The Role of Law in Ensuring Stable Economy in the Frames of Digitalization

Abstract

AbstractThe modern age of economic development is determined upon robust implementation of digital technologies which have been altering social relationships drastically. Such instruments as blockchain, Big Data, artificial intelligence and robotics are being applied widely. On the basis of those technologies a new economic model is emerging, which begets certain risks and threats for the legal sphere of society. The development of new economic relationships results in legal gaps – thus the legislative sphere has to chase after the progress. Moreover, new technologies penetrate the sphere of law itself, altering a large number of formal parameters of the legal system. Legally significant actions are being automated and driven by algorithms more often these days, which naturally raises questions of machine-readable and algorithm-driven law. The appearance of new law subjects – robots becomes possible, while they already are the participants of law enforcement processes. Unresolved questions around the legal status of robots and AI bring uncertain and unpredictable issues, which affect economic and social stability. Apart from that, the development of digital technologies allows a number of economic subjects to engage in activities beyond effective legal regulation. For instance, the conclusion of smart contracts by blockchain technologies allows securing the fulfillment of obligations without regulatory effects of law.In the course of further development of the abovementioned processes we foresee the appearance of new spheres of social relationships, including economic relationships – which won’t be covered by relevant legal regulations. Actually we are dealing with a new regulatory model of social and economic relationships which is based upon technological and non-legal regulators. Such a shift in the role of law over social relationships brings certain risks for economic sustainability. Therefore, there is an objective need for the development and implementation of scientifically-based models of legal evolution, which could ensure stable economic and social growth in the conditions of intensifying digitalization. These processes demand further in-depth studies from the viewpoint of modern scientific methodology, which correlates with the new era in the development of scientific knowledge.KeywordsDigital technologiesDigitalizationSocial relationshipsEconomic resilienceLegal regulationBlockchainSmart-contractsDigital economyJEL CodeK15K24L14O14O15O33P11Z18