controls on certain groups of goods;
- determining minimum wage levels, benefits, pensions and compensation;
- ensure a certain level of education and health;
- stabilize and stimulate the economy;
- adjust the optimal allocation of resources and public goods.
market failure often leads to the failure of the state.This occurs when it can not provide the best for the community and the use of the limited redistribution of the resource base.For this reason, taking certain measures to address market failure, the government should carefully monitor all the possible consequences of the actions taken and adjust them according to specific political and socio-economic situation in the country.
