The ineffectiveness of the state as a regulator in the global economy

• Autorzy: Mirosław Bojańczyk
• Języki publikacji: EN

Abstrakty

EN

The global market is largely a game without rules and without an arbitrator able to dispense the necessary medicine. Undoubtedly, the crisis has caused the emergence of new challenges, which require the active role of the state in various areas. States play the role of company owners and market regulators. Unfortunately, governments have not been performing these functions adequately. Those therefore, who themselves committed many mistakes, must improve not just the mis-functioning market, but also a defectively functioning state; or, to put it in other words, they must improve themselves. The negative experience of state intervention has led many to conclude that the lesser the role of the state, the better. It does not appear, however, that such a conclusion is fully justified. Please note that the absence of state in the economy could be as damaging as an excess of it. In view of the increasing costs and risks associated with globalisation, there is a need to increase the role of the state in order to decrease the adverse effects of this process. Determination of the adequate role of the state is one of the most difficult problems that arise in the process of globalisation. The macroeconomic policy is a very important issue; it should be shaped so as to foster economic growth. The budget deficit and inflation must be reduced. Whenever a deficit occurs, it is important how it is financed. In constructing the budget, it is of paramount importance to have the share of fixed expenditure not too high. This increases flexibility. A budget should also include off-budget operations. This will make a better assessment of government finances possible. As the capital market develops, the state largely loses its ability to act. To attract capital, the state must submit to the requirements of capital. Taking action unfavorable to capital means that capital leaves (this is a kind of punishment). From this point of view we can say that the state loses its significance, because it may not take certain actions at will. Incompleteness of political and economic globalisation promotes the growing strength of the capital market. The flow of labour remains blocked, while capital is on the move. Despite these limitations of the States' ability to act, there are new trends and the impact of new challenges. Without the active role of the State the adverse consequences of development of capital markets cannot be restricted. These measures must however be carefully considered and subject to a certain logic. It is essential to identify the causes of instability. (original abstract)

Słowa kluczowe

EN

Regulatory function of the state; Effectiveness

PL

Regulacyjna funkcja państwa; Efektywność

• Czasopismo: Journal of Management and Financial Sciences
• Rocznik: 2010
• Tom: 3
• Numer: nr 4
• Strony: 44--71

Twórcy

autor

Mirosław Bojańczyk

• Szkoła Główna Handlowa w Warszawie

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