The state economic regulation in the neoliberal globalism era

Abstract

The paper shows the main causes, manifestations and particularities of the intensive globalization started in the second half of the twentieth century, which has had both objective and subjective aspects. It analyzes the subjective influence on the globalization made by the neoliberal ideology and the functioning of international actors. The work has outlined the main theoretical contradictions, myths and flaws in the current economic mainstream regarding the role and functions of the state in the economy and state economic regulation. The study reveals and statistically confirmed the main negative trends, processes and phenomena at the national and global levels in the era of the globalization caused by the neoliberal concept, such as: (1) growing income and wealth inequality at the global and national levels; (2) problems with using natural resources and environment; (3) uneven development among countries; (4) the growing negative influence of transnational capital; and (5) macroeconomic instability and hypertrophied development of the financial sector (financialization), etc. The study defines the main economic policy directions in order to eliminate the negative impact of neoliberal economic thought on socio-economic development. The paper also describes and evaluated the main scenarios for the further development of views on state economic regulation among scholars and state managers. It shows that the most likely scenario is the increasing of the role of state economic regulation. On the one hand, states can form rather aggressive policies with trade wars, protectionism, military and diplomatic conflicts, isolation, localizaion, etc. On the other hand, wanting to protect the interests of their societies, states can try to build a fair and inclusive global space, which would be the most beneficial development scenario for humanity. The work identifies the main challenges for state economic regulation caused by globalization and it also shows needed transformations: (1) increasing the level of subjectivity of the state as a bearer of the national interest, (2) ensuring the institutional foundations of inclusive global development based on the principles of equality, justice and transparency, (3) neutralizing the negative impact on national socio-economic security carried out by international actors.