Efficiency of State Economy Regulation Tools in Contemporary Russia

Abstract

It has now become obvious that market economy is not able to develop successfully without government support. Moreover, state regulation is becoming increasingly important, particularly in the periods of recession. The pandemic of COVID-19 has changed the world and required strengthening the regulatory function of the state. In 2020, the government had to provide for organizing and financing the national health care system, free vaccination and medicines for the public, allowances to families with children and to people on unpaid leaves, as well as subsidies and reduced-rate lending to businesses. The demand for statism – a doctrine that the political authority of the state is the objective and result of social development – is a new trend in the world. Russian economy currently features a slow pace of growth, a lack of private investments, and a decrease of real disposable income. In this context, studies of efficiency of economy regulatory tools used by the state are becoming topical. The article analyzes the role of the state in the society, determines its functions and objectives, objects and subjects, and describes its administrative and economic regulatory tools. The authors point out the country’s economic problems of the recent decade and estimate the efficiency of the economy regulation tools used by the state.